RR Kabel Ltd has successfully completed the acquisition of U M Cables Ltd, a wholly owned subsidiary of Usha Martin Ltd, for ₹77 crore in cash through a slump sale on a going-concern basis. According to the latest reports, the Business Transfer Agreement was executed on Friday, September 25, 2026, marking RR Kabel's strategic entry into the optical fibre cable segment. The acquisition provides RR Kabel with an established manufacturing platform, including ready assets, existing approvals, and an operating track record, enabling the company to enter the optical fibre cable market with established capabilities rather than building the platform organically.
The divested unit, U M Cables, generated ₹78.19 crore in revenue from operations for the financial year ended March 31, 2026, representing approximately 2.12% of UML's consolidated revenue of ₹3,691.06 crore. As of March 31, 2026, UMCL's audited net worth stood at ₹35.32 crore, accounting for about 1.07% of UML's consolidated net worth of ₹3,302.08 crore. The buyer, R R Kabel, operates with significantly larger scale, reporting revenue from operations of ₹9,722.36 crore as of March 31, 2026. The parties expect completion within 60 days of signing the Business Transfer Agreement or within an agreed extended timeline.
U M Cables is engaged in manufacturing and selling optical fibre cables, jelly-filled telecommunication cables and fibre reinforced plastic rods. The acquisition marks RR Kabel's entry into the optical fibre cable segment and expands its presence in the broader communication cables market. As per RR Kabel's management, the business will complement its existing cable portfolio and broaden its range of solutions across communication infrastructure applications. The acquisition provides RR Kabel with an established platform for its entry into optical fibre cable manufacturing, including ready manufacturing assets, existing approvals and an operating track record, which is expected to accelerate its expansion into communication cables.
Rajesh Kabra, Joint Managing Director of RR Kabel Limited, emphasized that this acquisition represents a strategic step in expanding RR Kabel's presence into the communication infrastructure space and marks their entry into the optical fibre cable segment. According to Kabra, the acquisition provides an established operating platform with ready manufacturing assets, existing approvals and a demonstrated track record, which significantly shortens the time required to build these capabilities organically. He believes RR Kabel's scale, manufacturing capabilities, market reach and customer relationships can help unlock the next phase of growth for this business while strengthening their overall cables portfolio.
Shares of RR Kabel closed 0.06% lower at ₹2,528.30 per unit on the National Stock Exchange (NSE) on Friday, September 25, 2026, following the acquisition announcement. However, the stock has demonstrated strong long-term performance, rising 72% year-to-date despite recent volatility. The scrip has gained 3% in the past week but declined 10% over the month. RR Kabel maintains a total market capitalisation of ₹28,596.46 crore as of September 25, 2026, according to NSE data. The acquisition positions RR Kabel to compete more effectively in the high-growth communication infrastructure market while leveraging its existing manufacturing and distribution capabilities.
