Electrical Products Manufacturer to Invest Rs 1,450 Crores In Capacity Expansion At Waghodia And Silvassa Units To Meet Growing Demand
Over the past month, the stock gained 8.70 per cent, yet it fell 21.74 per cent over 3 months and is down 28.89 per cent year-to-date.
On Friday, May 2, 2025, the Board of Directors of RR Kabel Limited convened a meeting where they approved a significant expansion of their manufacturing capacities for Wires and Cables. This expansion will occur at two locations: the existing unit at Waghodia and the upcoming new unit at Silvassa. The decision was made to cater to the increasing demand for the company's products.
At the Waghodia location, RR Kabel plans to add a capacity of approximately 36,000 Metric Tonnes (MT) per annum for both Wires and Cables. This expansion is projected to be completed in a phased manner by March 2028. The estimated investment required for this capacity addition is approximately Rupees 1,050 Crores. The funding for this expansion will come from internal accruals and/or debt.
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For the new unit located near the existing one at Silvassa, Dadra & Nagar Haveli and Daman & Diu, the first phase with a capacity of 12,000 MT per annum is already initiated and is expected to be operational by March 2026, also in a phased manner. Following this, a proposed capacity addition of 6,000 MT per annum is planned and is expected to be added by December 2026, again in a phased manner. The total investment required for both phases at the Silvassa unit is approximately Rupees 400 Crores, which will also be financed through internal accruals and/or debt.
In the Quarterly Results of March 2025, the company reported a revenue of Rs 2,217.84 crore, reflecting a YoY growth of 26.44 per cent compared to Rs 1,754.07 crore in March 2024. The operating profit stood at Rs 194.38 crore, marking a 68.59 per cent increase from Rs 115.30 crore in the same quarter last year. The profit after tax (PAT) rose by 64.04 per cent to Rs 129.13 crore from Rs 78.72 crore in March 2024.
In FY25, the company posted a revenue of Rs 7,618.23 crore, registering a 15.52 per cent growth compared to Rs 6,594.57 crore in FY24. The net profit for the year stood at Rs 311.61 crore, up 4.52 per cent from Rs 298.13 crore in the previous financial year.
RR Kabel Limited is a prominent player in the consumer electrical products sector in India. The company operates through two major segments: Wires and Cables, which includes house wires, industrial wires, power cables, and special cables; and Fast-Moving Electrical Goods (FMEG), which encompasses fans, lighting, switches, and appliances like room heaters, water heaters, and coolers. RR Kabel has multiple manufacturing facilities across India, including units in Silvassa, Waghodia, Roorkee, Bangalore, and Himachal Pradesh. The company's products are used in residential, commercial, industrial, and infrastructure applications, and they also have a significant presence in the export market, reaching over 60 countries globally. Over the past month, the stock gained 8.70 per cent, yet it fell 21.74 per cent over 3 months and is down 28.89 per cent year-to-date.
Disclaimer: The article is for informational purposes only and not investment advice.