Wire and cable manufacturers take retail route to ramp up sales

Wires and cables manufacturers are focusing on retail, changing their business strategy due to delay in payments by institutions.

Wire and cable manufacturers have changed their strategy and are focusing more on retail than institutional sales, owing to delay in receiving payments from institutions.

Normally institutions enter into long-term contracts with suppliers of wires and cables. But some projects are delayed because of unavoidable circumstances, resulting in working capital betting blocked for suppliers. 

On average, the payment from these projects is cleared in eight-nine months, during which raw material prices change, resulting in a further delay of payments. The delay in payment hits producers’ margins.

However, spot sales through distributors and stock-keeping units (SKUs) yield fast payment. Spot sales result in a