Universal Cables expansion project to be operational in Feb

Kolkata, Jan 23 (UNI) The technical upgradation-cum-expansion project (XLPE Cables) of Universal Cables Ltd, a M P Birla Group company, with a capital outlay of approximately Rs 63 crores is expected to operate by February 2007.

In a press release here today, company's Chairman R S Lodha said the company had recently entered into a technological tie-up with Japn's Furukawa Electric Co Ltd, a leading cable manufacturer, for complete solutions in the Extra High Voltage (EHV) underground power cable transmission system, involving design, manufacture, laying, cable joining and installation etc.

With this tie-up, the company is all set to enter the soaring EHV Power cable segment (upto 400 KV), Mr Lodha said adding the EHV underground power transmission was the only solution to meet today's ever growing power demand in the power-starved metro cities.

Mr Lodha further said the deal would give a boost to the company's commitment towards technological advancement and business volumes, as it would now be positioned to tap the globally emerging business opportunities in the EHV segment up to 400 KV.

The release also said the project being the first of its kind in India would result in important substitution as presently Electricity Boards and utilities are importing EHV cables of 220 KV and 400 KV, resulting in large outflow of precious foreign exchange.

Mr Lodha further added that the initiative is a great opportunity for the company at a time when the Power Cable Industry is in its peak. Its foray in this segment catapults the Company into a different league, joining an exclusive club of global players, in this high-tech sector.

In the line with the Company's growth aspirations he said, " We are aggressively ramping up our portfolio of value-added products, and getting into the EHV segment up to 400 KV is part of the Company's stragegic growth drive." The company achieved a net profit of Rs 5 crores for the quarter that ended on December 31, 2006 compared to Rs 4.35 crores during the quarter ended 31 December 2005.

The gross total income for the quarter ended 31st December 2005 showed an increase 22 per cent to Rs 102.87 crores, compared to the quarter ended 31 December 2005.

The gross total income for the nine months ended 31 December 2006 stood at Rs 309.79 crores compared to Rs 259.02 crores in the corresponding period of the previous year.

UNI