Kritika Wires Limited (**KWL**) is an **ISO 9001:2015**, **ISO 14001:2015**, and **ISO 45001:2018** certified manufacturer specializing in high-precision steel and aluminum wire products. The company is a critical link in India’s infrastructure supply chain, providing essential components for power transmission, railway electrification, and large-scale construction projects. --- ### **Industrial Wire Ecosystem & Product Portfolio** KWL operates within a **single reportable business segment**: the manufacturing, exporting, and supplying of industrial wires. The company leverages a diversified product mix to serve high-growth infrastructure sectors: * **Industrial Steel Wires:** Includes Mild Steel (MS), High Carbon, and Winding wires used in general engineering and manufacturing. * **Galvanized Wires:** Corrosion-resistant wires specifically engineered for power distribution networks and industrial fencing. * **Aluminium Wires:** High-conductivity products catering to the evolving needs of the power transmission sector. --- ### **Manufacturing Footprint & Capacity Expansion** The company maintains a total installed capacity of **66,200 MTPA**. KWL has strategically positioned its facilities to optimize logistics and market penetration across Eastern India. | Facility Type | Location | Strategic Purpose | | :--- | :--- | :--- | | **Primary Plant** | Sankrail Industrial Park, Howrah, West Bengal | State-of-the-art unit featuring advanced testing facilities for quality assurance. | | **Expansion Unit** | Khurda, Odisha (IID Centre) | Factory premises taken on **lease** to drive regional expansion and increase overall **capacity utilization**. | | **Registered Office** | Kolkata, West Bengal | Centralized corporate headquarters and administrative hub. | --- ### **Strategic Alignment with National Infrastructure** KWL’s growth trajectory is closely mapped to Indian government initiatives and macroeconomic tailwinds. The company is positioned to capitalize on a projected domestic GDP growth of **7.0% to 7.2%** for FY 2024-25. * **Policy Drivers:** Demand is fueled by the **National Infrastructure Pipeline (NIP)**, **PM Gati Shakti**, and the **Revamped Distribution Sector Scheme (RDSS)**. * **Key Clientele:** KWL is a preferred supplier for the **Power Grid Corporation of India Ltd.**, various State Electricity Boards, and major **EPC contractors**. * **Industrial Partnerships:** The company maintains strong relationships with blue-chip clients including **Tata International**, **BMW Industries**, and **Vijay Transmission**. * **Export Ambitions:** While foreign exchange earnings shifted from **Rs. 110.75 Lakhs** in FY24 to **Nil** in FY25, the company remains committed to India’s goal of **US$2 trillion** in exports by **2030** through targeted international market entry. --- ### **Financial Performance & Capital Structure** KWL has demonstrated aggressive scaling, characterized by a **72% revenue growth** in the most recent fiscal year, largely driven by the commencement of commercial operations at the **Bhubaneswar (Odisha)** facility. #### **Key Financial Metrics** | Metric (₹ in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **744.98** | **438.43** | **286.76** | | **Profit Before Tax (PBT)** | - | **13.82** | **7.80** | | **Profit After Tax (PAT)** | **10.13** | **10.40** | **5.99** | #### **Capital Restructuring & Shareholding** In late 2023, the company underwent a significant capital restructuring to support its expansionary phase: * **Bonus Issue:** Executed a **2:1 bonus issue** by capitalizing **₹50.06 crore** from the Securities Premium Account and Free Reserves. * **Share Capital:** Authorized Share Capital was increased from **₹18.50 Crore** to **₹54.00 Crore**. The Paid-up Share Capital now stands at **₹53.25 crore** (Face Value **₹2 per share**). * **Ownership:** Promoters hold a **60.16%** stake (as of March 31, 2025), with **100.00%** of equity shares dematerialized. --- ### **Operational Integration & Investment Strategy** KWL is pursuing a strategy of vertical integration and localization to de-risk its supply chain and improve margins. * **Strategic Acquisition:** In November 2024, KWL acquired an **18.89% stake** (1,500,000 shares) in **HM Power and Cables Private Limited**. This move facilitates integration into the downstream **wires and cables** manufacturing segment. * **Localization:** The company is actively localizing high-cost imports to mitigate the impact of **currency depreciation** and global supply chain disruptions. * **Working Capital Management:** Facilities are secured through **Yes Bank** and **Kotak Mahindra Bank** via hypothecation of current assets. The company maintains **Fixed Deposits** of **₹1.2 crore** as margin money for Bank Guarantees and Letters of Credit. --- ### **Risk Management & Regulatory Compliance** The company maintains a **CRISIL BBB+/Stable** (Long-term) and **CRISIL A2** (Short-term) rating, reflecting a stable financial profile despite commodity sensitivities. #### **Risk Matrix** | Risk Category | Impact & Mitigation | | :--- | :--- | | **Commodity Risk** | Exposure to price volatility in **steel billets, rods, and zinc**. Managed through supply chain resilience and process efficiency. | | **Credit Risk** | Managed via an **Expected Credit Loss (ECL)** model; standard credit terms are **90 days**. | | **Market Risk** | Currently **zero exposure** to foreign exchange and interest rate volatility (no variable rate borrowings). | | **Legal/Tax** | Provision of **Rs. 2.5 Crore** (at **75%**) made for disputed entry tax (2013-14 to 2017-18) under West Bengal settlement acts. | | **Regulatory** | Implementation of **New Labour Codes** (Nov 2025) and potential changes to the **Payment of Gratuity Act** are monitored for cost impacts. | #### **Contingent Liabilities & CSR** * **Corporate Guarantee:** KWL has provided a guarantee of up to **₹150 Crore** for credit facilities availed by its investee company, **M/s. HM Power and Cables Private Limited**. * **Social Responsibility:** The company fully met its **CSR obligation** of **₹9.45 lakhs** for the recent cycle, based on an average net profit of **₹4.79 crore**.