Sterlite Technologies Ltd, a Pune-based optical fibre manufacturer, has joined hands with Japan-based power transmission and distribution systems solutions provider Viscas Corporation for manufacturing extra high-voltage (EHV) cables in India, the company said in a stock market disclosure.
As part of the JV agreement, Viscas will invest into the existing power cable facility of Sterlite in Haridwar which is already serving the MV/HV power cables customers in India.
“This partnership has the potential to attain leadership in the HV/EHV Cables market in India in next 2-3 years. The country is implementing HV/EHV solutions in transmission and distribution segment of power to enhance efficiency and will require specialized technologies to address this need. Both the companies share a common vision and bring together complementary strengths for this venture,” said Pravin Agarwal, whole-time director, Sterlite Technologies.
Axis Capital acted as the sole financial advisor to Sterlite Technologies on this deal.
Viscas Corporation, which is into power transmission and distribution system, is a 50:50 JV between Furukawa Electric Co and Fujikura.
The firm provides overhead power transmission systems from remote areas to consumer regions. It also supplies cables, accessories, construction works and peripheral items which form the basis of such systems.
Sterlite Technologies, formerly known as Sterlite Optical Technologies Limited, is into transmission solutions to the power and telecom industries. It has telecom cable and power transmission conductor plants in Silvassa, Haridwar and Pune and an optical fibre manufacturing plant in Aurangabad.
Shares of the company closed at Rs 70.65 each on the BSE, up 4.98 per cent in a flat Mumbai market on Tuesday.