in Jan concall they had shared the details about capex for EHV production facility. In May concall there wasn’t any discussion about that.
Here is the excerpt from Jan concall:
During various past earning calls, we have communicated our intention of entering
the high-voltage, extra-high-voltage space. With power demand multiplying across all Tier 1
and 2 cities, as well as with smart cities coming up, entire overhead high-voltage transmission
line conductors will have to go underground, and thus, the demand for high-voltage, extra-highvoltage cables would grow exponentially. Also, due to ever-increasing load transmission system,
we see 220 KV transmission lines moving to 400 KV and soon expect to even see the 550 KV
transmission lines in India. Being a market leader in the cable industry and looking to capitalize
on this opportunity, we are kicking off investment for a state-of-the-art EHV production facility
in Halol, Gujarat. We will be putting in capex this year towards setting up this facility and expect
the project to be completed and production to get started in 2025. Since EHV is high technology
product, so we have tied up with a leading Swiss company, Brugg Cables, for the technology
procurement. Brugg Cables was founded more than 120 years ago and has grown to be one of
the world’s leading cable manufacturers. Brugg has signed a technology know-how agreement
with Polycab to transfer design, testing, production and installation technology to Polycab for
up to 550 KV voltage system. The investment will open up INR 4,000 crores to INR 5,000 crores
of potential HV, EHV domestic market and also a significant amount of overseas business for
Polycab. Taking this investment into consideration, our capex for the 12-month period from Jan
’23 to December ’23 will be roughly INR 600 crores to INR 700 crores. Three-fourth of this will
be utilized for wires and cables and one-fourth for the FMEG business.
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