Havells India to more than double cable manufacturing capacity at Alwar unit

Havells India on July 9 said it plans to expand the cable manufacturing capacity at its Alwar, Rajasthan, unit from an annual 32.9 lakh kilometres to 74.1 lakh kilometres.

The expansion will take place in a phased manner and will be fully commissioned by March 2026 at the cost of ₹375 crore. The company will finance the expansion through its internal accruals.

Havells India is expanding to meet the increasing demand for its cable products. The existing plant operates at around 70% capacity.

Founded in 1958, Havells is a leading manufacturer of home appliances and home electricals, such as cables, fan and lighting products, and switchgear.

The cable business unit, comprising power cables and flexible cables, is its biggest vertical, contributing to 34.1% of its ₹18,843 crore revenue in FY24. Source: Havells FY24 annual report

In its FY24 annual report, the company stated that the category was showing rapid growth due to government infrastructure projects and the private real estate sector.

“While the demand for power cables continues to be on the rise, Havells’ growth was limited given the capacity constraints during the year,” the company had said back then, adding that it was working on expanding capacity at its Tumkur, Karnataka, plant, which it expects to commission in FY25.

Besides cables, Lloyds Consumer, which Havells acquired in 2017, remains the company’s other area of expansion. Over the past five years, out of its ₹2,122 crore capital expenditure, Havells has invested ₹768 crore in Lloys and ₹424 crore in cables.

Havells shares were little changed in morning trade but have risen 172% over the past five years, aided by a doubling of revenue over the past five fiscal year and a 70% more surge in net profit. The company is cash-rich and does not carry debt on its books.