Global power cable major Prysmian Cables and Systems has acquired majority stake in Ravin Cables in a bid to foray into the Indian market, the companies said here on Wednesday.
Prysmian is the world?s second biggest player in the power cabling and accessories market and has a wide range of product offerings in high and extra high voltage segments. The Italian manufacturer plans to introduce these new products in the Indian market which should help Indian utilities reduce high transmission and distribution (T&D) losses.
?We will bring in new products in high voltage segment to the Indian market,? Fabio Romeo, chief commercial officer, Prysmian Cables and Systems, who is currently on a visit to India, told FE on the sidelines.
As per an industry estimate, the T&D losses of Indian utilities in the financial year 2009-10 was in the range of Rs 65,000 crore. Use of obsolete technology and under investment are key reasons for high T&D losses of utilities in the country, according to experts.
Earlier, major international players in the power cabling such as Prysmian were not keen to enter the Indian market given the prevailing policy uncertainty and low demand. The result was technological stagnation.
However, Prysmian?s foray into the Indian market underlines the changing perception of global cabling industry about the Indian market.
Ravin Cables, an unlisted company, had turnover of Rs 310 crore in the financial year 2008-09 and Ebitda of Rs 36 crore. It is a leading exporter of cables.
?We havepaid Rs 200 crore to acquire 51% stake in Ravin Cables,? Romeo said.
