The company will invest Rs 80 crore in the project, which will be completed by next year. Although the new project, according to a company source, "will be a process upgrade", the company will be able to cater for needs of the medium voltage (MV) and extra high voltage (EHV) segment in the power sector.
The company had recently completed its Rs 63 crore expansion plan to manufacture cross-linked polyethylene (XLPE) cables in India.
In a statement wired to this correspondent, the company's top executive, RS Lodha, said: "Foreseeing the surge in demand for MV & EHV power cables, the company is now going in for another technological upgrade-cum-expansion project for manufacturing MV & EHV and XLPE underground power cables by using HV-CCV (High voltage catenary vulcanisation process). The project is expected to start by December next year. This will increase the company's market share in MV & EHV XLPE power cable segment."
The source said: "The company will invest Rs 80 crore in the expansion project to manufacture cables for the extra high voltage segment."
However, in his statement Lodha further said that the company recently got its 220 kV Cable samples successfully tested at the CPRI Laboratory, Bangalore, and as this was the first successful 220 kV cable type test in India, it had unveiled a new roadmap for the company to tap the emerging 220 kV power cable market.
He also said, "The company has consolidated its position within India for supply of optical fibres and with the capacity expansion already in place, the company is expected to reap benefits in the years to come. Consistent commitment to the best industry practices with focused approach and innovation would lead the company's business growth and will improve all round performance in the time to come," commented Lodha.
The company has also posted the highest ever turnover of Rs 562.96 crore in FY 07-08 showing an impressive year-over-year growth of 30 %. The net profit for the year was lower at Rs 17.26 crore as against Rs 21.97 crore of the previous year. EBIDTA, however, increased to Rs 54.88 crore during FY 07-08 from Rs 48.86 crore in the previous year.
The turnover for the quarter ended 31 March, 2008 stands at Rs 147.80 crore as against to Rs 129.01 crore in the corresponding quarter of the previous year.
EBIDTA during the current quarter was higher at Rs. 17.08 crore as compared to Rs 13.75 crore in the corresponding previous quarter. The board of directors recommended dividend @ 24% for the Financial Year 2007-08.
The Vertical Continuous Vulcanization (VCV) process deployed by the Company for the first time in India to manufacture XLPE Power Cables and also for the first time in India up to 400 kV power segment, has stabilised with excellent product quality and the Company is now aiming larger business volumes in Extra High Voltage (EHV) cable segment.
