KEI Industries has officially commenced the first phase of commercial production for low tension (LT) and high tension (HT) cables at its greenfield manufacturing facility in Sanand, Gujarat. The company announced this significant operational milestone through a regulatory filing, marking the successful transition from trial production to full commercial operations.

Commercial Production Launch Details

The company started commercial production operations on December 10, 2025, at its Phase 1 facility located at Plot No. 1012-1023 Sanand-II, BOL Engineering Industrial Estate GIDC, Ahmedabad, Gujarat. This development represents the culmination of the company's expansion efforts at the Sanand location.

Capacity Addition and Investment

The Sanand project involves a substantial capacity expansion with the addition of 60,732 KMs of cable production capacity annually. The total investment for the Sanand project is approximately ₹2,000.00 crores, which will be financed through QIP proceeds and internal accruals.

Existing Production Capacity

The company's current manufacturing infrastructure demonstrates strong operational performance across multiple product categories. The existing capacity utilization rates reflect healthy demand for the company's products.

Strategic Rationale

The additional capacity at the Sanand facility is strategically positioned to help KEI Industries cater to increased market demand for cables. This expansion aligns with the company's growth objectives and strengthens its manufacturing footprint in the western region of India. The successful commencement of commercial production marks an important step in the company's capacity enhancement initiatives.

KEI Industries Limited , a leading player in the Indian cable manufacturing sector, has announced a significant milestone in its expansion strategy. The company has commenced the first phase of commercial production for LT/HT cables at its new greenfield manufacturing unit located in Sanand, Gujarat.

Commercial Production Underway

The commencement of commercial production marks a crucial step forward in KEI Industries' growth plans. This new facility has added 60,732 KMs of annual cable production capacity, significantly boosting the company's manufacturing capabilities.

Strategic Expansion

This new facility is part of a larger Rs. 2000 crore investment project, financed through QIP proceeds and internal accruals. The expansion aims to meet the increased market demand for cables, indicating KEI Industries' proactive approach to market dynamics.

Financial Implications

While the specific investment in this new facility has been disclosed as part of the Rs. 2000 crore project, KEI Industries' recent financial data shows a strong foundation for expansion:

The significant increase in total assets and current assets aligns with the company's expansion strategy. The 28.92% growth in fixed assets likely reflects the investments made in this new manufacturing facility.

Strategic Importance

This new facility in Gujarat is strategically important for KEI Industries for several reasons:

1. Capacity Expansion: The addition of 60,732 KMs of annual cable production capacity allows the company to significantly increase its output, potentially leading to higher revenues.
2. Geographic Diversification: The Sanand location provides access to new markets and potentially reduces logistics costs for serving western India.
3. Product Range Enhancement: The focus on LT/HT cables suggests KEI Industries is strengthening its position in this specific market segment.
4. Meeting Market Demand: The expansion is a direct response to increased market demand for cables, positioning the company to capitalize on growth opportunities.

Looking Ahead

As KEI Industries ramps up production at this new facility, investors and industry observers will be keen to see how this expansion translates into financial performance. The company's ability to efficiently utilize this new capacity and capture market share will be crucial factors to watch in the coming quarters.

The commencement of commercial production at the Sanand facility represents a significant step in KEI Industries' growth strategy, potentially positioning the company for stronger performance in the competitive cable manufacturing sector.