The joint venture shall be named Finolex J-Power Systems. The joint venture is expected to be established in Jan 2008 near Pune, in Maharashtra for manufacture and sale of high voltage power cables upto 500 kV grade. The joint venture shall also offer complete services of Turnkey installation and connectorization of the complete circuit alongwith the supply of power cables and accessories (jointing kits).

J-Power Systems Corporation is a Japanese cable manufacturer specialized in high voltage power cables and Systems, established in 2001 as an equally owned joint venture between Hitachi Cable and Sumitomo Electric Industries, the global leaders in the field of EHV Cable technology.

The planning commission and the Kohli committee have pegged investment targets in power generation in the 11th plan. Investment of around Rs 2,488 billion will be needed to create 62,213 MW of new power generation capacity during the 11th plan (2008-2012). As a corollary, investment in power transmission is pegged at Rs 695 billion (Rs 69,500 crores) in the 11th plan. Distribution and rural electrification would generate investment of Rs 1,100 billion and additional requirement coming from APDP to upgrade the existing network would generate further demand for cables.

In India, urbanization is a continuous process. Existing cities are growing and new cities are coming into existence. Hence there is a greater need to convert the overhead transmission power lines to underground high voltage / extra high voltage power cables for safety reasons. The investments in Power sector and the process of urbanization shall translate into a large demand for HV/EHVpower cables.

The company made this announcement during the trading hours today, 13 December 2007.