Kiri Industries Copper Project Capex: ₹12,000 Crore Investment Plan and Execution Update
Kiri Industries Limited is progressing with its ambitious integrated copper and fertilizer project, which management identified as a key pillar of the company’s long-term growth strategy during its Q1 FY27 earnings conference call.
The company is currently moving the project from the design stage into active construction, with capital deployment increasing as major packages and supporting infrastructure are developed.
Kiri Industries Estimates Project Capex at ₹12,000 Crore
According to management, the current estimated capital requirement for the core integrated project is close to ₹12,000 crore.
This estimate relates to the project itself, while additional capital will be required for supporting infrastructure being developed alongside the main facilities.
The total investment is expected to be deployed progressively rather than immediately, with significant capital expenditure planned over the next two years.
₹1,400 Crore Already Deployed
As of the Q1 FY27 earnings call, Kiri Industries had deployed approximately ₹1,400 crore into the project.
Management clarified that the entire amount deployed so far has been funded through equity, with no project debt drawdown having taken place yet.
The company continues to deploy capital as construction progresses and equipment and infrastructure requirements are executed.
Financial Closure Still Underway
Kiri Industries has not yet achieved complete financial closure for the project.
Management said that more than 50% of debt commitments have been received, while the remaining debt-raising process is currently underway.
The company expects to achieve complete financial closure over the coming months.
Importantly, management stated that the company has not yet drawn down the project debt.
Capex to Increase as Construction Accelerates
The project has now moved beyond the design phase, with orders placed for several long-lead mechanical, electrical and utility packages.
Capital is also being deployed toward supporting infrastructure, including:
- Dedicated marine jetty
- Desalination facility
- Raw material conveying system
- Power infrastructure
- Copper processing facilities
- Refinery and scrap processing facilities
- Downstream copper product plants
The company expects capital deployment to continue on a quarterly basis as construction activity progresses.
Phased Capex Deployment
Kiri Industries is following a phased approach to project execution.
The initial focus is on downstream copper facilities, including the 35,000-tonne copper tube plant and 2.25 lakh-tonne continuous copper rod plant.
These facilities are targeted for commissioning during FY28 and are expected to start generating cash flows before the complete integrated project becomes operational.
The company subsequently plans to commission its copper refinery, scrap-processing facilities and other value-added copper products, followed by the larger smelter, sulphuric acid and fertilizer facilities.
Debt Repayment Expected From 2029
Management said the company currently has a moratorium associated with the project financing.
Since project debt has not yet been drawn down, the company expects debt repayment to begin around 2029.
The strategy is to allow the phased commissioning of copper facilities to generate operating cash flows before significant debt repayment obligations begin.
Potential Equity Funding Remains an Option
During the earnings call, management also discussed the possibility of raising additional equity to fund the project.
Management acknowledged that equity infusion remains a potential Plan B if required. However, the company currently believes that avoiding premature dilution could potentially create greater value for existing shareholders if the project is successfully executed and generates profits before any future equity dilution.
Kiri Industries Capex Outlook
The ₹12,000 crore estimated project investment represents a major capital expenditure cycle for Kiri Industries.
With approximately ₹1,400 crore already deployed and financial closure still progressing, investors will be closely watching the company’s funding structure, debt drawdown, equity contribution, quarterly capex deployment and project execution.
The phased commissioning strategy is designed to bring portions of the project online earlier, allowing Kiri Industries to begin generating cash flows while the larger integrated copper and fertilizer complex is still under construction.
Note: The capex figures, funding details, and commissioning timelines mentioned above are based on management commentary during Kiri Industries’ Q1 FY27 earnings conference call and remain subject to change as project execution progresses.