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Indian Wire & Cable Industry: Riding High on Tremendous Private-Public Investments

Last decade saw the organization of wire and cable market; the coming days are going to witness visible growth spurred by respective growth in sectors like power, infrastructure, automotive and telecommunications following huge investments in all by public-private entities

The Indian wire and cable industry is growing satisfactorily and getting more and more consolidated, moving from being a largely unorganized a decade ago to becoming a largely organized sector now. The industry has now transformed itself to a large and dynamic market where organized players capture 50-55 percent of market. Constituting over 40 percent of the electrical industries, it is growing at CAGR of at least15 percent consequent to the growth in power and infrastructure segments.

Strong Growth Forecast

The wires and cables industry in the India has grown at a CAGR of 16.7 percent from 2009-2014. Revenues from the wires and cables industry in India are further expected to expand with a CAGR of 18.5 percent from 2014-2019. Separately, forecasts say that the electric wire and cable market in India is to grow at a CAGR of 16.18 percent over the period 2015-2019 as power cables led the revenues of the wires and cables market with more than 50 percent contribution to the total market in fiscal year 2014.

Automotive, telecommunication and construction industries, three most important customer segments, are growing appreciably with annual growth of 25 percent in past few years signifying extremely busy days for the wire and cable industry. USD 1 Trillion financing opportunities in infrastructure for global investors over the next five years, Indian automobile expected to touch USD 145 billion by 2016, and the Indian real estate market rising up to USD 180 billion by 2020 are some invigorating indicators.

The Govt.’s commitment to provide 24×7 affordable and quality power to the nation is spurring unprecedented growth of power generation and transmission segments in the country. Overall generation in the country from 967.150 BU (2013-14) to 1048.673 BU (2014-15) with overall growth rate of 8.43 percent, USD 50 billion investment supported by the Govt.’s 18 billion in the transmission sector, the telecommunications market being the third largest and the fastest growing, etc. are sure indicators for the growth of wire and cable industry.

India has a lot of potential in the mining, power, oil and gas, metro railways, cement industry, steel industry and other sectors. Different kinds of cables like extra high voltage cables, elastomer cables, etc., are now being used for special applications such as mining/oil sector, shipbuilding/crane cables/elevator cables, cables for solar power plants, to harness power for new generation motor vehicles, windmill solutions, security systems and other types of data cables.

Buoyant Segments

As mentioned, the power cable led the industry from front contributing almost 50 percent of the industry’s total revenue, thanks to govt.’s continued emphasis on laying comprehensive power distribution and transmission network in the country. The power cable segment is to continue on the ascending growth path as there is much to be done as on power T&D.

India has been steadily moving towards increasing digitization and the commitment has grown much with the new dispensation unleashing programs like Digital India, Boradband Highway, etc. This increasing digitization has of course catapulted the demand for Optical Fibre Cables (OFC) networks and the manufacture of OFC. OFCs are gaining importance in the wires and cables market. Internet, Cable TV, burgeoning usage of smartphones and the rising demand for broadband services have caused massive sprouts of OFC installations in the country. To address this growing need for high speed data transmission, the govt. along with major organized sector players has been investing huge amount.

According to a recent report published, the thriving automotive sector is one of the major forces influencing the wire and cable materials market in India. India is witnessing the flourishing automotive industry due to rising demand for commercial and personal vehicles and growing purchasing power. The Indian automotive industry has been reporting two-digit growth rates for years. The gross domestic product (GDP) in India has increased considerably, thereby fueling the automotive as well as automotive wire and cable materials market.

Construction is one of the core sectors of India’s economy and the future of the industry is important for commodities. Construction cable and wire sector is about to see steep growth in demands in coming days owing to huge govt.’s spending in infrastructure, smart cities, real estate boom, and housing explosion.

Dominant Players

India’s organized wire and cable market is dominated by few major players. To be precise, the market is led by major players specializing in designing, manufacturing viz. Polycab wires, Finolex cables, RR Kabel, Sterlite technologies, KEI Industries and Havells India, with top five of them gulping a large share of organized market for wires and cables with a combined turnover of over Rs. 10,000 Crores among themselves.

Polycab Wires is the largest player in the Indian wires and cables market. Polycab is engaged in the manufacturing of different kinds of wires and cables such as power cables, control cables, specialty cables and others. Finolex Cables is the second largest player; the company has been working increasingly to introduce new brands in the Indian market, in addition to enhancing the visibility of its existing brands.

Other significant players include Cable Corporation of India, Cords Cable Industries, Diamond Power Infrastructure, Gupta Power Infrastructure Ltd., KEC International Ltd., LS Cable India, Paramount Communications, Shilpi Cable Technologies, Universal Cables, V-Guard Industries, etc.

Cable & Wire Fair 2015

Cable & Wire Fair 2015, 3-5 December, Pragati Maidan, India is all set to become the growth partner of the buoyant Indian wire and cable industry. It is a synergizing effort to bring together people, leaders, technology, ideas, and products & services of the wire and cable industry. The show is designed to attract all manufacturers, suppliers, technologists, and end-users to share their repertoire with others in the industry and is equally enriching for visitors. Exhibitors from more than 12 countries and over 10,000 visitors are sure to bestow immense business opportunities to participants. Conference on crucial themes, brainstorming by leaders in CEO Conclave, Panel Discussions on related issues, assured large footfall of quality visitors, and more make the show a stand out option for you to participate.

To know more about the show, please visit: http://www.wirecable.in/fair


Wire & Cable India