Ravicab Cables Pvt. Ltd., a Bengaluru-based manufacturer of specialised cables and wires, has announced the acquisition of Leoni Cable Solutions India Pvt. Ltd. (LCSI), a fully-owned subsidiary of Germany-based Leoni AG.
This announcement was made in Ravicab’s press release dated 12th September 2022.
Ravicab Expands its Market Reach and Product Portfolio with the Deal
Ravicab’s acquisition of Leoni India will provide it with LCSI’s manufacturing facility at Chakan, near Pune, Maharashtra. This will help Ravicab not only to strengthen its position in Western India but also to extend its reach in the large Indian cable and wire market.
Leoni Cable Solutions India has an extensive portfolio, which consists of Low Voltage and Medium Voltage cables, Thermocouple cables, Instrumentation and Control cables, Fibre Optic cables and other industrial and infrastructure cables.
LCSI’s Pune plant is spread over an area of 18,882 sq. metre and is capable of producing about 92,000 Km of cable annually. Out of this, LCSI has an annual capacity of producing 12,000 Km of cable for process industries like oil & gas, petrochemicals and power plants. The plant can also produce 50,000 Km of cable to be used in Renewable Energy projects, and 30,000 Km of cable for the transportation sector.
Further, Leoni India’s plant is capable of producing Electron-beam Cross-linked Polymer cables, which are sturdier and have better conductive and corrosion-resistant properties. With this deal, Ravicab will be acquiring the infrastructure and machinery at LCSI’s Pune plant.
LCSI had 190 employees and in 2021, the company clocked a revenue of €24.5 million (about Rs. 194.48 crore).
As per a LinkedIn post by Mr. Sandesh Bhagwat, Managing Director, Leoni Cable Solutions (India) Pvt. Ltd., ‘Ravicab, has also inherited LCSI’s processes and systems for manufacturing specialized cables, and iconic brands like “Kerpen” and “Icon”‘
Ravicab has two manufacturing units in Bidadi and Bangalore. Leoni India’s acquisition will thus, help it expand operations into the Western part of India.
Speaking of this acquisition, Mr. Hemant K Mehta, Managing Director, Ravicab Cables said that the deal will help Ravicab to strengthen its position in the market. He further added, “It’s a great opportunity for Ravicab to be able to acquire a unit set up with best-in-class infrastructure with best available machinery and major approvals in place to expand the business at high growth rates”.
Leoni to focus on Automotive Sector
As per Mr. Jerry Cummins, Wiring Cable Solutions (WCS) Top Management, Leoni WCS, Leoni has centered its strategic focus on the automotive industry. For this purpose, the company has been putting up WCS units for sale.
“It has always been our goal to find investors, who want to strategically develop the products and services. I am confident that we have succeeded in doing so with Ravicab”, Mr. Cummins said.
About Ravicab Cables Pvt. Ltd.: Ravicab Cables Pvt. Ltd. was established in 1986 as Ravicab India and was subsequently converted to a Pvt. Ltd. company in 1996. The company has two manufacturing units in Bidadi, Bangalore, which are capable of producing 2,00,000 Km of cable annually.
About Leoni Cable Solutions India Pvt. Ltd.: LCSI’s manufacturing facility in Pune produces several Leoni brand cables such as Solar Energie Konnect 128 FLEX AC and DC cables, ICON cables for various industrial applications and TRANS-KONNECT INX/ENX cables for transportation. LCSI also produces cables for data communication and automation sectors.