Diamond Cables to buy Gujarat firm

Diamond Cables Ltd (DCL), one of the oldest and largest manufacturer of wire products in India, has zeroed in to acquire a Gujarat-based transformer manufacturing company.

Amit Suresh, joint managing director of DCL, told Business Standard, "We will acquire a transformer manufacturing company that has a annual production capacity of 2,500 MVA transformers."

He further informed that the targeted company is a Gujarat-based transformer manufacturer and is a listed company. "There is only one transformer company in Gujarat that is up for sale and we are taking over that," added Suresh.

However, he declined to divulge the name of the company citing that the targeted company is a listed company and to protect the interests of the shareholders he would not divulge the name of the targeted company.

Explaining the purpose of the acquisition of the transformer company, he informed that the company has recently bagged a Rs 200 crore worth of turnkey project and basic feature of any project is that the 25 per cent project component consists of transformers while 50 per cent consists of cable and conductors.

"As a large portion of the components in a project consist of transformers, so we are eager to take over a transformer manufacturing company," he adds.

The company, which is involved in the manufacture and supply of cables is keen to tap the transformer business too. The idea of acquisition is to fully integrate the transformer manufacturing company with the existing cable manufacturing business.

DCL is rated as Asia's most modern plant and it is the largest manufacturer of All Aluminum Alloy Conductors (AAAC) in India.

The company manufactures the entire range of power cables from aluminum to copper, for power and control applications, its specialty cables division manufacturers fire resistant cables and aerial bunch cables.