V-Guard to start LT cable production
The Rs. 22-crore low-tension (LT) power cable unit at Coimbatore of V-Guard Industries will go commercial next week. Indicating this at a press conference here on Wednesday, Mithun Chittilappilly, Executive Director, said trial production was already on at the plant. The 60,000 sq. ft. LT cable facility is coming up on the unused portion of 25 acres that the company had acquired years ago to put up its maiden plant at Coimbatore.The facility would have a capacity to process 3,000 tonnes of aluminium and 300 tonnes of copper a year. Claimed to be among the biggest factories in India to produce LT power cable, the Coimbatore facility could generate net sales of around Rs. 100-120 crore at full capacity. Mr. Chittilappily said V-Guard would increase the production in a graded way. He indicated that the plant could be working at full capacity within three years.
The Executive Director also informed presspersons that the Rs. 23-crore wiring cable unit at Uttarakhand would go commercial in April. The combined investment in these two units would be Rs. 45 crore. V-Guard had already raised Rs. 65.60 crore through an initial public offer in February last year. A part of the fund would also be used to put up a pilot water treatment plant in Himachal Pradesh, he added. Once the two units reached full capacity, they could generate net sales of Rs. 200 crore, he said. The company is expected to end the current financial year with a turnover of Rs. 315 crore.
