Polycab India, in a recent investor presentation, said that it commanded a market share of 20-22 per cent in the organized wires & cables market, in FY21.
The presentation further estimated Polycab India’s market share in the total wires & cables market during FY21, at 13-14 per cent. The “total” market refers to that which includes players from the unorganized sector.
The total size of the wires & cables industry has been estimated at Rs.40,000 crore to Rs.50,000 crore, accounting for 40-45 per cent of the overall electrical equipment industry.
Polycab’s wires & cables business recorded revenues of around Rs.7,300 crore in FY21, which was estimated to be around twice of that of its immediate peer. This revenue also accounted for 81 per cent of the company’s total revenues of Rs.8,926 crore.
Also read: Polycab India Plans Rs.300 Crore Capex In FY21
Capital expenditure
Polycab India incurred capital expenditure of around Rs.191 crore in FY21. This was lower than the preceding two fiscal years when the average capital expenditure was around Rs.281 crore. Capital expenditure has been directed towards building manufacturing capacities but also in technology, the presentation said.
Polycab’s manufacturing facilities are located at Halol and Daman (Gujarat, for wires & cables) and at Waghodia (Gujarat) for copper rods. The company’s total manufacturing capacity for wires & cables is around 4.1 million km per year. It also has facilities at Roorkee in Uttarakhand and Nashik in Maharashtra.
FMEG
Polycab India diversified into the FMEG (fast moving electrical goods) segment in FY14. The company’s FMEG range currently includes fans, lighting luminaires, IoT products, switches, switchgear, water heaters, pipes, conduits, agro pumps, etc.
In FY21, revenues from the FMEG segment, at Rs.836 crore, accounted for 11.5 per cent of the Polycab India’s total revenues. This share rose from 9.4 per cent in FY20 and 8.1 per cent in FY19.
Polycab India, in the presentation, said that it expects high growth opportunity in the FMEG industry, driven by evolving consumer aspirations, increasing awareness, rising income, rural electrification, urbanization and digital connectivity.
The company has estimated the market opportunity in the fans segment at Rs.9,900 crore and that of switches at Rs.5,000 crore. The market size of the switchgear industry has been placed at Rs.2,100 crore.
(Featured photograph for illustration only)
