KEI Industries, one of India’s leading cable manufacturers, is betting aggressively on its new Gujarat plant to drive export growth and solidify its position as a global player in the cables and wires industry. The company has announced that its upcoming plant in Gujarat will cater significantly to international markets, including North America, Europe, and Africa, supporting its strategy to expand beyond Indian shores.
Strategic Importance of Gujarat Plant
The proposed Gujarat facility, spread over 75 acres in Halol near Vadodara, will focus on manufacturing Extra High Voltage (EHV) cables, specialty cables, and export-oriented products. KEI Industries has earmarked a capital expenditure of ₹1,500 crore for this expansion, to be invested in a phased manner over the next three to five years.
According to Anil Gupta, CMD of KEI Industries:
“This plant is part of our long-term vision to enhance exports contribution to 20-25% of our overall revenues from the current 12-13%. Gujarat’s infrastructure, port connectivity, and industrial ecosystem make it the ideal hub for export-oriented manufacturing.”
Current Export Performance
| Region | Export Share (%) | Key Products Exported |
|---|---|---|
| North America | 32 | Instrumentation cables, LV & MV cables |
| Europe | 26 | Control cables, specialty wires |
| Middle East & Africa | 24 | Building wires, flexible cables |
| Others (Asia Pacific, South America) | 18 | Power cables, EHV cables |
In FY25, KEI Industries’ total exports stood at ₹1,261 crore, a growth of 17% YoY, driven by strong demand for power cables and infrastructure projects in the Middle East and North America.
Gujarat Plant: Expected Production Capacity
The new plant is expected to have:
- EHV cable capacity: 3,200 km per annum
- LV & MV cable capacity: 35,000 km per annum
- Specialty cable capacity: 12,000 km per annum
The first phase of the plant, with an investment of ₹600 crore, is expected to be operational by mid-2026.
Why Exports Are a Key Growth Lever
- Diversification of revenue streams beyond domestic EPC and institutional business
- Rising demand in developed markets for high-quality certified cables with robust compliance standards
- Geopolitical tailwinds with global customers looking to diversify supply chains away from China
- Potential to increase margins through currency gains and higher realisation on export orders
Financial Performance Snapshot: FY25
| Financial Metric | FY25 | FY24 | YoY Change (%) |
|---|---|---|---|
| Revenue (₹ crore) | 7,654 | 6,746 | +13.4 |
| EBITDA (₹ crore) | 861 | 748 | +15.1 |
| EBITDA Margin (%) | 11.3 | 11.1 | +20 bps |
| Net Profit (₹ crore) | 507 | 418 | +21.3 |
| Exports Revenue (₹ crore) | 1,261 | 1,078 | +17.0 |
The company’s healthy growth was driven by robust infrastructure spending in India and steady export orders, especially for specialty cables.
Management Commentary on Export Strategy
Anil Gupta elaborated:
“Our global certification approvals, quality reputation, and upcoming capacity expansion position KEI to win larger international contracts. The Gujarat plant will help us scale manufacturing to match global volumes competitively.”
Competitive Landscape
| Company | Export Focus | Key Export Markets |
|---|---|---|
| KEI Industries | High | North America, Europe, Middle East |
| Polycab India | Medium | Africa, Middle East, ASEAN |
| Havells India | Low | Mainly domestic + limited GCC |
| RR Kabel | Medium | Europe, GCC, Africa |
Challenges and Risks
- Global certification and compliance costs for export markets remain high
- Volatility in copper and aluminium prices affects working capital cycles
- Logistics and freight challenges amid global disruptions
- Currency fluctuations impacting realisation despite natural hedges
Analyst Views
Brokerages remain positive on KEI Industries’ strategic capex. A leading domestic analyst said:
“KEI’s Gujarat plant underlines its ambition to become a global cables major. Its strong balance sheet, healthy order book, and export pipeline provide long-term growth visibility.”
Future Growth Strategy
KEI Industries aims to achieve:
- 20% CAGR in exports revenue over the next 5 years
- Increase exports contribution to 25% of overall revenue by FY30
- Expand footprint in renewable energy cables and EV charging infrastructure segments in international markets
- Explore joint ventures or acquisitions in Europe or Middle East to fast-track growth
Stock Market Performance
KEI Industries’ stock closed at ₹2,612 on NSE, up 0.9% on the day of the Gujarat plant announcement, reflecting positive investor sentiment on its export expansion strategy and long-term growth trajectory.
Conclusion
KEI Industries’ strategic investment in the Gujarat plant marks a decisive step towards establishing itself as a global cables manufacturing leader. With a robust order pipeline, strong financials, and a clear export-focused strategy, the company is poised to leverage India’s manufacturing competitiveness to expand its international footprint over the next decade.
Disclaimer
This news content is for informational purposes only. It is not intended as investment advice. Readers are advised to consult financial experts before making any business or investment decisions based on this report.
