Polycab India to invest ₹700 crore in new plant, expects FMEG vertical to be profitable this fiscal.

Polycab India, one of the largest cables and wires maker in the country, is expecting benefits of its distribution realignment to accrue this fiscal onwards with the FMEG vertical expected to turn profitable.

According to Gandharv Tongia, Executive Director and CFO, the company will invest around ₹700 crore as capex for setting up the extra high voltage (EHV) products facility at Halol in Gujarat. The unit is likely to be operational by FY26 and is expected to have a topline contribution of ₹800-1,000 crore over the next three years.

Investments into the facility will be made from “internal accruals”. The company has a positive cash position of about ₹1,900 crore, as of end-FY23, an improvement over around ₹1,100 crore in the year-ago period. The improved cash position came of the back of a revenue, EBITDA and PAT growth of 8.9 per cent, 28 per cent and 33.5 per cent y-o-y, respectively.

“We will retain the remaining amount towards merger and acquisition activity, if the need arises,” Tongia told businessline.

HBL