Polycab India Limited (PIL) has signed an agreement with Trafigura Pte Ltd, Singapore (Trafigura) to acquire 50% stake in Ryker Base Private Limited (RBPL) thereby terminating the existing joint venture (JV). In this regard, PIL has acquired 2,60,10,000 (i.e. balance 50% equity shares) of the face value of Rs.10/- each held by Trafigura, Singapore (‘Trafigura’) in Ryker Base. The purchase consideration is likely to be around the US $ 4 Million (Rs 300 million).
Background:
PIL had entered into a 50:50 JV with Trafigura in 2016 to incorporate Ryker to improve the quality of its key input i.e., copper. Post Trafigura’s global strategic decision to exit from value-add manufacturing businesses in India where it is a JV partner, PIL decided to acquire a balance 50% stake in Ryker from Trafigura making Ryker a wholly-owned subsidiary of PIL.
About RBPL
Located in Hansapura, Gujarat, Ryker is involved in manufacturing of copper wire rods with a total annual capacity of 225,000 MT and commenced its commercial production in FY20. Currently, India is a net importer of refined copper and value-added copper products due to the huge supply gap.
- As of 31 st March 2020, Ryker had Rs 1.97 billion of external commercial borrowing availed earlier for funding the cost of the plant which will now be fully consolidated in PIL.
About Polycab:
PIL is the largest manufacturer of Wires and Cables in India and a fast-growing player in the Fast Moving Electrical Goods (FMEG)sector.
Chairman & Managing Director– Inder T. Jaisinghani
Headquarter– Mumbai, Maharashtra
About Trafigura Pte Ltd, Singapore
Executive Chairman and Chief Executive Officer– Jeremy Weir
Headquarter– Singapore
