Housewires To Hyperscalers: How India’s Rs 3-Lakh-Crore Data Centre Push Could Lift RR Kabel’s Growth
The Indian wires and cables (W&C) market, estimated at $9.32 billion in 2024, is expected to nearly double to $17.08 billion by 2032. Until FY24, the industry has grown at a 10% CAGR since FY14. Organised players have consistently outpaced the unorganised segment, according to Ambit.
Beyond traditional drivers such as infrastructure sector and real estate market, incremental demand is expected from renewable energy, digital infrastructure, data centres, and electric vehicles. Jefferies estimates that adding eight gigawatts of data centre capacity by FY30 alone will require investments of around $30 billion (Rs 2.7 lakh crore).
RR Kabel: An Established Player in India’s Consumer Electricals Market
RR Kabel is an established player in India’s consumer electricals market. By value, it is the country’s fourth-largest W&C manufacturer. It is also the leading exporter from India in this category, with products shipped to more than 74 countries. This export footprint provides diversification, while the domestic market continues to anchor growth.
Within India, the company’s scale reflects its distribution reach. RR Kabel operates through more than 4,400 distributors, 4,500 dealers, and nearly 1.9 lakh retailers. It also runs India’s largest electrician loyalty programme, with more than 5.8 lakh electricians. The company operates across two business verticals.
Business Verticals and Product Portfolio
The W&C segment continues to dominate the business and contributes close to 90% of total revenue (H1FY25). The portfolio includes housewires, industrial wires, power cables, and specialised cables for renewable energy, railways, and data centres.
The fast-moving electrical goods (FMEG) segment serves as an emerging growth driver. Its contribution to revenue remains about 10%. RR Kabel’s portfolio includes fans, lighting, switches, switchgear, and appliances. Ongoing investments continue to limit margins and profitability.
Manufacturing Facilities and Expansion Plans
RR Kabel operates five integrated manufacturing facilities across India. The Waghodia facility in Gujarat and the Silvassa plant in Dadra and Nagar Haveli focus on wires, cables, and switches. The Roorkee, Bengaluru, and Gagret plants manufacture FMEG products. This separation allows the company to scale both verticals without operational overlap.
In the first half of FY26, revenue from operations rose 16.7% year-on-year to Rs 4,222 crore. Net profit increased 80.9% to Rs 206 crore, marking the company’s highest-ever half-yearly performance. Strong revenue growth improved operating profitability. Operating EBITDA — earnings before interest, tax, depreciation and amortisation — rose 76.4% year-on-year to Rs 319 crore. Margins expanded to 7.6% from 5.0% in H1FY25.
Growth Outlook and Future Prospects
Management aims to reach EBITDA breakeven for the FMEG segment by Q4 FY26. If achieved, it plans further margin improvement in the second half. Management targets 18% volume growth in FY26. This implies growth of about 23-24% in the second half. It cites a supportive demand environment.
RR Kabel’s long-term strategy centres on “Project RRise,” a three-year plan from FY26 to FY28. Under the plan, the company targets an 18% CAGR in W&C revenue and more than 25% CAGR in FMEG. EBITDA margins are expected to reach about 10.5% by FY28. Management targets a 2.5-times increase in Ebitda over this period.
Investment Plans and Capacity Expansion
To support growth, the company plans to invest Rs 1,200 crore to expand manufacturing capacity by 1.7 times. Capacity utilisation remains high, with the wire business operating at about 70% and the cable business close to 90%.
About 80% of the investment will go into the cables business. This includes adding 36,000 metric tonnes of cable capacity and 6,000 metric tonnes of wire capacity. The first phase of 12,000 metric tonnes is expected to be operational by Q4FY26. The full expansion is expected by Q3FY27. The plant will begin contributing to revenue from FY27.
Data Centres: A Key Demand Driver
The expansion positions the company as a supplier to sectors with rising demand, including renewable energy, data centres, and electric vehicles. These segments are central to plans to grow the domestic W&C business by 1.6 times. Within this strategy, data centres are emerging as a key demand driver.
The company is positioning itself as a solution provider as India expands digital infrastructure. Data centres, along with the rollout of 5G networks and the BharatNet project, drive demand for communication and high-speed data transmission cables.
Conclusion
RR Kabel is poised to benefit from India’s growing data centre market, with investments of around Rs 2.7 lakh crore expected by FY30. With its established position in the W&C market, expanding manufacturing capacity, and growing demand for digital infrastructure, RR Kabel is well-positioned for long-term growth.