The new joint venture gives Prysmian a manufacturing presence in two high-potential markets, particularly in the high added value utilities business.
The Prysmian Group, a world leader in the energy and telecommunications cables industry, has taken a majority 51% controlling stake in the Indian group of Ravin Cables for an overall investment of around 26 million euro.
With turnover of around 45 million euro in the financial year april 2008 – march 2009 and EBITDA of 4.4 million euro, Ravin is one of India's most competitive and reputed cable manufacturers, with a range including low and medium voltage cables and a market that also extends to Africa and the Middle East. Apart from its principal manufacturing facility in Pune, near Mumbai, Ravin is also present in the Emirate of Fujairah with the company Power Plus Cable Co LLC, a joint venture with the Government of Fujairah, and for which it is in charge of operational management. Power Plus is already equipped to produce high voltage cables. The group has a total of 355 employees in its two facilities in India and the Arab Emirates.
" We are very pleased we have found a well-reputed, well managed and competitive partner in India who is also present in the Middle East” – explains Valerio Battista, Prysmian's Chief Executive – “with whom we look to pursue a growth strategy with a primary focus on the development in the areas of high-tech cables for utilities as well as industrial cables. This operation also allows us to have a manufacturing presence in another strategic market like the Middle East".
"The new joint venture that we have formed with Prysmian looks to draw on the strength of technological and managerial know-how of one of the world's leading groups in the power and telecom sector, and on the dynamism and competitiveness and have allowed Ravin to achieve an important foothold in the Indian and Middle East markets. The Indian market currently lacks the technology and R&D base which we are looking to capitalize on through the expertise of Prysmian. We are very excited about the growth prospects for this JV", explains Vijay Karia, Ravin Cable's Chief Executive and CMD.
The indian market for high voltage cables and systems is expected to grow rapidly, doubling its size in the next three years thanks to the country's dynamic economy and the need for rapid development of its power transmission and distribution grids. The new joint venture's goal is to more than double the turnover by 2012, particularly by developing the mix of higher added value products.
Prysmian's current presence on the Indian market is mainly focused on optical cable, produced in China, with its principal customers including Bharti Telecom (Airtel), Vodafone and other prominent players in the field. The entry into India, coming just after the acquisition of Rybinsk Elektrokabel in Russia, represents another step forward for Prysmian's strategy of strengthening its industrial presence in high-growth markets.