Nicco cables unit goes to Prysmiam

Rajive Kaul-promoted Nicco Corporation will hive off its cables business and enter into a joint venture with Prysmiam Cables & Systems, a global leader in energy and telecommunication cables.

According to the contours of the arrangement, Prysmian would enter into a joint venture relationship with Nicco Corporation concerning its cable division by transferring the business into a new company where the foreign company would be a majority partner.

In an intimation to the stock exchanges, Nicco has informed that the board had considered and approved in-principle to enter into a term sheet between Prysmia and the company subject to approvals.

The Prysmian group was a world leader in the energy and telecommunications cables industry with a focus on the higher value added segments.

The Nicco management believes that the new company would benefit from the combination of Prysmian's global knowledge and Nicco's business network and knowledge of local market.

Apart from cables Nicco Corporation's other business is project and engineering services.

However, cables accounts for bulk of the company's revenues.