Nexans signs final joint venture agreements with Polycab, India’s largest cable company
Paris, March 3rd, 2009 - Nexans, the worldwide leader in the cable industry, has announced the signature of the final agreements with Polycab, India’s largest cable company, for the creation of a joint venture to be majority-held by Nexans and managed in close cooperation with its Indian partner.
The joint venture, with its headquarters in Vadodara in the state of Gujarat, will cover the manufacture and marketing of special cables for the shipbuilding, material handling, railway and windpower industries. Today’s agreements also include the production of high voltage (HV) underground cables, which was initially anticipated to constitute a second phase.
Michel Lemaire, Executive Vice President for the Asia-Pacific area of Nexans, said: “By signing today’s agreement 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 high voltage cables should allow us to take strong positions in the growing power infrastructures market in India. This makes the joint venture agreement completely coherent with Nexans’ strategy which aims at reinforcing the Group’s leadership in the energy sector and strengthening its presence in fast-growing areas”.
The industrial part which includes the construction of the new cable production unit of the joint venture will start immediately and cover a period from 18 to 24 months.
Polycab currently has sales of over $600 millions, with 12 plants employing more than 3,500 people in the manufacture of power and building cables.
With energy as the basis of its development, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables and cabling systems. The Group is a global player in the infrastructure, industry, building and Local Area Network markets. Nexans addresses a series of market segments from energy, transport and telecom networks to shipbuilding, oil and gas, nuclear power, automotive, electronics, aeronautics, handling and automation. With an industrial presence in 39 countries and commercial activities worldwide, Nexans employs 23,500 people and had sales in 2008 of 6.8 billion euros. Nexans is listed on NYSE Euronext Paris, compartment A. More information on www.nexans.com