Polycab is very well poised to meet any variety and scale of demand in the shortest possible time

Bhushan Sawhney

Executive President and Chief Business Officer, Polycab India Ltd

In your opinion, how is the wires and cables market performing in terms of demand and supply?

Talking in terms of business jargon, the wires and cables industry comes in the segment of red-ocean industries as of now. There are numerous players in the market. The market is highly competitive, and the demand is also huge. Scalability is easy in the wires and cables industry, and thus as a result of this, there is abundant supply, making the market even more competitive.

In a developing economy and a powerhouse like India, the demand will maintain a steep upwards slope. While there are abundant manufacturers, the only element which could regulate the supply will be the availability and volatility of raw materials.

As the government pushes infrastructure projects and increases investment in the power sector, how do you see the future of the wires and cables market in India in the coming years?

India is going to see a power surge in the coming future due to the sharp GDP and economic growth. The current government is investing a lot in infrastructure growth, with modern-era public utility facilities (airports, railway stations etc). These investments will revolve back and soon India will see a huge investment in private real estate and infrastructure construction too. Several industrial corridors are being developed. As the connectivity improves, industries will be set up. As industries are set up, residential projects for the working staff in those industries will begin. Commercial complexes, small businesses, recreational facilities, and so on will follow subsequently.

All these new developments will skyrocket the demand for electrical commodities. Manufacturers should buckle up, expand their facilities, and supply chain structure if they want to be an active part in this mega expansion. Apart from the huge demands in quantity, the need for several new product types, like BMS cables, fire survival cables, home automation etc. will also see a rise. This industry can never go asset-light. Procurement of raw materials, establishing workshops and factories, testing laboratories, supply chain partners, depots, warehouses, etc. attract a titanic investment. Very few Indian manufacturers can process and handle large orders and shipments of wires, cables, and other electrical commodities. This is because most manufacturers rely on imports and outsourcing for raw materials and some simply do not have the plant and machinery to handle huge demands.

We, at Polycab India, have multiple large-scale manufacturing hubs, a strong quality testing team and infrastructure, high-volume warehouses and depots, a pan-India distributor base, and good logistics partners as well. As specified earlier, all these enable us to provide the shortest turnaround and delivery time.

Encompassing all the above factors, Polycab is very well poised to meet any variety and scale of demand in the shortest possible time.

How is sustainability playing its part in the wires and cable market and what way forward do you see for your company?

We have to think of future generations. We have to find measures that fulfill the needs of the present generations without compromising the needs of the future generation. We have to find measures which ensure a balance between economic growth, environmental care, and social well-being. This is what sustainability is all about and quiet naturally, it has crept into almost all industries.

At a granular level, to a macro degree, Polycab is minimizing waste by reusing and replacing traditional elements with renewable energy wherever possible. We have installed rooftop solar plant at our Halol manufacturing plant in Gujarat. The large fraction of the electricity units that gets consumed in our plants is expected to be displaced from grid. Also, solar rooftop panels have been installed in Halol as well as Daman.

Polycab has believed in bringing products that make a larger positive impact on the society. Our wide range of energy-efficient products in wires and cables segment as well as the FMEG segment like green wires, LEDs, and energy-saving fans is a testament to that.

How is copper price impacting the wires and cables market?

Copper and aluminium are the two basic metals that are used abundantly by the wires and cables industry. These metals are regulated and indexed by the London Metal Exchange (LME). A constant LME for the two non-ferrous metals stabilizes the market and thus pumps in positive and prosperous sentiments. The industry flourishes as the gap between the quoted amount and the purchase amount is almost negligible.

However, when the index starts to get volatile, the wires and cables market gets fidgety. This reduces confidence among the customer segment, and they start waiting for LME stabilization by putting projects on hold. This deals a major blow to the revenue and profitability of the wire and cable manufacturers.

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