Usha Ispat Ltd was originally incorporated as a Private Limited Company under the name & style of 'Rai Coated Steels Private Limited' on May 17, & became a deemed Public limited company with effect from June 6, u/s 43A of Act. The Company was promoted by Usha (Indias) limited, the flagship Company. of Group Usha. In 1989 - The name of the Company was changed to Usha Ispat Ltd & a Fresh Certificate of Incorporation obtained from the Registrar of Companies, Delhi and Haryana on March 13. In the same year the company setup a Pig Iron plant at Redi, Distt. Sindhudurg in the State of Maharashtra. The plant was having three blast furnaces of 157 Cu. Mtr each having a capacity of 3.00 Lac tonnes p.a. of Pig Iron.

Subsequent to the Boards approval for amalgamation with Usha Udyog, requisite approvals was taken for the merger. The merger was considered a step towards backward integration. Coke manufactured by Usha Udyog  was already being used by UIL to manufacture pig iron at its plant at Redi.