MUMBAI: Universal Cables, part of the MP Birla group, on Wednesday said it has formed a joint venture with Japan’s Furukawa Electric to make optical fibres in India. Universal Cables and its affiliates shall hold 55% in the joint venture, while 45% will be with Furukawa. The chairman of the board shall always be a nominee of Universal Cables, the company said in a statement. The two companies already have a technical collaboration in extra high voltage cable power cable business and are likely to go ahead with other similar collaborations.

Universal Cables CEO D R Bansal said: "By combining the MP Birla group’s position in optical fibre and cable business in India with Furukawa’s technology and industry leadership position, we will bring to our customers a strong product offering, greater service and increased local presence. The partnership will also enable the new joint venture company to utilise the distribution channels of Furukawa in the international markets to reach to new customers and compete with lower cost."

Universal Cables last year posted a sales of Rs 563 crore, while Furukawa is a $11.74 billion optical and fibre cable business.