General Cables forges two JVs in India

New Delhi, Apr 26 (UNI) US based global cable giant General Cable Corporation (NYSE: BGC) has penned two strategic Joint Ventures (JVs) with India's cable major Plaza Cables Group, incorporating all of the Plaza Cables Group's existing wire and cable manufacturing facilities.

The first JV named Plaza General Cable Energy Pvt Ltd has already commenced and the second JV, to be called Plaza General Cable Wire Pvt Ltd, will operate in the building wire and construction cable market. It is expected to commence by the end of June 2007.

Fostering growth and better market hold, General Cables has also secured the rights to acquire a 25 acre site near Roorkie in the state of Uttarakhand, where it will commence construction of a new low, medium and high voltage energy cable manufacturing facility.

Over the next 2 years the JV company will invest up to Rs 175 crores at this site with production scheduled to commence in August 2008.

A multi-year growth plan for the JV's will be implemented to increase the existing manufacturing capacity and to grow revenues significantly from both the Indian domestic market and export markets in the Asia Pacific region.

General Cable's (Asia Pacific) President and Chief Executive Officer Campbell J Whyte said, "this deal represents an important development in our global strategy to invest in rapidly developing countries building their grid connectivity and network capacity." Elaborating on the prospects of the JVs, Plaza cables Managing Director Sanjay Gupta said, "we have been working towards these joint ventures for twelve months with a view to modernize cable production processes and implement international corporate philosophies in our business. To this effect there have been constant discussions regarding best practice manufacturing to derive optimum production efficiencies in our plants." The Board of Directors for the new company will have the directors of Plaza Cable Industries Ltd and General Cable appointees.

UNI