Diamond Power Subsidiary Commissions Al-59 Rod Mill, Further Expansion Planned
DICABS NextGen Special Alloys Pvt. Ltd., a 100% subsidiary of Diamond Power Infrastructure Ltd., has started commercial production at its first Aluminium rod mill for manufacturing Al-59 wire rods. This rod mill is located in Vadodara, Gujarat.
This newly established mill is capable of manufacturing 80 Metric Tonne (MT) of Al-59 rods per day, or 2,400 Metric Tonne (MT) of rods per month. The company has invested Rs. 20 crore out of its internal accruals for setting up the aforementioned rod mill.
New Mill Part of a Larger Al-Rod Project
DICABS NextGen Special Alloys is developing a greenfield Al-rod manufacturing project at Vadodara, and the aforementioned mill is a part of it. The entire project will comprise 3 mills which, once commissioned, will have a capacity to produce 250 MT of Al-rods per day or 7,500 MT of Al-rods per month. This entire project is being developed at a cost of Rs. 55 crore.
Therefore, considering that DICABS NextGen has commissioned its first Al-rod mill, the company will increase production by 5,100 MT per month with an investment of about Rs. 35 crore.
Through this project, DICABS NextGen Alloys envisages increasing its capacity of value-added products. Al-59 wire rods are key in producing conductors used in Transmission and Distribuition (T&D) projects.
Need to Ramp up Al-59 Manufacturing in India
As per Diamond Power the current annual demand for Al-59 conductors in the country is around 1 Million Metric Tonnes (MMT). The company added that only five manufacturers possess integrated rod mills, essential for producing high-quality Al-59 conductors. These manufacturers have a combined capacity of about 0.5 MMT per year.
Therefore, DICABS NextGen Alloys’ foray into Al-59 production is a step towards addressing this gap. Once the company’s Al-rod manufacturing mill is fully commissioned, it will be able to produce about 90,000 MT of Al-rods annually, which will be a substantial addition to India’s overall production of Al-59.
Diamond Power’s Stock Gains 5%
Post announcement of the aforementioned capacity expansion, the company’s share price jumped by 4.99%. Diamond Power’s share price stood at Rs. 87.52 apiece on the day the company announced its entry into Al-59 wire rod manufacturing, against Rs. 91.89 apiece on the next trading day.
About Diamond Power Infrastructure Ltd: Diamond Power Infrastructure Ltd. founded in 1970 owns a cable and conductor plant, spread over 110 acres in Gujarat. The plant is equipped with five CCV (catenary continuous vulcanization) lines for producing cables. This plant has annual conductor manufacturing capacity of around 2.5 lakh tonnes.
