Board approves acquisition of U M Cables' Optical Fibre Cable business for ₹77 crore via slump sale
Board has approved acquiring the Optical Fibre Cable business undertaking of U M Cables Ltd (a wholly-owned subsidiary of Usha Martin) on a slump sale, going-concern basis for a lump-sum cash consideration of ₹77 crore.
By ScoutQuest · · 1 min read
- Acquisition Deal
- Acquisition of Optical Fibre Cable business undertaking of U M Cables Ltd (subsidiary of Usha Martin)
- Deal Structure
- Slump sale, going-concern basis
- Consideration
- ₹77 crore lump-sum cash
- Strategic Rationale
- Entry into Optical Fibre Cable segment with ready manufacturing assets, existing approvals and operating track record
What was announced
The 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 manufacturing and sale of Optical Fibre and related Cables.
Deal terms
- Structure: slump sale, on a going-concern basis
- Consideration: lump-sum cash of ₹77 crore
- The acquisition is described as proposed and approved by the Board
Why the company says it matters
- Marks entry into the Optical Fibre Cable (OFC) segment
- Comes with ready manufacturing assets, existing approvals and an operating track record
- Positioned as a step into the broader communication cables market, complementing the existing cable portfolio
Joint Managing Director Rajesh Kabra said the deal gives a strong foundation in OFC while significantly shortening the time required to build these capabilities organically, and that the company's scale, market reach and customer relationships could support the next phase of growth for this business.
About the acquirer
R R Kabel has an operating history of over 26 years in India, a presence in over 66 countries, and describes itself as India's largest exporter of wires and cables, with products spanning wires and cables, fans, lighting, electrical accessories and appliances.
How investors may read it
The move is an inorganic, cash-funded entry into a new product segment rather than a change to the existing business. Investors may watch for the completion of the transaction and the contribution of the acquired OFC business to revenue and margins over time.
Also from R R Kabel
Board meeting on 28 October 2026 to consider Q2 results and interim dividend
23 Oct 2026
Business Transfer Agreement Executed to Acquire U M Cables' Business Undertaking via Slump Sale
25 Sep 2026
Board approves acquisition of U M Cables' business undertaking via slump sale for Rs. 77 crores
24 Sep 2026
More numbers
- Cash consideration for slump sale₹77 crore
- Operating history in Indiaover 26 years
- Countries of presenceover 66 countries
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