Thanks to major orders received in the recent past, the outstanding order book position of Diamond Power Infrastructure Ltd (DPIL) has crossed Rs.1,500 crore.
As of July 9, 2024, DPIL’s unexecuted order book position stood at Rs.1,505 crore, a stock exchange filing by the company said.
Diamond Power’s order inflow was bolstered by two major orders, both received in the early part of this month.
On July 9, 2024, DPIL reported the winning of a Rs.899.75-crore order for the supply of AL-59 conductors. Earlier, on July 8, 2024, the company won an order, valued at Rs.409 crore, for the supply of LV/MV cables. [The order values include GST]
Interestingly, both these orders were placed by the Adani Group. While the AL-59 conductor mandate was placed by Adani Energy Solutions Ltd for deployment at transmission projects of its various TBCB subsidiaries, the cables were ordered by Adani Green Energy Ltd.
Revival
It may be recalled that DPIL had turned insolvent and was admitted on the Corporate Insolvency Resolution Process (CIRP) of National Company Law Tribunal (NCLT) in August 2018. NCLT, in an order delivered on June 20, 2022, approved the resolution plan submitted by “GSEC Ltd in consortium with one Mr Rakesh Shah.” (Full name: Rakesh Ramanlal Shah)
New promoters
The promoters of DPIL, as of March 31, 2024, are Rakesh Ramanlal Shah and his HUF relatives; GSEC Ltd and Monarch Infraparks Pvt Ltd. Rakesh Ramanlal Shah is the CMD of GSEC Ltd — an erstwhile Gujarat state government entity (then known as Gujarat State Export Corporation Ltd), now privatized. Monarch Infraparks Pvt Ltd, it is reliably learnt, has been promoted by relatives of Rakesh Ramanlal Shah. [Some unconfirmed media reports indicate that Rakesh Ramanlal Shah is a close relative of Gautam Adani, Chairman of the Adani Group.]
Re-commissioning of plant
Diamond Power Infrastructure Ltd owns a cable and conductor plant, spread over 110 acres, at Savli in Gujarat. The plant is equipped with five CCV (catenary continuous vulcanization) lines for producing cables. The Savli plant has annual conductor manufacturing capacity of around 2.5 lakh tonnes. DPIL is currently in the process of re-commissioning its plant and is expected to complete the activity by June 2025.
New wholly-owned subsidiary
In a recent development, Diamond Power Infrastructure Ltd, on June 26, 2024, incorporated a wholly-owned subsidiary named DICABS Nextgen Special Alloys Pvt Ltd. In a stock exchange communication, DPIL said the new subsidiary shall involve in “manufacturing of wire-rod, wire-drawing, strip-drawing, sheet rolling, processing, rewinding, cables, conductors, including all kinds of machinery, equipment, components, tools and accessories, thereof.”
Featured photograph (source: Diamond Power) relates to the company’s conductor manufacturing facility in Gujarat.
