Mumbai: Electrical cable manufacturer Nicco Corporation will set up a joint venture company with Italy’s Prysmian group to cater to the Indian cable market.
Prysmian, a global player in energy and telecommunications cables industry, would hold about 60% stake, while Kolkata-based Nicco corporation would pick up 40% stake in the JV company.
Prysmian (Dutch) Holdings BV, a subsidiary of Prysmian group, has signed a definitive agreement with Nicco Corporation to set up the joint venture, Nicco Cables Ltd, the company said in a filing to the Bombay Stock Exchange.
Nicco Cables would acquire the cable business from Nicco Corporation for Rs130 crore. The transaction would also result in the transfer of debt relating to the cable business from Nicco Corporation to the JV company.
The board of the JV company would include five directors, three of them including the Managing Director would be appointed by Prysmian and two of them, including the Chairman, would be named by Nicco.
Nicco chairman Rajive Kaul would be the chairman of the JV company while Prysmian would be responsible for managing the joint venture operations.