Shares of Diamond Power Infrastructure Ltd (DICABS) surged 3.50% to ₹90.58 in Tuesday’s session after the company announced the launch of commercial production at its first rod mill for manufacturing Next Generation AL 59 Wire Rods. The new facility, located at DICABS NextGen Special Alloys Private Limited in Vadodara, has a processing capacity of 80 MT per day (2,400 MT per month).
Expansion plans and market impact:
- DICABS is investing ₹55 crore in a Greenfield project, which includes three advanced rod mills with a total capacity of 250 MT per day (7,500 MT per month).
- The company currently operates an in-house mill with a monthly capacity of 1,200 MT, and this expansion is set to significantly enhance conductor production.
- AL 59 conductors are in high demand, with India’s annual market estimated at 1 million MT. However, only five manufacturers have integrated rod mills, collectively producing 500,000 MT per year.
- DICABS aims to produce 75,000 MT per year, helping to bridge the supply gap in India’s power transmission sector.
AL 59 conductors, made from Aluminium Alloy 1350, are lightweight, durable, and highly efficient, making them ideal for power transmission applications. The company’s strategic expansion is expected to strengthen its market position and drive future growth.
Stock performance:
- Current price: ₹90.58 (+3.50%)
- Previous close: ₹87.52
- Day’s range: ₹87.52 – ₹91.45
- Market cap: ₹4,773 crore
- 52-week range: ₹39.63 – ₹190.00
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