Auto maker Mahindra & Mahindra Ltd on Friday announced the sale of the cable accessories division of its subsidiary, Mahindra Engineering & Chemical Company Ltd (MECP), to 3M Electro & Communication India Pvt Ltd, a unit of US-based multi-product giant 3M.
The cable accessories division of MECP is a leading supplier of cable accessories in India including electrical cable jointing kits, which includes the well-known M-seal adhesives.
While the terms of the transaction were not disclosed, MECP director Raghu Murti said in a statement that the sale was in line with Mahindra and Mahindra's (M&M) strategic intent to exit non-core businesses. “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 two companies had entered into a definitive agreement towards the transaction in October.
3M’s electrical markets division designs, manufactures and markets products for electrical construction, industrial maintenance, utility and industrial power businesses, and electrical/electronic devices produced by original equipment manufacturers.
3M Electro & Communication India Managing Director Amit Laroya said, “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.”