Polycab India (PIL) has signed an agreement with Trafigura Pte, Singapore (Trafigura) to acquire 50% stake in Ryker Base (Ryker) thereby terminating the existing joint venture (JV). PIL had entered into a 50:50 JV with Trafigura in 2016 to incorporate Ryker with an aim to strengthen backward integration of its operations and improve quality of its key input i.e., copper.
Post Trafigura’s global strategic decision to exit from value-add manufacturing businesses in India where it is a JV partner, PIL decided to acquire balance 50% stake in Ryker from Trafigura making Ryker a wholly owned subsidiary of PIL. The purchase consideration is likely to be around $ 4 Million (Rs 300 million). As of March 31, 2020, Ryker had Rs 1.97 billion of external commercial borrowing availed earlier for funding the cost of the plant which will now be fully consolidated in PIL. The transaction is subject to fulfilment of certain conditions by both parties.
Polycab India is the largest cables & wires manufacturer. It is also the fastest growing company in the Indian cable industry with consistent growth. The company also in the business segment of EPC, Cables.
Company Name | CMP |
---|---|
Polycab India | 7090.20 |
KEI Industries | 4179.35 |
RR Kabel Ltd. | 1374.15 |
Sterlite Technologie | 118.55 |
Finolex Cables | 1265.90 |
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