Universal Cables Limited, a leading manufacturer of power cables and related products, has unveiled a significant capacity expansion plan at its manufacturing facilities in Satna (Madhya Pradesh) and Verna (Goa). The company has increased its aggregate capital outlay from Rs. 277 Crores to Rs. 482 Crores, reflecting its optimistic business outlook and the anticipated growth in demand for power cables in both domestic and international markets. This expansion, funded through a mix of long-term debt, equity, and internal accruals, underscores Universal Cables Limited’s commitment to strengthening its market position and meeting the evolving needs of its customers.
Key Highlights of the Expansion Plan
Here’s a detailed breakdown of the capacity expansion across the two facilities:
Satna (Madhya Pradesh) Facility
Existing Capacities:
LV, MV, HV/EHV Power Cables: 21,450 KMs per annum.
PVC Compounds for Wires & Cables: 3,600 MTs per annum.
Proposed Capacities:
LV, MV, HV/EHV Power Cables: Approximately 31,575 – 32,850 KMs per annum.
PVC Compounds for Wires & Cables: Approximately 9,000 MTs per annum.
Verna (Goa) Facility
Existing Capacity:
Insulated Winding Wires, Building Wires & Multicore Flexible Cables: 75,000 KMs per annum.
Proposed Capacity:
Insulated Winding Wires, Building Wires & Multicore Flexible Cables: Up to 250,000 KMs per annum.
Completion Timeline
The expanded capacities are expected to become operational in phases between July 2025 and March 2026.
Rationale for Expansion
The capacity expansion is driven by the need to:
Alleviate production constraints.
Meet the strong and growing demand for power cables, PVC compounds, and other wire products in domestic and international markets.
Capitalize on the anticipated growth in the power cable industry, supported by increasing infrastructure development and renewable energy projects globally.
Strategic Implications of the Expansion
This expansion represents a strategic move by Universal Cables Limited to enhance its production capabilities and cater to the rising demand for high-quality cables and wires. By increasing its capacity, the company aims to:
Strengthen its position as a leading player in the power cable industry.
Expand its product offerings to meet diverse customer needs.
Capture a larger share of both domestic and international markets.
The decision to nearly double the capital outlay for this project reflects the company’s confidence in the long-term growth prospects of the power cable industry. With infrastructure development and renewable energy projects gaining momentum worldwide, the demand for reliable and efficient power cables is expected to remain robust.
A Commitment to Innovation and Growth
Universal Cables Limited’s expansion plan is not just about increasing production capacity; it also underscores the company’s commitment to innovation and quality. By investing in state-of-the-art manufacturing facilities, the company aims to deliver cutting-edge products that meet the highest industry standards. This focus on quality and innovation will enable Universal Cables Limited to stay ahead of the competition and build stronger relationships with its customers.
Looking Ahead
With the expanded capacities expected to become operational between July 2025 and March 2026, Universal Cables Limited is well-positioned to capitalize on the growing demand for power cables and related products. This expansion will not only enhance the company’s production capabilities but also contribute to its long-term growth and profitability.
As Universal Cables Limited embarks on this exciting journey, stakeholders can look forward to a brighter future, marked by increased market share, improved operational efficiency, and a stronger commitment to sustainability and innovation.
