RR Kabel to Invest Rs. 1,450 Cr. to Augment Cable & Wire Manufacturing
RR Kabel Ltd., a prominent Indian cable and wire manufacturer, will be investing a sum of Rs. 1,450 crore at its existing Waghodia and Silvassa plants to increase production. This investment was approved by RR Kabel’s Board of Directors on 2nd May 2025.
RR Kabel to Invest Rs. 1,050 Cr. for 54% Capacity Addition at Waghodia
As a part of the approved investment, RR Kabel will expand cable and wire manufacturing capacity at its Waghodia plant by 36,000 Metric Tonne (MT), which is 54% of the plant’s current production capacity. As of now, Waghodia plant has a manufacturing capacity of 67,200 MT, out of which about 79% is currently being utilised.
Out of the total amount, Rs. 1,050 crore will be invested at Waghodia, and the company expects to complete this expansion by March 2028 in phases. RR Kabel will fund this investment through a mix of internal accruals and debt, although the exact ratio of accruals to debt has not been specified.
Planned Capacity of RR Kabel’s Upcoming Silvassa Unit Increased
RR Kabel is currently expanding its existing cable and wire manufacturing at its Silvassa plant. Phase 1 of this expansion is underway, which targets to add 12,000 MT of annual cable and wire production at the plant by March 2026. RR Kabel’s board has now approved production capacity addition by another 6,000 MTPA at the plant by December 2026, which will be executed in two phases. Taken together, phases 1 and 2 of this expansion will be funded with a total investment of Rs. 400 crore by the company, raised through a combination of internal accruals and debt.
Increase in Cable & Wire Demand Driving RR Kabel’s Expansion
RR Kabel has cited increase in demand of cables and wires as the rationale behind the company’s expansion at Waghodia and Silvassa. In its FY-24 annual report, RR Kabel had cited push towards Renewable Energy (RE), growth in the real estate sector, transition to Electric Vehicles (EVs), and rural electrification initiatives as some of the growth drivers of the Indian cable and wire market.
Further, in its investor presentation for the company’s FY-25 financials, RR Kabel mentioned that it seeks to “…leverage external tailwinds such as real estate recovery, as well as rising demand across Data Centres, Renewable Energy and Industrial Capex” in order to grow its wire and cable business.
RR Kabel Targets 18% CAGR for its Wires & Cable Business over Next 3 Years
RR Kabel sees the aforementioned production capacity addition at Waghodia and Silvassa as means to grow its wires and cables business revenue at a CAGR of 18% over the next three fiscals. Apart from capacity addition, RR Kabel will be focusing on achieving better margins through the scale of its cables sales (domestic as well as export).
About RR Kabel Ltd.: Mumbai-headquartered RR Kabel is a part of RR Global and is a manufacturer of wires, cables, and Fast Moving Electrical Goods (FMEG) in India. The company has manufacturing plants at Silvassa and Waghodia. For FY-25, the company reported Rs. 7,618.2 crore as its revenue from operations.