KOLKATA: Emboldened by the Tata-Corus deal, another Indian company, Usha Martin Ltd (UML), is closing in on a takeover of a unit in the U.K. The Rs. 2,600-crore company, specialising in the manufacture of speciality steel, is planning to acquire a bright bar unit in the U.K.

Confirming this development, P. Bhattacharya, Joint Managing Director, told The Hindu that four companies had been shortlisted and the deal was expected to be sealed within 2006-07. "We are looking at a capacity of 15,000 tonnes and have completed the preliminary due diligence," he said.

UML is now implementing a bright bar project in Chennai, which is likely to be completed in 24 months. Bright bars are steel items used in auto component manufacturing. UML, which already has a unit in Ranchi to produce 12,000 tonnes of bright bars, has marked its southern foray with the setting up of a 30,000 tonnes per annum capacity unit in Chennai involving an investment of about Rs. 35 crore.

"Globally, we are looking at building a 60,000-70,000 tonnes bright bar making facility", Mr. Bhattacharya said.

At a press conference later, he said UML's existing joint venture with Gustav Wolf of Germany for steel cord for conveyor belt reinforcement in Ranchi was now being extended to cover tyre beads and a new 30,000 tonnes per annum facility would be set up there at an investment of Rs. 40 crore.

Mr. Bhattacharya said the conveyor cord unit would be re-located to the new site in Ranchi where the tyre bead unit was being proposed and both the projects would require a total investment of Rs. 40 crore.

UML, which has manufacturing facilities in Ranchi and Jamshedpur in Jharkhand, and Hoshiarpur in Punjab, besides the U.K., Thailand and the UAE, is implementing a Rs. 1,200 crore capex programme, Mr. Bhattacharya said.

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