Date:24/01/2007 URL: http://www.thehindubusinessline.com/2007/01/24/stories/2007012403351200.htm

Back Universal Cables expansion to be operational by February

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Kolkata Jan 23 The technological upgradation-cum-expansion project (XLPE Cables) of Universal Cables Ltd, an MP Birla outfit, involving a capital outlay of about Rs 63 crore, is expected to be operational by February 2007.

A company release quoted Chairman Mr R.S. Lodha as saying that the company recently entered into a technological tie-up with Furukawa Electric Co Ltd, the world leader in cable manufacturing, for a "complete solution" in the extra high voltage (EHV) underground power cable transmission system.

The system involves design, manufacture, laying, cable jointing and installation.

Mr Lodha said that the tie-up would give a boost to the company's commitment towards technological advancement and business volumes, as it would now be positioned to tap the globally emerging business opportunities in the EHV segment up to 400 KV.

In addition, the project - the first of its kind in India - would result in import substitution as electricity boards and utilities currently import EHV cables of 220 KV and 400 KV, which leads to large outflow of foreign exchange.

The company earned net profit of Rs 5 crore for the quarter ended December 2006, compared to Rs 4.35 crore in the corresponding previous period.

The gross total income for the period rose 22 per cent to Rs 102.87 crore, while gross total income for the nine months ended December stood at Rs 309.79 crore (compared to Rs 259.02 crore).