Calcutta, Nov. 7: Usha Martin, one of the leading global wire and wire rope manufacturers, has decided to exit its copper telecom cables and optical fibre business.

The Calcutta-based company has signed a memorandum of understanding with Manchester-based B3 Cable Solutions to sell its wholly owned subsidiary UM Cables.

The ownership change is expected to take effect early next year, subject to due diligence and necessary approvals, a company release said.

The company did not reveal the amount paid by the UK firm, but market sources said it could be around Rs 60-70 crore.

UM Cables is a wholly owned subsidiary of Usha Martin Group, located at Silvassa in western India.

P. Bhattacharya, joint managing director of Usha Martin, said this decision would help them concentrate more on the core businesses of minerals, speciality steel and wire rope.

“Usha Martin has been a successful player in the telecom cable business for over 15 years. Selling it to a leading cable company of international repute creates a win-win opportunity for both firms,” he said.

Steve Ellis, managing director of B3 Cable Solutions, said the acquisition was an important step to expand capacities and geographical presence.

“UM Cables will provide us access to markets which previously were difficult to service from a distance. We are very excited to have reached an agreement with Usha Martin and look forward to growth in our new markets,” he added.

Sources said Usha Martin’s aim was to be a top-three producer in all its businesses. “To reach that level in the cable and optical fibre business will require a lot of investment. Usha Martin does not want to do that. So it has decided to exit.”

The telecom cable business has been struggling because of spiralling copper prices. The market condition was also volatile. At times there was hardly any demand.