ANIL GUPTA
Q. As KEI earned name and fame in electrical industry, how do you see yourself when it comes to other wire and cable companies?
KEI has been in Indian market since 1968, over the years we have grown as a multinational conglomerate giving customized solutions in B2B Space as one of the Top leading brand and driving very strong B2C Retail footprint. With legacy of 55 years of being into this business and have diverse product portfolio of wires ranging from 1 KV to 400 KV, KEI is the only brand who have grown 20% + YOY in the last 5 Year (Except Covid Year); and presently we have 5 state of the art Manufacturing facilities.
The future of KEI wires and cables looks bright, especially in comparison to its competition. With a commitment to innovation and a focus on providing high-quality products & services, KEI is well positioned to continue growing and expanding its market share. In addition, KEI has NABL accredited labs and has established a strong reputation for reliability and customer service over the years, which will help to further enhance its competitive advantage. Despite the challenges posed by emerging competitors, KEI is poised to maintain its position as a leader in the wires and cables industry.
Q. Please brief about your business expansion to a wide range of areas?
We are increasing our Greenfield capex approx. INR 1000 Cr. In the coming 3 Years this will help us to cater rising demand for wires and cables. we are further strengthening our product Wire & Cable portfolio for many sectors into specialty segments such as Oil & Gas, Infrastructure, Solar, Wind, Power, Agriculture, EV (Electrical Vehicles) and Various type of Commercial needs. We will continue to remain focused on the Wire & Cable products and will put more emphasis to grow our customer base worldwide.
Q. How do you envision growth for your company for the next five years and what are the future plans of your company?
In the next 5 Years we will he crossing annual top line worth INR 14000 Crore and we will he strengthening Wires and Cables product portfolio further. Currently we are available in 55+ countries and we will he focusing more on spreading our footprints and improving our exports in the developed countries like US, Europe & Australia.
KEI Wires and Cables have been providing quality products to the electrical industry for decades, and in the future, we will continue to expand our reach. We are committed to providing solutions that meet the needs of their customers while being mindful of environmental sustainability. The future of KEI wires and cables looks promising, and we will continue to he a leader in the industry by providing excellent world class products and services.
Q.What kind of market opportunities do you see in Indian Market?
Govt. of India is creating new opportunities in the economy by increasing the capex from 7.28 Lac Crore in the last financial year to whopping 10 lac crore now, which will boost infrastructure development. Since electricity is an integral part of any such development therefore I believe there are immense opportunities available in the Indian market for Wire & Cables products in both B2B & B2C segments.
The government’s initiatives to support the domestic manufacturing sector and infrastructure have paved the growth for the wire & cable sector. Apart from that, there is very strong growth seen in new solar energy projects recently and we are experiencing a good traction in the solar sector as well with rise in demand from solar developers.
Also, we observe a strong demand from power distribution companies for RDSS projects as a result of the current revised distribution strengthening scheme being implemented by numerous distribution firms in India which is financed by PFC and REC. Additionally, the manufacturing sector is showing signs of increasing demand, and it is anticipated that private capital expenditures will also demonstrate very strong demand, particularly from the steel, oil and gas, petrochemicals, cement, and other industries. Investments in the manufacturing sectors will undoubtedly increase as a result of the government’s emphasis on giving production linked incentives (PLI) for manufacturing projects. Moreover, the revival of Real Estate sector will bring more opportunities in the house wire segment.
Q.What are KEI wire and cable highlights in 2022? What are the company’s hopes in 2023?
KEI Industries have registered top line ofINR 6912 Crore. Over last 10 Years KEI has grown significantly with CAGR growth of 17.5%. The projected growth of the industry is fueled by advancements in technology and the increasing demand from diverse sectors such as Infrastructure & Private Capex Industries, construction, automotive, and telecommunications.
KEI currently has very strong ‘AA’ credit rating and has an outlook to grow its top line by 15-17%, and bottom line by 18-20% in FY 2023-2024. We will also add one manufacturing line at Silvasa plant and 1 Manufacturing line at Pathredi Plant within this year to cater the growing demand.
Q.What are the latest trends in the market and what are the challenges faced by the electrical industry?
With technology becoming increasingly integrated, wires and cables are gaining more importance now than ever before. The applications of wires & cables have increased due to growing data centers and IT facilities ensuring secure and affordable connectivity. Moreover, the demand for next-gen gadgets and the rollout of 5G and 6G services are acting as catalysts for the ever-growing industry.
Some of the major trends defining the growth in demand of the wire and cable industry are meeting the demand in view of the Revamped Distribution Sector Scheme (RDSS), surge in EV charging products & accessories, and the rise of the export potential of the industry. Additionally, there will be a spurt in the demand for segments like railway cables, solar cables, amongst a few other segments to name.
Some of the challenges like the competition in the cable industry is intense, with both local and international players vying for market share. We need to stay ahead of the curve by continuously improving our products, processes, and customer service. Secondly, fluctuations in copper prices pose a key challenge for us, therefore we are focusing on the need to be agile and adaptable to navigate these challenges and seize opportunities as they arise.
Q.Which new product are you working on?
We would like to throw some light on a massive greenfield expansion of about 1000 Cr in the coming 3 years. This will be the largest manufacturing plant KEI has ever built and will be based at Sanand, Gujarat, an enormous milestone in powering our way towards success, this facility will help KEI scale to new product introduction in the Wire & Cable product range into specialty sectors.
As we are growing our footprints beyond 60 counties we are already serving, there are many countries who have different standards or certification which are mandatory to market your products for Wire & Cable for diverse sectors such as solar/Wind/ Power Transmission & Distribution.
Q.What is the future outlook of Indian Electrical Sector?
The Indian Electrical Sector is undergoing a significant change that has redefined the industry outlook. The electrical industry’s future in India is bright, and sustained economic growth continues to drive electricity demand in the country. India is emerging as the fastest-growing major economy in the world and due to its very strong infrastructure pipeline and focus by central government and state governments on infrastructure, especially railways, metro railways, urban railway systems, highways and the real estate, we expect a very strong momentum in the cable demand in the coming financial years.
The government of India has identified the power sector as a key sector to promote sustained industrial growth. Some initiatives by the Government to boost the Indian power sector such as
1.PLI scheme to boost manufacturing of high-efficiency solar modules/Photovoltec cells and Battery backed power storage infrastructure.
