Polycab Amps Up Investment: Capex in Gujarat Jumps 30% to Rs 1,100 Cr

Polycab India is gearing up for a significant increase in capital expenditure, with plans to ramp up by 30 percent from the existing Rs 800–850 crore to approximately Rs 1,100 crore per year for the fiscal years 2025, 2026, and 2027. This substantial increase in capex will be directed towards greenfield and brownfield projects in Hallol, Gujarat, in anticipation of sustained demand driven by infrastructure development initiatives and a resurgence in private capital investment.

In fiscal year 2024, Polycab India witnessed a remarkable 29 percent year-on-year revenue growth, reaching Rs 18,000 crore. A substantial portion, around 92 percent, stemmed from domestic operations, with the remainder originating from international ventures. The company's upcoming Rs 700 crore extra-high voltage (EHV) plant in Hallol is projected to be operational by fiscal year 2026, with revenue benefits expected to materialize from fiscal year 2027 onwards.

Additional expansion initiatives, including a dedicated export facility and a special cable facility, are slated to come online within the next 12-18 months. With burgeoning private capital investments across sectors like steel, cement, real estate, FMCG, coupled with the government's focus on infrastructure development, the outlook for sustained demand in the cables and wire segment remains favorable.

Polycab India's strategic revenue guidance under 'Project Leap' is progressing smoothly, with a targeted revenue of Rs 20,000 crore by fiscal year 2026. As the company aligns its operations with evolving market dynamics and capitalizes on growth opportunities, it remains poised for further expansion and leadership in the cables and wire industry.

News by Rahul Yelligetti