Mahindra Ugine Steel Company Ltd Merged Company Summary

Mahindra Ugine Steel Company Ltd Merged Summary

Incorporated in Dec.62, Mahindra Ugine Steel (MUSCO) commenced business in May 63. It was promoted by Mahindra & Mahindra with 49% stake, along with Ugine Aciers, France; and International Finance Corporation, Washington.The company manufactures tool, alloy and special steels. It has modernised and expanded its capacity to 1,05,000 tpa. The products of the company are either in rolled, forged, or pealed condition; and supplied as blooms, slabs, RCS, rounds, squares, hexagonals, octagonals or flats. Its products are used mainly by the automobile and general engineering industries for crankshafts, axles, connecting rods, gears, ball and roller bearings, shells, valves, turbine blades, etc.The company came out with a convertible debenture offer in Jun.92 to meet working capital requirements MUSCO is the only steel company with the ISO 9002 accreditation for all its operations. It is also the only steel company in India which is approved by large, reputed multinational corporations, such as General Motors and Ford Motors, US; Mercedes Benz and BMW, Germany; and Mitsubishi Motors, Japan, with all specifying the use of MUSCOs steel for critical components sourced by them from India. The company sold off its hotel division and bought Mahindra Stampings. It has hived off its steel division into a separate 50:50 joint venture with Spains largest alloy steel manufacturer Sidenor. The equity infusion by Sidenor will be utilized towards installation of balancing equipment and working capital. It is through its subsidiary, Mahindra Infrastructure Projects (MIPL), is developing properties in Bombay. This is also being hived off as a part of group restructuring. MUSCO was selected by Bohler Uddeholm of Austria as a distributor for the latters tool and die steel production in India and East Asian countries.Console Estate & Investment Ltd, Mahindra Infrastructural Projects Ltd, Corbel Estate & Investment Pvt Ltd are the subsidiary of MUSCO. It has set up a new press shop at Nashik. The plant is presently set up in a different company Pranay Shares & Securities Ltd which will become Muscos 99% subsidiary in Mar. 2000 on conversion of FCDs held by Musco. This plant has capacity of 4,500 tpa in the the first phase which will be expanded to 10,000 tpa eventually, in line with M&Ms requirements. A new special steel grade for Crank-Shaft application was developed and marketed by the company.The company issued issued 4,00,000-12% Cumulative Redeemable Preference Shares of 100/-each on private placement basis in 2000-01.The company has redeemed 4,00,000 preference shares of Rs.100/- each out of the above proceeds. It is planning to develop Ball Bearing grade steel for Global approval by controlling inclusions,oxygen,titanium and calcium at extreme low levels. During 2002-03 Mahindra & Mahindra Ltd transferred its entire shareholding consisiting of 1,52,41,885 equity share representing 49.28% to its wholly owned subsidiary viz Mahindra Holdings & Finance Ltd.