New Delhi, April 18, 2016 (Newswire.com) - CMI Limited, the BSE Listed Specialty Cable company, has received approval from Indian Railways to supply Hard Drawn Contact Wire and Catenery Wire used in Electric Traction of trains at 25 KV. Both these wires have tremendous application in Indian Railways, Metros and Dedicated Freight Corridors.
Indian Railways has only 28000 Km of electrified Track out of a total of 67000 Km of track. The Balance 39000 Km of Track has to be electrified in the near future. Besides this, 7000 Km of dedicated Freight corridor will be added in the next 5 years. Work is already going on in 3000 Km of Western and Eastern Freight Corridor, which is expected to be completed in the next 3 years.
The cost of these specialized cables is around Rs.12 Lakhs per KM of Track. CMI Limited is amongst a handful of Manufacturers who have been approved by the Railways for the supply of these cables. The total business potential from the supply of these Cables to railways is Rs.1000 - 1500 crores per annum.
CMI estimates Rs.100 crores as the potential business accretion from the supply of these cables to Railways in the F.Y. 2016-17. “Railways is one of our biggest customers. This approval only goes to show CMI’s manufacturing capabilities. With this approval CMI has become approved for the entire range of Signalling, Telecom, Quad Cables and Indoor Signalling & Wires for High Voltage Traction on Electrified Tracks. This approval reinforces our confidence that we will be able to maintain our pace of growth in the years to come”, says Mr. Amit Jain, MD, CMI Limited.
Railways is a major contributor to CMI’s topline at the moment and this is likely to continue in the current Financial Year. CMI Limited recently started commercial production at its newly acquired facility at Baddi, Himachal Pradesh and these cables will also be manufactured at the new facility.
Source: finese pr