Finolex, J-Power ink JV to make high voltage cables
The JV, named Finolex J-Power Systems, will set up a manufacturing facility in Urse near Pune, in the vicinity of Finolex’s existing cable manufacturing facility.
By TNN |
PUNE: The $25-million Finolex Cables has entered into a joint venture with the $660-million J-Power Systems to manufacture very high voltage power cables and offer complete turnkey solutions in extra high voltage cable systems in India and abroad. The JV, named Finolex J-Power Systems, will set up a manufacturing facility in Urse near Pune, in the vicinity of Finolex’s existing cable manufacturing facility.
J-Power Systems is a JV between Hitachi Cable and Sumitomo Electric Industries. The manufacturing facility of the JV will be set up at an investment of Rs 135 crore on a land of 10 acres in the first phase, with two phases to follow later. The companies are in process of acquiring land in Urse.
Finolex Cables MD Deepak Chhabria said, “We expect to start commercial production within the next two years. This is a significant development for us since the global leaders in EHV cable business have partnered with us and this is their first overseas JV. With this, we have a complete portfolio in cables ranging from the lowest voltage grade of 48 volts in auto cable to the highest voltage of 500,000 volts in power cable segment. We are the only company in India to achieve this.”
He said the investment as per the 11th Plan in the Indian power generation, transmission and distribution market was estimated at Rs 428,300 crore. “As per our estimate, at least 20% of this market would be the share of cables and we expect to be a major player in this market. Cities are expanding and there is a greater need to convert overhead transmission power lines to underground high voltage power cables for safety reasons. This will translate into a great market for us.”
The new company will also manufacture jointing and termination accessories and provide turnkey solution for a complete installation. A 110-metre tall tower will be set up to manufacture cables, since the gravitational force does not allow the horizontal manufacture of such cables. The manufacturing facility will have a capacity of 1,000 km per year. The company expects an annual revenue of Rs 600 crore from the plant at full capacity, Mr Chhabria added.
Finolex Cables will hold a 49% stake in the JV, while J-Power Systems will hold 51%.
J-Power Systems is a JV between Hitachi Cable and Sumitomo Electric Industries. The manufacturing facility of the JV will be set up at an investment of Rs 135 crore on a land of 10 acres in the first phase, with two phases to follow later. The companies are in process of acquiring land in Urse.
Finolex Cables MD Deepak Chhabria said, “We expect to start commercial production within the next two years. This is a significant development for us since the global leaders in EHV cable business have partnered with us and this is their first overseas JV. With this, we have a complete portfolio in cables ranging from the lowest voltage grade of 48 volts in auto cable to the highest voltage of 500,000 volts in power cable segment. We are the only company in India to achieve this.”
He said the investment as per the 11th Plan in the Indian power generation, transmission and distribution market was estimated at Rs 428,300 crore. “As per our estimate, at least 20% of this market would be the share of cables and we expect to be a major player in this market. Cities are expanding and there is a greater need to convert overhead transmission power lines to underground high voltage power cables for safety reasons. This will translate into a great market for us.”
The new company will also manufacture jointing and termination accessories and provide turnkey solution for a complete installation. A 110-metre tall tower will be set up to manufacture cables, since the gravitational force does not allow the horizontal manufacture of such cables. The manufacturing facility will have a capacity of 1,000 km per year. The company expects an annual revenue of Rs 600 crore from the plant at full capacity, Mr Chhabria added.
Finolex Cables will hold a 49% stake in the JV, while J-Power Systems will hold 51%.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
