Mr. Hiten A Khatau, Chairman & Managing Director, Cable Corporation of India

Year 1957, when formal international joint venture were unheard of, The Khatau and Thakersy groups, already renowned name in the Indian industry, joined hand with German promoters Siemens and F&G and set up a power cable factory. The new venture commenced operation in Mumbai and began with the manufacture of PVC insulated wire and cables for the first time in India. There facilities are equipped with state of art hardware, software and infrastructure. As a part of their innovation regime they became first company in India to manufacture EVH 220Kv way back in 1994. With its excellent quality product and services they are now making new inroads in both domestic and international markets. In a straight chat with Mr. Hiten A Khatau, Chairman & Managing Director, Cable Corporation of India we discussed about CCI evolution, philosophy, R&D setup and activities, strategy, present facilities and plans ahead. Excerpts

Wire & Cable India: CCI has its presence in the market for around 5 decades. What philosophy is embedded in the organizations culture, working style etc?

Hiten Khatau: CCI has been at the forefront of innovation and technology “firsts” in the cable industry in India. Started in 1957, CCI has many milestones during the period of 50 years with significant pioneering efforts by introducing new products and technologies in India from time to time. CCI has pioneered the development of low voltage cables with special PVC insulation which was not being used in the country. CCI Introduced specialized cables and compounds which were substitute to imports. CCI was the first company in India to produce Extra High Voltage cables with its production and installation of 230 KV cables way back in 1992. We were the first company in India to produce AL sheath cables in year 1998. CCI also produced and installed its submarine cables in the year 1998. We were the only company in India to produce miliken conductor for 1000 sq mm and above, Cu or Al conductor, for EHV cable applications. We were also the first Cable Company to receive the ISO 9000 certificate in India. Presently we are also moving towards the 400 KV cable segment.

Looking at all above, CCI’s philosophy and strategy has been to remain the “Innovation, Technology and Quality leader” in the Indian cable industry.

WCI: Kindly brief us about your R&D setup and the activities done?

HK: R&D has always been the priority at CCI which is the proof of many innovations that CCI has to its account as narrated above. Over the years the focus has been on “applied R&D” especially in the design and materials domain for cables and cable accessories. In the process of shifting the plant at Nashik, we have completed the manufacturing plant relocation along with the upgradation of the many of the equipments. A new state of the art R& D facility is also under construction and will soon be completed. We intend to continue to focus on design and materials including special compounds developments in house for special cable products. In addition, the R&D activity right now being undertaken is development of 400 KV cables design and manufacturing.

WCI: “Excellent quality products & services is the hallmark of CCI.” Comment.

HK: Our 220 KV cables supplied way back in 1994 are in service for more than 16 years now at TNEB, which is a testimony to good quality and service. Our submarine cables supplied and installed in 1998, at Vivekanada Smarak at Kanyakumari is still in service.

CCI’s brand image has been “Quality”. The name CCI is synonymous with “Quality” in the minds of the customer. Many of the industrial customers have been buying CCI cables for all their projects for decades. We are very proud of this customer loyalty towards CCI products which is purely based on Quality Image in reality and perception. “Quality” in all aspects of its products and operations is what differentiates CCI from its competitors. We are proud of this heritage and responsibility, and have been able to retain the position of “quality leadership” in this competitive world, in the cable industry.

Our turnkey services “Total cable service” right from design, supply, installation & commissioning and after sales support for EHV cables, joints and terminations has been excellent. We have taken many of the EHV projects on turnkey basis. e.g. RRVPNL for 132 KV, 1c x 800 sq mm, Copper conductor, Al sheathed cables, qty – 36 km, TNEB for 220 KV, 1C x 1200 sq mm. lead sheathed cable qty – 129 km. Recently we have executed the complete turnkey project for 220 KV 1C x 800 sq mm AL sheathed cable Jaypee sports international for the Formula 1 car racing project in Greater Noida near Delhi.

WCI: Elaborate the CCI strategy for the high voltage cable sector?

HK: CCIs achievement in the EHV segment has been extremely good and the past performance has been the backbone for the leadership in EHV segment.

In EHV segment CCI has supplied nearly 130 km of 220 KV cables in the year 2010-11 alone, becoming the sole Indian manufacturer to supply more than 100 km of EHV cable in a year. CCI had also received the additional repeat order for 220 KV Qty 24 km from TNEB on the merits of quality and performance. CCI is the only Indian manufacturing cable company, which competed with all the international players (six nos) in 220 KV tender for TNEB for 1C x 1200 sq mm lead sheathed , Qty – 129 km (as no other Indian manufacturer was qualified). This is the bench mark order, in the month of March 2010, for Indian cable manufacturer against international competition.

CCI has moved ahead and established itself as the market leader with market share of 47% in EHV cable segment in 110 KV to 220 KV market for the year 2010-11. CCI strategy will be to retain the market leadership position in EHV segment for the future. With nearly more than 250 km of 220 KV cable orders, CCI will be the only Indian manufacturing cable company to move to this position. CCI’s strategy is also to move to 400 KV market with all these 220 KV credentials in place.

The market for EHV cables is growing and will be growing in the future as more and more cities with power demands are increasing. The real estate price rise in these cities along with right of way issues is inducing the growth of the EHV cable network in the cities along with GIS substations. Apart from metro the second and third tier cities are also moving towards EHV cables usage due to future growth plans and high demand of power in the cities.

CCI strategy will be to retain the number one position as Indian cable manufacturer, as a total turnkey supplier of EHV cables and also move to higher 400 KV voltage levels.

WCI: Detail us about your new facility, infrastructure, technological capabilities and the investment made?

HK: CCI has completed the construction of a new plant in Sinnar in Maharashtra’s Nashik district for manufacturing High Voltage (HT) and Extra High Voltage Cables (EHV) in the month of Oct 2011. The new unit will be using CCV (Continuous Catenary Vulcanization) technology and will be manufacturing HT and EHV cables from 11 kV to 132 kV. Cable Corporation of India has invested an amount of approx Rs 40 crore in this new set up. Work on the new set up had started in January 2011 and the plant has been completed in record time of 10 months. This is the company’s third plant in the area. Of the two plants CCI already has at Sinnar, one manufactures LT and HT cables up to 33 kV, and the second manufactures EHV cables up to 400 kV with MDCV technology. With the addition of new plant, the existing MDCV technology plant will be used exclusively for 220 KV & 400 KV cable manufacture, whereas the new facility will be used for cables up to 132 KV. The MDCV technology is being used by many reputed manufacturers from Europe and Japan. Our Sinnar, Nashik EHV manufacturing facility is comparable to any international facility and we are proud of this showpiece facility. Many of the international machine suppliers and customers who visited our plant have highly appreciated the manufacturing facility.

CCI has been a market leader in the manufacturing of EHV cables for several years. It is the first Indian company to manufacture 230 kV cables and has been the only Indian manufacturing cable company whose 230 KV cables are in service for more than 16 years in Indian utility. Our 220 KV cables are also in service in neighbouring countries such as Bangladesh.

With this expansion at Sinnar Nashik, we are confident and have already geared up, that our manufacturing facilities will cater to the growing market for EHV cables in India for cable up to 400 KV. With this expansion, which has doubled the manufacturing capacity of EHV cables, and in line with our strategy, CCI aims to consolidate its number one position in EHV cables in terms of market share and customer satisfaction.