KEI Industries Approves ₹700 Crore Expansion for Wires and Cables Division

KEI Industries will invest approximately ₹700 Crore to expand its manufacturing capacities for the Wires and Cables division. This significant investment will establish a new unit in Salarpur, located in the Khairthal-Tijara District of Rajasthan. The expansion is expected to be operational in a phased manner by September 2028.

Reader Takeaway: Company confident in demand; expansion funded internally, reducing leverage risk.

What just happened

The board of KEI Industries has given the green light for a substantial capacity expansion in its Wires and Cables segment. This involves setting up a new manufacturing unit in Rajasthan, with a total investment pegged at around ₹700 crore. The expansion aims to add 50,000 KMS of cable capacity and 40,000 MT of Galvanized (GI) wire capacity, the latter representing a backward integration move.

Why this matters

This expansion signals KEI Industries' strategic intent to meet growing market demand and enhance operational efficiencies. The investment, entirely funded through internal accruals, indicates a strong financial position and a de-risked growth strategy. Backward integration into GI wire production could lead to better cost control and supply chain stability.

The backstory

As of June 30, 2026, KEI Industries operated with existing capacities including 2,60,732 KMS for Cables, with 72% utilization. Other capacities include 28,800 KMS for Communication Cables (45% utilization), 23,89,400 KMS for House Wires/Winding Wires (61% utilization), and 9,000 MT for Stainless Steel (SS) Wires (91% utilization). The high utilization in SS wires (91%) already points to strong demand in certain product lines.

What changes now

The new unit in Rajasthan will significantly scale up KEI Industries' production capabilities. The addition of 50,000 KMS of cable capacity and 40,000 MT of GI wires will enhance its market reach and competitive positioning. The phased operational start by September 2028 allows for gradual integration and ramp-up.

Risks to watch

Investors should closely monitor the execution timeline of this project. Any delays in the phased commissioning, scheduled for September 2028, could impact the expected benefits and market response. Ensuring smooth integration of backward-integrated GI wire production will also be crucial for realizing cost efficiencies.

Peer comparison

While specific peer capacities are not detailed in the filing, KEI Industries' move into significant backward integration for GI wires is a strategic differentiator. Competitors may have varying levels of vertical integration, and KEI's investment aims to solidify its position in cost management and supply chain reliability.

Context metrics (time-bound)

The ₹700 Crore expansion project is planned to be operational by September 2028, funded by internal accruals. This investment aims to add 50,000 KMS of cable capacity and 40,000 MT of GI wire capacity.

What to track next

Investors should look for regular updates on the construction progress and commissioning of the new unit in Rajasthan. Monitoring the company's financial reports for confirmation of funding through internal accruals and tracking the impact of the new capacities on revenue and profitability in future quarters will be key.