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V-Guard to Double Capacity at Uttaranchal Cable Factory

by wireworld on 06/01/2012 - 07:39 pm

Tags: Press Releases, Projects

Electronics products major V-GuardIndustries Ltd (VGIL) plans to double capacity at its house wiring and cable factory in Kashipur in Uttaranchal from 2.75 lakh coils to 5.50 lakh coils a month. The company has set aside capex of Rs 25 crore for fiscal 2013, of which Rs 15 crore will be invested in ramping up capacity at the Kashipur plant.


Besides Kashipur,  VGIL operates a house wiring and cable lining production centre at Chavadi near Coimbatore. Chavadi also has a solar water heater production facility and a low-tension cable factory. A second solar water heater manufacturing plant is also coming up at Perundurai near Erode.


"Rs 3 crore will be spent out of our capex allocation to set up a warehousing facility at Perundurai on five acres of land. We are also actively scouting for warehousing locations for our entire range of products in Kochi and surrounding areas," VGIL MD Mithun Chittilappilly said.


During the last fiscal, VGIL was focusing on ramping up and growing its storage, distribution and sales network for its non-stabilizer products like wiring cables, solar water heaters and pumps, which now make up roughly 80% of its annual turnover. Wiring cables alone accounted for Rs 206.05 crore, or 28.4% of VGIL's total revenues of Rs 726.34 crore in fiscal 2011. The share is expected to be much higher in fiscal 2012.


"We have outsourced the manufacturing to three facilities in Hyderabad and Jalgaon in Maharashtra. A third vendor will roll out switchgear for us out of Uttaranchal. Outsourcing the manufacturing process offers us savings on excise duty of upto 10%," Mithun said.


VGIL posted 34.72% increase in net profit after tax during the fourth quarter ended March 31, 2012, to Rs 19.17 crore from Rs 14.23 crore a year ago. Net sales during the period increased 24.3% to Rs 276.46 crore from Rs 222.35 crore a year ago.