”We are planning to expand horizontally with an increased capacity of the existing product basket in the next 3-5 years with a view to increase our market share by duly utilizing our expertise and marketing team,” said Mr. Vinay Rathi, Director, Gloster Cables Limited, in an interview given to Wire & Cable India.
Excerpts.
Wire & Cable India: Could you tell us a little bit about Gloster Cables, its product portfolio and the major milestones it has achieved so far?
Vinay Rathi: Gloster Cables Limited, one of the leading cable manufacturers and suppliers of cables to power utilities in India, was incorporated in the year 1995. On 13th March 2020, it celebrated its silver jubilee year. It is headed by Ashish Modi, a renowned business icon from Hyderabad, and Vinay Rathi, Director. Today, Gloster has as many as 17 marketing stations across PAN India with exponential growth in business. Its business journey started with a Rs. 5 crores turnover, which reached Rs. 400 crores in 2019-20. With further revamping, we expect to reach a turnover of Rs. 800 crores in the next five years.
In addition to our conventional product profile of LT and HT cables up to 33 KV, we have very successfully added various types of special cables viz., instrumentation cables, railway signaling cables, fire survival cables, solar cables with U/L certification, etc. The addition of new products has helped us to offer better services to our esteemed customers in meeting their special requirements in the quickest delivery period.
WCI: What new developments have taken place at GCL?
VR: During FY 2018-19 and FY 2019-20 many developments took place in our plants, such as the installation of new machineries, revamping of test laboratories, addition of modern testing equipment and construction of a new HT line. All these developments took place in consonance with the technological changes that have taken place in the cable industry. These developments are aimed at achieving a Rs. 500 crore turnover during FY 2020-21. Our testing laboratory is also under the process of awarding accreditation for NABL authority.
WCI: Could you tell us about your technological capabilities and the major technology suppliers you have collaborated with? Does your company have a well-defined R&D program?
VR: In the power segment, Gloster has been enjoying customers’ appreciation of its product quality and post-supply service. The entire range of our product basket is made with our state-of-the-art technology. Till date, we do not have any plans for collaborating with any technology supplier. Our quality standard is ensured through stringent quality checks right from incoming raw materials to the level of finished products with our well-framed quality assurance plan along with continued development of R&D activity both for raw material and finished products.
WCI: How is your presence on the local and global markets? Could you tell us about the regions and markets you supply your products to?
VR: Our business share on the trade market in India is quite satisfactory. We are a favorite brand in some parts of the country. Over the years, the trend is well focused and established through our field force in almost all the major cities. We have a network of approximately 300 dealers. We currently have 17 field stations represented by field executives. We focus mostly on our network within India. We emphasize on buying quality raw materials from reputed manufacturers in India. We also supply our products to a few countries by partnering with contractors and exporters.
WCI: What are your thoughts on India’s growing power sector? What are the demand drivers for EHV cables in India?
VR: As reported, our Union Government, in its budget for 2020-21, made budgetary allocation for the Ministry of Power at Rs.158.74 billion keeping the figure unchanged. This is quite significant in terms of enhancement of growth in augmentation of various schemes announced, like DDUGJY, IPDS, UDAY, ADITYA, PM KUSUM etc. While village electrification at the national level has moved at a considerable pace, household electrification at the rural level has improved marginally. The slow pace of household electrification vis-à-vis village electrification was felt due to lack of focus of these schemes. The private sector is expected to contribute to its implementation at a rapid pace, such as UDAY, Smart Metering, ADITYA, etc. In order to improve over T&D loss, the scope of the EHV cable business opportunity is expected to have an exponential rise. In our country, only a few new players from abroad are planning to take part in this business.
WCI: What are your goals for the next 3-5 years?
VR: Gloster Cable is planning to expand horizontally with an increased capacity of the existing product basket in the next 3-5 years with a view to increase its market share by duly utilizing its expertise and marketing team. In the power segment, we plan to increase our business volume multifold followed by the non-conventional energy segment. We believe in offering quality products, and our test laboratory is in process of obtaining NABL accreditation. We have expanded our production capacity to quicken delivery. Assuming that everything would move forward as planned, we would take up cable installation as well.
WCI: Is there anything else you would like to add?
VR: In our country, enormous developments are taking place in the domain of technology, both in design engineering and products. Yet, in the field of cable, being the prime carrier of power, connected equipment to perform, quality bar remains an aspiration. Therefore, the concerned authority must look into this aspect and proper benchmark should be standardized as a proof of quality in addition to the criteria of having the BIS license only.
