KEI Industries completes capacity expansion at Chinchpada and Pathredi plants
KEI Industries Ltd has completed brownfield capacity expansions at its Chinchpada (Silvassa, Dadra Nagar Haveli, and Daman & Diu) and Pathredi (Rajasthan) cable manufacturing units in the first half (H1) of FY25.
The expansions, fully commissioned between April and September 2024, have increased the company’s low-tension (LT) cable capacity to approximately Rs 9 billion annually.
The company invested Rs 3.12 billion in H1 FY25, covering the brownfield projects and the greenfield plant at Sanand in Gujarat, where Rs 1.69 billion was allocated. For the entirety of FY25, KEI plans a capital expenditure of around Rs 11 billion, with Rs 9 billion designated for the Sanand facility.
Sanand Greenfield Plant
The Sanand plant, under construction since FY24, is expected to commence operations in Q1 FY26 with an annual capacity of Rs 50 billion for EHV, HT, and LT cables. It will receive an additional investment of Rs 6 billion in Q1 FY26. The plant’s capacity allocation includes Rs 12-13 billion for EHV cables, Rs 15 billion for HT cables, and the remainder for LT cables.
Order Book and Future Prospects
As of October 13, 2024, KEI Industries’ order book stood at Rs 38.47 billion, comprising EPC projects (Rs 6.03 billion), EHV cables (Rs 3.01 billion), domestic cables (Rs 23.68 billion), and export orders (Rs 5.75 billion). The company is currently the lowest bidder (L1) for a Tata Power order worth Rs 1.86 billion for 220kV cables.
Fundraising Initiatives
The board of KEI Industries has approved raising Rs 20 billion through a qualified institutional placement to support its ongoing expansion and investment plans.