At KEC CABLES , we have undertaken an integration process to synergize this businesses with the operations of KEC . Till the recent past, “cables” was a stand-alone business. We are now trying to bring in operational efficiency into this segment of business, which is very much in line with our continuous improvement initiatives across the other business of KEC , says Mr. Rakesh Amol.
KEC International Limited, the flagship company of RPG Group, is global infrastructure Engineering, Procurement and Construction (EPC) major. It has presence in the verticals of Power Transmission & Distribution, Cables, Railways, Water & Renewables. The Company has powered infrastructure development in 61+ countries across Africa, Americas, Central Asia, Middle East, South Asia and South East Asia.
The company is one of the leading manufacturers of power cables and telecom cables in India. It has three state-of-the-art manufacturing facilities located in Vadodara (Gujarat), Mysore (Karnataka) and Silvassa (Union Territory). The manufacturing facilities are accredited with ISO 9001 (All 3 facilities), ISO 14001 (Mysore and Silvassa) and OHSAS 18001 (Mysore) certifications.
KEC entered the cables business by acquiring RPG Cables in 2010. RPG Cables, with a rich experience of over five decades, is one of the oldest and largest fully integrated cable manufacturers in India. It pioneered the production of XLPE cables in India.
With its persistent focus on growth the company has set up a World Class facility at Vadodara (Gujarat, India) to manufacture HT and EHV cables up to 220 kV. The new plant is equipped with state-of-the-art manufacturing and testing facilities. The plant is capable of manufacturing corrugated Aluminum sheath and Milliken conductor with conductor cross-sections up to 2000 sq mm with a triple-extrusion insulation line. The plant has an installed capacity of 3,600 cable kilometers annually and has been designed for capacity expansion in the future.
Wire & Cable India recently had a brief chat with Mr. Rakesh Amol, President – Infrastructure & Cable Business, KEC International Limited to know his perspectives on the industry and the company’s operations. Excerpts:
Wire & Cable India: Share with us the developments happening at KEC.
Rakesh Amol: At KEC CABLES , we have undertaken an integration process to synergize this businesses with the operations of KEC . Till the recent past, “cables” was a stand-alone business. We are now trying to bring in operational efficiency into this segment of business, which is very much in line with our continuous improvement initiatives across the other business of. This has given has some advantage in terms of manufacturing excellence and improving our proximity to some key customers.
Of late, the commodity prices have been very volatile and have seen a steep downward trend. In wake of that, there is greater amount of engagement now in terms of our day-to-day business so as to remain relevant in this market.
We are also trying to do some product-mix change, from very generic products to some specialized products that are finding relevance in the market. We have recently launched our anti-theft cable/covered conductors and have recently got requisite type test certification for manufacturing 220 KV EHV cables. These would certainly, open some new markets for us.
One of the priorities is to also consolidate and expand our business more in international markets. KEC’s presence for its T&D business in almost 63 countries is going to be an advantage. While all these initiatives would help us address the market related issues and in better capacity utilization, what is significant for us is to enhance the profitability of this business. The downward tend & volatility witnessed in the commodity prices, last year, has been a dampener for us. However, the measures we are taking in our Raw material buying pattern and with overall enhanced operational efficiency we should be able to create more value in this business for KEC.
WCI: What are these anti-theft cables that you mentioned?
RA: There are various types of electrical power theft, including tampering or bypassing the energy meter and illegal tapping from bare conductor or ABC cables. Millions of people are living in areas without a legal connection to the electricity supply. Many of them risk their lives to make intricate, illegal connections to overhead lines. These activities often result in fatal accidents and wastage of electrical energy.
Electrical Power Theft occurs when people make illegal connections on the Bare Overhead Conductors (Phase & Neutral). This is done by direct hooking from overhead bare conductor using insulated wire. Electrical Power theft can also occur with LT ABC Cables and normal insulated conductor where it is easy to make clandestine connection with nail or claw and connections made with Phase & Neutral respectively.
KEC Anti-Theft Cable Solution:
KEC Cables have come up with a unique solution for preventing Electricity Theft by illegal Tapping. This solution will not only eliminate electrical power theft losses by illegal tapping which are cutting into utility profits, but will also create a model for social and environmental responsibility.
Anti-Theft Cables are used at distribution points in congested areas – likes slums, as substitute of bare conductor & ABC to prevent theft of electricity by illegal tapping. The anti-theft cable design is such that it eliminates chances of illegal tapping and electrical power theft by direct hooking or connection using clamps or nails, as under;
WCI: Any commercial project executed with this product so far?
RA: We have piloted some projects recently and it has generated a lot of interest among Discoms. It’s a special product for their application as they see lot of value in its usage, where reports of power theft are high.
WCI: Your strategy regarding 220KV cable marketing?
RA: Our strategy is very clear on that. We have been manufacturing this product at our state-of-the-art Baroda factory for some time, in a calibrated way. However, now that we have also received KEMA certification for this product, we would like to commit capacities of manufacturing to this and realize the full market potential. KEC’s presence and engagement with various Transmission and distribution companies gives us the opportunity to deliver complete project oriented systems around this product including laying in challenging terrain. Various auxiliaries like special Jointing Kits required in providing such systems, are also available through Raychem which is a RPG group company and that gives us some advantage.
WCI: You have been saying something about your consolidating and expanding your international presence…
RA: We have presence in 63 countries through our T&D and now sub-station businesses. So, there is already a footprint and client base available. We wish to use the same vehicle to take our other products to international market. Earlier, for example, we were supplying telecom cables, but now we are intending to push other products like EHV cables through the channel.
We are now primarily trying to tie-up with international dealers to stock up our products, again for the whole range. Our business earlier was predominantly project sales, now we desire to take a significant pie of dealer market too.
WCI: Any recent expansion in any of your facility?
RA: We recently did that at Vadodara plant. Going forward, if there is any expansion which has to happen, will happen in Vadodara only because we have plenty of space and other facilities within the same campus. This year, we are only trying to rationalize certain products among three facilities; we don’t have any big capex outlay plans for now.
WCI: Tell us a little about what you did at Vadodara plant. How much is the capacity utilization there?
RA: This year we are at 70-80 percent which we intend to take to 90 percent next year. However, I don’t evaluate the utilization that way. We are rather sensitive towards what kind of product and what kind of tonnage we are generating out of it – more in terms of value and margin.
In the recent past we have undertaken a no. of initiatives including TPM, to integrate our process not only across the cables facilities but also with the other facilities of KEC and group, all targeted towards plant improvement and operational efficiency.
WCI: Your views on power sector vis-à-vis cables?
RA: Cable per se will certainly have a market size owing to growth in power sector. Given the focus of our government in bringing power to all, the distribution segment within Power sector, is where we see an enhanced market for our premium products. However, we also see growth opportunities in renewables, specifically in the solar space. The opportunities in generation within conventional power segment still remains muted for us.
