Whalesbook
Partnership Details
Aditya Infotech Limited and Orient Cables (India) Limited have signed a 50:50 Joint Venture agreement, executed on April 16, 2026. The venture will establish manufacturing facilities for electric cables, including LAN and CCTV cables, as well as terminated assemblies and connectors. Both companies will contribute equally to the JV's share capital, structured as a Private Limited Company.
Strategic Goal: Supply Security and Efficiency
This collaboration allows Aditya Infotech to pursue backward integration, bringing crucial cable production in-house. The primary aims are to ensure a more reliable supply of essential components, enhance quality control, improve cost efficiencies, and boost overall operational effectiveness.
About the Partners
Aditya Infotech Limited is well-known for its 'CP PLUS' video security and surveillance brand and serves as the exclusive distributor for Dahua Technology in India. The company previously fully acquired a stake in a JV with Dixon Technologies for manufacturing security systems. Orient Cables (India) Limited, established in 2002, specializes in a wide array of cables, including networking (LAN, Cat 5e/6e), optical fibre, power, control, and CCTV cables. The company is a significant player, claiming to be among India's top five in the networking cables segment and serving high-growth sectors like telecom and data centers.
Key Considerations and Risks
The venture's finalization hinges on meeting standard conditions. The agreement also includes procedures for resolving deadlocks on key matters, with options for buy-outs or a strategic sale of the JV entity. Share transfers within the JV will have restrictions, including pre-emptive rights for partners, which could affect future liquidity or control.
Market Context
Aditya Infotech's core business is in security and surveillance, distinct from large, diversified cable manufacturers like Polycab India, KEI Industries, CMI Limited, and Sterlite Power. Orient Cables, however, holds a strong position within the networking cables sector.
Next Steps
Investors will be monitoring the satisfaction of all required conditions for the JV agreement. The formal incorporation of the joint venture company is a key milestone. Future updates are expected on the JV's operational commencement, manufacturing plans, and initial investment details.