Kolkata, Oct 25 (IANS) Wire rope manufacturer Usha Martin will invest Rs.270 million to set up a bright bar manufacturing plant in Chennai to meet requirements of the automobile industry in south India.
'We have acquired land for the project which is expected to be completed in two years,' Usha Martin managing director Rajeev Jhawar said.
'The project would be funded from internal accruals,' he said.
Announcing the company's consolidated results for the first half of the current fiscal, Jhawar said the net profit stood at Rs.589.4 million while sales (net of excise) stood at Rs.9.85 billion.
'We will improve operating margins substantially after the captive coal and iron ore linkages become fully operational,' he said.
The company's production capacity of wire rope would be increased from 60,000 tonnes to 90,000 a year in the next 18 months, he added.
Usha Martin has operations in Ranchi, Jamshedpur and Hoshiarpur as well as in Britain, Thailand and UAE. 'A plant in the US would be commissioned by January 2007,' Jhawar said.