M&M divests cable parts biz to 3M Electro

MUMBAI, Dec 8'06: Mahindra & Mahindra has announced the sale of the Cable Accessories Division of Mahindra Engineering & Chemical Company Ltd. (MECP) to 3M Electro & Communication India Pvt. Ltd. The two companies had entered into a definitive agreement towards the transaction in the latter part of October.

The Cable Accessories Division of Mahindra Engineering & Chemical Company Ltd. (MECP) is a leading supplier of cable accessories in India including electrical cable jointing kits.

The terms of the transaction were not disclosed.

3M's Electrical Markets Division designs, manufactures and markets products for electrical construction, industrial maintenance, utility and industrial power businesses, and electrical/electronic devices produced by original equipment manufacturers.

Mr. Raghu Murti, Director, MECP said, "The decision to sell off the cable accessories business is in line with the Group's strategic intent to exit non-core businesses."

Amit Laroya, Managing Director, 3M Electro & Communication India, said in a company press note, "India represents a significant growth opportunity for 3M's electrical markets business. This acquisition provides 3M with immediate local manufacturing capability, an extensive distribution network and a strong local brand in India. Existing customers and distributors would also benefit from an enhanced line of world class 3M products and technology for new applications."

Cable Accessories Division of MECP, a Pune -based company, employs approximately 70 people in its cable accessories business.