Finolex Cables to merge two units

With prices of raw materials (copper and PVC) on the rise, a new VAT regime in place and electrical cables replacing traditional jelly-filled telephone cables (JFTC), Pune-based Finolex Cables, the flagship company of the Finolex Group, is consolidating its core business.

At today’s AGM, Chairman P.P. Chhabria outlined the restructuring roadmap of Finolex Cables (with income of Rs 587 crore this fiscal). Two wholly-owned subsidiaries, Finolex Wireless and Finolex Finance, were merged with the parent company ‘‘to clean up the balance sheet’’. ‘‘The mergers will reduce pressure on margins and give us business synergy,’’ said P.B. Parasnis, Director, Finance.

Chhabria said the work on restructuring the JFTC facility at its Urse plant will be complete by December. The JFTC business has dwindled to 17 per cent. The growth is in the light duty electrical cables business. Hence, production lines at Urse are being modified so that it can make a ‘‘good quantum’’ of electrical cables.