Polycab India, amongst the largest cable and wires makers in the country, is looking at 30 per cent ramp-up at the least in capex- to around ₹1,100 crore, from the existing ₹800–850 crore – anticipating “sustained demand” supported by the Centre’s continuous focus on infra-development and pick-up in private capital investment.

Capex would be towards greenfield and brownfield projects at Hallol in Gujarat.

According to Gandharv Tongia, CFO, Polycab, the company would look at an “industry leading growth” as it continues to focus on top-line improvement.

In FY24, the company saw a 29 per cent y-o-y rise in revenue to ₹18,000 crore. Nearly 92 per cent of it came from domestic ops, while the remaining was from international businesses.

The upcoming ₹700 crore extra-high voltage (EHV) plant at Hallol, is expected to be operational by FY26, with revenue benefits accruing FY27-onwards. Other expansion projects that include a dedicated facility for exports and special cable facility, are expected to be on-stream over the next 12-18 months.

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“The private capital cycle has picked up in sectors like steel and cement, real estate is doing well, while government’s infra push continues to be a positive. The rural market is growing, and with FMCG players witnessing a good run there more investments are likely. All this is expected to help sustain the demand momentum in the cables and wire segment,” Tongia told businessline.

“Capex increase would be to around ₹1,100 crore per year, for FY25, FY26 and FY27,” he added.

Strategic internal initiatives have helped gain significant market share during FY24.

Project Leap

“Re-calibration” of revenue guidance under ‘Project Leap’ is also being considered. The revenue guidance under the project was ₹20,000 crore by FY26.

“We are already at ₹18,000 crore revenues already in FY24. So there is a probability of recalibration (upward) of numbers under Project Leap guidance. The exercise will begin shortly,” he said.

However, the company’s FMEG vertical – which include fans, lights, switches and switch-gear – continues to be in red, despite “annualised revenues being in the ₹1,200–1,300 crore range”. The EBIT loss (earnings before interest and tax) was over ₹90 crore.

“New teams have been in place, and the vertical is expected to turn the corner “in at least three to four quarters,” Tongia said.

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