Bansal Wire Forays into Specialty Wires, Plans 630 Cr. Expansion of Dadri Plant
Bansal Wire Industries Ltd. [NSE: BANSALWIRE, BSE: 544209], a major manufacturer of Stainless Steel (SS) & Galvanised Iron (GI) wires, has shared its strategy for future growth.
The company went public in Q2 of FY-25, and has exhibited a strong financial performance during Q3 of FY-25.
Bansal Wire’s Approach for Future Growth
In its Investor presentation for Q3 FY-25 results, Bansal Wire Industries highlighted its strategy for the company’s future growth, which included steps like increasing its presence in Eastern, Western and Southern India, focus on high-margin products, and expansion of its Dadri plant.
Bansal Wire Enters Specialty Wires Segment
During the company’s earnings call, the management shared that Bansal Wire has entered the Specialty Wires segment in Q3 of FY-25. Mr. Pranav Bansal, MD and CEO of Bansal Wire said that this segment features “…high value added products like bead wire, hose wire (Brass Coated Hose Reinforcement Wire), steel tire cord”. Mr. Bansal added, “…And with the market opportunity to tap up to 4.5 lakh tons annually, we have successfully established a pilot project with a…capacity of 50,000 tons”.
Bansal Wire Industries is targeting fast-growing industries such as infrastructure and automotive industry through the introduction of aforementioned high-margin products from its specialty wires segment. Hose Wire is used in high-pressure applications within hydraulic systems, oil drilling machinery, and construction equipment, whereas Bead Wire is used in tyre industry.
A key product that was highlighted in this segment is Steel Cord, which is used in the tyre industry. The company’s management mentioned that currently this product is imported into India, and Bansal Wire will be the first company in India to manufacture Steel Cord. Mr. Ghanshyam Gujarati, CFO of Bansal Wire Industries added, “…the market size [for Steel Cord] in India is about 2-2.5 lakh tons, of which we have only started with 20,000 tons as a pilot project”.
Bansal Wire Expanding Dadri Plant Capacity to 4.2 Lakh MTPA by Q2 FY-26
As per Bansal Wire Ind., its Dadri plant is India’s largest Steel Wire plant. Currently, Dadri plant has a commissioned capacity of about 2,20,000 MTPA. The company had earlier decided to increase this capacity to 3.5 lakh MTPA with an investment of about Rs. 550 crore. However, the company has revised this expansion plan, and will now expand production capacity at Dadri to 4.2 lakh MTPA, and this revision would mean an addition of about Rs. 70-80 crore to the original outlay of Rs. 550 Cr., as per the company’s CFO. He added that Bansal Wire is expected to complete this expansion within the first two quarters of FY-26.
About Bansal Wire Industries: Bansal Wire Industries was incorporated in 1985, and as per the company is the largest producer of SS wire in India. The company holds about 20% of SS wire market share in the country. In FY-24, the company reported a revenue of Rs. 2,466.03 crore from its operations.