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Boost to Make in India: Homegrown cables manufacturer secures order over Rs 500 million

According to a statement, the total order value of Rs 560 million will drive the topline in the coming quarters of the current financial year.

Edited By: India TV Business Desk New Delhi Published on: August 26, 2023 6:54 IST
Make in India
Image Source : PEXELS A worker working in a factory

Power cables and aluminium conductors manufacturer Godha Cabcon & Insulation has secured an order worth more than Rs 560 million. The firm said it has struck a deal with Overseas Metal & Alloys for the supply of a vast quantity of materials, including 4 Core HT Power Cables and Aluminum ACSR Weasel Conductor of the length 120 kms each.

According to a statement, the total order value of Rs 560 million will drive the topline in the coming quarters of the current financial year. 

"The revenue injection is expected to have a favorable impact on the financial performance for the fiscal year. It will not only contribute to an increase in revenues but also bolster the profitability by around 74 per cent," the statement said.

Notably, the gradual improvement in construction and infrastructure activities post-pandemic have provided impetus to the domestic cable and wire industry, resulting in volumes to be picked up. The company said that it is looking at measures to support volumes and improvement in margins.

Analysts, however, say that volatility in commodity prices may cap the volumes in the the next quarter. The communication cables also started witnessing pickup with pick-up in 5G capex.

The increasing demand for renewable energy generation, aided by rising investments in distribution and transmission by industry players are expected to amplify the further growth.

According to a report, the Indian wire and cable market is growing at 15 per cent CAGR. This reflects the rapid developments in the power and infrastructure sector in the country.

The central government's PLI schemes are also helping the businesses to upscale the manufacturing. The wires and cable industry accounts for a significant 40 per cent of the electrical industry in the country and is bound to grow with the demand seeing a new peak for the renewable power generation and distribution.

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