Steel firm Mahindra Ugine merges Pranay Sheetmetals with self

Alloy steel firm Mahindra Ugine Steel (Musco), a Mahindra & Mahindra (M&M) group company, has completed merging Nashik-based Pranay Sheetmetals Stamping, a stamping unit located at Ambad MIDC area, with itself.

Pranay Sheetmetals used to manufacture sheetmetals for M&M’s Scorpio. Now, M&M has officially merged Pranay Sheetmetals with Musco.

In the February 2006 hearing, the Bombay High Court, had approved the petition filed by the company for amalgamation of Pranay Sheetmetals with Musco.

Sources said that with a workforce of 500 employees, Pranay Sheetmetals produces 300 tonne daily. Musco is principally engaged in the manufacture and sale of steel products, including tools, alloys, special steel and pressed sheet metal components and assemblies.

The firm caters mainly to the automobile, engineering and capital goods sectors.

To top it all, it is the only steel firm in India approved by large and reputed multinational corporations such as General Motors, Ford Motors, Mercedes Benz, BMW and Mitsubishi Motors, who use the steel for critical components.

Sources said, the company’s clients include multinationals Timkens, FAG, Rane TRW, L&T Johndeer, GKN Axles, Horbeiger and Caterpillar also.

The merger will give Musco three divisions - a steel division at Khopoli (Raigad) and two stamping divisions - one at Kanhe (Pune) and a second one at Nashik.

The steel plant at Khopoli is spread over an area of 66.89 hectare and is a premier alloy steel producer.

In FY 2005-06, Musco’s net sales turnover rose 17 per cent to Rs 615.04 crore compared to previous year’s corresponding period. The company’s net sales turnover for 2004-05 was Rs 522 crore.

The 2005-06 net profit for the firm was Rs 65.06 crore compared to the previous year’s Rs 48.16 crore.