Brugg Kabel AG is a worldwide authority in high and extra high voltage cable design and development, providing its technical expertise to Indian cable major KEI for manufacture of these cables and doing exclusive high voltage cabling projects in India on turnkey basis under its subsidiary Brugg Cables India Pvt Ltd.
“We have been approved by almost all major utilities in India, starting from PGCIL, NTPC, NHPC, MSETCL, and Tan Trasco to some of the biggest industrial customers like Reliance, Tata Power, and Tata Steel. One of the biggest projects that we executed last year was the Tata Steel’s Kalinganagar Project, which was one single contract worth Rs. 40 Cr of business,” said Mr. Mayukh Banerjee, CEO, Brugg Cables India Pvt Ltd in a recent interview with Wire & Cable India.
Wire & Cable India: Would you please tell us about Brugg from the very beginning. Till now, what major milestones have been achieved by the company?
Mayukh Banerjee: Brugg, a 125 years old company, is basically a Swiss organization. It entered India in the year 2003, but as a legal entity, it got formed in 2011. In 2014, Brugg established a whole new subsidiary in India, and I was one of the very first recruits for Brugg here. Over the last three years, from a team of two guys, we have gone to become a team of 15 people today. We have been approved by almost all major utilities in India, starting from PGCIL, NTPC, NHPC, MSETCL, and Tan Trasco to some of the biggest industrial customers like Reliance, Tata Power, and Tata Steel. One of the biggest projects that we executed last year was the Tata Steel’s Kalinganagar Project, which was one single contract worth Rs. 40 Cr of business. The project involved supplying, laying, installation, and termination of cables – everything on a turnkey basis.
From systems business with high voltage cables and the associated junction sleeves and entrance fittings, to medium and low-voltage cable, fittings and fiber-optic cable, Brugg Cables offers its customers the entire product range needed for the supply of electric power and data transmission. Furthermore, Brugg Cables is one of the few cable manufacturers in the world that successfully produces cable systems and accessories for what is currently the highest voltage level, 550 kV. Work in its in-house R&D department is continually proceeding to create new and innovative products. In close collaboration with its customers, Brugg Cables implements turnkey projects such as the cabling of power-generating stations. Brugg Cables develops, manufactures, tests and assembles its products according to the highest quality standards using state-of-the-art manufacturing machinery. In the industrial sector, the company has specialized in the manufacture of customer-specific solutions for industrial applications.
We also have a technology tie-up with a major Indian wire and cable company KEI. It is basically a technical JV, intended to provide KEI crucial technical inputs with regards to design, development, testing, etc of high voltage cables. We also have a license agreement with KEI, stipulating that for every meter of cable which KEI sells in India, Brugg shall get a royalty. As per the technical know-how, whatever technical specifications in terms of quality, manufacturing, or procedures, we are following in Brugg, Switzerland, the same is being replicated by KEI in India. We have a good basket of customers in India over the last 3-4 years and very recently, we have ventured into some of the Southeast Asian countries like Bangladesh, Sri Lanka, and Nepal to a smaller extent. We have the ambition to grow further, and most likely this venture is going to go beyond the Southeast Asian countries very soon.
WCI: As you said, you are doing some turnkey projects for some Indian utilities. Our readers would like to know the entire range of offerings that Brugg have for the wire and cable industry.
MB: Brugg is one of the very few companies in the world that have cabling solutions up to 550 KV. In India, till now the highest voltage level for cabling is up to 400 KV. We in India are catering exclusively to the 132-220 KV and 400 KV power accessories. As I mentioned earlier, for 132/220 KV, we have technical JV with KEI, which is successfully manufacturing these cables. The JV was later extended to 400 KV, but the product is yet to be commercially launched in India. However, for 400 KV cabling projects, Brugg exclusively is doing turnkey projects. Besides, we provide high voltage power accessories to OEMs like CCI, Siemens, and Alstom, for their EPC projects. So, we are providing installation and supply services for accessories.
WCI: As you said, in India the maximum high voltage range is around 400 KV, and you are in the joint venture with KEI up to 220 KV. Is there any plan to manufacture 400 KV cables locally in India?
MB: We very much like to endorse the plan which has been implemented by our Prime Minister Mr. Narendra Modi on the ‘Make in India’ concept. As said, we have already extended the technical collaboration with KEI up to 400 KV. The objective is to manufacture 400 KV cables in India. It will definitely be manufactured by KEI but the technology know how will be from Brugg. We will have a similar Brugg sort of a cable manufactured in India with KEI as our JV partner. It will be there very shortly.
WCI: Does Brugg have any plan to go into manufacturing individually?
MB: We have a pretty healthy relationship with KEI. It is going very well since the year 2009 when the JV was formed. The first 6-7 years have been excellent and the relationship has grown healthier. We have been able to capture the market quite significantly. We want to continue to maintain this for the time being.
WCI: For your projects, are you souring the cable from KEI or are you importing them from Brugg, Switzerland?
MB: It depends on the case-to-case basis. As I mentioned, 400 KV, 132 KV, or 220 KV, each of these high voltage cables undergoes rigorous a number of type tests and other electrical tests. The 400 KV cable which KEI is developing in association with Brugg is still under testing and yet to be commercially launched. Until KEI manufactures 400 KV cables, 400 KV cables for our projects will be completely sourced from Switzerland. Once KEI is completely through with the 400 KV cable, then our mode of operation will be to support KEI in promoting the 400 KV cables in India. However, the installation of the cable accessories like the cable joints and terminations will be completely done by Brugg Cables India. The project management will be eventually with Brugg Cables India.
WCI: As you have got some turnkey projects in high voltage segment, tell us some of the recurrent challenges in executing those projects thoroughly.
MB: It has got pros and cons both. On one hand, we see that there are more and more opportunities in terms of high voltage cabling requirements coming in India, a good sign for all of us. On the other hand, the challenging part of the story is that we are seeing erosion in margins, which is really a challenge for the entire cable industry including us.
We have also witnessed increasing number of players over the past couple of years. GIS mapping for individual utilities is a must for identification of cable network. Emphasis should be given on healthy and periodic monitoring of the cable.
WCI: When you say you are executing a cabling project, what exactly do you mean?
MB: I want to give you an example with respect to the project we executed at Tata Steel; it was a 400 KV cabling package which included supplying, laying, installation, termination, commissioning of the cables along with charging of the circuit. Everything was done on a turnkey basis. I would say 95 percent of the project was done from the electrical view-point, but at the same time, a lot of civil work was also involved in the project such as construction of the trench. This is what I mean by the cabling package or what we do on turnkey basis.
WCI: As you mentioned the smart cities, can you elaborate more on how as a company you may support the concept?
MB: As per the preliminary reports, which have come up for the smart cities, we see quite a significant amount of requirement for 66/132 KV cables. Though Brugg doesn’t manufacture directly here in India and source these mainly from KEI, the supply and installation of accessories being a critical part will be done by Brugg cables only. So, we will foray into the segment as a joint venture with KEI for the smart cities and that has been decided.
WCI: Give us your views on Brugg as a company, strategies to promote Brugg in Indian market, and the challenges in the Indian wire and cable industry.
MB: India is a competitive market and has a huge potential lined up. There is a huge potential for the cabling industry in that development, and for the last three years, if we see the cabling segment, it is growing approximately at a CAGR of 20 percent. I wish the same momentum to be maintained at least for the next 4-5 years. In India, the industrialization process is on-going, creating the need for infrastructure development. The space constraints in the cities promote underground cables as a solution. On the one hand, we see more energy being consumed creating a need to expand the networks. On the other hand the trend is shifting to transmission of higher voltage levels over the existing lines. We also see falling prices due to efficiency improve-ments and the use of new materials.
Also, the voltage levels are going up continuously. The 400 KV under-ground cabling opportunities till 5-6 year back were very limited. Talking about the 500 KV, it is still under conception in India, but we do have a solution and that too for 550 KV. We have executed projects in China for 550 KV, but as in when the opportunity comes for 550 KV in India, we have a solution for that as well.
WCI: Any final words on behalf of Brugg for the Indian wire and cable industry?
MB: I think it is a good scenario for all of us. Well, challenges will always be there being the part of the business, but this segment is going to grow and that is for sure. We are one of the few new entrants in the last 3-4 years, and we can estimate an exponential growth in the segment. The industry is doing quite well for the time being.
