Usha Martin launches new unit

Usha Martin today inaugurated its joint venture for manufacture of oil tempered wires, Pengg Usha Martin Wires Private Limited, at its Ranchi plant.

The joint venture agreement between Usha Martin and Joh Pengg AG was signed on March 21, 2006.

Gottfried Pengg, chairman, Joh Pengg said, "We are indeed happy to partner with Usha Martin group in India and are confident that the combined resources of our two companies will make this enterprise highly successful."

B K Jhawar, chairman, Usha Martin said, the group was always committed to introducing high quality value added products with world class technologies and the joint venture with Joh Pengg to manufacture oil tempered wires was an initiative in the direction.

The cost of the first phase of the project is Rs 46 crore, which is being funded by share capital of Rs 18 crore, balance Rs 28 crore funded from promoters loan of Rs 11 crore and long-term loans of Rs 17 crore.

Joh Pengg holds 60 per cent in the joint venture while the balance is held by Usha Martin.