KEI Industries Betting Big On Gujarat Plant To Ramp Up Exports

KEI Industries, India's second largest player in the cables & wire segment by market capitalisation, is awaiting Sanand facility's capacity expansion project to complete before ramping up its export business, according to chairman & managing director, Anil Gupta.

Speaking during NDTV Profit's Know Your Company show, Gupta added that the first phase of the capacity expansion in the Gujarat facility will be operational by September 2025.

"Phase 1 of this project likely to be operational by September 2025. Full project will be operational by Q1FY27," he said.

The capacity expansion in Sanand facility is part of KEI Industries' broader push to add more value to its product range, including those that will serve the international market.

"Lot of international companies are waiting for us to serve them. Once capacities come up, we will go fully fledged on grabbing the domestic and international markets opportunity," Gupta said.

KEI Industries' current export business revenue share stands at around 13%, with the company looking to ramp up to 20% share in the coming two to three years, the management said.

The Sanand facility in Gujarat will play a key role in helping KEI Industries serve the international market. It will also lower the logistics and shipping cost, as the facility is located near the sea.

"Sanand facility products will be favourable logistically, as the plant is situated near the sea. Time and price required to ship products overseas will go down significantly," he said.

Gupta further added that margins into the export business are a "little higher" than domestic business.

Apart from locking in new capacity within the coming year or so, KEI Industries has been actively working on receiving product approvals in overseas countries.

This acts as a natural buffer for KEI Industries, especially against domestic peers that are also looking to get into the international markets.

"We're going all out to get product certification in different countries. It’s an important part of the business that will let us stay ahead of rivals," he said.

Gupta also said that KEI Industries is confident of retaining its market share and dominance in the cables and wires space, despite the entry of fresh players.

"We have established ourselves strongly in the business. We agree some big players have announced their entry in the space, but the market is growing and the economy is growing, so there will be space for one or two large players coming.

"We know how to diversify our product and market geographies. Despite domestic competition, we will cover with other geographies. Confident of maintaining and growing domestic market share," he said.

KEI Industries reported its first quarter earnings on Tuesday, with revenue seeing a 11% uptick on a year-on-year basis to Rs 2,590 crore while bottom line saw a 31% jump to Rs 196 crore.