With a standing of sixty years, Finolex Cables is among India’s leading electrical and telecommunication cable companies. In this exclusive interaction, we have Amit Mathur, President — Sales & Marketing, Finolex Cables Ltd, discussing the company’s recent technological innovations like wires & cables using modern E-beam technology and the newly-launched superior flame-retardant “FinoGreen” wires. With strategic investments in technology, product innovation, and market expansion, Finolex is set to remain a leader in the electrical wire and cable industry, asserts Mathur.
What is the current status of the new cable manufacturing facility using e-beam technology? Has commercial production started?
The new manufacturing facility in Urse, Maharashtra, which utilizes e-beam technology, is fully prepared, with successful machine testing and trial runs completed. We are currently in the process of obtaining regulatory approvals, including certification from the Bureau of Indian Standards (BIS), before we can commence marketing.
The plant now has machines capable of producing wires and cables with thermal resistance of up to 150°C, featuring enhanced environmental and abrasion resistance. This facility will support the production of solar cables, high-quality residential electrical wires, and instrumentation cables for railway applications. This facility will also support the growing needs of the electric vehicle market for EV battery cables, a segment we are actively developing.
We understand that cables using this e-beam technology will be marketed to a variety of industries including solar power and railways. Tell us more.
These specialized cables, designed for high thermal stability, will initially cater to the solar power sector. As the facility ramps up, we plan to broaden our focus to industries like railways, automobiles, and more.
Given the advanced nature of e-beam technology, securing certifications is a rigorous process. For instance, approval from the Bhabha Atomic Research Centre (BARC) is essential due to the involvement of irradiated electron beam technology. Additionally, supplying cables to the railways will require clearance from the Railway Designs & Standards Organisation (RDSO), ensuring that our products adhere to the highest safety and quality standards.
This project is part of a broader Rs.500-crore capital expenditure plan, announced earlier that included expanding manufacturing capabilities, adopting advanced technologies, and enhancing supply chain infrastructure. These efforts will enhance our capacity to deliver cutting-edge cable solutions across various sectors.
How has been the response so far to the flame-retardant “FinoGreen” wires launched earlier this year?
FinoGreen wires are also well-suited for high-traffic environments such as malls, hotels, airports, educational institutions, and high-security areas. Their safety features have made them an attractive option for builders focused on high-quality, risk-reducing electrical installations.
Some industry reports suggest that the share of unorganized-sector manufacturers in the home wire industry has been shrinking over the years. What is your view? Could one attribute this to growing consumer awareness on aspects like safety?
The share of unorganized-sector manufacturers in the home wire industry has indeed been shrinking over the years. This shift can be attributed to several factors, particularly rising purchasing power and heightened consumer awareness about safety. Consumers today are more informed and conscious about the quality and safety of electrical products they use in their homes. This shift in awareness has been driven by increased access to information and a series of high-profile incidents highlighting the dangers of substandard wiring.
Moreover, organized-sector manufacturers like Finolex Cables have been proactive in educating consumers about the benefits of using high-quality, flame-retardant, and eco-friendly wires. Additionally, regulatory changes and stricter enforcement of safety standards have made it more challenging for unorganized players to compete.
This trend is likely to continue as consumer awareness and regulatory oversight increase. The organized sector’s focus on innovation, quality, and safety will continue to drive their growth, while unorganized players may struggle to keep up.
Speaking only of the home wire segment, what is the business share of Finolex Cables in terms of markets – metropolitan cities, tier-1, tier-2, tier-3 cities, towns, rural, etc?
Finolex Cables has a well-distributed market presence across various segments in the home wire industry. In the home wire segment, Finolex Cables has strategically diversified its presence across metropolitan, tier-1 -3cities, towns, and rural areas. The company has been aggressively expanding its retail outreach. This expansion is geared towards increasing its presence from 2,00,000 to 250,000 retail outlets, particularly focusing on tier-2 and tier-3 cities, where we anticipate robust growth.
Finolex Cables’ stronghold in metropolitan cities remains significant due to its established brand presence and demand for high-quality electrical products, especially in real estate and infrastructure projects. However, the company’s broader strategy includes tapping into the rural and semi-urban markets, where initiatives like the ‘Make in India’ and rural electrification projects are expected to drive demand for quality electrical wires. This balanced approach across urban and rural markets positions Finolex Cables well to capture growth opportunities throughout India.
Overall, Finolex Cables’ strategic investment in technology, product innovation, and market expansion ensures it remains a leader in the home wire segment across all these market segments.
Coming to LT/HT power cables, do you see demand emanating from the Revamped Distribution Sector Scheme (RDSS) that envisages strengthening of power distribution infrastructure?
Yes, the Revamped Distribution Sector Scheme (RDSS) is expected to significantly boost demand for LT/HT power cables. For Finolex Cables, this presents a substantial opportunity. The company’s extensive range of LT/HT power cables, known for their durability and efficiency, are well-suited to meet the needs of these infrastructure upgrades.
As the RDSS progresses, we can expect a steady increase in demand for high-quality power cables. Finolex Cables, with its strong market presence and reputation for quality, is well-positioned to capitalize on this demand. The company’s ongoing investments in technology and capacity expansion will further enhance its ability to meet the growing needs of the power distribution sector.
Tell us about the export market of Finolex Cables, mainly with respect to home wires and power cables.
Finolex Exports have successfully expanded into various international markets, delivering high-quality electrical cables to countries across the Middle East, Africa, Southeast Asia, and the SAARC regions. This global presence not only underscores the brand’s credibility but also highlights the increasing demand for reliable electrical solutions worldwide.
In particular, we are focusing on the house wire and power cable segments, continuously enhancing our retail and distribution channels while pursuing project business with both private and government sectors. We have also secured several local approvals, enabling us to tailor our strategies by country and segment.
To connect more effectively with consumers, we are introducing consumer products to the global market, which will further solidify our presence and strengthen our core offerings.
We remain dedicated to upholding high standards and cultivating strong relationships with our international clients.
Please discuss how Finolex Cables is contributing towards increasing consumer awareness towards issues like safety when it comes to selection of home wires.
Finolex Cables is actively contributing to increasing consumer awareness about safety in the selection of home wires through various initiatives. The company emphasizes the importance of using high-quality, flame-retardant wires that meet stringent safety standards. For instance, our FinoGreen wires are designed to be eco-friendly and reduce smoke emissions. This significantly enhances safety during fire incidents.
Likewise, how is Finolex Cables helping electricians understand the importance on scientific and safe wiring techniques?
Yes, in addition to consumer education, Finolex Cables is also focused on training electricians by arranging visits to our manufacturing plants and running training camps in conjunction with the International Copper Association. Thus equipping electricians with the necessary knowledge and skills, Finolex ensures that the end-users receive safe and efficient electrical installations. Overall, Finolex Cables’ efforts in promoting safety and quality in the home wire segment are comprehensive, targeting both consumers and professionals in the industry.
How do you see the years ahead for Finolex with respect to the electrical wire and cable business? What do you consider as your main business growth drivers?
The future looks promising for Finolex Cables, driven by several key growth factors. The company is investing in new manufacturing facilities, including those for irradiated electron beam (E-beam) technology, which enhances the durability and thermal stability of cables for sectors like solar power and railways.
Finolex is also expanding its product range, with recent additions like solar and automotive cables to tap into the growing renewable energy and electric vehicle markets. This diversification helps the company access new revenue streams beyond traditional segments.
To improve accessibility, Finolex is significantly increasing its retail presence from the present 2 lakh outlets, particularly in fast-growing tier-2 and tier-3 cities. Products like FinoGreen, which are eco-friendly and flame-retardant, continue to build strong market demand, reflecting consumer awareness of safety.
Finolex is well-positioned to benefit from government programs like ‘Make in India’ and ‘AtmaNirbhar Bharat,’ which are expected to drive infrastructure growth. With strategic investments in technology, product innovation, and market expansion, Finolex is set to remain a leader in the electrical wire and cable industry.
