KEI Industries Ltd has completed its brownfield capacity expansion projects at the Chinchpada and Pathredi cable manufacturing plants.
According to the senior management addressing an earnings call recently, the brownfield expansions at the Chinchpada and Pathredi cable manufacturing units were fully commissioned in the first half (H1: April to September) of FY25.
The Chinchpada plant located at Silvassa in the UT of Dadra Nagar Haveli and Daman & Diu saw expansion in wire and cable manufacturing capacity. Similarly, KEI expanded capacity of LT (low tension) cables at the Pathredi plant in Rajasthan. It is estimated that these expansions have taken KEI’s overall LT cable capacity to around Rs.900 crore per year.
KEI incurred total capital expenditure of Rs.312 crore in H1FY25, including that on the two aforementioned brownfield expansions, and Rs.169 crore on the greenfield plant at Sanand in Gujarat.
For the whole of FY25, KEI has planned to undertake capital expenditure of around Rs.1,100 crore that will predominantly cover the Sanand greenfield plant with a share of around Rs.900 crore.
Sanand plant
Expected to commission in Q1FY26, the greenfield Sanand plant, on which construction started in FY24, will have a total annual capacity of Rs.5,000 crore spread over EHV, HT and LT cables. In Q1FY26, the plant will get further capex of around Rs.600 crore.
By current thinking, capacity of EHV cables will be Rs.1,200 crore to Rs.1,300 crore. HT cables will have capacity of around Rs.1,500 crore while the remaining would be for LT cables.
Order book breakup
As of October 13, 2024, KEI Industries had an order book of Rs.3,847 crore that included EPC (Rs.603 crore), EHV cables (Rs.301 crore), domestic cables (Rs.2,368 crore) and export orders (Rs.575 crore). It is also learnt that KEI Industries, as of given date, was L1 in a Tata Power order worth Rs.186 crore for 220kV cables.
Fund raising
As reported by T&D India on October 15, 2024, the KEI Industries board approved the raising of Rs.2,000 crore through qualified institutional placement. (Read more)
Featured photograph (source: KEI Industries) showing a cable manufacturing facility of the company is for representation only
