The industry which has been growing at a rate of 15 percent currently will start growing at a CAGR of over 20 percent over the next five years.
September 5, 2017
From being a small industry to a large one, the wire and cable industry has come a long way with tremendous growth over the past decade. The increasing demand for power, light and communication has kept demand high for wire and cable. This trend will continue as demand for reliable, efficient energy and data communications will strengthen the wires and cables industry in the future as well.
The specialized cable industry is roughly of the size of Rs 10,000 crores. The government has announced ambitious plans for infrastructure development. One of the primary focus areas of the development plan is railways, with over Rs 800,000 crore as promised investment over the period of 2015-2020. In addition, the government has earmarked Rs 50,000 crore to develop 100 smart cities across the country.
Highway projects worth USD 93 billion, which include government flagship National Highways Building Project (NHDP) with total investment of USD 45 billion over next three years, have also been announced. The Digital India campaign will require an investment of Rs 450,000 crores. Ministry of Power is also looking at an investment of Rs 15,000 lakh crore over the next 5 years. The wire and cable industry will eventually focus on supplying cables for specific applications pertaining to the industry needs.
Different kinds of cables like extra high voltage cables, elastomer cables, etc are presently being used for special applications such as mining, in oil sector, shipbuilding, cranes, elevators, solar power plants to harness power for new generation motor vehicles, windmill solutions as well as security systems.
Initiatives such as excise duty exemption for ferro-silicon magnesium and pig iron used for manufacturing components for wind-operated electric power generators, and the target set by the Jawaharlal Nehru National Solar Mission to generate more than 1,00,000 MW of solar power by the end of the year 2022, will further boost the demand for electrical wires and cables.
Rural electrification is another major factor which is expected to propel the growth of the electric wire and cable market in the country. The government’s goal to provide electricity to every home by 2020 should attract major investments in the sector.
