Finolex to invest Rs 200 cr in Roorkee

Finolex Cables will set up a unit in Uttaranchal to make light-duty electrical cables.

The Rs 200-crore plant will come up near Roorkee City where the company also plans to make communication cables and modular electrical switches.

According to managing director Deepak Chhabria, the Rs 200-crore investment will be made in two tranches of equal size. The first stage of manufacturing will start during the current financial year and plans to double the capacity in the second stage.

The proposal to set up a greenfield plant was approved by the company's board at its Friday meeting. Chhabria said, "For the last few quarters, we have witnessed a strong demand for cables despite high copper and other raw material prices. The cable and wire industry is performing well."

Referring to the company's decision to establish a manufacturing base in north India, Chhabria said, "We intend to remain close to the fast-growing northern and eastern markets. Customers over there are demanding high quality and safe products. To serve their needs, we have decided to set up a manufacturing facility near Roorkee."

The company's sales for the quarter ended June 30 were Rs 211.74 crore, 48 per cent higher than previous year's Rs 143 crore. Net profit for the quarter was Rs. 22.56 crore, 68 per cent higher compared with Rs 13.42 crore last year.