Usha Martin Limited: Unravelling the Vertical Integration Strategy
In May 2020, Usha Martin Limited (Usha Martin), a diversified engineering group based in India, was debating strategies for continued future growth. In April 2019, the company had divested its steelmaking and related operations to reduce its debt load. Though the divestment meant a large decline in the company's sales for the year ended March 2020, the company managed to reverse the trend of losses incurred in several recent quarters and years to earn positive profits. However, attaining future growth remained a challenge for the smaller, focused company, especially given the economic disruption caused by the COVID-19 crisis. It was critical that Usha Martin's management made the correct strategic choices so that the company could achieve good, long-term, profitable growth. Nitin Pangarkar is affiliated with National University of Singapore.