Bansal Wire Industries is targeting 20% annual growth while maintaining disciplined capital allocation without increasing leverage. According to The Economic Times, the company generated ₹330 crore in cash in the last financial year, marking the first time it achieved such cash generation magnitude. The company aims to generate ₹350 crore in cash this year and targets 25% return on capital employed (ROCE). Despite achieving 30-35% volume growth last year, the company reduced debt by 7-8% while maintaining its growth trajectory.
As reported by The Economic Times, Bansal Wire is the second-largest steel wire company in India with a 7% market share. The company believes there is room for another Bansal Wire to emerge annually, as the industry grows at 7-8% while the company has consistently grown at 20%. The company's debt-to-equity ratio is less than 0.5, with total debt at ₹500 crore, which is around two times EBITDA. Exports account for only 10% of business, making the company relatively stable against external market variables.
According to The Economic Times, the company operates across three verticals: low-carbon wires (50-55% of business), high-carbon wires (25% of business), and stainless steel wires (15-20% of business). Low-carbon wires generate the best return on capital and the company aims to increase this segment to 60% of total business. The company's revenues have grown from ₹2,000 crore to over ₹4,000 crore, with subsidiary Bansal Steel & Power contributing 30-35% of total sales through exports and automotive markets.
As reported by The Economic Times, the company has transformed its operations over the last one to one-and-a-half years, achieving 30% volume growth while keeping capital base almost unchanged. The company reduced capital intensity by 30% last year and targets 10-15% reduction annually. Bansal Wire is implementing AI-driven manufacturing and smart machines that provide real-time data analysis across equipment. The company aims to reduce working capital across inventory, payables, and debtors while continuing regular expansion to support 20% annual growth.
