KEI’s Largest Plant to Begin Production in Sept. 2025
KEI Industries, a major Indian manufacturer of cables and wires, is developing its largest manufacturing plant in Sanand, Gujarat. This 78-acre plant is being developed in 2 phases, and Phase-1 of this greenfield facility will begin production in September 2025.
Plant to be Fully Commissioned in H1 FY27
KEI Industries’ Sanand plant will be fully commissioned in H1 of FY27. KEI will produce LT and HT cables once Phase 1 of this facility is commissioned. Subsequently, EHV cable production at Sanand will begin in Q1 of FY27, after Phase-2 of the plant is commissioned.
Total Investment at Sanand to be Rs. 1,780-1,980 Cr.
During KEI’s Q1 FY26 earnings call, the company’s management shared that till 30th June 2025, a total of Rs. 880 crore has been invested in development of Sanand plant. Out of this Rs. 296 crore has been invested during Q1 FY26 alone. Looking ahead, the company will invest Rs. 600-700 crore in the next 3 quarters in Sanand, and an additional Rs. 300-400 crore in H1 of FY27. Therefore, the company’s total investment in developing its Sanand plant can be pegged at about Rs. 1,780-1,980 crore.
In fact, to fund its Sanand project, in November 2024 KEI had raised Rs. 2,000 crore via a Qualified Institutional Placement (QIP).
18% Growth Expected in FY26 after Sanand Phase-1 Commissioning
As per Mr. Anil Gupta, CMD of KEI Industries Limited, “…company is hopeful to achieve 18% growth in this financial year [FY26]…we will…improve our operating margins during FY 25-26 considering phase one commercial production at Sanand and [our] strong order book position”.
On multiple occasions, the company’s management has expressed that once fully commissioned, Sanand plant is expected to add Rs. 5,500 crore to Rs. 6,000 crore to KEI’s annual sales.
Share of Exports to Grow to 15-18% of Total Revenue in Next 3 Years
Along with increasing the company’s topline, KEI’s Sanand plant is expected to grow the share of exports in its revenue mix to 15-18% over the next 3 fiscals from the current 13%. The company expects that this increase will be on the back of EHV and HVDC cable exports. “The EHV segment, though niche, offers high margins and strategic relevance. We are navigating execution challenges while building future capacity through Sanand [plant]”, mentioned the company’s FY25 annual report.
KEI to Grow with 20% CAGR for 2-3 Years Post Sanand Plant Completion
Mr. Gupta shared that the company expects its topline to grow at a Compound Annual Growth Rate (CAGR) of 20% for the 2-3 years following Sanand plant’s full commissioning. He attributed this to growth in cable demand from sectors such as Renewable Energy (RE), especially solar power, oil & gas, Transmission and Distribution (T&D), EV charging infrastructure, railways, metro railways, manufacturing, and more.
In fact, KEI’s Sanand plant is central to its 5-year roadmap, which targets growing its consolidated topline to Rs. 25,000 crore from about Rs. 9,736 crore clocked in FY25.
About KEI Industries Limited: KEI Industries was founded in 1968 as a partnership firm. It was converted into a Limited company in 1992. The company has manufacturing facilities in Bhiwadi, Chopanki & Pathredi in Rajasthan and Silvassa in Dadra & Nagar Haveli. KEI is primarily a cable and wire company, dealing in Low Tension (LT) cables, High Tension (HT) and Extra High Voltage (EHV), control and instrumentation cables, specialty cables, elastomeric / rubber cables, submersible cables, flexible & house wires.
