KEI Industries Approves ₹700 Crore Capacity Expansion at New Rajasthan Plant
KEI Industries Limited, one of India’s leading manufacturers of wires and cables, has announced a major expansion of its manufacturing capacity. The company’s Board of Directors has approved an investment of around ₹700 crore to set up additional production facilities at its upcoming manufacturing unit in Salarpur, Khairthal-Tijara district, Rajasthan.
The decision was approved during the board meeting held on August 3, 2026, and marks another significant step in KEI Industries’ long-term growth strategy.
New Plant to Boost Production Capacity
The new facility will significantly increase the company’s production capacity for cables while also adding a new manufacturing line for galvanized iron (GI) wires, which will support backward integration and improve operational efficiency.
The planned annual capacity additions include:
- Cables: 50,000 KMS
- GI Wires: 40,000 metric tonnes
According to the company, the project will become operational in phases by September 2028.
₹700 Crore Investment Through Internal Accruals
KEI Industries plans to invest approximately ₹700 crore in the project. The entire investment will be funded through internal accruals, reflecting the company’s strong financial position and confidence in future demand.
Using internal funds also allows the company to expand without significantly increasing its debt.
Why is KEI Expanding?
The company said the additional capacity is being created to meet the growing demand for wires and cables across various sectors.
India’s increasing investments in infrastructure, real estate, renewable energy, power transmission, industrial projects, and urban development are driving higher demand for electrical cables and related products. By expanding its manufacturing footprint, KEI aims to strengthen its ability to serve both domestic and international customers.
Current Manufacturing Capacity
As of June 30, 2026, KEI Industries has the following annual manufacturing capacities:
| Product | Existing Annual Capacity |
|---|---|
| Cables | 260,732 KMS |
| Communication Cables | 28,800 KMS |
| House & Winding Wires | 2,389,400 KMS |
| Stainless Steel Wires | 9,000 MT |
The company is already utilizing a significant portion of these capacities:
- Cables: 72%
- Communication Cables: 45%
- House & Winding Wires: 61%
- Stainless Steel Wires: 91%
The high utilization levels, particularly in stainless steel wires and cables, indicate a need for additional manufacturing capacity to support future growth.
Strengthening Backward Integration
One of the notable aspects of the expansion is the addition of GI wire manufacturing.
Producing GI wires in-house will help KEI strengthen its backward integration strategy by reducing dependence on external suppliers, improving supply chain efficiency, and providing better control over production costs.
The expansion reflects KEI Industries’ confidence in the long-term growth of India’s electrical and infrastructure sectors. With demand for power cables, industrial cables, housing wires, and communication infrastructure expected to remain strong, the company is positioning itself to capture future opportunities.
Once operational, the new Rajasthan facility will enhance KEI’s production capabilities, improve supply efficiency, and support its continued expansion in both domestic and export markets.
Overall, the ₹700 crore investment underscores KEI Industries’ commitment to strengthening its manufacturing base and meeting the rising demand for high-quality wires and cables in the years ahead.