Apar Industries Announces Rs. 1,300 Cr. CapEx for Next 12-15 Months

Apar Industries Limited will be investing a sum of Rs. 1,300 crore across its different business verticals in the next 12-15 months. This announcement was made by Mr. Kushal Desai, Chairman and Managing Director of Apar Industries Ltd. during the company’s earnings call for its FY-25 financials.

Bulk of Announced CapEx for Apar’s Cables Vertical

Apar Industries will invest a major part of the aforementioned CapEx, that is Rs. 800 crore, in expanding its cable manufacturing capacity. The company will invest this amount for setting up a new cable manufacturing plant.

Commenting on this expansion, Mr. Kushal Desai said “Post this expansion, we would expect a turnover…[of] about Rs. 10,000 crores [from Apar’s Cables business vertical]”. He added revenue generated by Apar’s Cables business is expected to overtake revenue generated by the company’s Transformers & Speciality Oils segment in FY26.

It must be noted that during FY25, the company reported Rs. 4,944.70 crore of revenue from its cables business, and a revenue of Rs. 5,086.40 crore from its Transformers and Speciality Oils segment. Mr. Desai explained that once the aforementioned investment is made and the new facility is commissioned, the company will double its cables segment revenue.

Currently, the company is expanding its cable manufacturing facility in Khatalwada, Gujarat. However, it was not made clear in Apar’s FY25 earnings call whether the aforementioned investment will be made at the Khatalwada plant or not.

Apar Industries to Invest Rs. 300 Crore in Expanding Conductors Business

The company has allocated Rs. 300 crore for expansion of its conductors business. Through this expansion, Apar Industries’ annual conductor manufacturing capacity will be increased by about 10% of its current conductor manufacturing capacity, which comes to about 25,000 Metric Tonnes (MT).

Mr. Desai added that this capacity addition will involve “…all the premium type products…so you have HTLS (High Temperature Low Sag), you have CPC (Circuit Protective Conductor), all of those high-end products can be made with this 25,000 tonne expansion”.

Apar Industries to Set Up New Storage Terminal at JNPT, Expand Capacity in UAE

The company will be investing the remaining Rs. 200 crore in its transformers and speciality oils business. The company has three facilities for manufacturing transformers & speciality oils. Two of these are in India (one in Navi Mumbai and the other in Silvassa) and one is in Sharjhah, UAE.

As a part of this investment, Apar Industries will be setting up a new storage terminal at the Jawaharlal Nehru Port Trust (JNPT). The company expects this planned storage terminal at JNPT to cut down supply chain costs. Mr. Desai said “…this is also going to allow us to be able to do bulk exports from the terminal of transformer oils, white oils, and pharmaceutical oils, which is something that APAR has not had so far”. The company is also expanding storage capability in Sharjhah.

Funding of CapEx by Apar Industries

Apar Industries will finance aforementioned capital expenditure through a combination of equity and long-term debt. During the earnings call, Mr. Desai stated that out of the total CapEx of Rs. 1,300 crore, Rs. 650 crore will be funded through equity, while the remaining Rs. 650 crore will be raised through long-term debt.

About Apar Industries Limited: Established in 1958, Apar Industries Ltd. has its presence in over 125 countries. Apar’s portfolio comprises manufacture and supply of conductors, transmission cables, specialty oils, polymers, and lubricants.