KEI Industries has outlined capital expenditure of Rs.900 crore in the current fiscal year FY25 on its greenfield cable manufacturing plant at Sanand in Gujarat.
Among other products such as LT and HT cables, the greenfield plant located at Sanand near Ahmedabad will produce extra-high voltage (EHV) cables.
Located on a 70-acre plot at Sanand Industrial Estate, the upcoming plant on which construction began in FY24 is likely to commission by the first quarter (April to June) of FY26. KEI has planned further capex of Rs.500 crore to Rs.600 crore in the early part of FY26 so as to get the plan running by the scheduled date.
Currently, KEI’s EHV cable manufacturing capacity, in value terms, is estimated at Rs.600 crore per year that is being fully utilized. This capacity will remain the same in FY25 and will increase only after the Sanand plant comes on stream in FY26.
KEI manufactures EHV cables up to 400kV rating in collaboration with Switzerland-headquartered Brugg Kabel AG.
LT cables
KEI Industries has also undertaken capacity expansion of low-tension (LT) power cables at its Pathredi plant in Rajasthan with a total capex of around Rs.125 crore, out of which around Rs.74 crore was spent till end of FY24. With this, the total LT power capacity of KEI Industries would go up to around Rs.900 crore per year. The Pathredi plant expansion is likely to commission by end of June 2024.
In yet another expansion plan, KEI intends to spend around Rs.65 crore over the next two months to expand the wire & cable capacity at its Chinchpada plant at Silvassa, located in the Union Territory of Dadra & Nagar Haveli and Daman & Diu.
Capex in FY24
In FY24, KEI incurred capital expenditure of Rs.397 crore spread across its various plants, including Rs.332 across the three aforementioned plants – Sanand (Rs.197 crore), Chinchpada (Rs.84 crore) and Pathredi (Rs.51 crore). Around Rs.56 crore was spent on other plants while Rs.9 crore was incurred for purchasing a land plot at Kheda in Gujarat.
Order book
As of March 31, 2024, KEI Industries had an outstanding order book position of Rs.3,531 crore that was distributed across the domestic cable market (Rs.1865 crore), export orders for cables (Rs.521 crore), EPC division (Rs.771 crore) and EHV power cables (Rs.374 crore).
Also read: KEI Industries: Exports, EPC Orders Adversely Impact Revenues In FY21
Featured photograph (source: KEI Industries) is for representation only
