Ram Ratna Wires Approves Rs 86 Cr CAPEX for Capacity Boost

Ram Ratna Wires Limited's Board of Directors met on March 28, 2026, approving an Rs 86 crore capital expenditure.

The funds will support capacity expansion and process improvements at its Silvassa manufacturing facilities. This project aims to add 3,600 MT per annum to the company's existing annual capacity of about 45,500 MT. The expansion is scheduled for completion within 12 months, by March 2027. Funding is anticipated from internal reserves or debt.

Strategic Growth Driver

This investment highlights Ram Ratna Wires' proactive strategy to meet increasing market demand and bolster its production capabilities. Expanding capacity and enhancing processes are expected to boost operational efficiency and solidify the company's market position.

Previous Investments and Diversification

Ram Ratna Wires has a track record of strategic investments. Previously, it approved about ₹40 crore for adding 9,600 MT of annual capacity at Silvassa by March 2025. Earlier, the board had outlined a total CAPEX of ₹700 crore over three years for new plants and ongoing initiatives. Recent years have seen diversification efforts, including the merger of Global Copper Private Limited and the start of copper tube production. The company also secured approval under the PLI Scheme for White Goods, committing ₹253 crore.

Impact for Shareholders and Operations

Shareholders can expect an overall increase in the company's manufacturing output. This expansion is designed to meet future demand, with the potential to drive revenue growth. Timely execution within the 12-month target is key to realizing these benefits. Effective management of the Rs 86 crore financing, whether from internal funds or new debt, will be important.

Key Risks and Considerations

• Project execution: Risks include completing the expansion on time and within budget.
• Financing: The effect of debt or using internal funds on the company's financial leverage.
• Raw material prices: Profitability remains susceptible to copper price volatility.
• Past tax issues: While the company faces past tax demands, it plans to appeal and does not expect a material impact.

Competitive Landscape

Ram Ratna Wires competes in a busy market alongside major players like Polycab India and KEI Industries. These peers are also investing heavily in expansion. Polycab India plans a massive Rs 6,000-8,000 crore CAPEX over five years, and KEI Industries is investing Rs 1,600-1,800 crore in new facilities, including its Sanand plant set to add capacity by March 2027.

Key Financial and Operational Metrics

As of Q2 FY26, the company's installed capacity for enamelled wires was around 41,400 tons annually, operating at an 85-90% utilization rate. Total assets were ₹1,804 crore and total equity ₹545 crore as of December 2025.

Next Steps for Investors

• Track the progress of the Silvassa expansion project against its March 2027 completion deadline.
• Monitor the financing method for this CAPEX (internal accruals or debt) and its impact on company leverage.
• Assess demand trends in the wires and cables sector to gauge the absorption of the new capacity.
• Follow updates on the integration of Global Copper and diversification into value-added products.
• Watch for significant shifts in raw material prices, especially copper.