The start of the fiscal year 2021–2022 marked the beginning of the pandemic’s second wave in India. Though the repercussions of the second wave were devastating from a social standpoint, the intensity of the impact on the economy was less severe than in the previous fiscal year. The economy continued to recover, as seen by a significant increase in public sector capital spending, particularly on infrastructure, robust exports, a resurgence in the services sector, and higher consumption levels.
The conflict between Ukraine and Russia also resulted in rising input prices for high carbon wire rods, which reached an all-time high by early March 2022. Because international crude oil prices continued to remain firm, an increase in demand in the oil and gas market segment globally was possible, which improved demand for Usha Martin’s goods such as big diameter ropes and drilling lines, according to MD Rajeev Jhawar Usha Martin.
Mr. Rajeev Jhawar Usha Martin believes that quickly anticipating the pandemic’s obstacles was the most significant action that helped the organisation remain resilient in the preceding fiscal year. “As an organisation, we were quick to anticipate these challenges and implemented several mitigation measures to ensure our businesses remained resilient.” “We were successful in maintaining our margins and profitability by diversifying our product mix to include higher-value products, as well as increasing our penetration in newer geographies such as Australia and South Africa,” he said.
Increasing market penetration in fresh geographies paid rewards, as Usha Martin’s consolidated export revenue increased 32.10% from Rs.1034.26 crore in FY 2020–21 to Rs.1366.24 crore in FY 2021–22, and is continuing to improve this year. Usha Martin is now planning further expansion under the direction of Rajeev Jhawar. This involves improving their product mix, focusing on increasing market share in international markets, and investing in capacity expansion.
“We are expanding our rope production capacity, with a focus on high-end ropes, specialised wires, and LRPC.” We have planned capital expenditure of roughly Rs.285 crore and hope to finish our expansion programme within the next 12–15 months,” said Rajeev Jhawar, MD.
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