RR Kabel buys U M Cables unit for ₹77 crore to enter optical fibre
R R Kabel has signed an agreement to buy the business undertaking of U M Cables, a Usha Martin subsidiary, for ₹77 crore in cash through a slump sale. U M Cables makes optical fibre and related cables, so the deal marks R R Kabel’s entry into the optical fibre cable segment. The acquisition provides ready manufacturing assets, approvals, and an operating record, helping R R Kabel expand in communication cables.
R R Kabel has agreed to take over the business operations of U M Cables, a wholly owned Usha Martin subsidiary, in a cash transaction valued at ₹77 crore. The transfer is structured as a slump sale and will proceed on a going-concern basis under a Business Transfer Agreement signed on September 25, 2026.
U M Cables produces optical fibre and associated cables. By acquiring this operating business, R R Kabel gains manufacturing assets, existing approvals and a demonstrated operating history, allowing it to enter the optical fibre cable market and broaden its communication cable offerings. On the BSE, R R Kabel shares closed at ₹2,531.00, marginally lower by ₹1.15.
This deal may affect telecom infrastructure suppliers, cable manufacturers, workers at U M Cables, and customers relying on optical fibre networks. If R R Kabel integrates the acquired operations effectively, it could expand availability of communication cables used in broadband and mobile networks, potentially supporting faster network buildouts. However, consolidation may also reduce independent supplier options, and benefits for consumers would depend on execution, capacity utilization and competitive pricing.