Company History: The company was incorporated on 27th September 1965 at Patna (Bihar) It's main Objects & activities include the manufacture of alloy construction steels alloy tool steels & high speed steels.The company entered into a technical collaboration agreement with societe des foreges et Ateliers du creusot of Paris (SFAC). France; for the supply of technical knowhow technical personnel & use of trade marks & trade names for a period of 15 years from 6th March 1967. SFAC had since been amalgamated with compagne des Ateliers et goregest de la Loire forming a new company under the name of CREUSOTLOIRE In consideration for the agreement for the use of trade marks the company agreed to give similar rights to SFAC in the use of trade marks or trade names developed by it.
One of the arc furnaces of the company was commissioned on 16th February 1975. The 2nd arc furnace continuous casting plant rolling mill etc. were commissioned in the subsequent months.
In 1985-86 production of the company declined & it suffered losses due to a strike by workmen for nearly 77 days. However in 1986-87 the company was reported to have turned the corner. In 1988-89 the company's R&D developed ball bearing steel Oe-20 beencher grade steel & chrome vanadium Steel.
During 1990-91 turnover increased by profits were adversely affected.
During 1986-87 the company commenced both ladle furnaces & VD/VOD equipments & developed certain grades of steel like bull bearings stainless steel etc. during the year. During 1988-89 revamping of the steel melting shop was carried out. Improvements in the quality of steel were brought about mainly due to faster assimilation of technology made possible through technical exchanges with Dado steel Company Ltd; Japan. During 1989-90 the company undertook a modernisation & revamping scheme (2nd Phase). The revamping of Forge Press with the technical assistance of Davy. Mckee (Sheffield) Ltd; England was completed in June 1991. The continuous feeding arrangement for sponge iron had been successfully implemented. The installation of strand electro magnetic stirrer & support rolls in the Continuous casting plant was in progress as per the Directors' Report dated 19th August 1991.
The company has increased it's licensed/installed capacity to 1 00 000 MT.
During February 1987 the company submitted for the approval of IDBI a rehabilitation Scheme which provided for modernisation of facilities and installation of balancing equipment at the company's plant which would result in the installed capacities of the steel melt shop & the rolling mill. The rehabilitation & package also provided for a change in the management of the company. In terms of the rehabilitation package Usha Alloys and steels Ltd contributed Rs. 60 lakhs towards the equity capital of the company.
During 1989-90 the company signed a Memorandum of Understanding with Bihar Industrial Credit and Investment Corporation Ltd; for the manufacture of seamless steel tubes of special quality like ball bearings & alloy steel in the joint sector. A new company under the name of Usha Seamless Ltd was therefore promoted. The above project was under review due to escalation in the project cost.
The Jawahars of the Usha Martin Group have entered into a strategic business alliance with Tisco for reviving up the sagging perfomance of its group outfit Bihar Alloy Steel Ltd'.
1996-97:Both production & turnover came down during the year which resulted in losses mounting to Rs 3580.96 lakhs against Rs 475.43 lakhs of previous year. This was attributed to the non-availability of working capital resulting in under-utilisation of capacity & continued recession in the steel industry. Under these conditions the management was forced to declare total suspension of work with effect from 15-10-1997 & make a reference to BIFR (Board for Industrial & Financial Reconstruction) u/s 15 of the Sick Industrial Companies (Special Provisions) Act 1985 (SICA).
