Driven by strong market momentum, Sterlite is boosting capacity in the conductor and power cables domain and expanding globally. To meet rising needs for efficient power transmission, the company is concentrating on high performance conductors, high voltage and extra high voltage power cables, and OPGW solutions. Strategic technology upgrades and partnerships are key to its future growth. Sterlite’s CEO, Mr. Reshu Madan, talks about the progress in power transmission, increasing need for high-performance conductors, OPGW solutions and their strategic investments in HVDC & HVAC cables.
Wire & Cable India: What are the major technological advancements in the power transmission sector?
Reshu Madan: One of the key challenges in the power transmission and distribution industry is the transportation of bulk electricity over long distances. This is where technologies like High-Voltage Direct Current (HVDC) come into play. Currently, two to three HVDC tenders have already been released, with more expected in the near future.
Transporting large quantities of power relies heavily on advanced systems such as HVDC, but India faces obstacles due to a lack of technological and manufacturing capabilities in this area. The country does not produce its own HVDC technology and instead depends on imports. Even multinational companies operating in India rely on foreign HVDC components.
The growing demand for HVDC components in Europe, driven by the expansion of renewable energy, has created capacity shortages globally. As the former head of supply chain management (SCM), I frequently visited European factories before becoming CEO. European manufacturers have already committed to deliveries until 2030. While India plans to enter this sector, it is hindered by inadequate technology and reliance on just a few OEMs. This is a critical area where significant technological advancements are needed on a large scale.
Securing right-of-way and land presents another substantial challenge to transmission developers. Additionally, from a technology perspective, grids are becoming increasingly congested. To address this, there is a growing need for high-performance conductors. The demand for high-performance conductors, such as carbon core conductors, is steadily increasing to help decongest the existing grid. This is an area where we are actively working and expanding our capacity.
Further, with the expansion of tariff-based competitive bidding in India, there is increasing pressure on Indian OEMs to meet demand. The demand for primary equipment such as transformers is also rising. Specifically for conductors, our manufacturing capacity is booked for the next 12 to 14 months. To meet future demand, we are investing in additional CAPEX to expand our conductor manufacturing capacity from 100,000 to 150,000 tons.
All these advancements will undoubtedly propel the power transmission industry to the next level.
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WCI: How is Sterlite incorporating technological advancements to enhance performance and reduce costs?
RM: A couple of key innovations stand out. One is the introduction of alloy conductors for the tariff-based competitive bidding (TBCB) market. These conductors were designed to enable more power flow within the same corridor while improving efficiency. They are lightweight and have higher ampacity. Not only do they allow for greater power flow, but they also reduce the need for large transmission towers. Optimizing tower design decreases civil construction costs and speeds up both construction and manufacturing. In terms of total cost of ownership (TCO), this innovation makes the entire system far more efficient and cost-effective than what we had two or three years ago.
On the optical ground wire (OPGW) front, data transmission has become increasingly critical because of widespread digitalization. With many data centers shifting from Europe and America to India, the demand for better infrastructure is booming. While underground optical fiber cables exist, we are focusing on increasing fiber capacity in OPGW. We have expanded fiber counts from 48 to 96, and now to 144 fibers. In highly congested areas like Mumbai and Pune, we have successfully implemented 144-fiber OPGW solutions.
Further, we are advocating and educating other utilities on the benefits of increasing fiber capacity in OPGW and adopting AL59 conductors for better efficiency. In areas facing grid congestion, our carbon core conductors, developed in partnership with CTC Global, provide a highly effective solution. All these solutions bring in higher performance & reduce overall cost for the utilities.
We have expanded fiber capacity from 48 to 96, and now to 144 fibers.
WCI: How has Sterlite performed in recent quarters, and what are its key business achievements?
RM: Last quarter was one of the best for Sterlite’s Global Products and Services (GPS) division. By December, we had secured orders worth INR 6000 crores, and we expect reaching INR 7500 crores by the end of the financial year.
Our business is well-defined, with orders coming from EPCs, state electricity boards, and industries. Last month, we secured INR 250 crore order for 220 kV power cables from Adani Power. In the reconductoring segment, we received major orders from DVC, GETCO, WBSETCL, and OPTCL. We are also L1 in several utility tenders, including those in West Bengal and Gujarat, and expect further orders.
On the conductor front, we continue to receive orders from KEC, Kalpataru, and L&T, who regularly engage with us for their projects. Moreover, on the export front, we have secured multiple orders from Africa and parts of the Middle East, thereby expanding our global footprint.
I am fully confident that Sterlite will further solidify its position as a pioneer in the conductor and cable market.
WCI: How is Sterlite aligning its business to market demand?
RM: Our business is growing steadily, driven by strong market tailwinds in India and exports. To meet demand, we are unlocking additional capacity through CAPEX investments and operational efficiencies.
We also have a transmission infrastructure development business, which gives us a clear five-year visibility on upcoming projects. With insights into government-planned projects, we can align our capacity expansion accordingly. For instance, our conductor capacity will be expanded from 100,000 to 150,000 tons, and we are further improving operational efficiencies.
In the cable business, we have grown significantly. Two years ago, our revenue was around INR 450 crore, but today, we are clocking about double the value in power cables. Our Haridwar plant is now fully utilized, so we are investing in a new greenfield plant to enhance production capacity upto 550 kV HVDC and HVAC cables.
Going forward, our focus will be on both expanding our global footprint and solidifying our domestic market share.
In the cable business, we have grown significantly. Two years ago, our revenue was around INR 450 crore, but today, we are clocking about double the value in power cables.
WCI: What are the key products or innovations Sterlite is focusing on as of now?
RM: For cables, we are advancing in the solar cable segment and will further be developing rubber cables. Additionally, we have plans to introduce MVCC (medium voltage covered conductors). Being low-hanging fruits, these are relatively easier and quicker to implement.
On the higher end, where there is a niche opportunity, our new greenfield plant will support production of HVDC and HVAC cables upto 550 kV and it is expected to be operational in the next year.
As for conductors, we continuously focus on bringing in incremental innovations and are currently focusing on covered conductors. In terms of OPGW, we have already reached 144 fibers, and we are evaluating the next market trends. Some developed markets are now transitioning to 192-fiber solutions, and China has already moved towards 192-256 fibers. We are actively assessing these advancements to ensure that we remain competitive and well-positioned to serve our customers effectively.
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WCI: What is the rationale behind Sterlite’s restructuring?
RM: We announced the demerger of Sterlite into two entities: Global Products & Services (GPS) under Sterlite Transmission Ltd (Sterlite), which I head, and the transmission infrastructure business under a separate company (now branded as Resonia Ltd).
Unlocking new opportunities and growth avenues require different types of investors. Since infrastructure and GPS businesses attract different investors, the demerger allows us to secure sector-specific investments. Post-demerger, the infrastructure business (Resonia) attracted investment from GIC (Singapore), while GPS (Sterlite) secured investments from INAM Holdings and GEF Capital.
Moving forward, Sterlite aims at operating in the capital goods (wire and cable) industries, while Resonia will focus on the development of transmission projects. This strategic demerger will foster growth in both entities in a more efficient manner.
Our new greenfield plant will support production of HVDC and HVAC cables upto 550 kV and it is expected to be operational in the next year.
WCI: How is Sterlite positioning itself in international markets?
RM: We are already exporting about 25% of our conductors to key markets such as North America, Latin America, Europe (including the UK and Finland).
One of our key focus areas is the Middle East, where tariff barriers have made entry difficult for conductors and cables from India. Over the next three to six months, we will complete a business model to establish our presence in the region.
We are also monitoring global trends in OPGW because some developed markets are moving towards 192-fiber and even 256-fiber solutions. While China has already adopted some of these standards, we are actively evaluating how to integrate them into our product lineup.
We remain committed to maintaining our leadership position in the Indian and making further inroads into the global markets, adapting to changing demands, and continuously innovating.
