KEC International is Expanding its Transmission Tower, Conductor & Cable Manufacturing Capacity
KEC International Ltd., a major Indian EPC player and a manufacturer of transmission towers, conductors and cables, has shared the progress of its ongoing expansion plans.
Recently, the company shared its Q3 FY-25 financial performance, reporting a quarterly top line of Rs. 5,349.38 crore.
KEC Intl. In Process of Augmenting Tower Manufacturing at Jabalpur
KEC International is in the process of increasing transmission tower manufacturing capacity at its Jabalpur facility. Post completion of this expansion, the company’s total transmission tower production capacity will grow to 4,68,200 MT against current capacity of 4,22,200 Metric Tonne (MT) which is constituted by KEC’s facilities in Dubai, Nagpur, Jaipur and Jabalpur.
During the company’s earnings call for its Q3 FY-25 financials, Mr. Vimal Kejriwal, KEC International’s MD and CEO, said, “This strategic capacity enhancement positions us to effectively meet the growing demand across India as well as Middle East”.
KEC had augmented its tower manufacturing capacity in Dubai during FY-24 from 50,000 MT to 60,000 MT.
Vadodara Al-Conductor Plant to be Fuly Commissioned in Q4 of FY-25
During the company’s earnings call for its Q3 FY-25 results, Mr. Vimal Kejriwal, MD & CEO of KEC International, said, “During the quarter, we successfully commissioned the first phase of the Aluminium conductor plant at our Vadodara facility, with the final phase on track for commissioning by end March 2025”. This plant entails a total investment of about Rs. 60 crore by the company. He added that this facility, once fully commissioned is expected to generate annual revenue to the tune of Rs. 600 crore. However, the manufacturing capacity of KEC’s conductor plant at Vadodara was not specified.
The foundation stone for phase 1 of this facility was laid in February 2024.
Production of e-Beam & Elastomeric Cables to Begin in Q4 of FY-26
KEC International is in the process of investing about Rs. 90 crore towards installing requisite equipment for production of electron beam (e-beam) and elastomeric cables. During KEC’s Q3 FY-25 earnings call, Mr. Kejriwal shared that this investment is “advancing well”, and that production of these cables is expected to begin in Q4 of FY-26. As for the revenue generation from this move, Mr. Kejriwal had shared during KEC’s Q2 FY-25 earnings call, “…we are setting up an e-beam facility and also elastomeric cables, etcetera. So that revenue also is expected to be around INR600 crores to INR650 crores. The full impact of that will come in, in FY-27”.
KEC MD explained that other than the additional revenue, this move is expected to improve the company’s profitability as e-beam products usually command higher margins and have a lower cost of production. He added, “…we expect that the margins or EBITDA on these should go up to 7.5% to 8% in FY-27”.
About KEC International Limited: Headquartered in Maharashtra, KEC International is an EPC player with a significant name and presence in around 100 countries. Its segments include Urban, Infrastructure, Solar, Smart Infrastructure, Civil, Cable sector, Power Transmission and Distribution, Railways, and Oil and Gas pipelines.
