Rajeev Jhawar MD, On TATA Steel-Usha Martin Deal

 According to Rajeev Jhawar, the total debt is around 4500 to 4600 crores including the long term as well as all the working capital. With the transaction with TATA steel, the company is expected to repay almost all its debt. The wire rope will have a very strong residual company with a very strong balance sheet with an annual profit between 250 to 300 crores on a consolidated basis. Rajeev feels that this is a business that can grow Usha Martin has been a global leader. In wire group business, Usha Martin has the leadership position in the country and they are among the top 4 players in the world. In the past 3 or 4 years, the company could not invest in this business because of its over-leveraged position. By selling the steel plant, Rajeev Jhawar expects that they will be able to expand their wire rope and wire business as there would be very good cash flows generated. Rajeev, jhawar feels that going to be a debt-free company, with the global leader in the wire rope business they have the opportunity to have good growth over the next 3,4 years. They also expect good growth both in terms of a top line and bottom line.