KEI to set up greenfield projects worth ₹1000 Crores in India

Anil Gupta, Director of KEI Industries, announces a ₹1000 crore investment for Greenfield CapEx to fulfil rising wire and cable demand. The company’s focus on niche divisions and worldwide expansion demonstrates its aggressive growth goals.

How are the ongoing advancements reshaping the future of the Indian electrical sector?

The Indian Electrical Sector is transforming, redefining the industry’s outlook. The future of the electrical industry in India is bright, with sustained economic growth driving the demand for electricity across the country. India is emerging as the fastest-growing major economy globally. With a robust infrastructure pipeline and the government’s focus on infrastructure development, particularly in areas like railways, metro systems, highways, and real estate, we anticipate a substantial surge in cable demand in the coming financial years.

The government of India has recognised the power sector as a key driver for sustained industrial growth. To bolster the Indian power sector, the government has implemented initiatives such as the Production Linked Incentive (PLI) scheme to boost the manufacturing of high-efficiency solar modules and cells and battery-backed power storage infrastructure. These measures indicate a positive trajectory for the Indian Electrical Sector, creating favourable conditions for growth and innovation.

What advantages and opportunities do the government initiatives and policies offer this industry?

The Indian government is actively creating new economic opportunities by significantly increasing capex from 7.28 Lac Crore in the previous financial year to a substantial 10 lac crore to boost infrastructure development. As electricity is an integral part of any such development, we firmly believe immense opportunities are available in the Indian market for Wire and Cable products, both in the B2B and B2C segments.

The government’s initiatives to support the domestic manufacturing sector and infrastructure have paved the way for the wire and cable industry growth. Moreover, the recent surge in new solar energy projects indicates a strong demand in the solar sector, with rising requirements from solar developers. 

Furthermore, we have observed a robust demand from power distribution companies for Rural Distribution System (RDS) projects, driven by implementing various distribution strengthening schemes financed by PFC and REC. The manufacturing sector is also showing signs of increased demand, and private capital expenditures, particularly from industries such as steel, oil and gas, petrochemicals, cement, and others, are expected to exhibit strong growth. The government’s focus on providing production-linked incentives (PLI) for manufacturing projects will undoubtedly further boost investments in the manufacturing sector. Additionally, the revival of the real estate sector will bring forth more opportunities in the house-building segment.

The market is expected to shift towards producing high-end speciality cables, driven by the rise of digitalisation. Furthermore, the increasing emphasis on renewable energy sources like solar and wind power will propel the industry’s growth in the coming years. With increased investments in research and development and the adoption of cutting-edge technologies like 5G, the wire and cable industry is poised for significant growth and success.

What elements have led to KEI’s steady year-over-year revenue growth of 20% or more in the previous five years?

KEI has been present in the Indian market since 1988. Over the years, we have expanded as a multinational conglomerate, providing customised solutions in the B2B space. We have established ourselves as one of the leading brands with a strong presence in the B2C retail sector. With a legacy of 55 years in this business and a diverse product portfolio of wires ranging from 1 KV to 400 KV, KEI is the only brand that has achieved a consistent growth rate of 20 percent or more year on year in the last five years (except during the COVID year). Currently, we operate five state-of-the-art manufacturing facilities.

The future of KEI wires and cables appears promising, particularly compared to its competitors. With a strong commitment to innovation and a focus on providing high-quality products and services, KEI is well-positioned to sustain its growth and expand its market share. Moreover, KEI’s laboratories are accredited by NABL, and the company has established a solid reputation for reliability and customer service over the years, which will further enhance its competitive advantage. Despite the challenges posed by emerging competitors, KEI is determined to maintain its position as a leader in the wire and cable industry.

Kindly shed some light on your greenfield projects.

We are allocating approximately ₹1000 crore for Greenfield CapEx in the next three years, enabling us to meet the growing demand for wires and cables. Additionally, we are actively enhancing our product portfolio for various sectors, explicitly focusing on speciality segments such as oil and gas, infrastructure, solar, wind power, agriculture, EVs, and various commercial needs. Our primary focus remains on Wire and Cable products, and we are emphasising expanding our global customer base.

This undertaking represents the largest manufacturing plant ever constructed by KEI and will be located in Sanand, Gujarat. It marks a significant milestone in our journey towards success, enabling us to introduce new products in the Wire & Cable range, particularly in speciality sectors.

As we expand our presence beyond the 50 countries we currently serve, we encounter various countries with different standards and certifications that are mandatory for marketing Wire and Cable products in diverse sectors such as solar, wind, and power transmission and distribution.

What are your plans and projections for expanding your product portfolio and industrial outreach in the next five years?

Over the next five years, we project to achieve an annual top-line revenue of over ₹1400 crore while further enhancing our portfolio of wire and cable products. We have a presence in more than 55 countries, and we aim to expand our footprint and enhance our expertise in countries such as the US, Europe, and Australia to drive operational efficiency.

With a longstanding reputation for delivering quality products to the electrical industry, KEI Wires and Cables is committed to extending its reach in the future. We remain dedicated to providing tailored solutions that meet the specific needs of our customers, all while prioritising environmental sustainability. The prospects for KEI wires and cables appear promising, and we will continue to lead the industry by delivering world-class products and services of exceptional quality. 

For more details, visit: https://www.kei-ind.com/