Finolex Cables is expected to soon commission its new manufacturing facility to make specialized electrical cables using irradiated electron beam (e-beam) technology.
This new facility which is coming at Urse in Maharashtra has been running behind schedule but is now anticipated to commission in phases, over the next few months.
Addressing a recent investor call, Mahesh Vishwanathan, Deputy CEO & Chief Financial Officer, Finolex Cables, said that the first machine at the plant has been installed and is being tested before it gets commissioned. Engineers are working on the final testing after which certification will be sought from Bhabha Atomic Research Centre (BARC), he said.
This new plant will produce specialized electrical cables requiring high thermal stability, which will be marketed to solar power projects in the initial stage, followed by railways, automobiles, etc. Supplying these cables to railway projects will need due approvals from Railway Designs & Standards Organisation (RDSO), the official noted.
The first e-beam machine is expected to go into commercial production over the next 6-8 weeks, according to Vishwanathan. The second such machine is expected to arrive by the second or third week of June 2024, and commissioning is targeted by September 2024.
This new e-beam facility is part of a Rs.500-crore capital expenditure programme of Finolex Cables. Of this outlay, around Rs.170 crore has been spent in FY24 and most of the remainder would be spent in the current fiscal year, FY25. This overall capex also covers, among other things, capacity expansion at the company’s cable manufacturing plant at Roorkee in Uttarakhand.
Finolex Cables has its manufacturing facilities spread over Maharashtra (Pimpri and Urse, both near Pune), Goa and Uttarakahnd (Roorkee).
EHV cables
Discussing the extra-high voltage (EHV) cable business of Finolex Cables, Mahesh Vishwanathan said that the confirmed order book at the beginning of FY25 (April 1, 2024) was around Rs.280 crore. Apart from this, Finolex is also placed L1 in orders worth around Rs.190 crore, which are pending formalization.
Finolex produces EHV cables through its joint venture Finolex J-Power Systems Ltd (FJPS). While Finolex holds 51 per cent in the joint venture, J-Power Systems, part of Japan-headquartered Sumitomo Group, holds the remaining 49 per cent.
It may be mentioned that FJPS not only supplies EHV cables but also carries out project execution. Dwelling on the EHV cable business, Mahesh Vishwanathan observed that while making cables available was less of a challenge, project execution is a major concern. In urban areas, where underground EHV cabling is largely concentrated, securing right-of-way is time-consuming as it involves permission of multiple authorities like municipal corporations, police department, etc, apart from the power utility itself.
Speaking of the opportunity size for EHV cabling, Vishwanathan estimated it to be in the range of Rs.3,500 crore to Rs.4,000 crore per year. Finolex is currently seeing maximum demand for 66kV and 110kV cables from transmission utilities, but the company is also beginning to witness growing interest in 220kV cables as well, he noted. Finolex is equipped to produce EHV cables of rating up to 500kV, it is learnt.
Also read: Finolex Cables “FinoGreen” Eco-Safe, Halogen Free Wires
Featured photograph (source: Finolex Cables) shows inside view of one of the company’s cable manufacturing facilities.
