Havells to Expand Cables Manufacturing at Alwar Plant
Havells India Limited, a leading Fast Moving Electrical Goods (FMEG) Company and a major power distribution equipment manufacturer has announced plans to expand its cable manufacturing capacity at its Alwar plant in Rajasthan. This information was conveyed via Havells’ stock filing dated 9th July 2024.
Estimated Expansion Cost Rs. 375 Cr., to be Funded by Internal Accruals
Expansion of Alwar plant is estimated to cost Havells Rs. 375 crore and will be completed in phases by March 2026. Havells will be financing the expansion through internal accruals.
Alwar Plant’s Capacity to be 41.20 Lakh Km by March 2026
Havells will be expanding cables manufacturing capacity at its Alwar plant to 41.20 lakh Km by March 2026. This expansion will be done in a phased manner as per the company. However, Havells did not specify the exact category of cables covered under this capacity expansion. The company’s annual report for FY-24 mentioned that Havells manufactures ‘domestic and industrial cables’ at Alwar.
Currently, Alwar plant can roll out 32.90 lakh Km of cables annually. Therefore, this expansion will increase Alwar plant’s capacity by approximately 25%. The company is undertaking this expansion to cater to increased demand of cables.
Havells added in its stock filing that as of now capacity utilisation at its Alwar plant stands at about 70%.
Havells India’s Largest Cable Manufacturing Plant in India
As per Havells, its facility in Alwar is the largest single-location cable plant in India. This expansion will further solidify Havells’ position in the Indian cable manufacturing sector.
Indian Wires and Cables Industry to Grow at 13% CAGR by FY-27
As per an industry report by RR Kabel dated 30th August 2023, Indian Wires and Cables Industry is expected to grow at a Compounded Annual Growth Rate (CAGR) of 13% from FY-23 to FY-27, thereby reaching a market value of Rs. 1,20,000 crore from Rs. 74,800 crore. Out of this, market size of communication cables is expected to grow at a CAGR of 13.4% during this period, while power cables market is projected to grow at 12.5% CAGR. Market for Flexible and specialty cables, and Control & Instrumentation cables is expected to grow at a CAGR of 12.5% and 8.7% respectively.
Therefore, Havells India’s expansion of its Alwar cable plant is a positive development that will not only benefit the company but also contribute to the growth of the Indian cable manufacturing industry.
About Havells India Limited: Havells India Limited is a Noida-based company, which is one of the biggest players in the Indian FMEG market. Its product range includes Industrial and domestic Circuit Protection Switchgear, Modular Switches, Cables and wires, Fans, Power Capacitors, and Luminaires for Domestic, Commercial, and industrial applications, Water Heaters, Motors, and Domestic Appliances.
