In view of the growing demand in extra high voltage power cables, MP Birla group- promoted Satna-(Madhya Pradesh) based Universal Cables Ltd has embarked upon another massive expansion project of an investment of approximately Rs 90 crore.
The company, which has completed its Rs 63 crore investment plan at its existing Satna unit, will make medium-voltage and extra high-voltage cables in this unit.
“The project activities are in full swing and commencement of commercial production is expected in the third quarter of the next fiscal,” a company source said. The company, which has a tie-up with Furukawa Electric Co Ltd, Japan, is learnt to have imported machines from China for the project. “It will make 3,000 km of additional EHV and MV cables per annum,” the source said adding, “By 2010, Satna unit will be producing 440 volt cables.
India uses 220 volt cables at present.” In addition to MV and EHV cables the company has also identified optical fiber as thrust area.
“The enhanced coverage through fibre networks globally, would result in firming up of demand for the optical fibre segment of the company, which is poised to deliver improved performance sequentially,” a statement quoting company chairman RS Lodha.
Universal Cables makes power and control cables, capacitors, and telecommunication grade optical fibre. It has posted handsome results for the quarter ending June 08.
The company has said its net profit has jumped from Rs 0.83 crore of the previous year to Rs 2.44 core by an impressive 193%. The company has also clocked a turnover of Rs 143.51 crore for the June 08 quarter as compared to Rs. 134.78 crore in the corresponding quarter of previous year.
“The company has been able to improve its margins quarter on quarter despite higher input costs, increase in interest rates and stiff competition, which is a remarkable achievement,” a statement quoting company’s chairman RS Lodha said.
“In Extra High Voltage (EHV) underground power cables, the company recently achieved success in making 220 kV XLPE (cross linked polyethylene) cables using VCV process in technical collaboration with The Furukawa Electric Co. Ltd., Japan, the world leader in cable manufacturing (in association with Viscas Corporation, Japan).
It has successfully type tested them, for the first time in India, at CPRI, Bangalore, meeting the stringent test conditions of the International Electrotechnical Commission (IEC) for cable fitted with Jointing Accessories to simulate real installation system conditions,” the company said.
