New Delhi: Aditya Infotech is moving deeper into manufacturing, teaming up with Orient Cables to secure supply and scale its product ecosystem.
Joint Venture Finalized
Aditya Infotech has formally executed a 50:50 joint venture agreement with Orient Cables (India) Limited on April 16, 2026. This follows an earlier memorandum of understanding signed in February, marking a transition from intent to execution. The partnership will lead to the incorporation of a new private limited company, jointly owned by both firms in equal proportion, as outlined in the agreement summary on page 2.
Manufacturing Focus Expands
The proposed joint venture will focus on manufacturing electric cables, including LAN and CCTV cables, along with terminated assemblies, connectors, and allied products. These products are central to Aditya Infotech’s core offerings, particularly in surveillance and connectivity solutions. The output from the joint venture will be supplied to Aditya Infotech and its affiliates, as well as to Orient for onward distribution to identified customers, ensuring integrated demand across both partners.
Shared Control Structure
The governance structure has been designed to ensure equal participation. Both companies will have equal board representation, and key decisions will require mutual consent. This structure reinforces joint control, with provisions such as pre-emptive rights on share transfers and mechanisms to resolve deadlocks, including buyout options or strategic sale of the venture, as detailed on page 3.
Strategic Backward Integration
The joint venture is expected to enable backward integration for Aditya Infotech by creating dedicated manufacturing capacity. This move is aimed at securing a reliable supply chain for critical components. By producing cables and related products in-house through the JV, the company anticipates improved cost efficiency, tighter quality control, and enhanced operational effectiveness, strengthening its competitive positioning.
The partnership signals Aditya Infotech’s shift toward greater manufacturing control, leveraging collaboration to build a more resilient and cost-efficient supply ecosystem.
Disclaimer: This article is based solely on the contents of the company’s regulatory filing and does not include independent verification or additional sources.
