FURUKAWA ELEC TO MAKE OPTICAL FIBER IN INDIA VIA JOINT VENTURE

Furukawa Electric Co. (TSE:5801) will manufacture optical fiber in India through a joint venture it will set up with local firm Universal Cables Ltd (BSE:504212).

Furukawa Electric holds some 20 per cent of the global market for optical fiber, making it second only to U.S. giant Corning Inc. It already has production bases in China, Russia and Brazil. The new base in India will be used to supply optical fiber to the Indian market -- which Furukawa expects to grow by 70 per cent over the next five years -- as well as to the Middle East and Africa.

The new joint venture is capitalized at US$10 million, with Furukawa Electric holding a 45 per cent stake, and will begin business operations in September .

Universal Cables, a part of the M.P. Birla Group, now has a 20 per cent share of India's market for optical fiber, but with the new manufacturing joint venture, it will try to boost that to 30 per cent.

Furukawa Electric's global sales of optical fiber and cable totaled more than 70 billion yen in the year ended March 31. By expanding its business in Brazil, Russia, India and China, it aims to increase sales by 40 per cent over the next three years.

(Nikkei)

Related terms: africa, brazil, business, china, india, joint venture, local, manufacturer, manufacturing, market, nikkei, optical, russia, sales, yen