Nexans, has come to an agreement with Polycab, India’s largest cable company, for the creation of a joint venture to be majority-held by Nexans and managed in close co-operation with its Indian partner.
The new company, with its headquarters in Vadodara in the state of Gujarat, will cover the manufacture and marketing of special cables for the windpower, shipbuilding, materials handling, railway and windpower industries. The agreement also includes the production of high voltage (HV) underground cables, which was initially anticipated to constitute a second phase.
Michel Lemaire, executive vp for the Asia-Pacific area of Nexans, said: “By signing today’s agreements with Polycab, we team up with a high-quality partner to ensure the success of our first industrial venture in the Indian market as well as benefiting from the sustained growth of this emerging economy. Moreover, the immediate extension of the scope of our agreement to include high voltage cables should allow us to take a strong position in the growing power infrastructures market in India".
The industrial element of the joint venture, which includes the construction of the new cable production unit, will start immediately and cover a period from 18 to 24 months. Polycab currently has sales of over $600 million, with 12 plants employing more than 3500 people in the manufacture of power and building industry cables.
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