Polycab, the biggest Indian cable company, also owns the reputation of being the fastest growing cable making company in India. It attributes the success to its superior technical expertise, customer-centric approach, superlative service level, and relationship with channel partners. The company would be showcasing some recent innovations like e-beam cables, rubber cables, fire survival cables, instrumentation cables, etc. at Elecrama 2018.
Wire & Cable India recently interacted with Mr. Shashi Amin, President & SBU Head – Cables, Polycab Wires Pvt Ltd to know that Polycab would continue to be the market leader through its capacities capable of meeting future demands and its utmost dedication to technology investments and quality bench-marking. As per Mr. Amin, Polycab is quite upbeat about the future of the cable industry on account of major initiatives of the Govt. in the areas of power, telecom, infrastructure, etc. Excerpts:
WCI: Polycab has gradually risen to become the biggest cable company in India. What makes Polycab a truly global company? In what ways is Polycab different from its peers?
Shashi Amin: Polycab has been able to capture the imagination of the nation and has risen to be the biggest cable company in India due to multitude reasons such as our superior technical expertise in the business, our relationship with our channel partners, our service levels which is without a doubt the best in the industry, our capacities and the management’s futuristic and methodical approach to name a few.
We have one of the best technical teams with experiences in some of the best cable companies in the world. Our technical prowess allows us to not only develop our compounds for insulation but also develop new and complex products for use by specialized industries. Our NABL accredited testing facilities are also one of a kind in the country which got accredited in record time.
Polycab has been known to be a customer-centric organization, and this is evident in the manner we share a close relationship with our channel partners. We constantly strive to make them grow and our close association allows for a healthy scope of mutual growth.
We take our service levels very seriously and making our cables available at every nook and corner of the country on time has been the motto we live by. We are aggressive when it comes to make material available to our customers in the shortest time possible. I would go as far to say that our material planning is at par with the world’s best.
We also happen to have capacities in line with the near future demand which goes on to show the management’s foresight and grip over the cable industry. Our JV with Trafigura for a copper rod mill is one such example.
We have not only been the market leader but also exhibited thought leadership in the sector by implementing and incorporating various firsts in the industry such as the Trafigura Joint Venture for a steady raw material requirement, world class warehousing and implementation of Automatic Storage and Retrieval System, and world class service levels.
In essence, entrepreneurship is in the DNA of Polycab, where continuous improvement and innovation – be in technical or processes, drives every Polycabian.
WCI: Tell us about the wide range of products that Polycab intends to showcase at Elecrama 2018. Is there any new product for the visitors that you are going to introduce in the fair? Which product will be the main highlight of your stall?
SA: Elecrama is an event where the entire electrical fraternity within the country and even some delegates from abroad ensure to make their presence felt. Elecrama is being organised in North after a gap of 14 years and I am sure, we should expect good amount of quality visitors from North apart from others. Elecrama is an important event for Polycab, where we expect fruitful interaction with the visitors. While we would be showcasing our entire basket of products, including Solar Inverters, Switchgear products and consumer products, we would certainly want to focus on certain new and innovative products such as e-beam cables, rubber cables, fire survival cables, instrumentation cables etc.
WCI: Tell us something about the current trends and challenges in the Indian wire and cable industry.
SA: Wires and cables play an indispensable role in today’s digitally advanced life and find extensive usage across a number of applications in several industries. The trend in the market keeps changing these days. But it is also believed that government has made the right move in the past few months when it comes to talking about investment. The government on the whole needs to get private investments moving. Ease of doing business will have investments pouring in. We are sure that the processes being followed currently would bring about a positive result.
Back to positive developments, the government’s initiatives on the front of power, housing, infrastructure and digitization are sure to pay dividends to all the industries. Housing for all, power for all and internet for all means a lot of business for the wire and cable industry in the coming future.
Not only the above mentioned industries, the emphasis the government is putting on non- conventional sources of energy like solar is also a positive step for the wire and cable industry. There are a lot of DC based products that come into the market to specifically serve these particular segments. By the time these translate into field investments, the demand for the needed electrical would already be there, making it a positive outlook for the wire and cable industry.
The industry is seeing an upside in innovative products, the acceptability of whose seems to have risen over time.
Another major trend we have witnessed has been stricter service levels from the industries with the advent of solar projects which generally run with tight deadlines. We have been more than happy to comply with their tight schedules.
In the macro space, the sector has benefited due to the immense infra push the government has been planning and implementing. Major projects under AMRUT, IPDS, DDUGJY and Railways have provided the sector with a good growth.
Renewables have continued to be a major growth driver in the power sector and we hope to see this continue as part of Prime Ministers vision of 175GW by 2022. We would want to continue being a reliable partner in assisting the project completion on time, to provide the country with reliable and sustainable energy.
So from it all, the cable and wire industry are only going to benefit and that is great news for those in the industry.
If we talk about challenges, increased levels of import have hit the growth of wires and cable industry. In order to regain the growth trajectory, the industry needs to develop an uncompromising attitude with regards to quality.
While exporting to other countries, it is mandatory for the Indian manufacturers to have the cable type tested from the respective national approved laboratory and approval of respective standards organization. Similarly, the Indian government undertaking and power utilities should also incorporate type test approval certificate of the Indian National Laboratory such as CPRI and approval from the Indian Standards Organization for foreign bidders to qualify to bid.
Another continuing challenge is the unorganized portion of the industry; as much as 35 per cent of the Indian cable industry is still unorganized or informal. There are many diminutive and small cable companies who compromise on quality and supply sub-standard products at low prices. This kind of parallel market is found in many countries across the globe, but is a serious matter of concern for India. In certain segments, small local producers may be encouraged by legitimate tactics like price preferences, but in most segments there is breach of even basic standards. Standard regulations followed by medium-sized and large-scale manufacturers are bypassed by most small ones. While tenders are being floated that stipulate certain criteria, it is seen that there is lack of standardization across the country. Product specifications differ from utility to utility, who set up differing criteria.
On the commercial front too, foreign suppliers are favored with payments in the form of secured letters of credit whereas the Indian cable industry faces unfavorable open credit terms of payments from the local users and State Electricity Boards (SEBs).
The growth of cable industry is synonymous to the growth in overall electrical equipment sector. For unprecedented growth of the industry, it is inevitable to develop an uncompromising attitude with regard to quality. Manufacturers and contractors should be made to adhere to stringent BIS guidelines to ensure quality adherence and facilitate wire and cable industry to see a significant rise in efficiency.
WCI: Going forward, what targets does Polycab have for the year 2020. What is the strategy to achieve the targets?
SA: Polycab has come a long way, growing from being a small industry to a very large one, over the past decade. The increasing demand for power will ensure demand for wire and cable. The size of the cable industry as per IEEMA is around Rs 42,000 crores and which is expected to be more than double in next 5 years.
At the same time in the last few budgets, government has announced various investments for infrastructure development. Railways have announced projects for around Rs. 95000 crores in next 5 years. Projects for National Highways with Bharat mala projects will also reap rich dividends to infra projects. We see Polycab touch Rs.10,000 crores by 2020. The strategy will be simple, and will entail supplying high quality material, on time, at competitive prices. In solar, plans are to add another 20000 MW in next 3 years. Rural electrification is another major factor which is expected to propel the growth of the electric wire and cable market in the country. The government’s goal to provide electricity to every home by 2020 should attract major investments in the sector.
Government has ear marked Rs 50,000 crore to develop 100 smart cities across the country.
The wire and cable industry will eventually focus on supplying cables for specific applications pertaining to the industry needs.
India has a lot of potential in the mining, power, oil and gas, metro railways, cement industry, steel industry and other sectors. Power cables, a critical segment of the power sector, is experiencing an escalating demand owing to the growth in power generation infrastructure.
Accelerated urbanization and growing concern over pollution have increased the investment in metro rails for urban mass transportation. The country is predicted to develop metro rails in at least 50 cities across India.
Different kinds of cables like extra high voltage cables, elastomer cables, etc. are presently being used for special applications such as mining, in oil sector, shipbuilding, cranes, elevators, solar power plants to harness power for new generation motor vehicles, windmill solutions as well as security systems.
We see Polycab touch Rs.10,000 crores by 2020. The strategy will be simple, and will entail supplying high quality material, on time, at competitive prices.
WCI: Polycab has been continuously doing the expansions. Will you please tell us the areas where polycab is expanding or intended to expand in the coming 2-3 years?
SA: In the current year, we have introduced electron beam cables, rubber cables and also added capacity in low voltage cables, housewires and flexibles. We are also exploring to come in EHV business in big way which will enhance our top line and bottom line.
WCI: What factors did influence you to participate in Elecrama 2018 and what are your expectations from the show?
SA: The primary reason to take part in Elecrama 2018 is to show India as a manufacturing powerhouse fuelled by the “Make in India” campaign. We want to showcase our capability in assisting the infrastructure push in the country and be a part of the India growth story.
We would also want to showcase our products that go with the philosophy of responsible and sustainable energy. Because Elecrama provides you with the entire industry under one roof, we would also want to learn from our colleagues from other firms, and explore opportunities to work together in making this pivotal industry in infrastructure development a more organized one.
