Sterlite Technologies has entered into a 50:50 joint venture agreement with Conduspar Condutores Eletricos Limitada (Conduspar), to build a greenfield facility in Curitiba in Parana state (Brazil) to produce optical fibre cables for the Latin American markets.

The joint venture is expected to start commercial production by the first quarter of fiscal 2015.

Conduspar is one of the largest companies in Brazil specialised in providing copper and aluminium cables for low and medium voltage applications in Latin America, while Sterlite is a leading global provider of transmission solutions for the telecom and power industries.

One of the fastest growing markets for fibre cable, Latin America at present has an annual demand of more than 10 million fibre km. This venture would be a key milestone in Sterlite’s expansion strategy for its telecommunications business.

In a filing to the BSE, Pravin Agarwal, whole-time Director, Sterlite Technologies Ltd, said, “Latin America is an important market for us from a growth perspective and we are pleased to have this joint venture with a strong and reputed partner like Conduspar. Both the companies share a common vision and bring together complementary strengths for this venture.”

Andre Abage, CEO and promoter of Conduspar, who will drive this joint venture added, “We are very excited at the prospect of partnering with the Sterlite group. With Sterlite’s technology and expertise in the telecom cable domain and Conduspar’s local presence, we will create a formidable brand in this market.”

The Sterlite Technologies scrip closed the day up 4.5 per cent at Rs 23.10.

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