Consumer interest and knowledge is scaling up: Polycab India

Polycab is today India’s biggest name in the wire and cable segment, catering to a wide spectrum of industries. We have, in this exclusive interview, Bhushan Sawhney, Executive President & Chief Business Officer (Cables), Polycab India, taking us through the company’s journey – from its humble beginnings to the formidable position that it holds today. Sawhney also shares keen insights on the emerging deployment areas for cables – like renewable energy and electric vehicles — as well as general issues affecting the industry. Sawhney asserts that thanks to the unrivalled competency that Polycab has built over the years, the company is well poised to meet any variety and scale of demand in the future.

Polycab, as we recall, entered the wires & cables market around 38 years ago, and is today regarded as the market leader. What would you attribute this meteoric rise to?

Although the brand Polycab came into being 38 years ago, we have a history and legacy that spans more than 58 years. We started our journey in 1964 from a small trading firm in Lohar Chawl, Mumbai.

In 1983, Polycab Industries was registered as a small-scale industrial unit by the Directorate of Industries, Government of Gujarat, in respect of a factory located at Halol for manufacturing PVC insulated wires and cables, copper and aluminium, and bare copper wire.

Within a span of 38 years, Polycab has become India’s largest manufacturer of wires and cables and a well-footed FMEG player. The robust manufacturing with backward integration and in-house R&D capabilities, expansive distribution network, and diverse offerings with global certifications are some of the key differentiators which set Polycab apart.

This unmatched competitive advantage is a result of our untiring perseverance and resolves to deliver the best for our customers. It is this passion to serve customers, which acts as a driving force in our ongoing endeavour to achieve newer heights of excellence for our stakeholders.

 

Do you think that the average consumer is sufficiently aware of the need for fire-retardant and halogen-free low smoke cables? How are companies like Polycab spreading this awareness?

Average consumer awareness of fire survival cables is presently at a level that leaves scope for much to be achieved. Thankfully, the dynamics are gradually opening with consumer interest and knowledge scaling up. Polycab India is prominently investing in campaigns and awareness drives on fire retardant and halogen-free low smoke cables.

The key message we send out to the end consumer about fire survival cables offers a high level of assurance on aspects of safety and security. Frequent occurrence of sudden voltage spikes from electrical grids or malfunction of electrical equipment can result in a sudden increase in the flow of current in wires.

To address such scenarios, products need to be designed specifically to address such spikes, or else it can lead to short circuits or even fire breakouts. Furthermore, in the eventuality of fire, the smoke and toxic fumes being emitted from the wires and cables are more fatal than the fire itself, in many cases. Therefore, it is required that the insulation material of the product should repel flames and should not emit smoke or toxic fumes.

 

What is your take on the role of small wire manufacturers from the unorganized sector?

Yes, that a segment of consumers is resorting to using wires and cables from the unorganized sector is another issue plaguing the industry. The hazards of using such substandard products are of alarming proportion. More progressive and responsible developers and players are needed in the ecosystem, particularly those that realize the benefits and foolproof mechanisms enabled by fire survival cables. Eventually, it is observed that there is an increased uptake for offerings such as BMS (Building Management System) Cables and Optical Fiber Cables.

We are spreading awareness through knowledge-sharing sessions with key influencers. We also participate in important industry events and exhibitions which are attended by key stakeholders. Apart from this, we do a lot of brand awareness through social and digital platforms.

 

Renewable energy is India’s thrust area. How do you see prospects for Polycab’s solar cables? How has been the journey so far?

Emerging economies such as India are pushing for a renewable energy ecosystem. We are leading player in cables business, and do also have solar cables which will benefit us in the long run.

A positive takeaway is that the country has now resolved to attain carbon neutrality by 2070 and in this context, it is expected that there will be a surge in uptake of renewable energy including solar cables.

 

We recall that Polycab had planned to enter the EHV cable market in India. Is Polycab still open to the idea?

Our extra high voltage (EHV) cables manufacturing setup is up and running with present offerings catering to EHV cables in the range of 66kV to 220kV. Furthermore, Polycab India has the largest set of catenary continuous vulcanizing (CCV) lines for dry curing through E-Beam. This facility has been expanded recently and is enough to meet the need for specialized products that are cured by E Beam technology. We are also working on expanding our backward integration capabilities which will help us with raw material availability.

 

On the same count, we believe that the EHV cable industry, especially 220kV and above, has not matured as expected, in India. What is your reading of the situation?

The EHV segment requires an advanced level of expertise and infrastructure. As of now, India has not seen a demand surge for EHV cables but in the near future, with the ever-increasing energy demands of growing India, these products will find themselves on the front shelves of the electrical industry.

Being energy-rich, major regions in India can generate power from renewable sources like hydropower, solar power or the traditional thermal power stations. This leaves very few areas where electricity is fed from far, via EHV transmitting lines. This is the reason we haven’t seen a surge in the demand for the EHV product line.

However, there is a dramatic turnaround on this front in recent times, with the government’s ambitious initiative to electrify entire rural India having turned into fueling the need for such EHV solutions. This makes us upbeat about the growth potential of EHV offerings in times to come.

 

Does the growth in e-mobility inspire diversification into automotive cables?

It is being said that we are currently on an ICE (Internal Combustion Engine) age. With the emergence of electric vehicles, we are slowly getting out of ICE age. The rising fuel costs worldwide, growing air pollution, and increasing consciousness about the environment among consumers has led to a surge in demand for EV vehicles.  Also, the government offers subsidies on the registration of e-vehicles. Major automobile manufacturing companies, both abroad and in India, are focusing on electric vehicles.

To support this demand, India requires a huge infrastructure revamp. Having a sufficient network of charging stations on interstate highways, before e-vehicles roll out, is imperative.

Polycab is committed to contributing to this space. We are already manufacturing high-speed charging cables for electric vehicles. These wires would be able to sustain higher current flow which would enable fast charging. Along with this, we are well-positioned to support the connectivity of the charging stations to their nearest grids.

 

How do you see the years ahead for Polycab’s core business – that of wires & cables? What would you regard as the primary business growth drivers?

India is going to see a power surge in the coming future due to the sharp GDP and economic growth. There has been a rise in electricity consumption from 620 units (kwh) per capita in 2010 to 1,340 units per capita in 2021 and it is expected to grow at a sharper rate in the coming future.

Reports state that India is going to invest a lot in its infrastructure growth, with modern-era public utility facilities — airports, metro, railway stations etc. This investment will revolve back, and India will soon see significant investments in private real estate and infrastructure construction too. Several industrial corridors are being developed. As the connectivity improves, industries will be set up. Residential projects for the working staff in those industries will also begin. Commercial complexes, small businesses, recreational facilities, and so on will follow subsequently.

All these new developments will skyrocket the demand for electrical commodities. Manufacturers should buckle up, expand their facilities, and supply chain structure if they want to be an active part of this mega expansion.

There is huge entry cost and market penetration cost that acts as a barrier in the wires and cables industry. This industry can never go asset-light! We, at Polycab India, have multiple large-scale manufacturing hubs, a strong quality testing team and infrastructure, high volume warehouses and depots, a pan-India distributor base, and good logistics partners as well.

As mentioned earlier, all these enable us to provide the shortest turnaround and delivery time. Encompassing all the above factors, Polycab is very well poised to meet any variety and scale of demand in the future.

 

Please note that all industrial photographs seen in this interview relate to products and manufacturing facilities of Polycab India.