KEI Industries Limited has a market experience of over half a century. During these years, the organization has dedicatedly worked to provide a qualitative product basket to the Indian as well as global wires and cables market. In an interactive session with Wire & Cable India, Mr. Anil Gupta, Chairman & Managing Director, KEI Industries Limited, shared details about the ongoing greenfield project at Sanand, Gujarat, wherein nearly INR 1,000 crore shall be invested in the next 3 years. The organization is also planning to add one manufacturing line each at Silvassa and Pathredi plants this year. Eventually, in the next 5 years, the company plans for a top-line revenue of over INR 14,000 crore, product diversification, and expansion of its global footprint.
Wire & Cable India: KEI’s greenfield project is under process. Could we get an update on this?
Anil Gupta: Yes; we will be investing nearly INR 1,000 crore in our in the next three years. The project will result in the largest manufacturing plant for KEI, and it will be based in Sanand, Gujarat. The project will help us to cater to the rising demand for wires and cables. We will be diversifying our product portfolio to serve many specialty segments such as oil & gas, infrastructure, solar, wind, power, agriculture, electrical vehicles (EV), and various types of commercial needs.
Our focus shall continue on the wires and cables segment and we plan to expand our customer base worldwide, beyond the 60 countries we are already serving. We have also considered different standards or certifications that might be relevant to different countries. Our manufacturing process will ensure that our wire and cable applications adhere to the varied regulations and standards for diverse sectors such as solar, wind, and power, transmission & distribution (PT&D).
WCI: A quarter of the new FY has passed. Please tell us the highlights of your previous FY, and how you plan to build on them in the current FY.
AG: KEI Industries has continuously grown over the last 10 years, recording a CAGR of 17.5 percent. KEI Industries has registered a top line of INR 6,912 Crore. Currently, we have a very strong ‘AA’ credit rating and an outlook to grow our top line by 15-17 percent, and bottom line by 18-20 percent in FY 2023-24.
We also have plans to add an additional manufacturing line at the Silvassa plant and another at the Pathredi plant this year to cater to the growing demand.
The projected growth of the industry is fueled by advancements in technology and the increasing demand from diverse sectors such as infrastructure & private capex industries, construction, automotive, and telecommunications.
“In the next 5 years, we will cross INR 14,000 crore as our annual top-line worth and will further strengthen our wires and cables product portfolio.”
WCI: What is your company’s USP that provides you with a competitive edge?
AG: We have been in the Indian market since 1968, and have grown as a multinational conglomerate giving customized solutions in the B2B space. In the B2C segment as well, we are one of the leading brands and drive a strong retail footprint. Our legacy spans 55 years of business management and a diverse product portfolio of wires ranging from 1 KV to 400 KV. In fact, we are the only brand to record a YoY CAGR of 20 percent in the last 5 years (excluding pandemic years). Today, we are operating 5 state-of-the-art manufacturing facilities. Additionally, we have varied reputable certifications as well to our credit. For instance, our labs are NABL accredited and have thus helped us empower a strong reputation for reliability and customer service.
We are quite hopeful for our future in the wires and cables market, especially in light of market competition. It is our commitment to innovation and a focus on providing high-quality products and services that positions us for continuous growth and market share expansion. These features enhance KEI Industries’ competitive advantage despite the challenges posed by emerging and existing competitors. We are sure these features will keep serving KEI to maintain our market position as a leader in the wires and cables industry.
Watch: RR Kabel | Solar Cables | Solar Plant | Renewable Energy
WCI: How do you see the Indian electrical wires industry evolving, and which trends are behind these shifts?
AG: I predict high demand for wire and cable products in both B2B and B2C segments.
The Government of India is creating new opportunities in the economy by increasing the capex investment from INR 7,28,000 crore in the last FY to INR 10,00,000 crore now. The additional funds will boost the country’s infrastructure development, and as electricity is an integral part of any such development, immense opportunities for the Indian wire and cables market are natural. The government’s initiatives to support the domestic manufacturing sector and infrastructure have paved the growth for the wire and cable sector.
Additionally, a growing focus on renewable energy sources, such as solar and wind power, is set to propel the industry forward over the next few years. As many new solar energy projects are being commissioned, the sector is experiencing good traction and a rise in demand from solar developers. Consequently, a strong demand can be observed from power distribution companies for Revamped Distribution Sector Scheme (RDSS) projects as the scheme is being implemented by numerous distribution firms in India, financed by Power Finance Corporation (PFC) and REC Limited.
The manufacturing sector is also showing signs of increasing demand, and a demand for private capital expenditures is anticipated, particularly from steel, oil and gas, petrochemicals, cement, and other industries. Investments in the manufacturing sector will also increase as a result of the government’s emphasis on giving production-linked incentives (PLI) for projects. Thereafter, the revival of the real estate sector will bring more opportunities in the house wire segment.
“KEI Industries has registered a top line of INR 6,912 Crore.”
As technology gets increasingly integrated with growing data centers and IT facilities, the applications of wires & cables have increased, ensuring secure and affordable connectivity. The market is expected to witness a shift towards the production of high-end specialty cables, in response to the rise of digitalization. Investments towards R&D have also increased, leveraged by the adoption of cutting-edge technologies. The demand for next-gen gadgets and the rollout of 5G and 6G services are acting as catalysts for the ever-growing industry.
Certain challenges also need to be considered, like the intense competition in the cable industry from both local and international players vying for market share. There is a need to stay ahead of the curve by continuously improving our products, processes, and customer service. Moreover, fluctuations in copper prices also pose a key challenge. Therefore we are focusing on the need to be agile and adaptable to navigate these challenges and seize opportunities as they arise.
In a nutshell, the wires and cables industry is slated to thrive in the coming years.
Also Read: KEI Industries Aims for INR 14,000 Crore Top-Line Revenue in Next 5 Years
“We also have plans to add an additional manufacturing line at the Silvassa plant and another at the Pathredi plant this year to cater to the growing demand.”
WCI: Please share your future plans for KEI Industries.
AG: In the next 5 years, we will cross INR 14,000 crore as our annual top-line worth and will further strengthen our wires and cables product portfolio. KEI has been providing quality products to the electrical industry for decades, and in the future, we will continue to expand our reach, domestically and internationally. Currently, we are available to serve over 55 countries and we will be focusing on spreading our global footprint by improving our exports in developed markets like the US, Europe, and Australia.
India is emerging as the fastest-growing major economy in the world and due to its very strong infrastructure pipeline and focus by central government and state governments on infrastructure, especially railways, metro railways, urban railway systems, highways, and real estate, we expect a very strong momentum in the cable demand in the coming financial years. The Indian electrical sector is undergoing a significant change that has redefined the industry outlook. The electrical industry’s future in India is bright as sustained economic growth will continue to drive electricity demand in the country.
The Government of India has identified the power sector as a key sector to promote sustained industrial growth. Various initiatives have been launched to boost the Indian power sector, such as the PLI scheme to boost the manufacturing of high-efficiency solar modules/Photovoltaic cells and battery-backed power storage infrastructure. We are committed to providing solutions that meet the needs of our customers while being mindful of sustainability. Our future looks promising, and we will continue to be a leader in the industry by providing excellent world-class products and services.
