Aditya Infotech (CPPLUS) and Orient Cables Sign 50:50 Joint Venture Agreement

Aditya Infotech Limited (NSE: CPPLUS, BSE: 544466), the parent company of the prominent security brand CP PLUS, has announced the execution of a definitive 50:50 Joint Venture (JV) Agreement with Orient Cables (India) Limited.

This strategic move follows an initial Memorandum of Understanding (MoU) signed in February 2026 and marks a significant step toward domestic manufacturing and backward integration for Aditya Infotech.

Key Highlights of the Joint Venture

Partnership Structure: Aditya Infotech and Orient Cables will incorporate a new Private Limited Company (JV Company) with an equal (50:50) shareholding and equal board representation.

Business Focus: The JV will specialize in the manufacturing of:

- Electric cables (including LAN and CCTV cables)
- Terminated assemblies and connectors
- Allied products for the security and connectivity sectors.

Supply Chain Integration: The products manufactured by the JV will be supplied to Aditya Infotech (AIL) and its affiliates, as well as to Orient Cables for sale to identified customers.

Governance: The JV Agreement includes provisions for joint control over critical matters, mutually agreed-upon business plans, and trademark licensing arrangements.

Strategic Rationale: Backward Integration

The joint venture is expected to provide substantial long-term benefits to Aditya Infotech:

Reliable Supply Chain: Establishes dedicated manufacturing facilities for essential components like CCTV and LAN cables, reducing reliance on external vendors.

Cost Efficiency: By moving production in-house through the JV, the company expects to enhance cost efficiencies and better manage operational margins.

Quality Control: Direct oversight of the manufacturing process will allow for more stringent quality checks on cables and connectors used in security installations.

Financial and Regulatory Status

Classification: While the initial investment does not fall under "Related Party Transactions," the new JV entity will become an Associate Company of Aditya Infotech once incorporated.

Approvals: The agreement is subject to customary conditions precedent and will be conducted at arm's length.

Status: The JV Company is currently in the process of incorporation, with both parties contributing capital in equal proportions.

Shares of Aditya Infotech Limited was last trading in BSE at Rs. 2066.50 as compared to the previous close of Rs. 1955.65. The total number of shares traded during the day was 87100 in over 3458 trades.

The stock hit an intraday high of Rs. 2100.00 and intraday low of 1979.45. The net turnover during the day was Rs. 179891195.00.

Source : Equity Bulls

Keywords

AdityaInfotech IndustrialProducts INE819V01029 CPPLUS OrientCables JVAgreement