Sterlite Technologies, Japan’s Viscas to manufacture EHV cables in India1 min read . Updated: 30 Sep 2014, 12:25 PM IST
As part of the agreement, Viscas will invest in Sterlite's power cable facility in Haridwar
Mumbai: Cable manufacturer Sterlite Technologies Ltd has entered into a joint venture with Japanese firm Viscas Corp. to manufacture extra high-voltage (EHV) cables in India, the firm said in a filing to BSE on Tuesday.
VISCAS is a provider of power transmission and distribution systems.
As part of the agreement, Viscas will invest in Sterlite’s power cable facility in Haridwar, which is serving the medium voltage (MV) and high voltage (HV) power cable customers in India.
The joint venture will help Sterlite address the growing EHV underground power cabling requirements in India, the firm said.
“This partnership has the potential to attain leadership in the HV/EHV cables market in India in next two to three 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," said Pravin Agarwal, whole-time director, Sterlite Technologies.
Axis Capital Ltd was financial adviser to Sterlite.
On 11 September, another Japanese firm, Daido Steel Co. Ltd, had announced an investment of ₹ 56 crore through purchase of preferential equity shares of Sunflag Iron and Steel Co. Ltd, a speciality steel manufacturers.
During a recent bilateral meet, India and Japan signed five pacts covering defence exchanges, and cooperation in clean energy, roads and highways and healthcare.
The Japanese government has promised $35 billion to India over the next five years for various developmental projects.
At 9.32am, shares of Sterlite Technologies rose 1.8% to ₹ 68.50, while India’s benchmark stock index Sensex fell 0.04% to 26,585.83 points.