V-Guard is banking on cables biz
V-Guard Industries, the Kerala-based manufacturer of voltage stabilisers, electrical and electronic products, is expecting its cable business to contribute significantly to the turnover this year. The business currently contributes 27% to its revenues.
With funds of Rs 65 crore raised from the IPO last year, the firm set up a low-tension (LT) power cables plant at Coimbatore and a house-wiring cables plant at Kashipur, Uttarakhand, both of which will start production in May. The LT cable unit has the capacity to produce 3,000 tonne of aluminium and 300 tonne of copper annually.
The Kashipur plant will be set up in two phases, with the second phase starting in September. In the first phase, the unit will be producing 1 lakh coils of 90 metres per month and in phase two, the capacity will be doubled to 2 lakh coils. The investment in both the plants has been Rs 45 crore and V-Guard expects a turnover of Rs 220 crore from these units. Kochouseph Chittiapilly, the MD at V-Guard Industries, said, "Last year, V-Guard reached a turnover of Rs 289 crore and we are looking at increasing it to Rs 325 crore by year-end. With demand for our products —pumps, water heaters and cables — fuelling growth this year and the next, we are targeting Rs 425 crore turnover at the end of 2010."
Shailaja Sharma/ DNA-Daily News & Analysis Source: 3D Syndication