Leading Energy Player Pours Rs 15.8 Crore into 25% Capacity Expansion—Who’s Stepping Up Production?
Big plans ahead as the company boosts Ring Main Unit capacity to meet rising market demand!
Schneider Electric Infrastructure Limited announced an increase in its production capacity during a board meeting held on March 10, 2025. The board approved a 25 per cent capacity enhancement for Ring Main Units (RMU), increasing from approximately 25,600 to 32,000 functions. The enhancement is expected to be completed by June 2026.
Investment and Financing
The expansion will require a capital expenditure of Rs 15.8 crore. The company plans to finance this investment through internal accruals and/or borrowings. The primary rationale for this capacity enhancement is to meet the growing market demand for RMUs.
Existing Capacity and Utilization
Currently, Schneider Electric Infrastructure operates at approximately 90 per cent capacity utilization for its RMU production. The proposed increase aims to provide additional capacity to support future growth and maintain the company's competitive edge in the market.
Financial Performance Highlights
In Q3 FY '25, the company reported strong financials with a 13.8 per cent increase in orders to Rs 1,546 crore. Sales grew by 18.2 per cent, reaching Rs 2,050 crore. The gross margin improved to 26.4 per cent, and Earnings Before Interest and Taxes (EBIT) rose by 34.5 per cent to Rs 277.1 crore. The Profit After Tax (PAT) saw a 26.4 per cent rise, amounting to Rs 213.3 crore.
Strategic Initiatives and Market Outlook
The company is focusing on modernisation, digital services, and enhancing service revenue. It is also expanding manufacturing capabilities, particularly at its Kolkata factory for interruptors. Investment of Rs 14 crore is underway to boost transformer capacity from 5,500 MVA to 7,000 MVA.
Future Plans
Schneider Electric Infrastructure aims to capitalise on opportunities in renewable energy, digital solutions, and infrastructure development. The management remains positive about the healthy order pipeline despite seasonal impacts on order inflows in Q3.
Conclusion
The capacity enhancement and strategic investments align with Schneider Electric Infrastructure's vision of meeting market demand and supporting India's infrastructure and digital transformation goals. The company is well-positioned to leverage growth opportunities while maintaining operational efficiency.
Disclaimer: The article is for informational purposes only and not investment advice.