KEC International has strategically transformed to capitalize on the growing cable market. The company has broadened its operations by successfully commissioning the first phase of its aluminium conductor plant at the Vadodara facility, with an investment of INR 65 crore. Plans are also underway to commission a second plant soon. With enhanced production capabilities, strategic sales changes, and new infrastructure investments, KEC International aspires to achieve a revenue target of INR 5000 crore in cables by FY29. In a recent interaction with Wire & Cable India, Mr. Manjit Singh, Executive Director – Cables, KEC International, stated, “Our production capacity for solar cables has increased multifold from last few years due to improvements in our manufacturing process and the renovation of our machines in the LT factory. This has enabled us to seize opportunities and establish ourselves as one of the leaders in the burgeoning solar cable market.”
Wire & Cable India: Please shed light on recent developments at KEC International.
Manjit Singh: In recent years, KEC International has undergone significant transformations to enhance operational efficiencies and profitability. Firstly, we transferred our cables business to a newly established subsidiary, KEC Asian Cables Limited, a 100 percent subsidiary of KEC. This strategic move has enabled us to secure funding at more favourable rates from banks, thereby supporting our growth and improving profitability. We strongly believe that we will be able to reach 10 percent EBITDA in the coming years.
Secondly, we have been consistently working on upgrading our machinery and expanding our manufacturing capacity. This has allowed us to capitalize on booming cable market opportunities.
Thirdly, with our EHV & HT cable lines being fully loaded for the next 6 months, we have adopted a cautious approach in accepting new orders. We are prioritizing large quantity orders to maximize production efficiency and minimize frequent changeovers.
Finally, we have been hiring experienced professionals with significant expertise in both sales and technical domain. This has led to improvements in sales and developing stronger relationships with dealers and customers. With our strengthened sales team, we are now very much confident on expanding our dealer segment.
Watch: Top Cable Companies in India
WCI: Please share about any upcoming investments and expansions in the pipeline to meet the evolving needs of the industry.
MS: We are committed to becoming an INR 5,000 crore company by FY29. To achieve this ambitious goal, we have several key investments and expansions in the pipeline. Firstly, we have already commissioned the first phase of our aluminium conductor plant expansion at our Vadodara facility, with an investment of approximately INR 65 crore. Secondly, our next major expansion involves establishing a new greenfield plant for E-beam and rubber cables, which is expected to be operational by March 2026. Following this, we have plans for further expansions, including an additional aluminium conductor plant and expansion of our HT & EHV facility. In addition, we are also planning for expansion in our Mysore plant.
WCI: Tell us about KEC International’s market footprint.
MS: KEC Asian Cables has a robust market footprint both domestically and internationally. On the domestic front, 88 percent of our business is generated within India. Our LT cables account for approximately 50 percent of this domestic business, driven by our strong position in the solar cable market, where we are the second-largest player after Apar.
Additionally, 35 percent of our domestic business comes from HT & EHV cables, while the remaining 15 percent is derived from other segments such as optical fibre cables and railway products. Internationally, we currently export 12 percent of our sales and are targeting an increase to 15 percent this year.
WCI: What are your views on the current state of the Indian wires and cables market, and what are the key challenges your company faces in this industry?
MS: The Indian wire and cable industry is currently experiencing exponential growth, making it an opportune time for investment. Even smaller companies are making significant investments and attaining the capability to export their products. To capitalize on this growth trajectory without compromising profitability, we plan to invest in niche markets to secure long-term advantages.
The export market provides a significant opportunity. Currently, the Indian cables and wires manufacturers exports ~ 2 percent of total market share of global export, significantly less than China. This presents a substantial opportunity, with strong demand from regions such as Australia, Europe, Africa, and the US.
While there are golden opportunities for growth, the industry is not without challenges. One significant issue is the long lead time required by Indian cable machine manufacturers. During expansion phases, these extended waiting periods hinder our growth, often forcing us to procure machines from China, which puts India at a disadvantage. Although Indian manufacturers have improved their quality to meet European standards, they need to enhance their capabilities to cater to the urgent needs of Indian cable manufacturers. Investing in newer technologies to reduce lead times is essential for Indian machine manufacturers to fully support the growth opportunities presented to the cables and wires industry.
Also Read: Cabcon India Introduces HTLS Conductors, Eyes Emerging Sectors in Transmission
WCI: Sustainability is becoming increasingly important in cable manufacturing. How does KEC International ensure that its products meet global environmental standards?
MS: At KEC Asian Cables, sustainability is a core focus in our operations. Both our factories are powered by renewable energy, with our Mysore facility running on 96 percent and our Vadodara plant on 70 percent renewable energy. We have also installed a rooftop solar plant at our Vadodara facility to further enhance our renewable energy usage.
With respect to water conservation, we achieved 100 percent recycling of water in both plants. We have also upgraded most of our old machines to new energy-efficient models, ensuring that the power factor of both plants is nearly equal to unity.
Furthermore, we are among the very few companies promoting green cables in the market. We hold a patent for our green cables and have received the IGBC Green Factory ‘Platinum’ Certification for our cable facility in Vadodara, Gujarat.
Looking ahead, we plan to implement additional sustainability measures as we expand our plants.
We hold a patent for our green cables and have received the IGBC Green Factory ‘Platinum’ Certification for our cable facility in Vadodara, Gujarat.
