Ravin Cables forms JV with Prysmian Group, Italy a world leader in energy and telecommunication cables.
Prysmian Group will take a 51% stake in Ravin Cables Ltd, with the other 49% stake in the new joint venture remaining in the hands of the current promoters, with Mr Vijay Karia being the Chairman and Managing Director of the JV.
Tweet-- Ravin Cables Ltd, a leading player in the power cable segment has signed a JV with The Prysmian Group, Milano, Italy, a world leader in the energy and telecommunications cables industry for manufacture of all kinds of LV, MV, HV and other speciality cables. Prysmian Group will take a 51% stake in Ravin Cables Ltd, with the other 49% stake in the new joint venture remaining in the hands of the current promoters, with Mr Vijay Karia being the Chairman and Managing Director of the JV.
With turnover of around apprx 310 crores in financial year 2008-2009 and EBITDA of 36 crores, Ravin is one of India's most competitive and reputed cable manufacturers, with a range that includes low and medium voltage cables and a market that also extends to Africa and the Middle East. Apart from its principal manufacturing facility in Pune, near Mumbai, Ravin Cables is also present in the United Arab Emirate of Fujairah with the company Power Plus Cable Co LLC, a joint venture with the Government of Fujairah, and for which it has charge of operational management. Power Plus is already equipped to produce high voltage cable. The group has a total of over 355 employees spread between its two facilities in India and the Arab Emirates.
"We are very pleased to have found a well-reputed, well managed and competitive partner in India who is also present in the Middle East" - explains Dr. Valerio Battista, Prysmian's Chief Executive - "with whom we look to immediately embark on a growth strategy with a primary focus on the development in the areas of high-tech cables for utilities and specialized industrial cables. This operation also allows us to have a manufacturing presence in another strategic market like the Middle East".
"The new joint venture that we have formed with Prysmian looks to draw on the strength of technological and managerial know-how of one of the world's leading groups in the power and telecom sector, and on the dynamism and competitiveness and that have allowed Ravin to achieve an important foothold in the Indian and Middle East markets.
The Indian market currently lacks the technology and R&D base which we are looking to capitalize on, through the expertise of Prysmian. We are very excited about the growth prospects for this JV", explains Vijay Karia, Ravin Cable's Chief Executive and CMD. Singhi Advisors, Mumbai have been the sole advising firm to Ravin Cables Ltd.
India's market for High Voltage cables and systems is expected to grow rapidly, doubling in size in the next three years thanks to the country's dynamic economy and the need for rapid development of its power distribution grids. The new joint venture's goal is to more than double the turnover by 2012, particularly by developing the mix of higher value-added products.
Prysmian is a leading player in the industry of high-technology cables and systems for energy and telecommunication, the Prysmian Group is a truly global company with sales exceeding Euro 5 billion in 2008 and a strong position in higher value-added market segments. With its two businesses, Energy Cables & Systems (submarine and underground cables for power transmission and distribution, for industrial applications and for the distribution of electricity to residential and commercial buildings) and Telecom Cables & Systems (optical cables and fibres and copper cables for video, data and voice transmission), Prysmian boasts a global presence with subsidiaries in 38 countries, 53 plants in 21 countries, 7 Research & Development Centres in Europe, USA and South America, and some 12,000 employees. Specialising in the development of products and systems designed to meet specific client requirements, Prysmian's key strengths include: a focus on Research & Development, the capacity to innovate products and production processes, and the use of advanced proprietary technologies. Prysmian is listed on the Milan Stock Exchange in the Blue Chip index.
Argus Partners have been the Indian legal advisors to Prysmian for the transaction.