Diamond Power Infrastructure Limited (DPI) has made a significant step towards expanding its manufacturing capacity. The company has successfully commenced the commercial production of a new Medium Voltage (MV) cables line at its Vadodara plant. This new line is set to produce 175 kilometers of MV cables per month, which will play a crucial role in boosting the company’s overall production capacity in the face of increasing demand for medium voltage cables across various sectors.

Overview of Diamond Power Infrastructure Limited's Expansion Plans:

With the addition of this new production line, Diamond Power Infrastructure Ltd. now operates four MV cables lines at its Vadodara plant. The company has an ambitious target to bring six more MV cables lines into operation by September 2025, bringing the total number of lines at the location to nine. This expansion will significantly increase its total monthly production capacity from 600 kilometers to 1350 kilometers of MV cables, representing a 125% increase in capacity.

As of now, Diamond Power has three MV cables lines already in operation. The addition of two more lines by March 2025 will increase the production capacity to 600 kilometers of MV cables per month. This progressive step will allow the company to meet the growing demand for power transmission and distribution cables in various industries and support renewable energy initiatives, particularly in solar and wind energy sectors.

Importance of Medium Voltage (MV) Cables:

Medium Voltage cables are essential for power transmission and distribution systems. These cables are typically used in electrical systems operating between 1 kV and 36 kV. The high demand for MV cables is driven by the growing need for electrical power in industrial, commercial, and residential applications, particularly in energy-hungry markets like India. They play a pivotal role in power grids, ensuring efficient distribution of electricity from substations to transformers and eventually to consumers.

The key characteristics of Medium Voltage cables include:

1. Voltage Rating: These cables are designed to carry voltages from 1 kV to 36 kV, making them ideal for a range of power distribution needs. Common ratings include 6 kV, 10 kV, 15 kV, and 36 kV.
2. Applications: They are widely used in power distribution networks, industrial setups, and increasingly in renewable energy projects such as solar plants and wind farms, where they link power generation systems to the grid.
3. Advantages: MV cables offer several benefits, including high safety, durability, and efficiency. They are well-suited for harsh environments, handling mechanical stress and extreme weather conditions.

Types of Medium Voltage Cables:

The Medium Voltage cables come in different types, each designed for specific uses:

• Single-core cables: These are flexible cables ideal for direct-buried installations or outdoor setups where high flexibility is required.
• Multi-core cables: These are more common in confined spaces, offering multiple conductors within a single sheath. They are easier to handle in industrial settings where multiple connections are needed in one cable.

SEBI Compliance and Financial Details:

As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has provided detailed information regarding its capacity expansion. According to the disclosure, the existing capacity of the Vadodara plant is 5,400 kilometers per year, and the company is adding 2,100 kilometers per year by February 17, 2025. This expansion is being funded through internal funds and is part of the company’s long-term strategy to enhance its production of value-added products, particularly Medium Voltage cables.

The investment required for this expansion is Rs. 1,200 lakh (Rs. 12 crore), aimed at increasing production to meet the growing demand from both domestic and international markets. The ramp-up in capacity will also support the company’s long-term goals in renewable energy sectors, where MV cables are essential for linking power plants to the grid.

Conclusion:

Diamond Power Infrastructure Limited’s commitment to expanding its Medium Voltage cables production will significantly strengthen its market position. With this new capacity addition, the company is poised to meet the growing needs of the power sector, particularly in industrial, commercial, and renewable energy projects. By continuing to expand its production capabilities and increasing efficiency, Diamond Power is on track to remain a key player in the growing demand for power transmission and distribution systems across India and internationally.

As the company completes the next stages of expansion, it will continue to play a crucial role in enhancing the infrastructure required for modern electrical systems, ensuring efficient power distribution to meet the needs of the future.

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