Polycab Group being one of the largest cable manufacturers globally with production capacity of 120,000 tons with 16 manufacturing facilities having strength of 5000 people has grown immensely. Out of these 16 manufacturing facilities, 3 facilities are for in-house compounds as they don’t source it from outside, 2 facilities for building wires, 2 facilities are exclusively for metallurgy, conductor wires etc and rest are for cables. They are basicalncentrating on the energy cables with a full range of products from 1.1 KV to 132 KV. The company is aiming to achieve 1 billion USD sales figures by 2012.
Evolution
Polycab started its first manufacturing unit in 1978 in Mumbai. In 1982 they came up with a full-fledged plant in Gujarat and 2nd plant came in 1984. In 1995 when government of India announced incentive schemes for the development of the industries in Daman they established their first unit there. Till 2006 they concluded all the development in Daman and established 9 more units. At the same time Gujarat was also encouraging to develop industries so the next 4 plants came in between 2006 to 2010.
With the separate entity called Nexans Polycab Pvt. Ltd. which is a 50-50 joint venture between Polycab and Nexans (France) they are setting up another unit to manufacture high voltage cable up to 400 KV and elastomeric cables with an investment of Rs. 360 crores.
Growth Drivers
The factor that has contributed to this tremendous growth of Polycab is that the family has no other business apart from wire & cables which provides hands on management by them along with dedication. Moreover every penny earned from this business has been invested back in to this business only.
Rationales of Polycab
“Value for money products”, we believe that the larger volume makes us efficient in controlling price of raw material and ensures quicker deliveries. We have distributors and dealers who have grown from the scratch with us. Our loyal distribution network is our biggest strength. They know that this company owes much to the family (dealers and distributors). In every 5 sq km across India, people find somebody in some way or the other selling Polycab products. We also keep 3-4 weeks of the production in stocks so that market is never dry.”
Strategic Intent at Polycab
Manpower Mandate
Research & Development at Polycab
Future Trends in Customer’s Preference and Industry
When we’ll have the GST taxation system across the country then everyone will have fair business practices and at that time major consolidation is expected to take place in the industry. Small and medium players who use unfair practices will not find it viable enough to sustain. Such players will vanish from the scene and the player who has reasonable equipments and philosophy will be acquired by the bigger players.
In recent years many important joint ventures have taken place in India. Top global players are working in this market with their facilities across India. This has ignited the healthy competition in the market where right raw materials, quality and price will become the basis to compete.
Areas to Improvise
While the cable industry is improving on one hand the technology used in cable laying , cable jointing, termination of cable etc. are not keeping enough pace in India. These are as important as the cable itself as system of life. The problem is that there are no organized set of players, still small and medium level contractors carry out the work, particularly in cable laying. The cable industry and the users together should do something to upgrade the knowledge so that the people use the right technique of laying, jointing etc.
Future in Power sector
We are a power starved country, everyone will push the power and once the power is generated it has to be transmitted and distributed so the future is very bright. Higher voltage cables are being developed to reduce the power loss during the transmission. Bio and nuclear power will come in India but none of them will be the major contributors in power supply. Primarily, it will be thermal, followed by hydel and if the prices of the solar comes down then solar and wind.