Universal Cables Ltd (UCL), part of the M P Birla group, has entered into a joint venture agreement with Furukawa Electric Co, of Japan, for manufacturing and marketing optical fibre in India.
As per the agreement, UCL and associates would have a 55 per cent stake while the balance would be held by Furukawa and its affiliates. The chairman of the board of the joint venture would always be a nominee of UCL from amongst its nominee directors.
D R Bansal, chief mentor and CEO of UCL said, “By combining the pre-eminent position of the M P Birla group in optical fibre and cable business in India, with significant experience and technical expertise of Furukawa with the best in world-class technology and industry leadership position, we will bring our customers a strong product offering, greater breadth of service and increased local presence with value accretive for the customers exceeding expectations."
Bansal added that the partnership would enable the new joint venture to utilize the distribution channels of Furukawa in the international markets to reach new customers and compete effectively with lower cost.
