Litmus Industries Limited has sought Rs 2 billion loan to establish a new plant aimed at increasing its production capacity and reducing Nepal’s reliance on imported electrical products.
Established in July 1978 as Lumbini Vidyut Udyog Private Limited (LVPL), the company rebranded as Litmus Industries Limited (LIL) in July 2022. Its current manufacturing facility is located in Butwal, Rupandehi district.
The planned investment will focus on producing advanced types of electrical wires to cater to growing domestic demand.
Rohit Gupta, Managing Director of Litmus Industries, highlighted the strategic significance of the expansion. “We are investing Rs 2 billion in a new plant to enhance our capacity for producing electrical wires,” Gupta told New Business Age. “Nepal Electricity Authority (NEA), which uses our products for electricity transmission and distribution, is our largest customer.”
The company has carried out its credit rating to finance the expansion through bank loans. However, Infomerics Nepal, a credit rating agency, has placed the company in the “Issuer Not Cooperating” category due to inadequate information disclosure.
“The downgrade in the rating reflects non-cooperation by the company despite repeated follow-ups and insufficient data, which creates uncertainty around its credit risk,” the agency stated .
Litmus Industries’ current annual production capacity includes 11,000 KM ABC Cable, 67,750 km ACSR Conductor, 2,000 km Concentric Cable, 2,539,570 coils of House Wiring, 13,500 MT Enamel Wire/SEC, 300 MT Paper Insulated Strip and 45,000 km Low Voltage Power Cable, according to the statement issued by the rating agency.
The company markets its products domestically under two brand names: Litmus Cables and Lotus Wires
