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India Wires and Cables Market Outlook to 2019

- Driven by Government Initiatives and Innovations in the Industry

HOW IS WIRES AND CABLES MARKET IN INDIA POSITIONED?

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Indian Electrical Equipment industry has grown massively over the years. The growth of the industry is mainly dependent on the level of economic activities being undertaken in the country. The rapid increase in the industry revenue can be attributed to rapid growth in infrastructure and construction sector, which have majorly aided growth of the electrical equipment sector

The wire and cable market accounted for 17.5% of the entire electrical industry in FY’2014, which is expected to double in size over the next five years. Industry is hugely driven by demand from retail segment, level of investment made by government, personal disposable income; level of individual’s spending on infrastructure and others.

Key Highlights of the Report

- Discussed leading players, profile, market share and product portfolio- Industry statistics from 2009 to 2014 and forecast from 2015 to 2019 in value terms- Detailed discussion of the market segments - Regulatory and macro economy environment - Opportunities let by industry developments

India’s wires and cables market has transformed itself, from a small industry majorly dominated by unorganized players to a large and dynamic sector where organized players capture 50-55% of market. The industry is mostly volume driven, although it comes with a lot of technical and quality disturbances.

The industry is inclining at a greater pace as a result of growth in the power and infrastructure segments. It is expected to grow at similar rate for the next five years owing to the government's emphasis on the power sector reforms and infrastructure.

Figure: India Wires and Cables Market Size by Revenue INR Million, FY’2009-FY’2014

FY'2009 FY'2010 FY'2011 FY'2012 FY'20130

5 0 ,0 0 0

1 0 0 ,0 0 0

1 5 0 ,0 0 0

2 0 0 ,0 0 0

2 5 0 ,0 0 0

3 0 0 ,0 0 0

0 .0 %

5 .0 %

1 0 .0 %

1 5 .0 %

2 0 .0 %

2 5 .0 %

3 0 .0 %

INR Million Growth Rate %

The wires and cables market in India is highly fragmented, with the presence a number of small and medium enterprises. The organized sector manufactures high voltage durable and specialty cables, whereas the unorganized sector mainly captures the low voltage market, where products are mainly differentiated on the basis of price.

The intensifying competition in this industry is expected has put increasing pressures on the various players to maintain their market shares. Additionally, the low level of exports is has also hampered the growth of this industry in India. However, the real estate boom in the country, promulgated by an incline in the number of houses being bought and sold contributed positively towards the revenue generated by the cable market. Additionally, the demand for electricity is expected to rise in future with increasing number of households, together with the sales of transmission and distribution equipments leading to positive inclination in demand for wires and cables and thus revenue generated by the industry. The wires and cables market is presently at its growing stage in the country and is expected to capture a significant share in the electrical equipment industry in the coming years.

The new technologies and extensive research and development by market players are making it possible to collect more information in order to fully understand the demand of the market. The overall wires and cables market in India is expected to grow at a CAGR of 18.5% during FY’2014-FY’2019.

Development in terms of optical fiber cables, fire-resistant wires and cables is expected to continue to develop, assisting the transition toward underground wires and cables. Products with superior technologies such as broader range application equipment and electricity saving will continue to find a deeper penetration in the Indian wires and cables market. The GDP generated from construction will grow at a CAGR of 6.0% during FY’2015-FY’2019. As a direct outcome of Indian government’s spending on development of infrastructure, the number of roads and highways is expected to increase in the next five years. Furthermore, government’s spending on enhancing the real estate sector is expected to make the pool of consumers of wires and cables grow exponentially, which will be conducive to the revenue generated by wires and cables market in India.

India Wires and Cables Market Future Projections on the Basis of Revenues, 2015-2019

FY'2015 FY'2016 FY'2017 FY'2018 FY'20190.0

100,000.0

200,000.0

300,000.0

400,000.0

500,000.0

600,000.0

700,000.0

16.5%

17.0%

17.5%

18.0%

18.5%

19.0%

19.5%

Estimated Revenue Growth Rate %

Axis

Title

WHAT ARE THE MAJOR SEGMENTS DRIVING CHANGE?

Section Review

Power Cables led the revenues from the wires and cables market with more than 50% contribution to the total market in fiscal year 2014. In 2014, the major demand for wires and cables product was from retail sector.

Growth in wires and cables market can also be attributed to the introduction of latest technologies by manufacturers in India and swift expansion of automated and innovative cost reducing manufacturing technologies, which have significantly improved the throughput of wires and cables products.

Power Cables led the revenues from the wires and cables market in fiscal year 2014. The market has transformed from being a labor intensive to the inclusion of latest technologies.The distribution segment is largely comprised of organized players. Polycab wires, Finolex cables, Sterlite technologies are some of the leading players.

With a move towards complete digitization of TV cable networks in the country, the demand for OFC network is propelling in the country. 

The wires and cables market of India has been characterized by a steady growth in demand with slight fluctuations, affected by economic turbulences. The industry is highly competitive with major proportion of the market being captured by few organized players. A high level of consolidation has led to increased pressures on pricing and promotion.

Optical Fibre Cables are gaining importance in the wires and cables market. Due to increasing penetration of smartphones and rising demand for broadband services the demand for OFC installations has seen upsurge. To address the growing need for high speed data transmission, the government along with major organized sector players has been investing huge amount

Government initiatives such as Affordable Housing Scheme, GST, National telecom Policy and others is expected to have positive impact on the market.

With the consumers becoming more perceptive towards value addition, providing products by anticipating the consumer needs in advance and broadening the appeal of the product to suit a variety of needs could prove vital for the growth of the this industry in the coming years.  

of resources in upgrading the infrastructure of telecom. the demand for telecom cables will also gain impetus as service providers will upgrade their networks to meet the increasing demand for smartphones, which in turn would lead to increase in demand for telecom cables required to handle the increased demand.

Table: India Wires and Cables Market Segmentation on the Basis of Revenues from Power Cables and Control Cables in INR Million, FY’2009-FY’2014

Category FY’2009 FY’2010 FY’2011 FY’2012 FY’2013 FY’2014

Power Cables

Control Cables

Table: India Wires and Cables Market Segmentation by End Users in INR Million, FY’2009-FY’2014

Category FY’2008 FY’2009 FY’2010 FY’2011 FY’2012 FY’2013

Retail Segment

Industrial Segment

Competitive Landscape

ParticularsCompanies Mentioned

Polycab Wires LtdFinolex Cables LtdHavells India LtdSterlite Technologies Ltd

Products Mentioned

Electrical CablesCommunication CablesPower CablesControl Cables

Competition Polycab Wires was the largest player in the Indian wires and cables market. Polycab wires is engaged in the manufacturing of different kinds of wires and cables such as power cables, control cables, specialty cables and others. Finolex Cables is the second largest player; the company has been working increasingly to introduce new brands in the Indian market, in addition to enhancing the visibility of its existing brands.

Polycab Wires is the leading manufacturer of wires and cables in the country. Over the years, the company has increased its emphasis on meeting the supply target in terms of variety of products by maintain consistent quality standards.

Finolex cables produce products that have application across residential, commercial and industrial sectors.

Product Portfolio of Major Players in India Wires and Cables Market

Company Product SpecificationPolycab Wires Light Duty Cables (LDC): Used for lighting load as well as are also used in various

electrical equipments such as Washing machines etc.

Industrial Flexible Cables: Used for electric power supply, modern electrical appliances equipment and others.

Telephone Cables: Used for interchange and for local network.

Power Cables: Used for underground as well as over head transmission of power in power plants, industries, projects and all other electrical systems.

Control Cables: Used for connecting user point to main power supply.Sterlite Technologies

Optical Fibre Cables: Used in development of access networks, in variety of applications ranging from long haul, regional, metro, access networks.

Data Cables: Used in structured cabling

OPGW: Enables synergies between efficient power distribution grids and high speed optical fiber-based networks,

Finolex Cables PVC Insulated Cables: Used for electrification of industrial establishments, consumer electrical goods, electrical panel wiring.Automotive Cables: Used as wiring harness for automobile industry and battery cables for various applications.Jelly Filled Telephone Cables: Used for telephone line connections to exchange and usersOptic Fibre And Optic Fibre Cables: Used in networks requiring high speed transfer of large bandwidth due to voice, image and data transmission

KEY FACTORS CONSIDERED IN THE REPORT

• Comprehensive analysis of the wires and cables and its segments

• Industry is presented by types of cables; by end users and by distribution.

• Listed major players and their positioning in the market

• Identified major industry developments in last few years and assess the future growth of the industry

• Regulatory framework help to understand investment opportunities and complexity involved

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