Acquisition provides an established operating platform for RR Kabel’s entry into Optical Fibre Cables

Mumbai: R R Kabel Limited announced that its Board of Directors has approved the acquisition of the business undertaking of U M Cables Limited (“UMCL”), a wholly-owned subsidiary of Usha Martin Limited, engaged in the manufacturing and sale of Optical Fibre and related Cables.

The proposed acquisition will be undertaken on a slump sale and on concern basis for a lump-sum cash consideration of ₹77 crore. The acquisition marks RR Kabel’s entry into the Optical Fibre Cable (“OFC”) segment and is an important step in expanding the Company’s presence in the broader communication cables market. It will complement RR Kabel’s existing cable portfolio and broaden its range of solutions across communication infrastructure applications.

Speaking about the acquisition, Rajesh Kabra, Joint Managing Director, R R Kabel Limited, said, “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. Importantly, we are acquiring an established operating platform with ready manufacturing assets, existing approvals and a demonstrated track record. This gives us a strong foundation in OFC while significantly shortening the time required to build these capabilities organically. We believe RR Kabel’s scale, manufacturing capabilities, market reach and customer relationships can help unlock the next phase of growth for this business, while strengthening our overall cables portfolio.”

Furthermore, the acquisition provides RR Kabel with an established platform for its entry into OFC, including ready manufacturing assets, existing approvals and an operating track record. This allows the Company to enter the segment with established capabilities rather than building the platform organically and is expected to accelerate its expansion into communication cables.