IEEMA – Indian Electrical & Electronics Manufacturers’ Association – the representative of Indian electrical, industrial electronics & allied products industry, is organizing CABLEWIRE 2011, 2-days International Technical Conference on Cables & Wires on 17-18 November 2011, at Mumbai, India. The seventh conference will focus on “Powering Growth through Innovations”. We interacted with Mr. Vijay P. Karia who heads Ravin Cables Limited and is the Chairman of the organizing committee of the conference to know more about the conference and industry in general.
Wire & Cable India: Brief us about your forthcoming Cable Wire conference.
Vijay Karia: The conference is being organized under the flagship of IEEMA. Earlier it was done at the time of Elecrama 2008 but this year it will be done before Elecrama as few more things are lined up for Elecrama 2012. We have selected about 21 odd papers to be presented, of which more than 1/3 of the papers are from international companies. The organizing committee of cable wire conference decided to have “Powering Growth through Innovation”, as its theme in order to showcase what is happening world over in terms of technology, improvements in manufacturing processes, usage patterns etc. We have tried to present a wide gamut of papers, from different areas like raw material, manufacturing, utilities etc.
We have adopted a neutral and non biased approach for selection of the papers. We formed an independent committee consisting of eminent technical people not just from the cable industry but also from the various utilities. Each and every paper was evaluated and re-evaluated by 5 or 6 examiners, giving marks on various parameters. If some papers were found with some kind of flaws or there were some minor tweaking to be done, or some further clarity was required, then the respective people were contacted.
It took us a year or so for these preparations. We expect to get good amount of delegates from all over the world to attend this conference. Anybody who attends this conference will take back a very fair knowledge of where the industry is going, and will update all stake holders of the latest trends in the industry.
WCI: What trends you have seen in Indian wire and cable industry?
VK: The trends in wire and cable industry especially in India has been really perplexing from the last few years, where cycles of good times is contracting and of bad times is expanding. And, this situation is fueled by the expectations from power sector which was supposed to grow by leaps and bounds but that didn’t happen.
Indian infrastructure is sometimes a paradox, where on one side we have the lowest telecom tariffs but on the other side we have the highest power tariffs in the world. And, these power tariffs are nothing but the result of inefficiency due to losses, and also inefficiencies in planning, execution and in the quality of the products that are being supplied to transmit the power. There is not so much of inefficiency in generation and transmission at higher voltages, but there are huge inefficiencies in distribution.
As a matter of fact today, India loses more energy than what Germany generates. Unless we come out with a unified power policy and plan of action we are going to suffer.
Over the last few years, there was anticipated to be a huge investment in the power sector. The cable industry expected a quantum increase in demand. In anticipation of this jump in demand, the industry expanded their capacities foreseeing that there is going to be a huge investment in the power sector which drives the demand for electrical sector, translating into a huge demand for wires and cables. We have seen that the perceived demand did not translate into actual and hence the industry has struggled.
In the last few years, there have been phases when the industry has seen good demand from utilities and infrastructure. But the good periods have been short and then the industry has had to go through rough periods for most of the time. Currently, the industry is facing the problem of over capacity.
WCI: Your views on technological developments in the Indian wire & cable industry?
VK: In India nearly 50% of the population doesn’t have basic access to electricity hence we have to bear this in mind when bringing in the technologies, as the technologies have to be both, affordable as well as sustainable. First we have to be able to supply stable electricity to all the people.
The wire and cable industry fully realizes as well as acknowledges the onus that they have, being the largest part of the electrical segment. We are doing our best to adapt new and improved technologies to reduce electrical losses. Till about 10 years ago most utilities were using 1.1 kv PVC insulated cables for power distribution. Now, most of them, as also industries are using XLPE cables, also with increased voltages, in order to reduce losses. Apart from partnering with the Government to reduce the T&D losses, the larger and more quality conscious segment of the industry is also seriously looking at the safety and environmental aspects of cables. The further evolution of the industry has started in the form of tailor made solutions for different applications like solar and wind energy, automobiles, railways, rolling stock, oil and gas etc, which are imported to a large extent even now. It is an unfortunate fact that due to downturn the R&D activities were stopped in the country. However, now with the demand coming from specific sectors the product development will be pushed and this will further help the industry to grow technologically. Of course, I will be the first to admit that technologically, the industry has a long way to go.
WCI: Your views on Smart grids.
VK: There are various definitions of smart grids world over. To have a simple definition of a smart grid, according to me would be one which combines power generation and distribution with information gathering and feedback. In India, this would mean not just a technological revolution but it would mean a basic change in the thinking and implementation process of not just utilities and power distribution companies, but all stake holders of the power sector. We have to understand that most of the population is rural and that India is a vast country with limited financial resources.
I would say, that before thinking of localized smart grids, let us have a decent centralized grid, which can carry power from one end of the country to the other. We have also to stop differentiation between states. Hydro energy generated in the north or north east can be transmitted to the furthest end of the country, and once we achieve this, can we say that we have started our progress.
The smart grids are going to be localized at various levels and ideally they would have to be with multiple input sources which mean utilization of solar or wind energy whenever available, drawing upon the grid power when required. This information gathering and feedback would help make the grids efficient and sustainable. This means that the grid has to be strong enough having that much of capacity and redundancy to suddenly take on the huge loads. Using multiple energy sources would be a very viable solution getting affordable power to the entire nation. Further, India is a vast country and we have isolated pockets where few thousand people stay like in mountain or remote areas, where it will be very difficult to, first of all, generate and then transmit energy, until and unless you don’t tap on multiple sources of energy. In India our per capita power consumption is one of the lowest in the world, so the demand will keep on growing. However, it has to be acknowledged that our per capita income will not be able to afford the higher costs of energy. At the same time, in an arena where we are looking to lot of privatization in the power sector, subsidization is going to be an issue, so ultimately, a localized smart grid is a solution and will be here to stay.
WCI: Your views on having smart grid in India and the readiness of wire and cable industry?
VK: As stated earlier, the smart grids concept means a revolution in terms of planning. As far as the Indian cable industry goes we might not be exactly at the forefront of the international technology but we are not much far behind either. In smart grids the wire and cable has to play the role of being a safe and reliable carrier of electricity. The grid is controlled through technology therefore it has to be well integrated with the overall plan. Basically the concept of smart grid means optimum utilization of energy.
In fact the smart grid concept has to be optimized on price, efficiency and usage. The Indian market is very much price sensitive thus smart grids would have to ensure cost savings. At initial stages, maybe the Government should consider subsidizing the investments in smart grids, to give them a fillip. However, the Government’s commitment towards the power sector, particularly the electrical industry is highly suspect, and unless this is not rectified, we will come to a huge stoppage somewhere. We are badly discounting the projected demand supply gap of electricity and just failing in all the targets that have been set up. A huge shake up is required.
WCI: Considering the challenges ahead of power sector in India what practical approach does industry has to adopt for the future developments?
VK: To go way forward there has to be intent, a deep desire to change things and I think that there are only 2 things that can change a person; one is fear and other is the desire. On the positive side we Indians are very resourceful people and we can make the best out of very minimal resources which is why we find that Indians are very well received at senior levels world over, and we have the ability to work out our best case scenario. From the industry perspective, we have to adopt latest technologies at optimum prices, minimizing the huge energy losses that our country faces. Quality is going to be a key issue, both of materials and of services.
A key issue going ahead is the policies of the Government towards the power sector, and we are already seeing the problems in generation, with fuel supplies etc being a key factor. A sad thing would be to see a civil strife for basic necessities of life, and I believe electricity is not a luxury (looking to the prices we are paying for it), but a bare necessity.
WCI: What are the major challenges for the Indian wire & cable industry?
VK: Demand remains one of the biggest challenges. However, another of the major challenges is the quality of the products that is being sold in the country.
We lose a huge amount of money as well as deprive people of electricity, due to the huge T&D losses we face. A lot of lives and also property is lost due to fires, and mind well, most of the fires are caused due to electrical short circuits. Cables, conductors and wires play a huge role both reducing the losses as well as increasing the safety of the installation. But most of the purchasers concentrate only on the price.
There are huge numbers of manufacturers who are selling products in the country and there is no policing to check their quality standards. And, now due to excess capacity, the industry has turned towards price war. The quality should not be compromised for the sake of price. A good standardized and a well engineered product will give good returns as compared to the non standardized product.
The other challenge is on the specification front, which are now pretty old specifications derived from even older specifications. At present the market dynamics have changed and they are not same as they were earlier and we need to have an up-gradation of specifications and quality standards.
The cable industry has planned to form an independent body, a non-profit organization called Indian Approved Cable Initiative (IACI) which will consist of few top quality cable companies. We need self policing because it is essential to bring discipline. On the IACI platform the problems of quality and specifications will be taken into account along with required actions. We have also tied up with independent test laboratories like CPRI and ERDA, where we intend that power cable users could get their purchased cables tested at a nominal cost. For utilities & large projects we would approach them from our side and ask them for samples, which in turn will be tested and we will furnish them the authentic results. We also intend to get a lot of public participation in the long run.
Basically, it’s like a challenge thrown to the manufacturers that you better give quality otherwise your poor product quality will be publicized.
WCI: Considering the lacking at various fronts in our country like in T&D, we need to grow very fast and bring in revolutionary developments. Comment.
VK: Efficiency and Effectiveness are two separate things. Whenever any industry is growing first it tries to look at the efficiency in the sense that it needs some plans for growth and investment, you set targets and try to achieve it along with managing things in a better way. Effectiveness would mean that you are not too sure about where the industry is going as you know that it is growing but you don’t know when and how much it will grow. In this case you have to have effective solutions coming in rather than efficient solutions. Today India is at that stage where most of the industries are at stage of bringing in an effective solution. Apple is one classic case of this where they keep on innovating and keep on growing and keep on multiplying. Similarly India has to grow with effective solutions and tackle the issue of poor infrastructure.
WCI: What are the other activities that you undertake in IEEMA’s cable division?
VK: From the cable division of IEEMA we educate & train the customers especially the utilities on the usage of electrical products particularly cables. Being the largest sector of the electrical industry, the cable industry comprises of more than 30-35% turnover of the electrical industry including conductors. Thus it is very important segment as we realized it a few years ago and we decided that we need to get ourselves up and get counted on the world map. Every now and then we have been organizing training sessions, seminars, press conferences, cable conclaves etc. to show our industry capabilities and to share information. We try to do all these things which help in bringing the focus on to the challenges faced by the industry and besides to present our views to the policy makers. One of the biggest and the oldest thing that IEEMA has is – its price variation formula where utilities buy according to IEEMA price variation formula, so if you have quoted a product in the month of April and the order get finalized by September the formula will provide the fair pricing on that date. We are trying to build a bridge between the users and the industry.
About Ravin Cables
Ravin Cables Limited, is a joint venture company between the Karia family and the Prysmian group. It is proud to be a part of the Prysmian Group.
Ravin Cables Ltd was one of the group companies established by the Karia family. The group was established in 1950 and has held the legacy of excellence, innovation and world class sophistication. The group has 3 facilities, situated in Pune, Fujairah in UAE and Ankleshwar.
Ravin Cables Ltd earned the position of being the largest exporter of power cables from India since 2001.
Ravin Cables Ltd. is known for its highest standards of quality, ultimate product design and materials, full reliability of production processes and international standards of technology and R&D. By joining the Prysmian Group, Ravin Cables Ltd. now has the technological and commercial might of the largest cable company in the world, and is able to offer the best of international experience coupled with local expertise in not only the Indian but also various global markets.
The company houses the most comprehensive range of products for most diverse gamut of industries, low voltage, medium voltage, fire survival and aerial bunched cables. Ravin Cables now will target the extra high voltage cables as well as industry specific cables, as well as look to expand the export markets. Ravin Cables, benefited by its global presence and with solid technological and R&D prowess, intends to triple their current sales and substantially enhance their current market share in the next 3 years time. It wishes to scale up the technological space, roll out new ranges of High Voltage (HV) / Extra High Voltage Cables (EHV), Industrial Cables, Specialty Cables, customized to sectors like Wind, Solar, Automobile, Rolling Stock and Railways, Mining, Marine, Crane, Plant, Pilot and Petrochemicals, Offshore and umbilical. With the clear aim of “Supremacy in Technology”, Ravin Cables Ltd, would like benefit the Indian markets with the best quality and safety of products at affordable prices.