UIC Udyog was incorporated in 1995 by Mr. B.L. Jajodia. The company is a leading manufacturer of wires woven sack and pins. Over the period of time the company has evolved as a consignment agent to a preferred supplier of wire and wire products to India’s growing power and infrastructure sector. In 2000, they started the commercial production for wire drawing with an initial capacity of around 60,000 MTPA with state of art multi product plant in Kalyani, West Bengal. In 2010 they added another 25,000 MTPA capacity and further a Greenfield project with 180,000 MTPA capacity is planned in Gujarat. The company aims to achieve a turnover of more than 400 crores in the current financial year. We had interaction with Mr. B.L. Jajodia, Chairman and Mr. Amit Bajaj, Director – Commercial, UIC Udyog Ltd. Extracts…
Operations of the Company
UIC produces single wire, stranded wire and steel pin as per customers’ requirement. Our clientele includes Indian Railways, Asian Development Bank projects, State Electricity Boards, Bangladesh Railways, Bangladesh Powers Development Corporation, NTPC, NHPC, Power Grid Corporation of India Ltd etc. We are making pins for the textiles, tobacco and the jute industry as a part of forward integration to the wire product. We have plans to manufacture wire mesh in future with this forward integration technique. With this we have been able to minimize our wastage by 0.25%. In transmission industry we have around 50% market share in earth wire segment in the power grid sectors. We are planning to apply for IPO in Mar-Apr this year and within subsequent 6 months we will go public with an IPO of 100 crores.
Product Range
Their manufacturing facilities are equipped with latest technologies which help them to make product customization and precision and easy mandate to suit customer’s requirements. UIC offers wire for wide range of applications including:-
- Prestressed Concrete Industry (indented & Stranded)
- Cable and Conductor Industry
- Power Cables and Transmission
- Galvanised Wire for General engineering Purpose
- Spring Washer Industry
- Cycle and Two Wheeler Industry
- Umbrella
- Fastener Industry
- Jute and Textile Industry
Outlook of New Project
We are setting up a Greenfield project in Gujarat consisting of 3 plants with a total capacity of 180,000 MTPA to manufacture L.R.P.C. wire and other wire grades with an investment of Rs. 510 crores which will consist of equity of Rs. 100 crores and rest is internal accruals and bank funding. The land is expected to be allotted in second quarter of 2011 and the commercial production will start in 18 months after that. On technological front we are sourcing best of the available machinery from Germany and Italy with high level of automation. The basic idea to come up with this new capacity is to cater domestic – 40% as well as export market – 60%. This will help us to achieve two things, enrich our product offerings to existing customers in the power and infrastructure sectors and fetch higher realizations as well. We are trying to get into value added products because cost of all inputs is increasing and manpower is also a challenge so in order to have better realization we are working on this small funda.
Future Developments
The company aspires to accelerate its presence and expand its chain globally as part of its international footprint agenda. The future plans of the company include manufacturing hardware for transmission tower for which they are looking to acquire some company. Also we are working on descaling efforts so that we don’t need pickling. So without pickling we will be doing the drawing part which in world today is a difficult portion.
UIC Quality Objectives
Our Quality Policy is to consistently care for our customers with quality products and services emphasizing continual improvement through training and creativity. Our quality objectives are simple yet steadfast:
- Minimize wastage at all stages of Production
- Provide custom-made products through continual system improvement and on time delivery
- Provide education and training to employees and encourage team building
- To implement our objectives, we have testing laboratories with the latest testing equipments and staffed by highly trained technical professionals. All testing and process data are stored centrally to provide a bank of knowledge that is essential to streamline and correlate manufacturing activities.
- After manufacture, the end product is tested to see that it meets the relevant specifications and delivers the desired result when put to use. In other words, our testing starts with raw materials, continues during process and ends only when the finished product has been tested.
- Quality control and continuous R&D are essential. Our success in exports can be attributed to a large extent on the quality of our product that is benchmarked to global standards.
Trends in the Industry
Wire is a crucial part of a human life system. The current wire market size of both organized & unorganized sectors is pegged around 2.5 MTPA. Down the line it will grow at 7-8% every year. Earlier the availability of the raw material was a challenge. But, today many players are coming in with huge capacities and the existing ones are also expanding so in the near future the raw material will be easily available. The development of the sectors like real estate, power, automobile etc. will provide huge boost to the wire & cable industry. Earlier in power grid there were line of 220 kV then they moved to 400 kV, then it was 765kV, then tried for 800 kV and now they are trying to target 1200 kV and if they go with 1200 kV then the loss of power during transmission will be saved up to a very big extent. In fact we have already supplied wire for 800 kV line and we are also working with them to develop for 1200 kV.
CSR
At UIC, all strategies for future are aligned to long-term growth and sustainable progress across all its verticals as well as emerging segments for future diversification. An eye on employee well-being and a concern for the environment and community, guides the company’s road ahead. In order to leverage the power for all by 2012 vision of the Indian government and be a catalyst in realization of this dream, UIC has installed 4 wind turbine generators of capacity 1.25 MW each at Dist Nandurbar in Maharashtra and 5MW at Coimbatore in Tamil Nadu.