Spe­cial fea­ture

He­mant Gad­have - Busi­ness Unit In­charge, Wires and Ca­bles, An­chor, speaks about the strong growth po­ten­tial of the wires and ca­bles in­dus­try in In­dia and sug­gests mea­sures to fur­ther check the un­or­gan­ised sec­tor in an in­ter­view with Mon­ica Chaturvedi Char

Power Watch India - - CONTENTS -

Wires and ca­bles in­dus­try is set to grow at 10% CAGR, says He­mant Gad­have - Busi­ness Unit In­charge, Wires and Ca­bles, An­chor.

How do you see the busi­ness po­ten­tial for ca­bles and wires in­dus­try in the wake of the rapidly grow­ing re­new­ables sec­tor and the gov­ern­ment’s push to Smart Cities pro­gramme?

The gov­ern­ment’s move to spend $15.3 bil­lion on the ‘Smart Cities’ plan will have a strong pos­i­tive im­pact on the real es­tate sec­tor. De­vel­op­ers will be able to of­fer new projects in the up­com­ing cities, boost­ing the re­gional, so­cial and eco­nomic in­fra­struc­ture. Devel­op­ment of smart cities in In­dia would pro­vide am­ple op­por­tu­ni­ties to the real es­tate de­vel­op­ers, who can fo­cus on tech­nol­ogy-driven homes as well as the af­ford­abil­ity and life­style quo­tient. Th­ese de­vel­op­ments will def­i­nitely have a pos­i­tive im­pact on the growth of the ca­bles and wires busi­ness in In­dia.

In such a sce­nario, An­chor’s core busi­ness of elec­tri­cal con­struc­tion ma­te­ri­als will add im­mense value in terms of build­ing smart cities in In­dia.

Is there any form of dump­ing hap­pen­ing from the Chi­nese mar­ket? If yes, are any mea­sures To­day, the wires and ca­bles in­dus­try is ap­prox­i­mately worth 35,000 crore. It is ex­pected to grow at a CAGR of 10% in the next five years. This growth will be aug­mented fur­ther by the GOI’s ini­tia­tives like ‘ Make in In­dia’, ‘ Smart Cities’, ‘ Sansad Adarsh Gram Yo­jna’ ( Build­ing In­dia’s vil­lages), ‘ Hous­ing for all’, ‘ 24x7 Power for all’, etc.

At the same time, some ini­tia­tives of the gov­ern­ment like in­cen­tivis­ing ex­ports, im­ple­men­ta­tion of the long awaited Goods and Ser­vices Tax ( GST) etc will result in boost­ing the morale of both do­mes­tic and over­seas in­vestors.

be­ing taken by the gov­ern­ment to pro­vide a level play­ing field to do­mes­tic play­ers?

Yes, Chi­nese goods are be­ing dumped, how­ever, they are mostly in the spe­cialty ca­bles sec­tor. The gov­ern­ment has taken mea­sures to con­trol such dump­ing, through en­force­ment of anti-dump­ing duty and of­fer­ing sup­port in the form of sub­si­dies to In­dian wires and ca­bles man­u­fac­tur­ers.

I feel that it would fur­ther as­sist if par­al­lely, strong counter vail­ing duty and spe­cial ad­di­tional sur­charges can be im­posed to put a check and pre­vent dump­ing.

Are In­dian com­pa­nies com­pe­tent enough to cater to the in­ter­na­tional mar­ket? Has the un­or­gan­ised sec­tor which roughly holds 35% share, been brought un­der check?

The In­dian man­u­fac­tur­ers have proven that they are as ca­pa­ble as global play­ers in terms of man­u­fac­tur­ing for spe­cial ap­pli­ca­tions within In­dia as well as for ex­ports. The un­or­gan­ised sec­tor has def­i­nitely re­duced, but it has to be checked com­pletely. Var­i­ous steps and counter mea­sures are be­ing con­sid­ered by the reg­u­la­tory bod­ies that ex­pe­dite the de­ci­sion­mak­ing process for up­grad­ing the rules and reg­u­la­tions for wires and ca­bles and other in­dus­tries. This would result in a ma­jor in­dus­try over­haul. In ad­di­tion to this, Bureau of In­dian Stan­dards (BIS) can have a sys­tem for is­su­ing li­censes based on the man­u­fac­tur­ing fa­cil­i­ties and in­fra­struc­ture too. It should also con­sider grad­ing li­cens­ing, for ex­am­ple Plat­inum li­censes or A grade, Gold li­censes or B Grade, Sil­ver li­censes or C grade, of­fer­ing a clear dis­tinc­tion to man­u­fac­tur­ers.

The wires and ca­bles com­prise nearly 40% of the elec­tri­cal in­dus­try. What is the cur­rent to­tal worth of the sec­tor?

The In­dian wires and ca­bles in­dus­try is now Rs 35,000 crore in size, which is 14% higher than the pre­vi­ous year. How­ever, the CAGR of the in­dus­try for 5 years is only 10%. This is be­cause the year be­fore, there was a dip in the mar­ket. The wires and ca­bles mar­ket is ex­pected to wit­ness rapid growth in the com­ing years due to gov­ern­ment in­vest­ments in the power and telecom­mu­ni­ca­tion sec­tors, dy­namic in­dus­tri­al­i­sa­tion and ur­ban­i­sa­tion.

Kindly elu­ci­date on the new range of ca­bles that you have re­cently in­tro­duced in the mar­ket.

We have un­veiled a new range of wires and ca­bles termed ‘Ad­vance EFFR’ that are ex­tra flex­i­ble germ free an­tibac­te­rial (as per JIS Z 2801 & ASTM 2149 stan­dard) wires. Th­ese have ad­di­tional high value func­tional prop­er­ties, such as the ad­vanced for­mu­lated PVC of spe­cial in­gre­di­ents for ex­tra fire fight- ing prop­er­ties and higher oxy­gen and tem­per­a­ture in­dex than those of nor­mal PVC wires. The USP of this range is its en­hanced flex­i­bil­ity and bend­ing ca­pa­bil­ity that pro­vides ex­cel­lent per­for­mance even in harsh elec­tri­cal con­di­tions.

How is An­chor gear­ing up to meet the in­creased de­mand set to come from var­i­ous in­fras­truc­tural projects?

Plans are un­der­way to un­veil a cou­ple of prod­ucts in the com­ing months. Our fo­cus is mainly on pro­vid­ing ca­bles for spe­cific ap­pli­ca­tions, tai­lored to cer­tain in­dus­try needs. An­chor is fully geared up to meet this in­creased de­mand. We have al­ready planned for ex­pan­sion and in­creas­ing the ca­pac­ity. We are also think­ing about in­tro­duc­ing ad­vanced so­lu­tions to grow in the mar­ket. In­no­va­tion is the hall­mark for any devel­op­ment so, the com­pany has in­vested in R&D to en­sure that our cus­tomers get the ad­van­tage of lat­est tech­no­log­i­cal de­vel­op­ments. Through th­ese in­no­va­tions, we have been able to de­velop spe­cial in­su­lat­ing com­pounds and pro­vide to our cus­tomers the safest build­ing wires with de­sired elec­tri­cal and me­chan­i­cal prop­er­ties. Power sav­ing and safety of our cus­tomers will al­ways be our prime con­cern and motto.

Your es­ti­mate of the growth slated to hap­pen in the in­dus­try in the next 5 years?

To­day, the wires and ca­bles in­dus­try is ap­prox­i­mately worth 35,000 crore. It is ex­pected to grow at a CAGR of 10% in the next five years. This growth will be aug­mented fur­ther by the GOI’s ini­tia­tives like ‘Make in In­dia’, ‘Smart Cities’, ‘Sansad Adarsh Gram Yo­jna’ (Build­ing In­dia’s vil­lages), ‘Hous­ing for all’, ‘24x7 Power for all’, etc.

At the same time, some ini­tia­tives of the gov­ern­ment like in­cen­tivis­ing ex­ports, im­ple­men­ta­tion of the long awaited Goods and Ser­vices Tax (GST) etc will result in boost­ing the morale of both do­mes­tic and over­seas in­vestors.

Yes, Chi­nese goods are be­ing dumped, how­ever, they are mostly in the spe­cialty ca­bles sec­tor. The gov­ern­ment has taken mea­sures to con­trol such dump­ing, through en­force­ment of anti- dump­ing duty and of­fer­ing sup­port in the form of sub­si­dies to In­dian wires and ca­bles man­u­fac­tur­ers.

I feel that it would fur­ther as­sist if par­al­lely, strong coun­ter­vail­ing duty and spe­cial ad­di­tional sur­charges can be im­posed to put a check and pre­vent dump­ing.

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