Litmus Industries Eyes Global Markets with New Aluminum Wire Rod Plant in Nepal

Nepal’s leading wires, cables and conductors manufacturer, Litmus Industries Limited is looking forward to spreading its corporate wings across the world, especially in India, the Middle East and Africa. The company is setting up a new manufacturing line in Nepal for high quality aluminum EC grade and aluminum alloy rods for self-reliance and to reduce dependency on import. This was revealed by Mr. Rohit Gupta, Vice Chairman of Ramesh Corp and Managing Director of Litmus Industries Limited, during an exclusive interaction with Wire & Cable India.

Wire & Cable India: Kindly walk us through your business journey, highlighting major achievements and crucial milestones.

Rohit Gupta: Litmus Industries has come a long way since its inception in 1977. From being a domestic player, we have grown into Nepal’s largest manufacturer of wires, cables, and conductors, and the only publicly listed company in this sector. It is a part of the Ramesh Corp Group- a leading business conglomerate, set up three decades ago by my father. Me and my brother are now taking over as second and third generation entrepreneurs. Ramesh Corp is a diversified business house comprising cement manufacturing, mobile phone distribution in Nepal, a joint venture with Kajaria to manufacture tiles in Nepal. We also have investments in banks and insurance companies.

Today, Litmus Industries Limited is Nepal’s leading manufacturer of quality wires, cables and conductors. I took up the challenge to run the Litmus Industries Limited five years back, when my former MD retired. I’ve been able to grow it three-fold in the last four years with capacity expansion and market penetration. The journey has been both interesting and challenging. Since the demand for electrification is increasing across the globe, we are looking forward to meeting it with our best quality wires.

We have been constantly innovating and leading the way. We went through complete plant upgradation and modernization five years back, replacing all old machines with the latest German and Indian technology. Here in Nepal till 2020, most of the transmission line conductors, aerial bunched cables and other types of wires came from India. But over the past five years, we have totally substituted these with Nepalese products. We have also started producing moose conductors for 400 kV transmission lines. Litmus supplied 3600 kilometers of moose conductors to the Nepal Electricity Authority (NEA) for cross border transmission lines. Nepal Electricity Authority(NEA) is planning to construct huge cross border transmission lines, which would require the laying of 20,000-30,000 km moose conductors across the Himalayan country. Litmus is well-positioned to lead the way and contribute to the development of Nepal.

WCI: Innovation plays a crucial role in the wire and cable industry. How does Litmus Industries incorporate technological advancements into its manufacturing process?

RG: Innovation is at the heart of Litmus Industries. We have invested heavily in state-of-the-art technology, including advanced German machinery, to ensure our products meet global standards. We hire the best of engineers and diploma holders at our plant and train them well. Our people have to be up-to-date with the latest advancement and innovation in machines. This ensures optimum machine speed and reduced cost of production. All our wire drawing machines are from Niehoff GmbH, while extrusion lines are from Supermac Industries (India). We have tied up with Victory Plant and Machinery Private Limited for most of our skip and tubular machines. Our rotating machines are supplied by a leading Chinese supplier. We have a furnace from JR Furnace & Ovens Private Limited, leading furnace manufacturer from India.

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WCI: What is your current market footprint, and what are your strategies for expanding into markets like India, the Middle East, and Africa, given the competition from established players?

RG: Our aspirations are increasing. We face tough competition from leading Indian wire and cable manufacturing giants. We aim to conquer the maximum market share in India, which provides us with a very big market opportunity. We are next to India, which right now, is on fire with respect to electrification. The two nations- India and Nepal have several duty-free trade agreements, which make it easy to explore business opportunities. As the leader in the wire and cable industry in Nepal, we are now focusing on expanding our footprint in the Middle East and Africa. In India, we aspire to export our products to Uttar Pradesh, Bihar, and other North Indian markets.

Though it’s a Herculean task, keeping in mind the fact that we are based in Nepal, which is a small country, and also because major markets in South Asia, the Middle East and Africa are ruled by Indian giants. However, we are keeping all our options open. We are placing ourselves very specifically. We do not want to compete on all products. We are exploring the markets and looking at key products, wherein we can compete with Indian companies, based on our capacities and skill. Litmus has a capacity of 68,000 kilometers for ACSR conductors and a big capacity for aerial bunched cables too. We are banking on these two products for export. Besides, we are lobbying with the Government of Nepal to introduce export incentives on cables and wires. If we are able to get that, we will get some cushion compared to our peers in India and other countries.

WCI: Sustainability has become a major concern in the global wire and cable industry. How do you integrate sustainable practices in your business operations?

RG: Sustainability is a core value at Litmus Industries. We have taken several initiatives to integrate sustainable and circular economy principles in our business model. We are installing solar panels across all our sheds. We have two units; one is the old manufacturing unit and the other is the new greenfield plant we are setting up. We plan to install solar plants there. Nepal is one of the countries, which is laying a strong focus on hydropower clean energy. All machines and equipment used at our factory are electrical equipment. We try to use maximum renewable energy sources and for automobiles used in our company, we prefer to go for EVs.

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WCI: What are your future plans for Litmus Industries, and how do you envision the company’s role in the global wire and cable industry, particularly in terms of innovation, sustainability, and market expansion?

RG: Our future plans are ambitious and aligned with our vision to become a global player in the wire and cable industry. We are currently setting up a new manufacturing line in Nepal for high-quality aluminum EC grade and aluminum alloy rods. This initiative is aimed at achieving self-reliance and reducing our dependency on imports.

In terms of market expansion, we are actively exploring opportunities in India, the Middle East, and Africa. We are participating in industrial fairs and trade shows to showcase our products and build strong relationships with potential clients. Our goal is to export a substantial volume of our produce and secure a considerable share in these markets over the next two years.

Innovation and sustainability remain at the core of our strategy. We are investing in state-of-the-art technology and renewable energy sources, such as solar panels, to power our operations. We are also focusing on sustainable practices, including the use of electric vehicles and maximizing renewable energy sources, to minimize our environmental footprint.

In the next two years, we aim to solidify our position as a significant player in the global wire and cable industry, contributing to electrification and sustainable development worldwide. Our journey from being a domestic leader to a global contender is well underway, and we are excited about the opportunities ahead.