QUARTERLY MAGAZINE February 2024 Vol 15
QUARTERLY MAGAZINE February 2024 Vol 15
Corporate report
The Wires & Cables industry in India is expected to experience significant growth with a CAGR of 8-10% over the next five years. This growth is anticipated due to the government’s push for infrastructure development, increased investment in Power Transmission & Distribution infrastructure, rising urbanisation, and a substantial push for Make in India initiative. In this highly competitive industry, KEC’s Asian Cables, formerly known as RPG Cables, has carved a niche for itself and has established itself as a formidable player, offering a diverse range of products catering to various segments.
Manjit Singh Sethi, Executive Director - Cables, KEC, speaks to us about the nuances of the cables’ business and the dynamic shifts in the industry.
Asian Cables operates in multiple segments, manufacturing a wide array of products. The business offers a broad range of cables, overhead railway conductors and turnkey cabling solutions across 90+ countries around the globe. The comprehensive product range positions the company as a versatile player in the market.
With two factories in Vadodara and Mysore, spanning close to 80 acres, Asian Cables boasts a robust manufacturing infrastructure. The Vadodara plant serves as the primary hub for LT, HT, EHV, and railway products, while the Mysore plant focuses on serving the southern market, emphasising LT and telecom products. In the past two years, the company has undertaken significant upgrades and capacity expansion. It has started in-house manufacturing of PVC, one of the major components required to manufacture cables. Additionally, it has undertaken the replacement of critical machinery in the LT Vadodara and OFC Mysore factories to enhance operational efficiency and expand the capacities.
While a substantial portion of Asian Cables’ business is project-based within India, the company is now strategically expanding its footprint in exports. Currently constituting 10% of their revenue, the aim is to increase exports to 40% in the next two years, with plans to enter US, Canada and LATAM markets.
Over the past three years, Asian Cables has introduced 23 new products, venturing into segments such as submarine cables, defence, and railways. The company’s commitment to quality is evident through in-house R&D capabilities and a shift towards self-compounding. Diversification into data centres, green cables, and a forward-looking approach to 5G and 6G technology illustrate the company's agility in adapting to evolving industry trends.
The push for ‘Make in India’ and smart city projects, is presenting Asian Cables with a lot of opportunities. Manjit states, “Owing to the China+1 strategy, we are seeing a lot of push from various countries such as the US, Latvia, Paraguay, and Uruguay. People are moving away from China seeking alternatives to provide them with good quality products. This is where I see a huge advantage for us.”
The business is actively pursuing sustainability initiatives, incorporating energy-efficient practices in their factories, water harvesting, and waste reduction. It is also working towards achieving zero waste and has introduced ‘green cables’ with reduced lead content, aligning with the growing focus on environmental consciousness in the market.
The adoption of digital advancements in factories remains a key focus. The company is implementing Lighthouse projects to enhance operational efficiency. They’ve successfully digitalised their factory, optimising machine planning through an in-house software platform and have started the use of RFID cards on cable drums, which facilitates and enhances tracking and customer identification.
In the next four years, the Cables business aims for significant growth, with plans to reach ₹3000 crore in revenue by FY28. Asian Cables stands poised at the forefront of the cables industry, embracing innovation, sustainability, and global expansion while navigating the complexities of the Indian market.
