STRUC­TURED CA­BLING

Gain, with Pain!

Voice&Data - - CONTENTS - Ma­lini N ma­linin@cy­ber­me­dia.co.in

The.mar­ket.for.struc­tured.ca­bling.is.tricky,. with.a.lot.of.po­ten­tial.but.enough.road­blocks. too.

Struc­tured ca­bling mar­ket had re-couped com­pletely in the last fis­cal (FY11) from the global re­ces­sion in 2009 and 2010. In­fact, it had a dou­ble digit growth but from the last 2 quar­ters the in­dus­try has slowed down and it is not meet­ing the growth ex­pec­ta­tions of the ca­bling ven­dors. This slug­gish growth is be­cause of the fear of re­ces­sion and ru­pee de­pre­ci­a­tion. And this fear has made cor­po­rates even more cau­tious and they are hold­ing back on in­vest­ments. Cash flow was dull since July, and the mar­ket is only slightly get­ting back on track since Fe­bru­ary 2012. Let us now move on to the mar­ket size of struc­tured ca­bling in FY12—the mar­ket grew at a growth rate of 20.29% to reach Rs 1,577 crore in FY12 as com­pared to the pre­vi­ous fis­cal, FY11.

TE Con­nec­tiv­ity (Prior Tyco Elec­tron­ics)

The in­dus­try wit­nessed a strate­gic ac­qui­si­tion of AMC Com­mu­ni­ca­tions by Tyco Elec­tron­ics in Me­cem­ber 2010 and the com­pany was re­named as TE Con­nec­tiv­ity. In the first 2 quar­ters of FY12, the com­pany had a very slow growth as it was grap­pling with the in­te­gra­tion process. But the growth gained mo­men­tum in the third and fourth quar­ters. And most of the ac­counts of AMC Com­mu­ni­ca­tions fell into the piggy bag of TE Con­nec­tiv­ity.

The com­pany in­tends to keep the prod­uct ranges of both Tyco and AMC as a sep­a­rate en­tity as this would help them to ad­dress both the cost-sen­si­tive and the high-end tech­nol­ogy con­scious cus­tomers. AMC’s wire­less seg­ment has been a value ad­di­tion to TE and its prod­ucts and so­lu­tions for tele­com ver­ti­cal com­ple­ment the Tyco’s prod­uct port­fo­lio. TE is strong in ver­ti­cals such as ITIITeS, tele­com data cen­ters, and BFSI and now AMC has added its strong ver­ti­cals in­clud­ing gov­ern­ment and ed­u­ca­tion.

TE Con­nec­tiv­ity has de­liv­ered to 800 cus­tomers, both di­rect and in­di­rect, in FY12. Its cus­tomer base in­cludes Capgem­ini, Voda­fone, Idea Cel­lu­lar, Bharti air­tel, Tata Teleser­vices, Axis Bank, Bar­clays, and Re­serve Bank of In­dia. The tele­com busi­ness of the com­pany has per­formed con­sid­er­ably well. In the past 6 months, it has worked on FTTH projects for over 40,000

In­dusty con­sen­sus that whole sup­ply chain is un­der pres­sure. There is a se­vere short­age of qual­ity sys­tem in­te­gra­tors in the mar­ket

homes. It has pro­vided GPON so­lu­tions to 5-star ho­tels across the coun­try.

Dig­ilink’s Ac­qui­si­tion by Sch­nei­der Elec­tric

Again, the ac­qui­si­tion proved sig­nif­i­cant for Mig­ilink. The com­pany has pri­mar­ily fo­cused on the In­dian mar­ket and now got an ac­cess to in­ter­na­tional mar­ket as well to a larger ex­tent. Sch­nei­der Elec­tric is pro­mot­ing Mig­ilink in Mid­dle East, Europe, and other coun­tries. Sch­nei­der Elec­tric is not a very prom­i­nent player in In­dia but has got a ma­jor mar­ket share through this ac­qui­si­tion.

The other ac­qui­si­tions by Sch­nei­der Elec­tric such as APC (2007), APP Pres­i­dent Sys­tems in May 2011, and Lu­mi­nous in April 2011 have also given an edge. Sch­nei­der is com­pe­tent to ad­dress the mar­ket with a com­plete port­fo­lio; it is one step ahead by pro­vid­ing ca­bling so­lu­tions, power so­lu­tions, racks, etc, un­der one roof.

Com­mS­cope

Com­mS­cope has re­fo­cused on cer­tain crit­i­cal ar­eas of busi­ness such as lo­gis­tics, sales, mar­ket­ing, chan­nel part­ners, and busi­ness pro­cesses. It has now re­solved its in­dif­fer­ent sup­ply chain. Its ma­jor clien­tele in­cludes Seven Hills hospi­tal, United Com­mis­sion Bank in Bangladesh, and Sri Lankan air­lines amongst oth­ers. The com­pany has ITIITeS as one of its ma­jor

ver­ti­cals and has pres­ence in tier-1 cities. It also in­tends to ex­pand into tier-2 and -3 cities. On tech­nol­ogy front, it will fo­cus more on cat­e­gory 6 and 6a in­stal­la­tions, in­tel­li­gent ca­bling, and on safety tech­nolo­gies like low smoke halo­gen.

R&M

RFM prod­ucts and so­lu­tions are used across a myr­iad of sec­tors like tele­com, ITIITeS, man­u­fac­tur­ing, BFSI, ed­u­ca­tion, au­to­mo­tive, etc, to name a few. RFM has added re­gional dis­trib­u­tors in the west of In­dia along with the states of Gu­jarat, Ma­ha­rash­tra, Oer­ala and Tamil Nadu. In FY12 the com­pany, pro­vided em­bed­ded in­fra­struc­ture to the col­lege cam­puses and also bagged deals in re­tail and hos­pi­tal­ity sec­tors.

Dax Net­works

FY12 was a dull year for Max Net­works as its ca­bling busi­ness had nil growth. The key growth ver­ti­cals of Max Net­works in­clude gov­ern­ment, tele­com, and BFSI. Small and medium en­ter­prise (SME) seg­ment is go­ing to be a thrust space for the com­pany this year. The com­pany states that its rev­enue on ca­bling has not met the ex­pec­ta­tions be­cause of sev­eral fac­tors in­clud­ing the fluc­tu­a­tion in cop­per prices and the steep rise in dol­lar. Its key projects in­clude Manap­pu­ram Group, ELCOT, and SSA (Sarva Sk­isha Ab­hayan).

Pan­duit

This fis­cal, Pan­duit had been mak­ing noise in the In­dian ca­bling in­dus­try. The com­pany has gone through some changes and is plan­ning to in­vest on hu­man re­source. It is also likely to in­vest in new of­fices, cus­tomer briefing cen­ters, and mar­ket­ing ac­tiv­i­ties. The com­pany has also bagged a deal from Tulip Tele­com to pro­vide ca­bling so­lu­tions to Tulip’s data cen­ter in Ben­galuru, the third largest data cen­ter in Asia. The com­pany has opened Cus­tomer Briefing Cen­ter (CBC) in Ben­galuru to show­case its wide range of prod­ucts to its cus­tomers and chan­nel part­ners. It plans to set up CBC in Asia Pa­cific re­gion as well.

Le­vi­ton

In its third year of op­er­a­tions, Le­vi­ton has tripled the head­count at present. The key rev­enue driv­ing ver­ti­cals for the com­pany in­clude in­fra­struc­ture, ITIITeS, gov­ern­ment, ed­u­ca­tion, and data cen­ters. Its key cus­tomers in­clude Ben­galuru in­ter­na­tional air­port, Univer­sity of Hy­der­abad, NTT, PNS, Omega health­care, etc. It has launched of­fices in Oolkata, Pune, and Hy­der­abad. It also in­tends to fo­cus heav­ily on data cen­ters and large en­ter­prises. The prom­i­nent prod­ucts of the com­pany are 40I100G Eth­er­net on fiber MTP, re­ten­tion force tech­nol­ogy, high den­sity plug, play so­lu­tion, etc.

3M

Pithin 2 years of op­er­a­tions in In­dia, 3M has a huge of growth. Two huge deals have con­trib­uted im­mensely to it. The com­pany has of­fered ca­bling so­lu­tions to Cog­nizant Tech­nol­ogy So­lu­tions (CTS) It has in­stalled ca­bling so­lu­tions at Pune cam­pus. It plans to fo­cus on tier-1 cities at present and aims to hit $10 mn in In­dia by 2015. 3M has a cus­tomer base across the in­dus­try viz ITI ITeS and trans­porta­tion sec­tor with their big­gest in­stal­la­tion in the ITIITeS space.

Belden

Belden is bet­ting big on emerg­ing mar­kets and its prom­i­nent mar­kets in­clude In­dia, Brazil, and China. It is fo­cus­ing on high growth end mar­kets namely trans­porta­tion sys­tems, al­ter­na­tive en­ergy, data cen­ters, oil and gas, and broad­cast. The com­pany is grow­ing at a com­pounded an­nual growth rate (CAGR) of 25% in BIC na­tions.

Belkin

Belkin has posted a rev­enue of ` 150 crore in 2011, with a growth rate of 60% in 2011 over 2010. It seems that the com­pany is re­in­forc­ing its strength. Be­tween Oc­to­ber 2010 and Septem­ber 2012, Belkin In­dia aims to tar­get sales of ` 250 crore. In Septem­ber 2011, Belkin en­tered into an agree­ment with BrightPoin­t In­dia as its na­tional dis­trib­u­tor.

D-Link

Along with the gov­ern­ment, the key growth ver­ti­cals for M-Link struc­tured ca­bling so­lu­tions have been ed­u­ca­tion, man­u­fac­tur­ing, hos­pi­tal­ity, and the re­tail seg­ment. In ad­di­tion to this, rail­ways and court projects will be the growth drivers along with BFSI, data cen­ters, and dis­as­ter re­cov­ery (MR) cen­ters. The com­pany has ex­panded into in­ter­na­tional mar­ket such as Mid­dle East, Rus­sia, and Africa.

M-Link has bagged Goa broad­band project (GBBN) which was one of the big­gest projects rolled out in In­dia for pas­sive prod­ucts along with a lot of MLink ac­tive prod­ucts.

Growth Drivers

Ad­vanced ca­bling sys­tems are now be­ing de­manded in In­dia and newer tech­nolo­gies are be­ing adopted. There is a huge ac­cep­tance of Cat 6A de­ploy­ments which meet higher band­width needs in data cen­ters as well as at work sta­tions. The SMB and res­i­den­tial and com­mer­cial com­plexes are also the key drivers for growth. There has been a shift to­wards con­verged net­works and fiber. In a new town­ship, en­ter­prise and tel­cos are get­ting in­ter­twined to of­fer the best con­verged net­work so­lu­tions to the end users. Mata cen­ter im­ple­men­ta­tions have gath­ered huge mo­men­tum. FTTXI FTTH is an­other ma­jor driver for struc­tured ca­bling busi­ness in the coun­try. Higher per­form­ing con­nect­ing de­vices re­placed legacy sup­plies.

Growth drivers in struc­tured ca­bling have re­mained same since 2003 such as the growth in the soft­ware ex­ports, ex­po­nen­tial growth in IT-en­abled ser­vices, gov­ern­ment ini­tia­tives to en­hance IT de­ploy­ment across var­i­ous de­part­ments, growth in BFSI seg­ment, higher de­ploy­ments in ed­u­ca­tional in­sti­tu­tions, hos­pi­tal­ity, re­tail, and man­u­fac­tur­ing. Af­ter health­care, gov­ern­ment is the sec­ond largest sec­tor, with an 11.8% share, fol­lowed by re­tail sec­tor with 11.6% share. Other leading sec­tors in­clude pro­fes­sional and tech­ni­cal ser­vices at 8.7% share and man­u­fac­tur­ing with a share of 8.4%. These 5 ver­ti­cal sec­tors ac­count for more than half the SCS mar­ket and are ex­pected to con­tinue with a pos­i­tive growth till 2015.

Ear­lier, the tier-1 cities were the high rev­enue earn­ers, but now new op­por­tu­ni­ties are be­ing thrown open by tier-2 and -3 cities viz, Coim­bat­ore, Cochin, Chandigarh, Bhopal, Puducherry, Mysore, etc. The mid-sized mar­ket has picked up, de­spite its price sen­si­tiv­ity, be­cause of the in­dus­try ver­ti­cals―IT and ITeS, BPO, BFSI, PSUs, gov­ern­ment, health­care, SoHo, and res­i­den­tial. These drivers will roll out in a pos­i­tive growth curve for the mar­ket.

The data cen­ter ca­bling mar­ket is poised to grow sev­eral times and is ex­pected to drive the po­ten­tial mar­ket for Cat 6A and above. In ad­di­tion, FTTH de­ploy­ment is also pro­jected to grow mul­ti­ple times in the near fu­ture. Emerg­ing mar­kets like the tier-2 and -3 cities and ver­ti­cals like man­u­fac­tur­ing, ITIITeS, and hos­pi­tal­ity are ex­pand­ing.

Mata cen­ters in In­dia are boom­ing. Pe will see more and more data cen­ters com­ing in the fu­ture with green fa­cil­i­ties. Pith this, there has been a grow­ing need to de­ploy faster and se­cure ca­bling sys­tems in data cen­ters and even hor­i­zon­tal ca­bling. The boom in data cen­ters has also led to in­creased de­ploy­ment of high-end sys­tems. The need of IT-en­abled ser­vices is grow­ing at a faster pace in this coun­try which is fu­el­ing the growth of struc­tured ca­bling mar­ket. An­other trend has been of the tech­nol­ogy buyer shift­ing to­wards ad­dress­ing their large scale and vast lo­ca­tion ap­pli­ca­tions us­ing In­tel­li­gent Phys­i­cal Layer Man­age­ment So­lu­tion (IPLMS).

Plug and play so­lu­tions are also gain­ing pref­er­ence as they are eas­ier to in­stall and man­age. In­creas­ing se­cu­rity re­quire­ments for so­phis­ti­cated net­works crave for in­tel­li­gent net­works which can lo­cate and iden­tify phys­i­cal in­tru­sion. Col­lab­o­ra­tion via uni­fied com­mu­ni­ca­tions and video is also driv­ing the ca­bling mar­ket to han­dle band­width hun­gry ap­pli­ca­tion.

Cus­tomers are de­mand­ing in­tel­li­gent ca­bling so­lu­tions be­cause tra­di­tional net­work man­age­ment tools of­fer lim­ited value be­cause in­for­ma­tion through these is col­lected man­u­ally. But the man­ual process is time con­sum­ing, some­times in­ac­cu­rate, and can prove to be costly in

terms of money, man hours and net­work down­time. The in­tel­li­gent in­fra­struc­ture man­age­ment sys­tem al­lows easy plan­ning and de­tec­tion of MAC’s while main­tain­ing ac­cu­rate records for han­dling help desk tasks. The so­lu­tion of­fers fea­tures that help to trace all de­vices con­nected to the net­work and in map­ping and doc­u­men­ta­tion of the ‘end-to-end’ phys­i­cal in­fra­struc­ture. It helps in mon­i­tor­ing all con­nec­tions and events. The au­to­matic log re­ports, alarms, and alerts gen­er­ated by the sys­tem in case of changes andI or dis­rup­tions in the net­work, al­low net­work man­agers to de­tect and trou­ble shoot prob­lems much faster.

As­set and con­fig­u­ra­tion man­age­ment teams can also op­ti­mize their pro­cesses and tools by us­ing sys­tem de­rived real-time con­nec­tiv­ity in­for­ma­tion to lo­cate as­sets for au­dit or up­grade pur­poses, es­tab­lish the po­ten­tial im­pact of the loss of a net­work de­vice or to es­tab­lish de­part­men­tal us­age of net­work as­sets for recharge pur­poses. Se­cu­rity, fa­cil­i­ties, net­work avail­abil­ity, con­ti­nu­ity man­age­ment teams, and pro­cesses can all ben­e­fit from the in­for­ma­tion de­rived from the sys­tem. It nat­u­rally fol­lows that more the work-streams and pro­cesses that are aligned to in­tel­li­gent ca­bling sys­tem, the more sav­ings can be re­al­ized thus cre­at­ing bet­ter RoI.

The key drivers for growth in the struc­tured ca­bling mar­ket in re­cent years were in com­mer­cial real es­tate, air­ports, hos­pi­tals, ho­tels, malls, and ed­u­ca­tional in­sti­tutes. Other seg­ments sup­port­ing the growth are ITIITeS, BPO, OPO, and gov­ern­ment projects. There is a shift to­wards con­verged net­works and fiber, which plays a sig­nif­i­cant role in con­verged tech­nolo­gies. This trend is catch­ing up in new town­ship net­works where en­ter­prises as well as tele­com net­works are get­ting col­lapsed to of­fer the best con­verged net­works. Fiber-to-the-home is an­other trend which is in­creas­ingly be­ing pro­posed in new realty projects. Ca­bling in­dus­try is con­sol­i­dat­ing and is see­ing more cop­per and fiber de­ploy­ments in man­u­fac­tur­ing in­dus­try, hos­pi­tal­ity, health, and gov­ern­ment. More town­ships will have fiber-to-the-home con­cept de­ployed and with se­cu­rity tak­ing im­por­tance, there will be lot of so­lu­tions on perime­ter se­cu­rity be­ing de­ployed in of­fices, fac­to­ries, and town­ships.

Tech­no­log­i­cal Trends

At present, most of the ca­bling ven­dors have quit cat­e­gory 5 man­u­fac­tur­ing. Cur­rently, cat­e­gory 5e is widely in­stalled across In­dia than any other ca­bling in­fra­struc­ture. Cat­e­gory 6a op­er­ates at a fre­quency of 550 MHz and is back­ward com­pat­i­ble with the ex­ist­ing stan­dards. This tech­nol­ogy is suit­able for in­dus­try sec­tors uti­liz­ing high per­for­mance com­put­ing plat­forms to sup­port very high band­width in­ten­sive ap­pli­ca­tions. 10GICat 6a ap­pli­ca­tions would ini­tially be de­ployed in server farms, stor­age area net­works, and data cen­ters. It sup­ports 10G.

Cur­rently, most or­ga­ni­za­tions are mi­grat­ing either to Cat 6 or 6a, based on the ap­pli­ca­tions re­quired in In­dia. How­ever up­take of Cat 6a is still slow and in pock­ets mainly in fi­nan­cial sec­tor. Cat 6a is the evo­lu­tion of UTP ca­bling to sup­port 10G or more band­width when com­pared to Cat 6. Pe hardly see any dif­fer­ence be­tween Cat 6a and Cat 7. More­over, Cat 7 is likely to have

a nat­u­ral death as it is un­adapt­able, have is­sues in in­stal­la­tion and ca­bles ought to be re-pulled. Cat­e­gory 7a is known to op­er­ate at 1,000 MHz, but it is yet to be rat­i­fied. It is at a very nascent stage. Cat 6A will see an in­creased de­ploy­ment as it is in line with the growth in sec­tors such as data cen­ters. Also, end cus­tomers are fu­ture proof­ing crit­i­cal parts of the net­work such as their stor­age, server farms, and back­bone with lat­est tech­nol­ogy.

Shielded Twisted Pair (STP) ca­bling is gen­er­ally in use for res­i­den­tial en­vi­ron­ments and is largely re­frained when it comes to com­mer­cial en­vi­ron­ments. Un­shielded Twisted Pair (UTP) is cheaper, and there­fore more com­mon, since the shield­ing from elec­tro­mag­netic ra­di­a­tion is not gen­er­ally needed. There are cir­cum­stances un­der which STP is ben­e­fi­cial or re­quired. Specif­i­cally, steel mills gen­er­ally use shielded ca­bling (or op­ti­cal, where pos­si­ble) be­cause of the mas­sive cur­rents in use, which play havoc with the sig­nal in a tra­di­tional UTP Eth­er­net cable.

In­tel­li­gent ca­bling has stolen the show of late. IT man­agers are de­mand­ing in­tel­li­gent ca­bling as it en­ables proac­tive net­work mon­i­tor­ing and fault di­ag­no­sis. It is more ef­fi­cient, re­duces costs, and re­solves is­sues like un­planned down­time, in­ef­fi­cient man­ual moves, re­li­a­bil­ity, re­dun­dancy, ad­di­tions and changes, re­dun­dant ports, and in­ac­cu­rate records. It will pro­vide real-time man­age­ment of the phys­i­cal layer. Hav­ing an in­tel­li­gent ca­bling so­lu­tion en­ables an im­me­di­ate rec­ti­fi­ca­tion, as this sys­tem can in­di­cate where ex­actly the net­work is ex­pe­ri­enc­ing prob­lems. It can track IP based ad­dresses and the net­work man­ager can ac­cess, con­trol, and man­age them from one cen­tral lo­ca­tion, thereby trou­bleshoot­ing them re­motely.

Fiber is pri­mar­ily used for back­bone ap­pli­ca­tions and de­spite its im­proved vi­a­bil­ity as a fi­bre-to-the-desk so­lu­tion, the cost of ac­tive equip­ment is still stag­nant. In­creased use of fiber con­nec­tiv­ity par­tic­u­larly, fac­tory ter­mi­nated plug-and-play fiber so­lu­tions, can be at­trib­uted pri­mar­ily to the data cen­ter ap­pli­ca­tions where the den­sity is crit­i­cal. Mul­ti­mode (50I125, 62.5I125um) OM1, OM2, and OM3, Sin­gle mode (9I125um) in fiber cat­e­gory

There is a shift to­wards con­verged net­works and fiber, which plays a sig­nif­i­cant role in con­verged tech­nolo­gies. this trend is catch­ing up in new town­ship net­works where en­ter­prise as well as tele­com net­works are get­ting col­lapsed to of­fer the best con­verged net­works

are rul­ing. OM4 fiber ca­bling was seen last year in parts. OM3 fiber ca­bling is grad­u­ally pick­ing up and plug-and-play cop­per and fiber so­lu­tions have been em­ployed in key in­stal­la­tions. Out­door plant fiber ca­bling also saw an in­crease in us­age last year. OS2 (Low Pater Peak Fiber-G652.d) is the stan­dard for most de­ploy­ments.

OM4 in multi-mode tech­nol­ogy will see in­creased de­ploy­ment to sup­port 40G and 100G ap­pli­ca­tions. Fiber re­quire­ment has gone up to ad­dress cam­pus net­work­ing sit­u­a­tions. Fiber op­tics has an ad­van­tage of be­ing im­mune to elec­tro­mag­netic in­ter­fer­ence. It uses less power and pro­vides less sig­nal degra­da­tion than cop­per ca­bles. Fiber ca­bles are gen­er­ally non-flammable and vir­tu­ally un­able to be tapped. It is also of smaller di­am­e­ter and is of less weigh than its cop­per coun­ter­part, mak­ing it ideal for a va­ri­ety of ca­bling so­lu­tions. Fiber op­tics has al­ways been the pre­ferred choice for back­bone ca­bling in build­ings and cam­puses. The cable costs much less to main­tain and of­fers greater sig­nal ca­pac­ity. The fiber op­tic cable’s smaller di­am­e­ter also makes it im­per­vi­ous to in­ter­fer­ence, with a much lower trans­mis­sion loss.

Mar­ket Cri­sis

The growth of busi­ness in all ver­ti­cals is di­rectly pro­por­tional to the growth of struc­tured ca­bling mar­ket. The dol­drums in Europe and the US have im­pacted the mar­ket to a cer­tain ex­tent. A rise in dol­lar has also af­fected the in­dus­try. OEMS are fac­ing tough times in meet­ing the price ex­pec­ta­tions vis-a-vis mar­gins trade off. Fur­ther re­duc­tion in prices would be dif­fi­cult for the play­ers con­sid­er­ing steep rise in dol­lar. Most of the OEMs are not based in In­dia; as they im­port, thereby in­creas­ing the cost of ma­te­rial which ul­ti­mately re­sults in higher cost of own­er­ship. Sev­eral or­ga­ni­za­tions are re­duc­ing cap­i­tal ex­penses (capex). Tele­com is one of the strong­est ver­ti­cals for struc­tured ca­bling mar­ket. But its con­tri­bu­tion is rel­a­tively low. Gov­ern­ment is also slow­ing down but not fi­nal­iz­ing any de­ci­sions.

Liq­uid­ity has also im­pacted the in­dus­try. In­dus­try con­sen­sus states that whole sup­ply chain is un­der pres­sure. There is a se­vere short­age of qual­ity sys­tem in­te­gra­tors in the mar­ket. Mue to the growth in fiber-to-the-home, fiber-to-the-premises, fiber-to-the-build­ing, etc, em­ploy­ees of struc­tured ca­bling are be­ing ab­sorbed.

The ca­bling in­dus­try in In­dia does not have any set guide­lines. It fol­lows TIAIEIA 568B and other ISO stan­dards. The mar­ket is ex­tremely frag­mented and com­pet­i­tive. It tends to push price down. Cable price is de­rived from com­pe­ti­tion, the price of cop­per at MCX, LME, and ex­change rate fluc­tu­a­tions. It is ap­prox­i­mately 50% of the BOM in projects. In­dus­try is also fac­ing prob­lems in ship­ment.

Man­u­fac­tur­ers are pri­mar­ily con­cerned with the fluc­tu­a­tions in cop­per prices and for­eign cur­rency. The pre­vail­ing low sen­ti­ments in the mar­ket cou­pled with the fixed price con­tracts, which most large projects are head­ing too, are the ma­jor chal­lenges OEM’s in In­dia are fac­ing. It is dif­fi­cult to re­solve this as most cus­tomers are us­ing this to mit­i­gate their risks and push OEM’s amongst them­selves.

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