Diamond Power Infrastructure Ltd plans to invest Rs 25 crore in a new high-voltage cable manufacturing line at its Vadodara facility. The company, which operates under the DICABS brand, will use the investment to manufacture cables rated up to 132 kV.
The expansion aims to meet rising demand for underground power cables from utilities, renewable energy parks, transmission developers, and data centers. The company said on Thursday that the investment will cover a new Catenary Continuous Vulcanisation (CCV) line and an extension of the existing factory floor.
It will fund the project through internal accruals, without relying on external financing for the announced investment. Machinery delivery is expected by August 2027, while commissioning is targeted for December 31, 2027. The new line is expected to strengthen the company's manufacturing capacity and help it serve customers seeking larger volumes within shorter delivery timelines.
Demand for high-voltage (HV) and extra-high-voltage (EHV) underground cables is increasing as India's power infrastructure expands. State utilities, transmission developers, renewable energy parks, and data centers are among the customer segments driving this demand.
Underground cabling can support power transmission and distribution requirements in areas where overhead lines may be difficult to install or less suitable. The growing need to connect energy projects and data centers is creating additional opportunities for cable manufacturers.
Diamond Power currently operates six CCV lines and has an annual EHV cable manufacturing capacity of around 2,000 kilometers. According to the company's filing, its capacity utilization stands at 60%.
The new investment is intended to help the company respond to changing customer requirements and strengthen its position in the medium-voltage and EHV cable segments.
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Diamond Power's 130-acre integrated manufacturing facility in Vadodara houses its cable production operations and supporting infrastructure. Following the expansion, the company plans to operate six CCV lines and five silane lines at the site.
The facility also has in-house aluminium rod mills and compounding capabilities. These operations support the company's manufacturing process, while its high-voltage testing laboratories provide testing infrastructure for its products.
The laboratories are accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and are rated for testing up to 765 kV. This testing capability extends beyond the 132 kV rating planned for the new manufacturing line.
The investment comes as the company reports steady growth in its EHV order book. Customers are also seeking larger volumes and shorter delivery schedules, increasing the need for manufacturing capacity and operational efficiency.
"Our EHV order book is growing steadily, and customers are asking for larger volumes on shorter timelines," said Kavish Shah, Vice-President at Diamond Power Infrastructure.
Shah said the new line would strengthen the company's position in the medium-voltage and EHV cable segments. It would also help Diamond Power meet customer demand from a single integrated manufacturing location.
The planned high-voltage cable expansion is expected to add manufacturing capacity while allowing the company to use its existing infrastructure and in-house capabilities. With commissioning targeted for the end of 2027, the project forms part of Diamond Power's response to growing demand for underground power transmission solutions.
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