New Delhi, India, September 11, 2002
—The International Finance Corporation (IFC)—the private sector financing arm of the World Bank Group—will invest in Usha Beltron Limited (UBL), India’s leading manufacturer of steel wire ropes and wires, specialized steel products, and Jelly Filled Telephone Cables (JFTC).
IFC’s financing package to UBL—consisting of about 14.4 percent equity amounting to about US$3.6 million and a $21 million loan—is part of the company’s $50.4 million investment plan over the next three years to strengthen its balance sheet, reduce operating costs, and increase capacity utilization from 72 to 86 percent. The capital expenditure will include setting up a direct reduced iron (DRI) plant for backward integration and building a captive co-generation power plant to produce power using cost efficient and environmentally friendly technology.
UBL is sponsored by the Kolkata-based Jhawar family which has been involved in the steel wire ropes business for over 40 years. UBL has two main manufacturing facilities in India, the Wires and Wire Ropes plant, Ranchi and the Usha Alloy Steel Division plant, Jamshedpur, which produces specialized steel products. It also has manufacturing subsidiaries in the United Kingdom (Brunton Shaw UK) and Thailand (Usha Siam Steel Industries Public Company Limited). UBL has created a worldwide sales, service, and distribution network covering about 50 countries worldwide.
Mr. B. K. Jhawar, Chairman, UBL said, “IFC’s global expertise in manufacturing has benefited us immensely in focusing on our core business of wire ropes and wires. With this long-term partnership with IFC, we look forward to maintaining the best international standards in corporate governance and environmental and social responsibility.”
Mr. Dimitris Tsitsiragos, IFC director for South Asia, added, “We commend Usha Beltron for consistently reducing operating costs over the last few years to successfully withstand increasing global competition. This project is an example of our commitment to support Indian companies that are restructuring and modernizing to become international market leaders.”
IFC’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its founding in 1956, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC’s committed portfolio at the end of FY02 was $15.1 billion, with an additional $6.5 billion held for participants in loan syndications.
