Prashant Jhawar hails Usha Martin sale to Tata Steel

Prashant Jhawar, former chairman of Usha Martin, on Monday hailed Tata Steel's purchase of its steel and rope business, saying the acquisition will be beneficial to all stakeholders of the beleaguered firm.

Tata Steel had recently said its subsidiary Tata Sponge Iron will acquire the two units of Usha Martin for Rs 4,300-4,700 crore."The unit has gone to good hands. My belief is that the unit after the takeover by Tata Sponge will see much growth," Jhawar told a press conference here.

He said the acquisition will benefit every stakeholder -- staff, contractors, suppliers, customers and bankers.Asked why the units had to come up for sale, Jhawar said that loan on the company was more than its turnover.

Usha Martin, which also runs a university with 500 students, will function within a new campus across 30 acres at Angara in Ranchi from the 2019 session, Jhawar said. "In the first phase, there will be 3,000 students with hostel facility for 1,500 students... In 10 years, we expect 10,000 students and hope it becomes a centre of excellence," he added.