Interaction: Vinay Rathi, Director – Gloster Cables

Power Insight: What is the current size of electric wire and cable market in India? What growth rate has been witnessed by the market, over the recent path?

Vinay Rathi: Power is one of the most important components in infrastructural sphere towards economic growth and welfare of nation. Power sector is undergoing a sea change to supplement the economic growth and to drive electricity demand in our Country. Forecast for electric wire and cable in our Country is expected to grow at CAGR of approx. 16% during the period from 2016-2020. The year 2017-18 has recorded a growth of approx. 13%. The economy is expected to embark higher growth in Y 2018-19 owing to many proactive measures such as “Electricity for all, Smart cities, Railway Electrification, emphasizing on renewable energy segment, the year ahead to take wire and cable market to a new height.Sources from various records reveals total installed capacity of power station in our Country is said to be 347 GW as on November’18.

The wire and cable industry with market size of around Rs.16000 crores comprising of around 40% off the entire electrical industry. It is expected to increase by a CAGR of 15% over the next three years to Rs.18000 crores. Cables play a crucial part in all the three aspects of the power sector – generation, transmission and distribution, and as the government pushes for augmentation of transmission and distribution connectivity, it would generate healthy demand.

Power Insight: Could you throw some light on the key market and technology trends witnessed in India?

Vinay Rathi: Infrastructural development towards economic growth has taken a key role in almost all segments.Accelerated urbanization and growing concern over pollution have increased investment in metro rails for urban mass transportation. Govt has planned to develop metro rails in at least 50 cities across. This besides, mining, power, oil and gas, cement industry and steel plants are seen to be active in form of new expansion or revamping. Different kind of cables like EHV, elastomer cables, solar cables are presently in use other then special application oriented cables and wires including new grade of conductors.

Power Insight: What are some of the key drivers for market growth over the coming years?

Vinay Rathi: Our Country, being at the threshold of major reforms, is expected to rank the world’s top three growing economies and among the top three manufacturing destination within next 2/3 years. 3-D concept as designed by our Union Govt Democracy, Demography and Demand is seen moving in its right phase towards implementation. Focus on Infrastructure, Emphasize on engineering thereby Skill India (multi skill development programme), Digitalization on B2B, B2C, various incentives for manufacturing units, additional social security ensuring removing poverty, incentive on agriculture seemingly to be the key elements towards growth achievement. With government focus on Electricity for all under Sobhagya scheme, and smart city initiative, we expect huge demand in coming years.

Power Insight: In your view, what are some of the persistent challenges to market growth and how can be these addressed?

Vinay Rathi: In spite of growth prospect as planned, high inflation and persistent trade deficit, slow electrical price index, low productivity and weak human capital etc are key hindrances.Firms rated low domestic demand followed by high commodity prices is main concern in CII’s Business outlook survey. Similarly, uneven business competition regardless to quality is another aspect deserves attention at all levels. Various social developmental scheme as announced by union government, Reformation in banking sector, upbringing of skill working knowledge through various engineering colleges, foreign direct investment would help for implementation of growth programme as envisaged.

Power Insight: What growth do you foresee for the market in short to mid-term?

Vinay Rathi: As discussed earlier, government has identified power sector as a key sector of focus so as to promote sustained industrial growth. Initiative by the government to boost country’s power sector will lead to increase in demand electrical industries. The second half (Q3 & Q4) of 2018-19 has shown a steady growth as compared to the first half and the next FY is expected to reach still high land mark. About Gloster we expect to achieve a top line of 415 crs in 2018-19 and plan to ring the bell of 2019-20 with a ambitious plan of 500 Crs with our existing product line.

COMPANY SPECIFIC

Power Insight: Briefly tell us about your Company and its product portfolio. How has been the current FY19 in terms of business, so far?

Vinay Rathi: GCL produces GLOSTER brand cables, a synonym in the field of cable in our country with cap of helm for few decades. Gloster Cables Limited (GCL) was incorporated in 1995. Over the past 23 years Gloster Cables Limited has made definitive advancements in its infrastructural capacities and market reach.

GCL works have been accredited for conforming to the quality standards of ISO 9001:2008 by DNV also.

Located at around 35 kms from Secunderabad on National Highway NH 44, the plant encompasses an area of 41,000 sq.mts., with a total built-up area of 23,000 sq.mts. Production facilities have been designed to match customer expectations and are compatible with the requirements of the National and International Standards.

In its efforts to manufacture outstanding products, a state-of-the-art infrastructure equipped with sophisticated machinery and testing equipment has been created at its manufacturing units. A vigilant internal quality control cell ensures that every Gloster Cable is tested to conform to the highest standards in the state-of-the-art In-House Laboratory. Presently we emphasize on our existing Cable up to 33 KV grade, Railway signalling cable, Instrumentation cable in addition to environmental friendly Low halogen and Low smoke cables domestic segment.

Mission

• GCL is committed to our customers for providing highest quality products, competitively priced and to deliver utmost customer satisfaction by way of our continuous support for their needs and expectations.

Vision

• GCL will strive to excels as a manufacturer of quality products and services
• GCL perpetual process of improvement will endeavor our human resources to achieve the highest efficiency in their skill and it will be driven towards enhanced customer’s satisfaction and loyalty

Core Values

• GCL believes in treating its customers, Vendors & employees with utmost respect and faith
• GCL will maintain absolute fair business ethics and practices to sustain growth and reach intended goals.

Goals

• GCL will grow hand-in-hand with our esteemed customers and distributors to be a four figure Company within next six years from our existing product line and also from future products.

The year 2018-19 has been a year of achievement having scored fairly well in terms of price index, better control on credit recovery. We expect to reach a top line of 415 Crs, which records the highest figure.

Power Insight: Which all B2B segment do you serve? Are you planning to serve any new yet crucial segment with diversification in product range? Is there any new product in offing, or any new variant of the existing ones?

Vinay Rathi: B2B segment is an undeniable role that is played to achieve high rate of output, efficiency and Brand Value. Our present product range widely covers power distribution segment almost in all category of Industries. In recent past addition of Instrumentation cable has unveiled refineries and process Industries.

Fire Survival cable, Solar Cable and Railway signalling cable are in our recent members in our range so as to expand our market segment. GCL prefers to bent upon its commitment to sustain its reputation in terms of product quality and service. Thereby further addition of new generation of cables is in our future plan of product mix.

Power Insight: Tell us about your plans and preparedness to cater to the growing renewable segment and smart cities mission in India? Is there any new investment coming up, either for capacity expansion or plant upgrade?

Vinay Rathi: We, GCL, are tuned to meet customers requirement and our design and production team are competent to take over any change in form of specification, construction etc. Renewable segment and smart cities are grown quite popularly and we both user and manufacturers should develop a right specification application based to have techno economical advantages.

Nevertheless, my team is alert to complement the need of days. There has been quite changes and synchronization of both the units in shape of reallocation of plants and machinery in order to achieve the best rated output. In terms of investment Company has planned for investment to meet new test field, new machinery installation to augment production output to meet market demand.

Power Insight: Tell us about strategic plans that would help you remain relevant as well as competitive in the market, over the coming years?

Vinay Rathi: This cannot be addressed in a simple format. Our yearly business plan is planned well in advance taking into consideration internal and external resources and analysis of various business segment. Recovery of proceeds is earmarked as main thrust which helps Company to work out competitive prices for attaining the business target.