Mumbai: Mahindra & Mahindra has announced the sale of the cable accessories division of Mahindra Engineering & Chemical Company (MECP) to 3M Electro & Communication India. The two companies had entered into a definitive agreement towards the transaction in the latter part of October.
While the terms of the transaction were not disclosed, MECP director Raghu Murti said in a statement that the sale was in line with M&M's strategic intent to exit non-core business.
"The decision to sell off the cable accessories business is in line with the group's strategic intent to exit non-core businesses," he said.
The Pune division is a leading supplier of accessories in India, including that of electrical cable jointing kits. MECP and 3M Elector and Communication India Pvt Ltd had agreed on the transaction in the latter part of October.
3M's electrical markets division designs, manufactures and markets products for electrical construction, industrial maintenance, utility and the power industry among other related businesses.
"India represents a significant growth opportunity for 3M's electrical markets business. This acquisition provides 3M with immediate local manufacturing capability, an extensive distribution network and a strong local brand in India. Existing customers and distributors would also benefit from an enhanced line of world class 3M products and technology for new applications," Amit Laroya, MD of 3M Electro & Communication India said.