M & M founded Mahindra Ugine Steel Company (MUSCO) in 1962 with a dynamic steel manufacturing facility at Khopoli. MUSCO entered into know-how, technical and engineering services agreements in September 1963 with Societe d'Electro-Chimie d'Electro-Metallurgie et des Acieries Electriques d'Ugine, of France (Ugine). Ugine along with its subsidiary was holding stake in the Company in the initial stage. Subsequently, Ugine has diluted its entire shareholding in the Company. Also as per the investment Agreement with the Company, International Finance Corporation Limited, (IFC), Washington was holding stake in the Company. Subsequently, IFC has diluted their shareholding in the Company.Under these agreements Ugine has rendered comprehensive technical services, collaboration and advice to the company.
In 2012, the Steel including Rings Business of MUSCO was transferred to Mahindra Sanyo Special Steel Pvt. Ltd. (Formerly known as Navyug Special Steel Pvt. Ltd.) following a joint Venture between Mahindra Ugine Steel Company Limited (51%), Sanyo Special Steel Co., Ltd., Japan (29%) and Mitsui & Co., Ltd., (20%). In October, 2013, MUSCO has sold & transferred its entire shareholding of 51% in the share capital of the Company to Mahindra & Mahindra Ltd., and Mahindra & Mahindra Ltd., became the Holding Company of Mahindra Sanyo Special Steel Pvt. Ltd.