Usha Martin sells optical fibre manufacturing business to R R Kabel for Rs 77 crore
In a regulatory filing made post market hours yesterday, the steel wire rope maker announced that the board of directors of the company and of U M Cables (UMCL) have accorded their approval for sale, transfer and disposal of the business undertaking of UMCL to R R Kabel, on a going-concern basis, by way of a slump sale for a consideration of Rs 77 crore, subject to working capital adjustments.
U M Cables is engaged in manufacturing and selling of optical fibre cables, jelly-filled telecommunication cables and fibre reinforced plastic rods. For the financial year ended 31st March 2026, UMCL's revenue from operations was Rs. 78.19 crore, representing approximately 2.12% of UML's consolidated revenue from operations of Rs. 3,691.06 crore. As of 31st March 2026, UMCL's audited net worth was Rs 35.32 crore, representing approximately 1.07% of UML's consolidated net worth of Rs. 3,302.08 crore.
R R Kabel is well recognized brand having pan- India presence and is principally engaged in the business of manufacturing and selling cables, wires, lights, fans, appliances and related products having revenue from operation amounting to Rs. 9722.36 crore as on 31st March 2026.
Usha Martin stated that the proposed transaction is aligned with the company?s strategy to streamline its portfolio and sharpen its focus on its core wire and wire ropes business. This business sales is expected to enable more efficient deployment of capital towards the company?s long-term growth priorities.
Usha Martin is a specialty steel wire rope solutions provider. The company is also engaged in the manufacturing of high-quality wires, low relaxation prestressed concrete steel strand (LRPC), bespoke end fitments, accessories and related services.
The company had reported 40.9% increase in consolidated net profit to Rs 142 crore on a 16.4% rise in revenue from operations to Rs 1,033 crore in Q1 FY27 as compared with Q1 FY26.
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