Finolex, Japan firm to make high voltage cables

Finolex Cables and J-Power Systems Corporation (JPS) today announced a joint venture to manufacture extra high voltage cables with a capacity up to 500 kilo volts (kV) at Urse, near Pune.

The 51:49 venture, with the Japanese company holding the majority stake, would export cable systems across the world, except Japan. The initial investment in the joint venture would be Rs 135 crore.

Finolex Cables managing director, Deepak Chhabria, signed the joint venture agreement with JPS president, Kiyoshi Shimojima. The JV is expected to deliver 1,000 km extra high voltage cables annually in the next two years.

"Finolex has been involved in manufacturing cables of up to 33kV. The planning commission of India has projected an investment of Rs 69,500 crore in the power transmission sector as per the 11th plan. Considering this, the requirement of extra high voltage cables is going to increase substantially. Eyeing huge gains from this sector, we have entered into a joint venture with JPS," Chhabria said.

The JV plans to set up the manufacturing plant near its Urse facility. While the company plans to export 20 per cent of the manufactured products initially, JPS would continue to manufacture 500kV cables at its Japan units, said Shimojima.

JPS, which is co-owned by Japan-based Hitachi Cables and Sumitomo Electric Industries, plans to serve the Gulf and European markets.

"We were eager to enter the Indian market and found an ideal partner in Finolex Cables. The JV will expand our presence in various countries," Shimojima said.

The company is expecting to attain a market share of 23 per cent in the first phase of the project.