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| Polycab |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 26794 |
| Company name | Polycab Wires Private Limited |
| Country | India |
| Sector | Industrial & Consumer Products |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Pending Disbursement |
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| Date SPI disclosed | May 20, 2008 |
| Projected board date | June 19, 2008 |
| Previous Events | Signed: July 3, 2008
Approved: June 19, 2008 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Polycab Wires Private limited (Polycab or the company) is the flagship company of the Polycab group which comprises eight cable manufacturing companies. The Polycab group is a leading manufacturer of power cables and light duty cables in India. The company is undertaking a capital expenditure program over the next two-three years at its existing manufacturing locations to expand its operations in the cables business in India. |
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| Project sponsor and major shareholders of project company |
| Polycab and the other group companies are entirely owned by the Mumbai based Jaisinghani family. The key members of the family, who have been directly involved in the business include four brothers: Mr. Giridhar Jaisinghani, Mr. Inder Jaisinghani, Mr. Ramesh Jaisinghani and Mr. Ajay Jaisinghani. Mr. Inder Jaisinghani is the Chairman of the Board of Directors of the company. |
| Total project cost and amount and nature of IFC's investment |
| IFC’s proposed investment entails an equity financing to help the company meet its growth plans in the medium term. |
| Location of project and description of site |
| The key project sites are Daman and Halol in India. The sites are well connected by road, and are located in industrial zones in each of these cities. |
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| Anticipated development impact of the project |
| The project will have a strong development impact by addressing a supply shortage in electrical wires & cables in India, which are critical components used in power, infrastructure & other industrial sectors. The project will also help increase the local supply of a product that is expensive to import and more economically sourced locally. Therefore, the project will have significant impact on infrastructure development in India. The project will benefit from the management expertise of a strong sponsor who has significant technological know-how both in investment and production. The project will support faster consolidation in this highly fragmented industry by supporting the growth of an industry leader; and help improve standards across the industry as a whole. The consolidation of the cables industry will instill better standards of product quality and this will in turn have a significant bearing on reducing technical losses arising from usage of lower quality cables in power transmission and distribution. |
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| IFC's expected development contribution |
IFC would be helping a successful company:
-Obtain funds with long term horizon essential for the successful implementation of the company’s strategy.
-IFC’s presence would provide an important stamp of approval particularly in Polycab’s future plans for expansion and access to additional sources of funding.
- Strengthen the local supply chain of wire and cables, which is critical for the continued development of the infrastructure and industrial sector in India.
- Support modern technologies that will allow Polycab to widen its product offering.
- Invest in a capital program that meets World Bank Group and country standards through IFC’s participation and expertise. |
| Environmental and social issues - Category B |
This is a category B project according to IFC's environmental and social review procedure because a limited number of specific social and environmental impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environmental, health, safety and social aspects of the project were analyzed:
- environment and social assessment, and management systems;
- labor and working conditions including management of employee occupational health and safety;
- pollution prevention and abatement (including management of emissions, discharges, hazardous materials, hazardous wastes and recycling and reuse of materials); and
- management of community environment, health, safety and security personnel related impacts both during construction and operation.
A summary discussion on the social and environmental aspects of relevance to this Corporate Investment including the company's plans to address these impacts have been provided in the Environmental and Social Review Summary (ESRS) prepared by IFC and publicly disclosed at IFC’s website (www.ifc.org/projects).
Further, the company will locally disclose a summary of measures it proposes to implement so as to manage the social and environmental risks associated with its projects and operations and to meet IFC Performance Standard requirements, at its website (www.polycab.com) and at the following third party locations from 10.00 am to 5.00 pm.
Daman Municipal Corporation
Union Territory of Daman
India
Pin code: 396210
Panchayat Office
Halol
Gujarat
India
Pin code: 389352 |
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| For inquiries about the project, contact: |
Mr. R.S. Vaidyanathan, President & CEO
Polycab Wires Private Limited
HICO House,
771, Pandit Satwalekar Marg,
Mahim (W)
Mumbai – 400 016
India
Telephone: +91-22-24364713
Fax: +91-22-24327075
E-mail: vaidyanathan@polycab.com
Website: www.polycab.com |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Daman Municipal Corporation
Union Territory of Daman
India
Pin code: 396210
Panchayat Office
Halol
Gujarat
India
Pin code: 389352 |
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