Polycab targets export-focused expansion

“The key focus area for us is the oil and gas sector, specifically in the MENA region, which has tremendous growth potential,” says Inder Jaisinghani, Chairman and MD, Polycab Group

With a turnover of ` 4,500 crores during last fiscal, Polycab is one of the leading cables and wires players in India. In an exclusive interview with EPR, Inder Jaisinghani discusses a broad range of topics that includes current market scenario and Polycab’s growth strategies.

The electric wires and cables market is expected to witness rapid growth in the coming years. What are your strategies in gaining more market share?
Polycab is a Rs. 4,500 crores group at present and expects to be a Rs.10,000 crores group within the next five years. At present we are at an interesting stage of evolution. We are blending some outstanding professionals into the company to augment the tremendous entrepreneurial success.

To achieve more market share we are implementing on few strategies which include capacity expansion, hiring more professional, enhancing our distribution networks and increasing our exports.

Could you brief us on the latest development at Polycab?
Currently we are in the process of entering new segments such as optical fibre cables, solar power cables, and rubber cables. We are also expanding our B2C portfolio such as premium range decorative fans, LED lights, conduit pipes, switches and switchgears for housing sector.

We have recently established a fan manufacturing facility at Roorkie, switch and switchgear units in Bhiwandi and Nasik in Maharashtra and also LED light unit in Bhiwandi. To enhance our distribution capacities we have recently set up four warehouses at Bhiwandi, Rewari, Bengaluru and Kolkata.

What about enhancing export opportunities and setting up of facility outside India?
Our export market is poised to grow every year by 40 to 50 per cent. The key focus area for us is the oil and gas sector, specifically in the MENA region, which has tremendous growth potential. Due to the complexity of the cables required and also quality of the cables being of prime importance, it is the ideal platform for Polycab to capture the oil and gas markets. Our focus is on markets such as GCC, UAE and Africa.

At present, we do not have any plans to set up facility outside India.

What are the challenges the sector is facing? 
The cable industry’s growth is relatively proportional to the country’s overall economic growth. The current situation is slightly murky. Political uncertainty, lack of decision making, hesitation in launching the next stage of economic reforms, commodity price fluctuations and pressures on the forex front are all contributory factors to a sluggish industrial growth. Power generation plants which are a major driver of our growth are on hold.

From the time metals used by cable manufacturers have come under the label of commodity trading, it has been an exercise of guarded operations for them. This is due to their shift in focus from their core competency, which is manufacturing, to managing unwanted risk factors in purchase of basic raw materials such as copper and aluminium.

Despite all these challenges, we are of the strong opinion that there is sufficient headroom for our company to prosper despite the gloomy market scenario. All one requires is the right market strategy in place and agile decision making in terms of the right investments in production capacity, product range, people and distribution channels.

Despite a slowdown all around the industry, Polycab achieved a turnover of ` 4,500 crore in last fiscal. How did it happen?
At Polycab we always had a foresight about the market scenario and its probable impact on our industry. We achieved a turnover of ` 4,500 crore in last fiscal despite slowdown because we offered widest range of cables and with ready stocks. With multiple stocking points in India we have shortest delivery time of high quality cables vis-à-vis our competitors.

How do you look at the recent status of standardisation as far as electric wires and cables industry in India is concerned?
Standardisation and stringent rules will help to weed out the temporary fly-by-night operators in the sector. We at Polycab use latest world-class machineries and quality raw materials to ensure high quality wires and cables.

We have always strived to provide best quality at the most affordable price and it is achieved through our state-of-the-art plants.

Source : Polycab