R R Kabel Limited has informed the Exchange about Capacity addition
RRKABEL · price
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The Board of R R Kabel has approved a major capacity expansion across two locations. At its existing Waghodia (Vadodara) unit, which currently runs at ~79% utilization with 67,200 MT capacity, the company will add 36,000 MT by March 2028 at a cost of about Rs. 1,050 crores. At the upcoming new unit in Silvassa, an additional 6,000 MT will be added by December 2026, with the overall two-phase project costing about Rs. 400 crores. Total planned investment is around Rs. 1,450 crores, to be funded through internal accruals and debt. The expansion is aimed at meeting growing demand for wires and cables.
Significant capex commitment (~Rs. 1,450 crores) signals confidence in future demand but will increase leverage and capex outflows over the next 2-3 years. Phased execution by FY28 should support revenue growth, though near-term return ratios may be pressured until new capacity generates full returns.