1. By AbhashRanjan

3. PRESENCE

4. BUSINESS SEGMENT

5. DESIGN OF STUDY

6. INVENTORY MANAGEMENT

7. ABC ANALYSIS

8. INTERPRETATION

9. CONCLUSION

11. VISION OF USHA MARTIN To retain market leadership in India and be globally competitive through customer orientation, excellence in quality, innovation and technology.

12. HISTORY OF USHA MARTIN 1960: The Company was incorporated as Usha Martin Black (Wire Ropes) Limited having its wire rope plant at Ranchi. The name was changed to Usha Martin Black Ltd. in 1979 and further changed to Usha Martin Industries Ltd.(UMIL) in 1983. 1965: UMIL promoted UshaIsmal Ltd. (UIL) in collaboration with CCL Systems Ltd of UK for the manufacture of fittings and accessories, equipment for pre-stressed concrete system, wire ropes and wire ropes splicing equipment at Ranchi. UIL merged with UMIL in 1990 and became a division of the company

13. 1971: UMIL promoted Usha Alloy Steels Limited (UASL) for the manufacture of billets at Jamshedpur. UASL merged with UMIL in 1988. 1975: UASL acquired an ongoing rolling mill at Agra.

14. WIRE AND WIRE ROPE DIVISION The Usha Martin Ltd. is produce 100,000 MT / annum manufacturing facilities at Ranchi (Eastern India) is amongst the top four wire rope producers in the world. Since its inception, the division has continuously developed and expanded its range of product offerings and is considered a pioneer in certain classes of products in India. Steel wire ropes manufactured by the division find wide applications in oil exploration, mining, elevators, Crane, fishing, construction, load transportation and general engineering sectors.

15. MACHINERY DIVISION This is located at Bangalore was set up in 1974 to manufacture Wire Drawing and allied machines. Over the years, the division has added a wide range of Wire, Wire Rope and Cable machinery to its product range and is now the leader in this field in India. The division started with technical collaboration with M/s Marshall Richards Barcro of UK and subsequently has collaborated with internationally reputed firms like De-Angeli Industries SPA, Italy, StolbergerMaschinenfabrik, Germany, Hi-Draw Machinery Ltd, UK and RedaelliTechnaMeccanica, Italy. A faciltity in ranchi has also been created for manufacturing machines required for Wire Drawing and Stranding Applications.

17. Iron ore mine (Barajamda) and captive coal mines (Daltonganj) in the state of Jharkhand, India;

18. Steel manufacturing facilities located in Jamshedpur and Agra;

19. Wire and wire rope manufacturing facilities located in Ranchi (Jharkhand) and Hoshiarpur (Punjab) in India, Bangkok (Thailand), Dubai (the UAE) and Nottinghamshire (the UK);

20. High–value wire and conveyor cord manufacturing facilities at Ranchi;

21. Machinery manufacturing and engineering application centers in Ranchi and Bangalore;

22. Manufacturing units for bright bars in Ranchi and Sriperumbudur (Tamil Nadu); Rigging shops in the Netherlands and the UK.

23. Telecommunication cables manufacture at Silvassa (India).

25. USHA MARTIN AN INTEGRATED COMPANY: Usha Martin is integrated from iron ore and coal mines at one end to wire ropes at the other, connected through intermediate captive power generation and the manufacture of steel and wires. This is one of the most extensively integrated business models within the wire ropes industry the world over. With new cost optimisation projects being implemented by the beginning of 2012-13, the deeper integration will strengthen the Company’s cost–advantage and reduce its already low dependence on external raw material sources. Moreover, the Company will be better equipped to manage industry cycles effectively.

26. PRODUCTS: The Company’s product basket comprises wires, strands, wire ropes, cords, slings, wire rods, straight bars, construction and structural steel, bright bars, conveyor cords, specialty wires and telecommunication cables.

27. WORLD’S LARGEST ARCH BRIDGE IN DUBAI

28. INCHEON BRIDGE NEW SONGDO CITY, KOREA

29. HOWRAH BRIDGE

30. SOURCE OF THE RAW MATERIAL Steel Wire Rod (90% to 96%) : UASD, Jamshedpur Steel Wire Rod (4% to 10%) : Other Sources (Imported or Local) Fiber Core : M/S ChhotaNagapur Wire Rope, Ranchi. Other Raw Material Zinc : M/S Hindustan Zinc Lead, Jute & Lubricants : Imported or Local

32. Seven Independent Non-Executive Directors,

33. One Non-Executive Director and

35. WIRE ROPES AND SPECIALITY PRODUCTS BUSINESS

37. Usha Martin Americas Inc. [UMAI]

38. Brunton Wolf Wire Ropes FZCo [BWWR]

39. Usha Siam Steel Industries Public Company Limited[USSIL]

42. (EOQ)

43. (SS)

44. (LIFO) AND (FIFO)

47. Work-in-Process Inventory

48. Finished Goods Inventory

50. GRAPHICAL REPRESENTATION OF ABC METHOD The items of all inventories are arranged in descending order according to their book value. Then the summation of consecutive items from the top is done which adds up to 70% of total inventory costs.

51. USHA MARTIN USES ABC ANALYSIS SYSTEM FOR INVENTORY MANAGEMENT: ABC Analysis is generated according to the book value of the items stores is custodian every items. Breakup of ABC: - A=70%, B=20%, C=10% Category A - Items whose book value constitutes up to 70% of the total value of the material. Category B- 20%. Category C- Remaining 10%.

54. INTERPRITATION CALCULATION OF TOTAL COST OF INVENTORY STEPS - I (Rs. In Thousand)

55. CALCULATION OF CUMULATIVE COST STEPS - II

57. CUMULATIVE TOTAL COST Rs.

58. STEPS III Classifying the group as A, B, and C based on total cost. A = 70% of total cost = 0.70 × 438368158 = 306857710 B = 20% of total cost = 0.20 × 438368158 = 87673631 C = 105 of total cost = 0.10 × 438368158 = 43836815

59. CONCLUSION UML has achieved phenomenal success with proper utilization of Inventory Management. Inventory management is so critical for planning or forecasting for the future needs and for developing strategic plans to handle the market situations. It needs a top down approach to structure an effective way of tackling inventory managing problems. If UML is to achieve incremental growth and maximize its market capitalization, it has to give more emphasis on effective inventory control and use available resources optimally. UML has to keep itself abreast of new trends in inventory management and lean manufacturing such as JIT.