 "CRI group enters high-end specialised wires, cable market")
Tamil Nadu-based pump manufacturer CRI group on Thursday said it has forayed into high-end specialised wires and cables market with an investment of Rs 125 crore, and it aims to achieve a turnover of Rs 5,000 crore by 2021.
"In the first phase, CRI has earmarked an investment of Rs 125 crore for this project. This state of the art plant with integrated cable compound manufacturing facility will have production capacity to process over 10,000 tonnes of copper and produce products worth over Rs 500 crore per annum," CRI Group Vice Chairman G Soundararajan said in a statement.
In the second phase, the company plans to invest further to double the capacity in about 2-3 years time.
Indian wires and cables industry's market is estimated to be around Rs 40,000 crore, of which CRI's market potential is about Rs 14,000 crore.
The target segment is expected to reach Rs 25,000 crore in 2021 at a compound annual growth rate (CAGR) of 15 per cent and the company is eyeing at least 4-5 per cent market share in the targeted wires and cables segment, which is expected to contribute Rs 1,100 crore to the revenues by 2021.
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In the high-end specialized wires and cables offering for the first time in India, CRI's Research Centre has developed a high temperature application XLPE (cross linked poly ethylene) submersible winding wire with higher dielectric strength. CRI Has also developed high efficient DC solar cables for the fast growing solar industry.
CRI's specialized wires and cables range includes lead-free insulated cables for hygiene applications, EPDM cables for low ambient applications, special oil resistant and chemical resistant cables for waste water, communication cables, halogen free flame retardant wires, fire retardant wires and fire retardant low smoke wires, termite resistant wires, flexible power cables for industrial applications, submersible cables and winding wires.
The advantage of the halogen free flame retardant cables further includes low smoke emission, low generation of corrosive or toxic gases and low fire propagation characteristics.
CRI has already test marketed some of these products in specific markets and received overwhelming response.
The Indian wires and cables industry's market size is estimated to be at Rs 40,000 crores. Out of this, CRI's target segment's market potential is about Rs 14,000 crores. This is expected to reach Rs 25,000 crores in 2021 with a CAGR of 15%. CRI Is confident to capture at least 4% to 5% market share in the targeted wires and cables segment, which would fetch a revenue of Rs 1100 crores by the year 2021.
India's growth relies on power and infrastructural development and the current government's initiatives such as smart city development, rural electrification, industrial corridor development, solar mission and affordable housing will further drive the growth of the domestic wires and cables market.
Rapid urbanization and a rise in the number of nuclear families are witnessing an increasing demand in the residential sector. Booming consumerism and the entry of MNC retailers is seen in the retail space.
The commercial and industrial sectors are facing expansion and specialized demands with every passing day. The implementation of the proposed goods and services tax will be an advantage to CRI over unorganized players present in this industry.
The current stringent government policies and stipulations further increase the potential for quality players in the industry.
Mr. G Soundararajan, Vice Chairman of CRI Group said, "Over the last 25 years, the wires and cables industry has moved from being a small industry to a large one. The sector continues to remain highly fragmented predominantly by organized players. However, about 35% of the market is still catered by unorganized players in the industry.
This volume driven product places a lot of importance on quality and technical specifications. In fast growing countries like India, the demand for specialized cable and wire products for specialty applications is increasing rapidly, resulting in greater opportunities for CRI.
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