DDev Plastiks Targets Rs 5,000-Crore Revenue By FY30 On Rising Demand For Cables Amid Renewable Energy Push
To support its growth, the company has deployed Rs 110 crore in capital expenditure this year. DDev Plastiks plans to spend an additional Rs 300-400 crore by 2027.
DDev Plastiks Industries, a leading polymer compound manufacturer, is targeting revenue between Rs 4,500 crore and Rs 5,000 crore by 2030. The company’s confidence stems from the growth of the cable business and the demand for renewable energy in the country, according to Narrindra Suranna, Chairman and Managing Director (CMD), Ddev Plastiks Industries.
“We aim to achieve around Rs 4,500 crore to Rs 5,000 crore of turnover by 2030 from compounded business only. At the same time, we are looking for some diversification in related areas. By 2025 last quarter, we will be an absolutely debt-free company,” he said during a conversation with NDTV Profit.
The company's growth strategy is directly tied to the burgeoning cable industry. This is further being fuelled by India's massive push for the adoption of renewable energy, Suranna said.
“Mainly, we are making polymer compounds for the cable industry. The growth of the cable industry is projected at a 15% CAGR, which is almost two times our country's GDP. Everybody is absolutely bullish about this renewable energy. But one thing is common, that is cable. You will be requiring different kinds of cables,” he underlined.
The CMD noted that the company has developed products that were previously imported. “And there are a few compounds which we have developed in our in-house R&D, actually, which only we are manufacturing across the globe.”
To support its growth, the company has deployed Rs 110 crore in capital expenditure this year and plans to spend an additional Rs 300-400 crore by 2027. This investment will bolster its technological capabilities and expand its geographical reach to serve global customers.
A crucial element of the company's strategy for enhancing profitability is its focus on high-margin Halogen-Free Flame Retardant (HFFR) compounds. While this segment currently accounts for only 2% of revenue, it commands margins of 10-15%. Suranna believes the adoption of HFFR, which is a standard safety requirement in many parts of the world, is set to "explode" in India.
"People never die of fire; they die of choking," he explained, noting that HFFR cables prevent the emission of toxic smoke during a fire.
The company has recently installed new machinery from overseas to boost HFFR production and has plans to add several more machines in the coming years.
Shares of Ddev Plastiks Industries closed 0.6% higher at Rs 350 apiece on the NSE, while the benchmark Nifty50 ended 0.18% lower at 25,069.2.
