KEI Industries has planned capital expenditure of Rs.600 crore to Rs.700 crore per year, in the medium term, according to the company’s senior management.
Addressing an investor call discussing its Q1FY27 performance, the top management of KEI Industries Ltd said that over the next 3-4 years, the company expects to incur capital expenditure of Rs.600 crore to Rs.700 crore, annually.
During Q1FY27 (April to June 2026), KEI incurred capex of Rs.191 crore, a majority of which – around Rs.180 crore – was on the upcoming greenfield plant at Sanand in Gujarat. As of June 30, 206, total capex on the Sanand facility was around Rs.1,722 crore.
Of the Rs.700 crore capex outlined for the current fiscal year, FY27, around Rs.300 crore will be directed towards the Sanand plant while Rs.300 crore to Rs.350 crore will be spent on the newly-announced cable plant at Salarpur.
Salarpur
It may be recalled that on August 3, 2026, the board of KEI Industries approved capital expenditure of Rs.700 crore in a greenfield plant at Salarpur in Khairtal-Tijara district, Rajasthan. This plant, to be financed through internal accruals, is expected to turn operational in phases, by September 2028. The Salarpur plant will have capacity of 50,000 km per year of cables, and 40,000 tonnes per year of galvanized iron (GI) wire. The GI wire capability is seen as a means of backward integration.
The balance capex on Salarpur will be incurred during FY28, which is also when additional capex will be made towards a newer plant in Gujarat – at Vadodara or some adjacent location — the management said.
Sanand
The first phase of the upcoming Sanand plant in Gujarat is now complete, and the facility is producing LV and MV power cables. During Q2FY27, the Sanand plant is expected to begin production of electron beam (e-beam) cables for application in solar power plants.
By March 2027, the Sanand plant is expected to roll out extra high voltage (EHV) cables, marking the full commissioning of the plant. The total investment on the Sanand plant would be around Rs.2,000 crore, out of which Rs.1,722 crore was spent till June 30, 2026, as indicated earlier.
On full-scale operation, the Sanand plant is expected to generate annual revenue of Rs.6,000 crore, out of which Rs.1,300 crore would relate to EHV cables, and the rest to LV/MV and e-beam (solar DC) cables. The KEI management added that with additional capex of Rs.100 crore to Rs.200 crore for balancing equipment at the Sanand plant, which will be done after the plant is fully commissioned, the plant could potentially generate additional revenue of Rs.1,000 crore per year, taking it to around Rs.7,000 crore.
Order book
As of June 30, 2026, KEI’s pending order book was Rs.4,292 crore, dominated by domestic cables to the tune of Rs.2,400 crore. The remaining was spread across EHV cables (Rs.793 crore), EPC projects (Rs.271 crore) and export orders (Rs.822 crore). The management said that the company’s export revenue in Q1FY27, at Rs.341 crore, was down from Rs.375 crore in Q1FY26. The management attributed this decline to non-dispatch of several orders destined to the Middle East, affected due to the Iran war situation, and to the US, where custom duty-related issues were encountered.
KEI manufacturing capacity
As of June 30, 2026, KEI Industries had total manufacturing capacity of 23.89 lakh km per year with respect to house wires (including winding wire). Power cable capacity was around 2.61 lakh km per year while that for communication cable was 28,800 km per year. The company’s stainless steel (SS) wire capacity, arising solely from its Bhiwadi plant in Rajasthan, was 9,000 tonnes per year.
Featured photograph showing a manufacturing facility of KEI Industries is for representation only