3M Electro to acquire M&M's cable business

3M Electro & Communication India, a wholly-owned subsidiary of US-based 3M, has entered into a definitive agreement to acquire the cable accessories division of Mahindra Engineering & Chemical Products Limited (MECP).

MECP is a supplier of low and medium voltage termination's and joints used on power cables. The terms of the transaction were not disclosed.

"India represents a significant growth opportunity for 3M's electrical markets business. The acquisition provides us a clear access to the energy market in India with an immediate local manufacturing capability, an extensive distribution network and a strong local brand in India," said Amit Laroya, managing director, 3M India.

3M India, which employs around 100 people, has three different divisions to cater to the electrical, telecom and electronic markets. The electrical division presently supplies electrical tapes to the manufacturing industry.

The acquisition of MECP apart from giving it an access to the Indian energy market, will also bring a strong customer base including various state electricity boards, Reliance Energy, Tata Power and Kolkata Electric Supply Company among others.

"This also brings us a strong channel network including about 80 distributors and 150 stockists, to market the 3M's cold shrink cable ranges in India," said Laroya.

The Pune-based MECP at present employs about 70 people.

"3M was committed to providing employees a workplace that fosters their individual growth and achievement in an environment of trust and high ethical standards," said Laroya.

3M had recorded a revenue of about $21 billion in the calendar 2005. The electrical market division of the company, contributed about $550 million to its topline. 3M's global headcount is about 60,000.