Earlier, Anchor was considering raising of funds through the capital markets but opted for the Matsushita deal because of the Japanese giant’s R&D prowess and technology support.

Mumbai-based Anchor is India’s top maker of electrical construction materials (ECM) such as lighting fixtures and electric wires.

“(India’s) infrastructure-related sector including construction and electricity is recording a particularly high growth rate, with expectations for a rapid, continued expansion of the wiring devices and the whole ECM market,” Matsushita Electric Works said in a statement.

The Osaka-based company, which aims to boost its overseas sales to 320 billion yen by the year to March 2011 from 222 billion yen in the year that ended March 2006, said the investment is fully self-financed. Ahead of the announcement, shares in Matsushita Electric Works closed down 0.1 per cent at 1,325 yen, roughly in line with the Nikkei average.