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KEC’s Cable Division, Asian Cables, to Establish Aluminium Conductor Plant

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Asian Cables, a division of KEC International, and earlier known as RPG Cables, will be establishing a new Aluminium conductor plant at Vadodara, Gujarat. The foundation stone for this facility was laid on 23rd February 2024 in the presence of Mr. Upendra Pande, Managing Director of Gujarat Energy Transmission Corporation Limited (GETCO), and Mr. Vimal Kejriwal, MD of KEC International.

New Aluminium Conductor Plant to Entail Rs. 60 Cr. Investment

During KEC International’s earnings call on its Q3 FY-24 performance, Mr. Vimal Kejriwal had said that a new Aluminium conductor plant would be established with an invetment of about Rs. 60 crore. The company expects this new facility to be operational within “the next few quarters.

Move Motivated by Soaring Global Demand for RE Transmission Lines

Mr. Kejriwal had highlighted the increase in global demand for transmission lines in light of increasing Renewable Energy projects. “In line with the strategy of backward integration and to capitalize on the sustained demand, I am pleased to share that we have decided to expand the product portfolio at our Vadodara cable plant by setting up a fully integrated manufacturing line for aluminium conductors, said Mr. Kejriwal.

It is noteworthy that KEC had already been manufacturing Aluminium conductors, but the production had been limited in terms of scale, and it was mostly for “[their] own business and for railway supplies, etc.”. The new unit will provide the company with a dedicated unit to manufacture Aluminium conductors on a larger scale.

However, the production capacity of this new facility was not shared by the company.

New Unit Capable of Producing ACSR and Al59 Conductors

Aluminium conductor
Aluminium-Conductor

Asian Cables’ new Aluminum conductor manufacturing unit will be capable of producing ACSR and Al59 conductors.

ACSR (Aluminium Conductor Steel-reinforced Cable) are mostly used in overhead power lines and comprise Aluminium strands arranged over a Steel wire core.

AL59 conductors are made of an alloy of Aluminium, Magnesium and Silica, and offer high conductivity, resistance to corrosion and current carrying capacity in addition to lower Direct Current (DC) resistance. This makes these conductors suitable for power T&D lines for a wide voltage range, from LV to UHV transmission. Al59 conductors typically offer 26-31% more current carrying capacity than ACSR conductors of the same dimensions.

KEC Seeks to Augment T&D Business, Add to Cable Revenue

KEC expects the new Aluminium conductor plant to further its Transmission & Distribution (T&D) business, and to supplement its Cable revenue.

Emphasising the opportunities in T&D space, Mr. Kejriwal said, “In the domestic market we are witnessing substantial opportunities of over Rs. 25000 Crores for T&D projects pertaining to renewable energy including a large HVDC scheme across the States of Gujarat, Rajasthan, and Madhya Pradesh. He highlighted the fact that as of 31st December 2023, the company had a strong T&D order book, and L1 bidder position for T&D projects collectively worth Rs. 22,000 crore.

Therefore, the upcoming Aluminium conductor plant at Vadodara assumes greater importance for KEC, taking into account the company’s focus on expanding in the T&D space.

About Asian Cables: Asian Cables, the cable division of KEC International functions through two manufacturing facilities. One of these facilities is located in Vadodara, Gujarat, while the other is situated in Mysuru, Karnataka. Originally established in 1959 as Asian Cables, the company was acquired by the RPG group in 1966. RPG Cables then merged with KEC International in 2010 and became the cable division of KEC. RPG Cables was subsequently re-branded as Asian Cables.