KEI Industries invests Rs 1.45 billion in Q1 FY25 for plant expansions
KEI Industries undertook capital expenditure (capex) of approximately Rs 1.45 billion in the first quarter of FY25, focusing mainly on a new greenfield plant in Sanand, Gujarat. The company spent Rs 760 million on the Sanand plant, while the remaining Rs 690 million was allocated to brownfield expansions across other facilities, including Chinchpada (Rs 240 million), Bhiwadi (Rs 210 million), and Pathredi (Rs 140 million).
The Chinchpada plant in Silvassa will see increased wire and cable manufacturing capacity, expected to be completed by Q2 FY25. The Pathredi plant in Rajasthan will expand LT (low tension) cable capacity with a total capex of Rs 1.25 billion, projected to finish by Q2 FY25, bringing KEI’s overall LT cable capacity to around Rs 9 billion annually.
The Sanand greenfield plant, which began construction in FY24, will see a total capex of Rs 9-10 billion in FY25, catering to EHV, LT, and HT cables, with commercial production starting by Q4 FY25 and full capacity by Q1 FY26, requiring an additional Rs 5-6 billion investment.
In FY24, KEI spent Rs 3.97 billion on capex, with Rs 1.97 billion allocated to the Sanand plant. These expansions aim to boost both domestic sales and export volumes, particularly in power cables for the oil and gas industry.
KEI’s order book as of June 30, 2024, stood at Rs 35.9 billion, including EPC works (Rs 6.53 billion), EHV cables (Rs 3.33 billion), domestic institutional cable business (Rs 20.52 billion), and exports (Rs 5.52 billion). The company is also working on expanding the export market for its EHV cables, currently produced in collaboration with Brugg Kabel AG, primarily selling in India but also exporting to Australia, with further market development planned for FY26.