The Vadodara-based Diamond Cables Ltd, one of the largest manufacturers of all-aluminium-alloy conductors in Asia, has entered into a long-term arrangement with Eurostar of the UK for the supply of power cables for the London-Paris tunnel rail line project.
Eurostar, the $48 billion British giant, has already placed an order worth Rs 14 crore (Rs 140 million) with the company.
"This is a prestigious order for us. We have bagged it out of the 33 international bidders for the project. This long-term arrangement opens up the lucrative European market for the company and will substantially improve the financials of the company. On completion of the project, Eurostar will be ordering further supplies for its various other projects in Europe," Amit Bhatnagar, joint managing director, Diamond Cables Ltd told Business Standard on Thursday.
The company has reported a turnover of Rs 90 crore (Rs 900 million) in the last financial year. After bagging the Eurostar order, the company expects to close the current financial year with a turnover of over Rs 120 crore (Rs 1.2 billion).
Over 18 per cent of the company's turnover comes from exports, which the company plans to increase to 30 per cent by the end of the current financial year.
At present, the company exports to Europe, Middle-East and a few of the African countries. The company has two manufacturing units, one at Savli at Vadodara with a production capacity of over 27,000 metric tonne per annum, and the other at Silvasa has the production capacity of over 11,000 metric tonne per annum.
At present, the company utilises only 50 per cent of its installed capacity. The company has identified a few companies in south India and plans strategic investment of over Rs 10 crore (Rs 100 million) to buy them by the end of the current financial year. The company also plans to foray into the lower-end OTC segment for catering to the domestic market.
The company, incorporated in 1970, is at present the Asia's largest manufacturer of all-aluminum-alloy conductors.
Mideast Metals Consulting based at Middlesex London has assessed the integrated capacity of the ISO 9002 company as 18,000 tonne of aluminium alloy wire rods and 30,000 tonne of alloy conductors.
The unit has unique strengths to manufacture Extra High Voltage conductors suitable of transmitting 400 KV and KV power.
