Precision Wires India approves ₹33Cr expansion (₹28Cr Zaroli + ₹5Cr Valvada) for copper rod manufacturing. Move aligns with surging electrical & EV industry demand.
Precision Wires Boosts Copper Rod Output with ₹33 Crore Investment
Mumbai, August 9, 2025 – Precision Wires India Limited (PWIL) a leading manufacturer of copper and aluminum wires has approved an additional ₹33 crore investment to expand its copper rod manufacturing capacity across two key facilities:
✅ Zaroli Plant (Gujarat): ₹28 crore
✅ Valvada Plant (Maharashtra): ₹5 crore
Strategic Rationale
🔹 Meeting Rising Demand: 15% YoY growth in electrical/EV sector
🔹 Backward Integration: Secures raw material supply for PWIL’s wire production
🔹 Operational Efficiency: Reduces dependency on imported copper rods
Project Details
| Parameter | Zaroli (Gujarat) | Valvada (Maharashtra) |
|---|---|---|
| Existing Capacity | 60,000 TPA | 25,000 TPA |
| New Investment | ₹28 Cr | ₹5 Cr |
| Output Boost | +12,000 TPA | +3,500 TPA |
| Commissioning | Q4 FY26 | Q1 FY27 |
Market Drivers Behind Expansion
1. Electrical Infrastructure Growth
- ₹4.3 lakh crore grid modernization under Revamped Distribution Sector Scheme (RDSS)
- 1.5X surge in transformer production (2023-25)
2. EV & Renewable Energy Push
🔋 EV Cables: 45kg copper/BEV vs 22kg in ICE vehicles
☀️ Solar Cables: 5.5MT/km copper for utility-scale projects
3. Import Substitution
- 30% of India’s copper rods currently imported
- PLI for ACC batteries driving local demand
Management Commentary
PWIL Board Statement:
*”This expansion strengthens our position as India’s most vertically integrated wire producer. The Zaroli upgrade alone will service 200+ new EV charging stations.”*
Industry Analyst (CRISIL):
*”Copper rod prices have stabilized at ₹720/kg. Backward integration gives PWIL 18-20% margin advantage over competitors.”*
Financial & Operational Impact
📈 Revenue Uplift: ₹450-500Cr annually post-expansion
🔄 ROI Target: 24 months (Zaroli), 30 months (Valvada)
⚡ Energy Efficiency: New plants to use induction furnaces (15% lower power consumption)
Competitive Landscape
| Player | Copper Rod Capacity (TPA) | Key Advantage |
|---|---|---|
| Precision Wires | 1,00,000+ (post-expansion) | Vertical integration |
| Hindalco | 5,00,000 | Bauxite-to-wire control |
| Sterlite Copper* | 4,00,000 | Scale |
*Under new ownership post-Vedanta demerger
What’s Next?
🔹 Q2 FY26: Machinery procurement for Zaroli
🔹 FY27: Potential Phase 3 expansion in South India
Investor Takeaways
💡 Opportunity: Rising copper demand in EV/RE sectors
💡 Watch: LME copper price trends (currently $9,200/tonne)
💡 Risk: Chinese dumping of cheap copper rods
The Bigger Picture
🇮🇳 India’s Copper Market:
- 1.5M TPA demand (2025) vs 1.1M TPA production
- 30% deficit met through imports
⚡ Global Trends:
- Copper crunch expected by 2030 (IEA forecasts)
- EV boom to double wire rod consumption
Final Thoughts
This expansion isn’t just about adding tonnes—it’s about future-proofing India’s electrification. As copper emerges as the ‘new oil’, PWIL’s strategic investments position it to power everything from EV fast-chargers to smart grids.
