Started as a small telecom hardware trading company, and witnessed sharp growth amidst stiff competition and a tough business environment, Svarn Group currently operates across 6 distinct business verticals namely telecom, railway, defence, automotive, retail, and industrial solutions. Over the next 12-18 months, Svarn Group plans to invest INR 150 crore in their automotive business at Ghilot, Rajasthan aiming to provide world-class products to domestic and international auto manufacturers. They also intend to start their harness manufacturing plant in Pune, Maharashtra. In the past 15 years, Svarn has exceeded all expectations and has created a name for itself in the telecom Industry and is a one-stop destination for innovative and reliable wire and cable solutions. Their state-of-the-art manufacturing facility at Palwal which is spread over 17 acres, allows them to create customized products backed by strong R&D and product design. In a recent interaction with Wire & Cable India, Mr. Ajay Kumar Gupta, Founder and MD, Svarn Group, discussed Ghilot’s expansion project, business journey, product portfolio, and business roadmap, current market scenario of the wire and cable industry in India.
Wire & Cable India: What is your vision and planning behind the automotive business expansion project at Ghilot?
Ajay Kumar Gupta: At Svarn Group, we have 6 distinct business verticals – telecom, railway, defence, automotive, retail, and industrial solutions. We always believe in moving forward and looking at the newer possibilities of expanding our business and in turn adding to national growth. We see robust growth in the Indian economy, especially in the automotive sector which contributes 7.5 percent to the overall Indian GDP and 49 percent to India’s manufacturing GDP. Interestingly, amidst the challenging COVID-19 circumstances, Indian auto parts witnessed a remarkable 23 percent growth, contributing 2.3 percent to India’s GDP. Estimates claim that by 2026, the auto parts exports business alone is likely to contribute about 7 percent to India’s GDP. So, we consider the automotive sector to be a future growth opportunity for Svarn Group. Hence we are investing in the sector.
WCI: What kind of investments are you planning for this project regarding land acquisition, plant and machinery, technology, and infrastructure?
AKG: We intend to invest in the range of INR 125-150 crore over the next 12-18 months in our automotive (cable, wire, and harness) business. We have acquired ten acres of land in Ghilot, Rajasthan, which will house our automotive manufacturing facility. Plus, we will be starting our harness manufacturing plant in Pune, Maharashtra. These investments will be largely in the E-beam facility and superior manufacturing technologies to offer a world-class product to domestic and international auto manufacturers.
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WCI: What product portfolio segment will this new plant cater to?
AKG: The new plant will cater exclusively to the automotive industry. The facility will produce an entire range of automotive products, i.e., cables for vehicle cockpit, harnesses for interior and engine compartment applications, multi-core cables for engine compartment and vehicle interior, specialized EV automotive cables to support EV vehicles and the charging ecosystem, sensor cables to meet an increased diversity of electronic systems (AB, ESP, airbags). Some of our unique and exclusive processes give us leverage in comparison to other competitors. Our specialized insulation and compounding technology allow us to provide bespoke offerings to address low-voltage and high-voltage needs in hybrid and electric vehicles. Svarn has also broadened its range of multiconductor cables with different cross-sections, conductor materials, semiconducting layers, and custom designs. Our skill in the field of developing signaling cables allows us to provide superior sensor cable offerings for the automotive industry. Our upcoming facility in Pune is a dedicated plant for creating innovative automotive and wiring harness concepts for the automotive industry. Our molded electrical and electronic components are of international standards & fully designed to ensure 100 percent reliable connectivity.
WCI: How will this plant add to your existing manufacturing capabilities?
AKG: This is a very important forward value chain integration for Svarn Group. We have been manufacturing wires and cables for more than a decade, plus supplying automotive wire to various component manufacturers. So, this further enhances our manufacturing footprint and allows us to enhance our hold on the future opportunities available in the Indian and international automotive industry.
WCI: What are the USPs and strengths of Svarn Group regarding the wire and cable segment?
AKG: One of the most significant USPs of Svarn Group is its customer-centricity and capability to manufacture bespoke customized products. Our state-of-the-art manufacturing facility at Palwal, Haryana, which is spread over 17 acres, allows us to create customized products backed by strong R&D and product design.
Svarn is a one-stop destination for innovative and reliable wire and cable solutions. With a commitment to excellence and cutting-edge technology, we specialize in the manufacturing of a wide range of high-quality cables catering to diverse industries and applications. We take pride in our comprehensive portfolio of products that cater to the ever-evolving needs of the modern world. Our expertise spans across a variety of sectors, ensuring that we can provide tailored solutions to meet your specific requirements. Whether you’re in the telecommunications sector, railways, defence, power distribution, industrial control, automotive, construction, or any other industry. We combine technical expertise, state-of-the-art manufacturing processes, and a commitment to quality to deliver cables that meet and exceed industry standards. Our team of dedicated professionals is ready to collaborate with you to understand your unique needs and deliver solutions that drive efficiency, reliability, and success.
“We always believe in moving forward and looking at the newer possibilities of expanding our business and in turn adding to national growth.”
WCI: Brief us about the crucial milestones, journey, and achievements of the Svarn Group (wire & and cable segment).
AKG: Svarn has a very progressive history since its inception in 2005. We have been largely blessed with business accomplishments, barring a couple of challenging years due to the COVID-19 pandemic. Overall, it has been a rewarding experience in the past 18 years. The credit for this success goes to my team and our employees, their determination and commitment have added splendidly to the growth of the group. Our journey has been punctuated by many milestones – Founded in 2005, our first factory was established in Haridwar in 2006. Within 2 years, by 2008, we were able to establish a 2nd factory in Haridwar. As our group continued to expand, in 2009, we were able to establish our first cable factory in Palwal, Haryana. The subsequent year, 2010, saw addition of HF/LF/RF and cable assemblies to our product lines. By 2014, we had achieved a prominent position as market leaders in telecom cables, which led to commencement of international operations in 2015. In 2016, we started production of optic fibre assemblies and in 2018 we launched railway cables and coach parts. We also launched a range of domestic cables under the brand name “Svarn” and in 2020, we opened an E-beam manufacturing plant and an automotive wire plant. Recently, we have opened our international offices in Singapore and Indonesia also.
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WCI: What are the existing product portfolio and manufacturing capabilities of Svarn Group for the wire and cable segment?
AKG: Our product range is diverse and includes a variety of offerings. We provide telecom cable designed to enable seamless communication across distances and are designed for optimum signal integrity and reliability. Our power cables are engineered to efficiently transmit and distribute electrical energy, ensuring safety and consistent performance. For industrial applications we offer control cable to facilitate accurate and efficient control signals, enhancing overall operational efficiency. Our automotive cable and harness solutions cover everything from complex wiring systems to custom harnesses and ensure reliable connectivity within vehicles, contributing to their safety and functionality.
Additionally, our cable harness offers comprehensive wiring solutions, to provide organized and secure connections for various applications. Meeting construction standards, our building wires are designed to guarantee safety and efficient electricity distribution in residential, commercial, and industrial settings. Screened & unscreened instrumentation cables that cater to sensitive measurement and control systems provide accurate signal transmission in both shielded and unshielded configurations. We excel in crafting specialized cables with shielding and braiding for applications with unique electromagnetic interference (EMI) requirements.
Our category/networking cables ensure high-speed and reliable data transfer, meeting the demands of modern communication networks. Railway signaling and quad cables provide reliable signaling which is crucial in the railway sector, and are built to deliver consistent performance even in challenging railway environments. Our railway coach cable harnesses are engineered to meet stringent railway standards ensuring safety and connectivity within railway coaches. Lastly, our fire survival cables maintain integrity even in the harshest fire conditions, facilitating critical communication and control during emergencies.
WCI: Throw light on current market scenario of wires & cables industry in India & its future growth prospects.
AKG: The Indian wire and cable industry is showing an upswing. Consumption led by rapid urbanization, a higher working population, better policy initiatives, and a focus on infrastructure, are expected to be major growth drivers for the sector. Further, progress in renewable power generation, development of the EV ecosystem, and many other micro factors like the introduction of Industry 4.0 are expected to boost demand. We see steady growth in the industry over the next 3-5 years and based on multiple industry research predictions, CAGR can be between 4-7 percent.
WCI: Tell us about your market footprint & clientele.
AKG: We have a very diversified market footprint covering the Indian subcontinent, Southeast Asia, and MENA region with international offices and operations in UAE, Singapore, Vietnam, Indonesia, and Thailand. Svarn Group’s major clients are the Indian telecom OEM/ service providers/tower companies, railway, defence establishments, EPC contractors, and B2C segment through its house wire division.
