Indian wire and cable manufacturer Finolex Cables Limited has announced a ₹300-crore capital expenditure programme for FY27, underscoring its confidence in long-term demand across optical fibre, renewable energy, and high-voltage power transmission.
The investment plan includes ₹200 crore towards new manufacturing capacity and ₹100 crore for completing the company’s optical fibre expansion project, reflecting Finolex’s strategic focus on high-growth segments beyond conventional cable markets.
A major highlight of the expansion is the commissioning of the company’s optical fibre preform plant, marking an important milestone in its backward integration strategy. Finolex expects to double its fibre draw capacity from 4 million fibre kilometres (FKM) to 8 million FKM by the second quarter of FY27, with the benefits of the expansion expected to begin contributing during the second half of the financial year.
The company is also expanding its solar cable manufacturing capabilities.
Following strong demand and near-full utilisation of existing production lines, Finolex plans to double its solar cable capacity, positioning itself to benefit from India’s accelerating investments in renewable energy, utility-scale solar parks, rooftop installations, and energy transition projects.
Another important development is in the Extra High Voltage (EHV) cable segment.
Finolex stated that its joint venture with Sumitomo Electric Industries has turned profitable, prompting the company to evaluate further expansion in EHV cable manufacturing. The segment is expected to witness sustained growth as India strengthens its power transmission infrastructure to support rising electricity demand and renewable energy integration.
The investment programme reflects several structural trends reshaping the cable industry.
Rapid deployment of data centres, artificial intelligence infrastructure, fibre-to-the-home (FTTH) networks, renewable energy projects, and transmission grid upgrades are driving demand for specialised cable products with higher technical specifications and greater value addition. Rather than competing solely in conventional wiring products, manufacturers are increasingly investing in technology-intensive segments offering stronger long-term growth prospects.
For suppliers across the wire and cable value chain, the announcement signals continued investment in advanced materials including optical fibre preforms, specialty polymers, XLPE compounds, flame-retardant materials, and high-performance insulation systems.
Industry analysts believe the latest capex programme further reinforces the ongoing transformation of India’s cable sector, where companies are expanding beyond traditional electrical cables into optical communications, renewable energy infrastructure, and extra-high-voltage transmission solutions.
With ₹300 crore earmarked for expansion during FY27, Finolex is positioning itself to capture opportunities arising from India’s digital infrastructure buildout, clean energy transition, and modernisation of the national power grid, while strengthening its presence in several of the industry’s fastest-growing segments.