Diamond Power Infrastructure is investing Rs 25 crore to install a new Catenary Continuous Vulcanisation line at its Vadodara facility. The expansion aims to boost production capacity for XLPE-insulated power cables up to 132 kV to meet rising demand from data centers and renewable energy projects. The project is fully funded by internal accruals and is targeted for commissioning by December 2027.
Diamond Power Infrastructure Plans Rs 25 Crore Capacity Expansion
Investment: Rs 25 Crore | Targeted Commissioning: December 31, 2027
Reader Takeaway: Expansion targets high-voltage cable demand growth; reliance on internal accruals keeps balance sheet debt-free from project funding.
What just happened
Diamond Power Infrastructure Ltd has officially announced an expansion of its manufacturing capacity at its Vadodara plant. The company will install a new Catenary Continuous Vulcanisation (CCV) line specifically designed to produce XLPE-insulated power cables with ratings up to 132 kV. The project carries an estimated investment of Rs 25 crore, which includes necessary floor space extensions.
Why this matters
The company aims to capture rising demand for high-voltage and extra-high-voltage underground cables. Management has cited a strong order book and specific demand drivers, including requirements from state utilities, transmission developers, renewable energy parks, and the rapidly growing data center sector. Currently, the company operates six CCV lines with a 2,000 km per annum capacity, currently running at 60% utilization. This new investment is designed to integrate production capabilities further at the Vadodara site.
The backstory
Diamond Power Infrastructure has been focusing on its integrated manufacturing model, which includes in-house aluminium rod mills, compounding facilities, and NABL-accredited test laboratories rated up to 765 kV. The management noted that existing customers are demanding both higher volumes and faster delivery timelines, necessitating this additional capacity.
What changes now
Financially, the company will fund the Rs 25 crore requirement through internal accruals. This move signals management's intent to reinvest operational profits into capital assets rather than relying on external debt. Shareholders should note the long lead time: machinery delivery is expected by August 2027, with the facility projected to come online by the end of that year.
Risks to watch
The primary risks involve potential project delays. The timeline for machinery delivery and site commissioning is set for late 2027. Any macroeconomic shifts in the power transmission sector or supply chain bottlenecks for machinery could impact the projected timeline for the new production line.