The company is a Kolkata-based integrated manufacturer of power cables, conductors and other specialised products and components. The company also undertakes engineering, procurement and construction (EPC) activities in the power infrastructure space.
The shares of Laser Power & Infra are currently trading at Rs. 271.85, down by 0.97%. The company has a market capitalization of Rs. 3,815.91 crore. The stock’s 52 week high is is Rs. 343.50 and its 52 week low is Rs. 250.00. In the past 6 months the stock has delivered a return of 8.98%.
What’s The News
Laser Power & Infra Limited has been accorded a Provisional Letter of Intent (LOI) and an in-principle sanction from the West Bengal Industrial Development Corporation Limited (WBIDC), Government of West Bengal for the allocation of about 40 acres of land at Vidyasagar Industrial Park in Kharagpur, West Bengal.
The allocated land would be used by the company to set up a manufacturing unit for integrated power cables & conductors. Allocation of the land has been made on a 99-year lease period basis, subject to conditions stipulated in the Provisional LOI issued by WBIDC. The company would now have to follow through with the formalities of law, as per the conditions stipulated by WBIDC.
Proposed Manufacturing Facility
In principle, Laser Power & Infra Limited has obtained an approval/conditional LOI towards establishing a proposed manufacturing facility at Vidyasagar Industrial Park, Kharagpur, West Bengal. The company has been allocated around 40 acres of land by WBIDC on a long-term lease of 99 years.
The proposed manufacturing facility is expected to be an integrated manufacturing facility for power cables and conductors. Through the establishment of this facility, Laser Power & Infra Limited would be able to increase its manufacturing capacity and further establish itself in the power infrastructure sector.
As of now, the project is still dependent on the completion of the necessary formalities. The company has not yet made any public statements regarding the amount of money that has been invested, the planned production capacity of the plant, or the commissioning time of the plant. Hence, all of these have to be treated as not certain.
Strategic Significance
The proposed Kharagpur facility would add to Laser Power & Infra’s manufacturing footprint in the power transmission and distribution value chain. Power cables and conductors are key components used in electricity transmission and distribution infrastructure.
The location at Vidyasagar Industrial Park could also provide the company with additional industrial infrastructure and logistical advantages. However, the eventual contribution of the facility to revenue and profitability will depend on the investment made, capacity created, commissioning schedule and subsequent utilisation.
Investor Perspective
The proposed 40-acre Kharagpur facility marks an expansion opportunity for Laser Power & Infra in the power cables and conductors segment. The long-term land allotment provides the company with a potential base for expanding manufacturing capacity and strengthening its presence in the power infrastructure market.
For investors, the next important developments will be the execution of the 99-year lease, project investment announcement, planned manufacturing capacity, construction progress and commissioning timeline. Since the company has currently received only an in-principle approval and provisional LOI, the financial impact of the proposed facility cannot yet be quantified.
Company Overview
Laser Power & Infra Limited is a Kolkata-based integrated manufacturer of power cables, conductors and other specialised products and components. The company also undertakes engineering, procurement and construction (EPC) activities in the power infrastructure space.
The company entered the EPC segment in 2015 and has built its business around products and services catering to the power infrastructure sector. The proposed Kharagpur facility would further expand its manufacturing footprint in integrated power cables and conductors.