Mr. Harry Prunk, CEO, Sikora AG

Started in 1973 with few employees offering equipments for power cables, Sikora AG has grown to a larger dimension in the last 38 years with basket full of quality products to offer. Today the company is headquartered in Bremen, Germany with a fleet of 180 employees and 10 daughter companies globally. Presently, Sikora business comprises of 50% in the medium and high voltage cables, 40% in the automotive, fiber and data cables, rest 10% in hose & tubes. During the interaction with Mr. Harry Prunk, CEO, Sikora AG at the CRU conference he tells us about the importance of good service along with the quality product, what lies ahead for Sikora and its Indian plans.

Wire & Cable India: What are the new developments at Sikora in context of establishing new markets, or introducing new products and technologies for the wire & cable industry?

Harry Prunk: We generally work together with the leading technology providers to develop solutions for the cable industry. Over the years we have added new range of products which were earlier not present in our portfolio so that the customers opting for Sikora should get everything under one roof. To give you an idea of technology development, in 2008 we associated with Nextrom and other suppliers to offer a complete range of equipments for the fiber industry providing a lot of specific newly improved functions. Like if you are using a diameter gauge it not only provides information on the diameter but also provide information on the fiber position for the adjustment of preform, spinning etc. and all of that at extremely high measuring rate.

In the context of new markets, we have learnt in the past that more than providing measuring and control equipments it is a question of providing a good service. So to be successful in sales requires providing good service. All our daughter companies are being established with this idea.

WCI: What kind of presence does Sikora have in India?

HP: Sikora India got registered and started its operations in 2004 with a salesman and a secretary. Within one year we had our first office. Today we have two service engineers, one based in Delhi and other in Mumbai. In the last couple of years we have witnessed very healthy growth in India. Before 2004 we had an agent in India, but selling equipments like a small diameter gauge needs a customer visit even if it is a low volume turnover and this is something what an agent could not afford. In long term we see a very good market situation for us in India. We have our installations across India in the companies making small coaxial cables up to the big RF cables, then in the area of low to high voltage cables.

WCI: How do you look forward to India as a market for the wire and cable industry and what kind of changes or trends do you foresee?

HP: There is a huge potential in India. That is why foreign cable companies are present here through their own subsidiaries or in collaboration with Indian players. What I won’t foresee is a rapid growth that has taken place in China. In China there was a steady increase in the market for a long time but suddenly we have seen an enormous increase specifically in last 5 years and this is what I would not see in India in the coming years. If we observe the number of people living in India and the demand for electricity which has to come yet, it poses a huge growth potential. In the longer term the Indian government needs to build the infrastructure to support it. So I am expecting a larger number of people having an increase in income, so they would like to shift from bicycle to a scooter and then to a car. For us there is a good potential to grow not only in the wire and cable industry in India but also in hose and tubes industry.

WCI: What benefits does Sikora equipments provide?

HP: Quality control & material saving are the key areas of any manufacturing business. The cost of cable is going up because of the rise in prices of the compounds like polyethylene as they are oil based. Our equipments like diameter gauges or wall thickness measuring gauges, help to avoid over wall thickness, which leads to material saving. Moreover our equipment helps in reducing start-up and changeover times also. As the labor cost is also increasing day by day the cable producers need to cut their cost and this is possible by installing new lines with higher productivity or through minimizing the material consumption.

WCI: Service is an important part for any Quality Control equipment provider. What exactly does Sikora offer to its clients on service part that can add value to their business?

HP: I would say that we are not here to sell our products and create a turnover. Rather we see ourselves as a technical advisor to tell the companies, what is best for their benefit. We should be available at the time of commissioning of the equipment when the customer is ready. And, whenever there is a problem the customer should easily get replacement and service as quickly as possible. For this we keep the stocks of the spare parts ready at all the daughter companies. Then, we have service engineers who are well trained. All of the service engineers we have globally are trained at Bremen and the process of training is continuous.

WCI: Any suggestion for the Indian wire and cable producers.

HP: Yes, I think companies need to look at the long term perspective of the business where quality plays an important role. And, this is the only parameter to keep you ahead in the competition. The Indian companies should not only aim to sell the products within domestic market but should target exports too. For working outside India they have to be well prepared with good quality. Companies like Nexans, Prysmian, LS Cables have developed over the period of time and have implemented quality control systems in order to improve efficiencies and productivity. In the long term sustainable growth we need to focus on quality.