#### **Company Overview** **KEI Industries Limited**, established in 1968 and headquartered in New Delhi, is one of India’s leading manufacturers of wires and cables. Operating in the organized sector for over five decades, KEI consistently ranks among the **top three** players in the domestic wires and cables industry. The company is publicly listed on the BSE, NSE, and Calcutta Stock Exchange. KEI is renowned for its technological prowess, particularly in high-barrier **Extra High Voltage (EHV)** cable manufacturing, and serves a diverse range of industries globally. It operates as a **one-stop solution provider**, combining advanced manufacturing with **Engineering, Procurement, and Construction (EPC)** capabilities for complex power infrastructure projects. --- #### **Core Business Segments** KEI operates through **three primary business verticals**: 1. **Cables & Wires**: The largest contributor, accounting for ~62% of FY24 sales. 2. **Stainless Steel Wire (SSW)**: Niche high-margin segment (~3% of revenue), with over 50% exported. 3. **EPC Projects**: Turnkey infrastructure projects (~7% of revenue), primarily in power and transmission. --- #### **Business Mix & Revenue Distribution (FY24–FY25)** | Segment | Revenue Share (FY24) | FY25 Update | |--------|----------------------|-----------| | Institutional | 40% | Stable demand; order book at ₹435 crore | | Retail (B2C) | 47% | Grew to **52% in FY25**; high-margin driver | | Exports | 13% | ₹1,267 crore in FY25; up 15% YoY | Export contribution is targeted to increase to **15–18% of total revenue by 2027–28**. --- #### **1. Product Portfolio & Innovation** KEI offers a **comprehensive product range**, including: - **Extra-High Voltage (EHV) cables** up to **400 kV** (one of only a few Indian companies capable of this). - Medium and High Voltage (MV & HT) cables. - **Solar, EV, and submersible cables**, including **HVDC** and **e-beam irradiated cables**. - **Fire-resistant, lead-free, and RoHS-compliant** cables (e.g., **KEI Conflame Green+**). - **Stainless steel wires** for industrial and medical applications. - **Communication, control, instrumentation, and specialty cables**. **Recent Innovations (2025)**: - Launch of **HVDC cables** via the Sanand facility (world-class EHV production). - **ESP (Electrical Submersible Pump) cables** now being supplied to global oil markets – **only Indian manufacturer** in this niche B2B sector. - **EV charging solutions** including integrated cable guns and self-molded connectors. - **Machine-level digitization pilots** at Bhiwadi HT plant to improve uptime and productivity. **R&D**: - In-house, **NABL-accredited R&D lab** with 45–50 product design engineers. - Focus on **co-development** with customers for customized, application-specific cables. - Holds **20 copyrights** and **83 trademarks**, with ongoing IP development. --- #### **2. Manufacturing & Capacity Expansion** KEI operates **six manufacturing plants** across **Rajasthan** and **Dadra & Nagar Haveli**, supported by **two backward-integrated PVC compound plants**. Key locations: - **Bhiwadi, Rakholi, Chopanki, Pathredi (Rajasthan)** - **Chinchpada & Silvassa (Dadra & Nagar Haveli)** **Capacity Utilization (FY24)**: - Cables: **92%** - Stainless Steel Wire: **90%** - House Wire: **71%** - Communication Cables: **38%** **Key Expansion Projects**: - **Sanand Greenfield Plant (Gujarat)**: - **₹698 crore invested in FY24–25**; total planned investment of **~₹1,700–1,800 crore**. - First phase (LT & HT cables) commencing **commercial production in Sept 2025**. - Will add **₹5,500–6,000 crore** in annual revenue capacity. - Will be **India’s first plant capable of producing HVDC cables**. - Expected full ramp-up by **Q1 FY26–27**. - **Chinchpada & Pathredi Brownfield Expansions**: Increased LT cable and house wire capacity. - **Land Acquisition**: 18 acres in **Salarpur, Rajasthan**; additional land in **Kheda, Gujarat**, for future capacity. **Investment Outlook**: - ₹1,300 crore planned for Sanand in FY25–26 and FY26–27. - Ongoing annual capex: **₹700–800 crore** funded via **internal accruals**. - Long-term goal: **₹25,000 crore** in turnover by 2030. --- #### **3. Distribution & Retail Strategy** KEI has a **robust pan-India B2C retail network** targeting **Tier 1/2 urban and semi-urban markets**: - **2,082 active dealers** (up from 1,990 in FY24). - **740 (North), 528 (East), 413 (South), 413 (West)**. - Supported by **26 depots**, **38 marketing offices**, and **34 branches**. - **Channel financing covers ~62% of B2C sales**, improving receivables and dealer liquidity. **Retail Growth Drivers**: - **52% of FY25 revenue** from retail (vs 46% in FY24); segment growing at **>35% YoY**. - **House wires and LT/HT cables** are key products. - Brand-led strategy: Focus on **safety, quality, and speed** in construction and housing. **Customer Concentration**: Low, with **top 10 customers contributing only 12% of sales in FY25**, de-risking revenue streams. --- #### **4. EPC Operations** KEI offers **end-to-end EPC solutions** for utility and industrial infrastructure: - **Turnkey projects** in: - **Gas-Insulated (GIS) & Air-Insulated (AIS) Substations** - Overhead and **underground transmission systems** - **Smart grids, metros, railways, and utility electrification** - Projects often leverage **in-house EHV cable production**, which contributes **75–80% of EPC project value**. - **EPC Order Book**: **₹435 crore** as of Mar 31, 2025**. - **Historically reduced EPC focus** due to long working capital cycles; now strategic only for high-cabling projects. --- #### **5. Exports & International Presence** - **Exports reached ₹1,267 crore in FY25**, accounting for **13%** of total sales. - **Products exported**: EHV, MV, LV, control, and specialty cables; stainless steel wires. - **Key export markets**: **USA, UAE, Australia, Europe, Nepal, Africa**. - **Geographic Diversification**: - ~25% of export revenue now from **newer geographies (e.g., USA)**. - USA exports expected to **double in FY25–26**. - **International Offices**: - 4 offices in **UAE, Nepal, South Africa, and Gambia**. - Wholly-owned subsidiary in **Australia**, and associate in **South Africa**. - **Export Certifications**: UL (USA), BASEC (Europe), CE Marking, RoHS, IEC standards. - **Sanand plant** critical for long-drum EHV cable exports, overcoming technical bottlenecks. - **Target**: Increase exports to **15–18% of total revenue** in 3 years. --- #### **6. Data Centers & Emerging Opportunities** KEI is a key supplier to **India’s growing data center ecosystem**: - Supplies **extra-high-voltage, medium-voltage, copper power, control, and flexible cables**. - Cables represent **8–9% of total data center project cost**. - Products tailored for **high safety, low halogen, fire resistance (tested to 950°C)**. - Strong alignment with **digital economy growth**, **EV infrastructure**, and **5G networks**. Other high-growth areas: - **EV Charging Infrastructure**: EV cables & charging solutions now in commercial production. - **Renewables**: Solar cables (IEC 62930:2017 certified), wind projects. - **Smart Infrastructure, Railways, and Metro Rail**: Long-term demand visibility from government projects. --- #### **7. Branding & Digital Transformation** **Brand & Marketing**: - **‘Super Brand’ status (2011–2016 & 2019–2025)** – India’s only wire & cable company with this recognition. - Major sponsor of **Royal Challengers Bengaluru (RCB)** in the IPL, including **jersey branding** and **sustainability messaging**. - Uses **TV ads in 13 languages**, omnichannel campaigns, and digital promotions. **Digital Initiatives**: - **‘Saath-Saath’ platform**: Digital tool for retail scheme management. - **Digital Factory Application (IoT)**: Real-time monitoring of production data, improving **predictive maintenance** and **ERP integration**. - **Salesforce CRM**: Sales Cloud (Phase 2 in progress), Marketing Cloud for email/WhatsApp automation. - **E-commerce**: Premium presence on **Amazon, Flipkart, IndiaMART**. - **Digital Brand Leadership**: Top on **Facebook & Twitter**, top 3 on **Instagram & YouTube** in the wires & cables sector. --- #### **8. Environmental & Financial Strategy** - **Sustainability Initiatives**: - **20 MW solar plant** planned to meet **~64% of internal power needs**. - **Conflame Green+** and **lead-free ESP cables** emphasize environmental safety. - **Capital Structure**: - Raised **₹2,000 crore via QIP in Nov 2024**; **₹1,450 crore** allocated to Sanand project. - **No planned debt** for Sanand expansion; capex primarily **self-funded via internal accruals**. - **Growth Outlook**: - Target **19–20% CAGR** over next 5 years. - EBITDA margins expected to rise to **11.5%+** as exports (higher-margin) scale. --- ### **Summary: Key Strengths & Outlook (Nov 2025)** | **Category** | **Position** | |-------------|------------| | **Market Leadership** | Top 3 in organized cables segment; leader in 400kV EHV cables (25% domestic market share) | | **Diversification** | Serves 12+ industries; retail/institutional/exports balanced | | **Customer Mix** | Low concentration (top 10: 12% of sales) | | **R&D Edge** | NABL lab; tech partnerships; global certifications | | **Manufacturing Scale** | 6 plants; backward integration; Sanand to be India’s most advanced cable facility | | **Brand Equity** | ‘Super Brand’; RCB sponsorship; omnichannel engagement | | **Growth Catalysts** | Data centers, EV, renewables, exports, retail expansion |