RR Global is a $1.25 billion conglomerate in the electrical sector with a presence in over 90+ countries. RR Global’s business verticals span multiple products including automatic car parking solutions, copper products, and wires & cables. During Elecrama 2023, T&D India spoke to Shreegopal Kabra, Group President & Managing Director, RR Global Group, to gain his insights on the critical issue of safety of electrical equipment – a cause that Kabra has been always been actively supporting. Kabra also touches upon key issues related to RR Kabel, a group company that houses the group’s wire & cable business. An interview by Venugopal Pillai.
You have been an active proponent on the aspect of safety, especially with respect to the building sector. Tell us more.
After roads, the highest number of accidents in India are electrical fires. Around 70-80 per cent these fires are due to electrical short circuit, and out of this, nearly 70 per cent of the fires are the result of inferior wire & cable, and switchgear.
Wire & cable is an invisible product and hence not much attention is paid to this critical aspect. In any building, be it residential or commercial, there are three critical elements – plumbing, electrical and fire-fighting. Unfortunately, all these three aspects are being compromised on. Developers as well as homeowners should go in for good quality of both contractors and material in all these three areas.
Such compromise is occurring perhaps as a cost-cutting measure…
There is not much cost difference. I estimate that the total electrification business is around Rs.3 lakh crore (Rs.3 trillion). In this business, if quality electrical products are used, it will make a difference to the tune of just about Rs.10,000 crore. On the other hand, the damage caused by electric fires to human life and property is far in excess of this. Are we waiting for a big celebrity or a prominent public figure to be victimized by an electrical accident?
It is my sincere request to all members of the electrical equipment fraternity to not compromise on quality. It is not a matter of safety alone, it also reflects Brand India.
How do you generally rate the quality of electrical equipment in India, particularly wires and cables?
The quality of electrical products is worsening, and I see it as the biggest problem in India over the years. People say that the market is getting competitive. I don’t think so. Ironically, there is competition on inferior material. If all manufacturers produce good quality material, where is the competition?
How do you assess India’s testing and certification facilities?
India’s testing facilities are still inadequate. For India, the testing standard for wire & cable is given by Bureau of Indian Standards (BIS).
In UK, for example, the testing facility is BASEC (British Approvals Service for Cables). Now, for each product, BASEC has a different team. Only for wire & cable, BASEC has a team of 44 people. Just with the BASEC approval, we can supply to over 40 countries. On the other hand, in the entire electrical equipment sector for BIS, there aren’t even 44 people, put together!
In some cases, if we want to test some of our specialized cables, I need to send the sample to Europe – even today. The credibility of Indian testing labs like ERDA and CPRI is limited, when it comes to the global market.
Incidentally, BASEC has now opened its office in Dubai. It will therefore be relatively easier for us to access BASEC facilities.
How does RR Kabel fare with respect to international approvals, given that your cables are widely exported?
We are the only company in the world that has as many as 34 international approvals for our factories, from various agencies including UL, BASEC, etc. For instance, ours is the only Indian company that is certified to supply in Austria.
In the Indian wire & cable industry, we are ranked fourth but we are No.1 in exports.
Speaking of Elecrama, how do you see this edition?
The size of Elecrama is clearly increasing over the recent years. Also, this is the first time that Elecrama is being held after a gap of three years (instead of two). So people are obviously curious to learn about new trends and developments. In general, all global exhibitions, after the pandemic, are doing well.
The interest being shown by global companies towards India is significantly increasing. India is today the fifth largest economy in the world, and the brand value that India has created is tremendous.
What are RR Group’s key product launches in this Elecrama?
We have launched a new range of fire survival (FS) cables, and also energy-efficient BLDC (brushless direct current) fans.
Do you have any plans of entering the EHV cable segment?
We have no plans for EHV cables, not at the moment. EHV cable manufacturing will involve high capital expenditure of Rs.300-400 crore, and you need to invest 4-5 years in establish a performance track-record. It is a very different line of business.
We get a feeling that reputed wire & cable brands have limited penetration outside metropolitan and large cities.
No, in fact there is increasing awareness of quality even in towns and villages. The next generation of dealers and retailers are well educated. They are trying to adopt good business ethics. They are paying GST, income tax, etc. They are also seeing the positive implications of this on their business.
I am of the view that the current crop of retailers, electricians and people in the trade should improve their systems and culture. Otherwise, their next generation will not enter the trade. You have to change at least because of the next generation!
Do you have any capacity expansion plans for your wire & cable business, under RR Kabel?
We are currently running at full capacity. Over the next three years, we will double our capacity. We have enough land at Silvassa and are also scouting for new land. The housing sector and exports will primarily drive growth in our wire & cable business.
Our current copper consumption is around 8,500 tonnes per month, and we expect to close the current years with a sales turnover of more than Rs.6,000 crore in the wire & cable segment.
Photographs show RR Global’s booth at Elecrama 2023.
