April 18 2016, 17.58 PM IST || Pocket News Alert
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 Signaling, Telecom, Quad Cables, Indoor Signaling & 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.
About CMI Limited:
CMI Limited is a leading specialty cables manufacturing company. CMI Limited islisted on BSE (BSE Code: 517330) and closed the year 2014-15 with revenues of Rs. 137.28 Cr.
CMI Limited, incorporated in 1967, is today a well known and reputed supplier of specialty cables to the who’s who of the industry. The focus in the organization is on latest technologies leading to new product development.
CMI is one of the few approved vendors for Railways, Space & Research, Defense, Telecommunication, Petrochemicals, Refineries, Power, Mining and various other Sectors.
CMI Ltd. has an illustrious list of clients that includes Railways & its subsidiaries like IRCON. RITES, MRVC, Konkan Railways, DLW, DMRC & other metros; Oil & Refinery industries like IOCL, BPCL, BORL, GAIL, MRPL, HPCL, ONGC; Leading Government companies likeEIL, ISRO, BHEL, NLC, NTPC, NPC, BSNL / MTNL and HEC; Private Sector EPC companies like L&T, Alstom, Siemens, Hitachi, Linde, Thales, Lurgi, Technip and ABB; Steel plants like Vishakhapatnam Steel Plant, etc. CMI has also exported cables to Sri Lanka, Bangladesh & Iran Railways.
CMI manufactures a wide variety of specialty cables including Railway Quad cables, Signaling cables, Balise cable for Train protection & warning system, Fire survival cables, LSZH / FRLS sheathed cables, Control & instrumentation cables, Cables with TPU sheath, PTFE cables, Special cables for multi object tracking radar, Fire alarm & communication cables, PIJF telecom cables, EPR/CSP/PCP insulated & sheathed Rubber cables, Linear Heat sensing cables, etc.
Safe Harbor
This Press release by CMI Limited (the “Company”), is solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
Our actual results may differ materially from those included in this Press Release for a variety of reasons, including, but not limited to - changes in political, business, and economic conditions; foreign exchange rate fluctuations; the impact and integration of recent and future acquisitions; our need to successfully react to the changing customer preferences; an increasingly competitive environment for our businesses; the complexity of managing an increasingly large and growing growing enterprise, enterprise, with a broad range of businesses; our need to manage regulatory, regulatory, tax and litigation risks (including risks); and our need to timely upgrade and develop our product offerings at reasonable cost.
The Company assumes no obligation to update any forward-looking information contained in this Press Release.