R R Kabel Limited has approved the acquisition of the business undertaking of U M Cables Limited (UMCL), a wholly owned subsidiary of Usha Martin Limited, marking the company’s entry into the Optical Fibre Cable (OFC) segment.
The acquisition, approved by the company’s Board of Directors, will be completed on a slump sale and going-concern basis for a lump-sum cash consideration of Rs. 77 crore.
UMCL is engaged in the manufacturing and sale of optical fibre and related cables. Through the acquisition, RR Kabel will gain an established operating platform to enter the OFC market, including manufacturing assets, existing approvals and an operating track record.
The move will expand RR Kabel’s presence in the broader communication cables market and complement its existing portfolio of cables. It will also enable the company to offer a wider range of products for communication infrastructure applications.
“This acquisition is a strategic step in expanding RR Kabel’s presence into the communication infrastructure space and marks our entry into the Optical Fibre Cable segment,” said Rajesh Kabra, Joint Managing Director, R R Kabel Limited.
Kabra said the company was acquiring an established operating platform with ready manufacturing assets, existing approvals and a demonstrated track record, which would reduce the time required to develop the capabilities organically.
The acquisition is expected to provide RR Kabel with a foundation to scale its presence in the OFC segment by leveraging its manufacturing capabilities, market reach, scale and existing customer relationships.
The transaction also marks an expansion of RR Kabel’s cable portfolio beyond its existing offerings, as demand for optical fibre infrastructure continues to support the broader communication cables market.
