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Mahindra Ugine Limited was incorporated on the 19th of December 1962 and forms a part of the Mahindra group. The company on the 26th of Sept 1963, entered into a technical collaboration with Ugine of France for producing alloy constructional steel products. MUSL has been promoted by the Mahindra & Mahindra group, which has an excellent track record. The management is very progressive and has build up a good reputation and brand image in most of the fields they have diversified into. MUSCO has an installed capacity of 90,000tpa to produce tool, alloy and special steel and 18,000tpa of pressed sheet metal components and assemblies.
During the year the company produced 65,378 tons of alloy steel, as compared to 49,456 tons in the previous year, showing a yoy rise of 32.1%. The sales turnover amounted to Rs2.03bn with sales of 65,618 tons, as compared to Rs1.73bn with sales of 51,954 tons in the previous year. Reduction of cost in all operating areas is the key focus of the company. MUSL is concentrating on improving yield and reducing norms of consumption of electrical power, fuel oil, electrodes and fluxes.
MUSL is giving another look at its business plan. It has entered the continuous cast products market where the company will face stiff competition. MUSL will also concentrate on increasing the output of peeled bars, heat treated material and ingot route items. Mahindra Ugine decided to transfer its steel division to a separate company called Mahindra Automotive Steels Ltd. This was to be later formed as a 50:50 joint venture with Sidenor of Spain.
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