Sterlite Optical links arms with US giant

Sterlite Optical links arms with US giant
ENS ECONOMIC BUREAU

FEB 19: Sterlite Optical Technologies said on Monday it is forming a 50-50 joint venture with US-based General Cable Corp to make and market optical fibre cable products in the United States.

Kentucky-based General Cable Corp is the third-largest wire and cable company in the world with sales last year of $2.3 billion, up 35 per cent from 1999. It has 38 plants in 12 countries.

Sterlite Optical Technologies is one of India's largest producers of optical fibre and optical fibre cable. The company reported last month that net profit for the October-December quarter doubled to Rs 894.6 million on sales of Rs 3.22 billion ($69 million).

Sterlite said under the agreement General Cable Corp will spin off its optical fibre cable manufacturing operation at Dayville, Connecticut to the new joint venture.

The joint venture will buy optic fibre from Sterlite Optical for making optical fibre cables for sale mainly in North America.

That will help Sterlite boost sales of optic fibre to North America, which accounts for around 40 per cent of the world's optic fibre demand, a Sterlite statement said.

General Cable shares closed flat last Friday at $11.53. Sterlite shares fell 3.35 per cent to close at Rs 741.05 on Monday, ahead of the announcement.