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.
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.
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