Finolex Cables shares rise as company announces new plant to expand Fibre Draw Capacity
On April 21, Finolex Cables saw a two percent rise in its shares during morning trading as the company announced its plans to establish a new plant in Pune. The plant will produce optical fibre preforms and increase the company’s fibre draw capacity.
Finolex Cables revealed that the new plant, which will cost approximately Rs 290 crore, will have an initial capacity of 100 tons of preforms. The project will be funded entirely by internal accruals, according to a regulatory filing.
The company also stated that construction will begin once regulatory approvals are obtained, with production expected to commence 15 months from the start of the plant’s construction. Furthermore, the plant’s capacity will be scalable and expandable based on market demand.
This expansion plan comes at a time when the demand for solar cables, automotive cables, and optic fiber cables is on the rise. According to PhillipCapital, the wires and cables segment experienced strong volume growth due to increased commodity prices in January 2023, though volumes were impacted in February due to the higher base of last year and pre-buying. However, March saw a pickup in volumes, and the industry has taken a price increase of 3-5 percent in Q4 of FY23.
As of 9:20 am, Finolex Cables stock was up 0.5 percent at Rs 862.35 on the BSE.
About Finolex Cables:
Headquartered in Pune, Maharashtra, Finolex Cables Ltd is a well-known Indian manufacturer of electrical and telecommunication cables. Established in 1958, it is the flagship company of the Finolex Group. In addition to cables, the company also produces polyvinyl chloride sheets for roofing, signage, and interior applications.
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