Bansal Wire Eyes 20–25% Revenue Growth After Capacity Expansion
'This expansion will enable us to meet growing demand and strengthen our position in the market,' the CEO says.
Bansal Wire Industries Ltd. aims to maintain an annual growth rate of 20–25% in revenue for the next five years after robust financial results in the June quarter and a boost in production capacity at its Dadri plant, according to Chief Executive Officer Pranav Bansal.
The ongoing ramp-up at the company's Dadri plant will boost the production capacity by more than two times to 6 lakh tonnes by the end of this year, the managing director told NDTV Profit in an interview.
"Over the past decade, we have consistently grown at a rate of 20–25% annually, and there has not been a year where we did not surpass the previous one," Bansal said. "We plan to maintain this growth rate for the next five years as well."
"The Dadri facility is being expanded daily, positioning us for strong volume growth moving forward. Our primary goal is to ramp up our capacity substantially," he said. "This expansion will enable us to meet growing demand and strengthen our position in the market."
Financial Results
The stainless-steel wire manufacturer posted a 49% growth in revenue in the first quarter of this financial year, backed by nearly 150% volume growth year-on-year. The company’s margins also expanded 100%. Commenting on the results.
"Over the past two years, our capacity expansion has been constrained due to delays in the Dadri project, which only recently commenced. However, we now have a fully engaged market with our existing customers and are confident in quickly utilising the new capacity," the CEO said.
Bansal Wire has already achieved a 20–30% increase in volume during the April–June period and expects similar growth in the coming quarters. The revenue is evenly split between high-carbon and stainless-steel wires, with low-carbon wire being a key focus due to ongoing consolidation within the group, according to the MD.
On the margin expansion, Bansal said the company was prioritising high-margin products within its portfolio. The newly listed firm, which made its market debut on July 10, is also going to introduce a new speciality segment, including high-margin products like steel core wire, source wire, IHT and OHT models.
