We understand that KEC International’s Vadodara unit makes EHV cables up to 220kV. Do you plan to make cables of even higher rating?
KEC International’s Vadodara unit manufactures wide range of power cables across LT, HT and EHV segments. In addition to this, we make different types of control & instrumentation cables, railway contact, catenary conductors, signalling & quad cables, telecom cables and special cables for wide range of applications. In line with our focus on expanding our portfolio, we keep evaluating opportunities to diversify and enhance our product line keeping in mind market requirements.
How do you see the market for EHV cables, of above 220kV? Utilities had actively planned to replace overhead conductors with underground EHV cables. Do you see such projects taking place widely?
High-voltage overhead line transmission is most common because it presents the lowest cost and a technically feasible approach to establishing and maintaining a secure electrical power grid. Underground cables are mainly applied in urban or environmentally sensitive areas. As urbanization grows in India with increasingly dense mega cities and smart cities, in addition to the growing need for enhanced reliability in power supply, especially in severe weather conditions and cyclone-prone areas, we could expect requirements for underground cabling systems of ratings higher than 220kV.
As of now, there are very few such projects as compared to sub-220kV. We offer unparalleled expertise to manage and deliver such 220kV underground cabling projects.
Several multinational players like BRUGG, Prysmian, etc. have entered India to tap opportunities in the EHV cable business. How do you see prospects of EHV cables in general?
Demand for underground cabling is being driven for the reasons discussed earlier. We see significant opportunities in the EHV cables segment in the near future. Currently, this market is majorly catered to by domestic manufactures that have in the past entered in technical collaboration with international manufacturers.
Given that KEC’s Cables business has a very wide portfolio of power, control and instrumentation cables, are there any plans of entering the building wire segment?
At present, we have no plans to enter the building wire segment, although we do produce and supply for specific requirements that come bundled as part of LT cable packages.
Apart from supplying cables, we understand KEC International also engages in EPC contracting for cabling works. Please tell us about the scope of services, with respect to the power sector.
KEC is a leading EPC firm present in almost several infrastructure segments. As part of our power T&D portfolio, we undertake complete turnkey contracts for end-to-end cabling in EHV and composite works involving substations or bay extensions.
How do you view the exports market for India when it comes to power cables? How is KEC doing on the export front – both in terms of supply of cables, and cabling contracts?
Exports have always been a focus area owing to the wide presence of KEC across continents, which offer strategic advantage in terms of customer reach. We have undertaken significant cable exports in Australia, Middle East, Africa, and South Asian countries over the last decade.
In FY22, we exported cables and cabling solutions to 35 countries across the globe, including seven new countries. Significantly, around 40 per cent of our export business was contributed by new customers. The company’s exports business grew by around 15 per cent in FY22 over FY21.
Given that state power utilities form an important clientele of RPG Cables, do you see any difference in the procurement of these utilities in recent years?
Of late, almost all power utilities follow e-reverse auction as a practice for finalization of prices after technical evaluation. We see this trend in both public as well as private sector.
How do you see the market for cables in the non-power sector, say metallurgy, petroleum, transportation, etc?
The Government is investing in high-speed mobility across the country, which makes it a key segment. We also see other segments such as data centers seeing continued investments. We are increasingly focused on developing new products as per specific requirements of customers in niche segments like metro rail, mining, shipbuilding, etc. Apart from the cyclical capex pattern of industries, we also see regular O&M requirements from our customers.
We understand that RPG Cables recently underwent a rebranding exercise. Tell us more.
Yes, RPG Cables is now rebranded as “ASIAN CABLES”. We unveiled the new logo at the recently concluded CableWire 2022 exhibition and conference organized by IEEMA. We generated good interest from several important customers who visited our stall at the exhibition.
In general, what would you regard as key growth drivers for KEC International’s Cables business, in the medium term?
KEC’s cables business delivered its highest ever revenue of Rs.1,524 crore in FY22; a robust growth of around 44 per cent. Our timely delivery and superior quality have led to several repeat orders from esteemed customers. The business has secured various approvals from key industrial customers as well as utilities, both government and private and is favourably poised for growth in FY23.
We anticipate much of growth coming additional business from our existing customers as well as our forays into new markets and new geographies. Among segments, we expect EHV and telecom to emerge as key growth drivers for us in the years to come.
