KEI Industries to Invest Rs. 700 Cr. in New Cable & Wire Plant in Rajasthan
KEI Industries Limited’s Board of Directors has approved a capital expenditure of Rs. 700 crore for the development of a new cable and wire manufacturing plant at Salarpur in the Khairthal-Tijara district of Rajasthan. The company’s management shared the news during its Q1 FY27 earnings call.
New Rajasthan Plant to Manufacture LV, MV Cables and GI Wires
The upcoming plant will manufacture Low Voltage (LV) and Medium Voltage (MV) cables, along with Galvanized Iron (GI) wires.
The cable manufacturing facility will have an annual capacity of 50,000 Km. Currently, KEI Industries has an installed power cable manufacturing capacity of 2,60,732 Km per annum. Although the increase is capacity is 19.1% by Km, the product mix is high-value, and requires a considerably high CapEx.
KEI’s new plant will also have an annual production capacity of 40,000 Metric Tonnes (MT) of GI wires. The approved capacity marks KEI Industries’ entry into large-scale GI wire manufacturing. The GI wire plant is being developed as part of the company’s backward integration strategy, with the output expected to primarily support its own power cable manufacturing operations rather than being supplied to the commercial market.
KEI Industries will fund the project through internal accruals. The plant is expected to be commissioned in phases by 2028.
For the project, the company acquired 74,000 square metres of land from the Rajasthan State Industrial Development & Investment Corporation (RIICO) in May 2025 at an estimated cost of Rs. 93.58 crore.
KEI Industries’ Sanand Plant Under Development
Apart from the Rajasthan facility, KEI Industries is also developing its largest manufacturing plant in Sanand, Gujarat. The company has planned a total investment of Rs. 2,000 crore for the project, of which Rs. 1,722 crore had been invested as of June 2026.
The Sanand facility is being developed in phases. The company commenced trial production for Phase I in December 2025, while Phase II is expected to be commissioned by March 2027.
New Plants to Support KEI’s Long-Term Growth Target
During the Q1 FY27 earnings call, KEI Industries’ management stated that both the Rajasthan and Sanand plants will play a significant role in achieving the company’s revenue targets and maintaining a Compound Annual Growth Rate (CAGR) of more than 20%.
The company has set a revenue target of Rs. 25,000 crore by FY30. During Q1 of FY27 KEI Industries reported a revenue of Rs. 3,185.34 crore and profit of Rs. 274.14 crore.
KEI’s Sanand plant is expected to contribute approximately Rs. 1,500 crore to Rs. 2,000 crore in revenue in FY27. This contribution is expected to increase to around Rs. 6,000 crore to Rs. 7,000 crore within two years.
The company has not disclosed the expected revenue contribution from the Salarpur plant. However, management indicated that capacity additions through projects such as the Rajasthan facility will be essential for sustaining its targeted CAGR of more than 20%.
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) cables, control and instrumentation cables, speciality cables, elastomeric / rubber cables, submersible cables, flexible & house wires.