Power and Infrastructure Sectors Boosting the Wires & Cable Demand in India: Sri Vinay Rathi

Sri Vinay Rathi | Designation- Director | GLOSTER CABLES LIMITED

Over the past 25 years, Gloster Cables Limited has made progressive advancement in its infrastructural capacities and market reach. GCL works have been accredited for conforming to the quality standards of ISO 9001:2015 by DNV also. Our production facilities have been designed to match customer expectations and are compatible with the requirements of the National and International Standards.

Q1. Tell us about your journey and achievements so far in the India market domain?

My family was associated with the electrical cable industry for decades. Hence, when an opportunity presented itself in the form of a takeover of the sick cable industry and considering the huge market potential, it did not take much time for me and my co-promoter to seize the opportunity and incorporate a new company. Thereafter, we entered into a technical and marketing collaboration agreement with one of India’s best-known cable manufacturers.  Our journey for the initial decade was very encouraging. We were growing at a CAGR of over 25 per cent. However, like most other cable industries, we too suffered significantly due to the global meltdown in 2008. It took us a few years to stabilise but all that is behind us now. We have been investing continuously in enhancing both capacity and capability and the proof of this is our steady increase in revenue and client base. From a small beginning in 1995, we have now grown to a Rs 500 crore company

Q2. What are the major challenges in the wire and cables industry in India?

Extreme contest from worldwide brands is one of the significant difficulties in the Indian market. Another Challenge is that the Cable Industry is basically a conversion industry. Material costs play the major role in the cost of the finished product, roughly 80%. Thus, cable & wire manufacturers need to make progress toward flawlessness in the transformation processes in the organization. That is the place where the actual profits are made 

Additionally, a major working capital is blocked due to storage of costly raw materials. So every manufacturer should have a close eye that unnecessary funds should not be blocked by making huge inventories.

Q3. How is the demand for wire and cables? And which are the core sectors driving the demand for wire and cables in India?

In India, the wire and cable market comprises nearly 40 per cent of the electrical industry. “It is growing at a CAGR of 15 per cent thanks to the growth of the power and infrastructure sectors in the country. Moreover, global investors now consider India as a potential market for high voltage (HV) and extra-high voltage (EHV) cables. Rising urbanization and industrialisation are driving the growth of this market. The Wire and Cable industry is expected to register significant growth in the next five years. Also, real estate has started growing at a faster pace which is a big buyer of our products

Q4. What’s Gloster Cables strength and USP?

  1. We have a wide product range from 1.1 kV LT Cables to 33 kV HT Cables. We have mastered in different types of special cables like FS Cables, Solar Cables, Instrumentation Cables etc.
  2. We have a wide range of compound options for inner and outer sheaths:
  • Default = PVC+UV+ART. This means unlike other companies we do not charge extra for UV/Anti-Rodent/Anti-Termite
  • Additional options = PVC-FR/FRLSH/HOFR , ZHFR, LOW TEMP -35°C
  1. Special Heat, Oil & Flame Retardant [HOFR] compound available for refineries. Developed by us in-house
  2. Fastest delivery among the indian cable manufacturing units

Q5. What are the CSR initiatives from Gloster Cables?

The best way a society can progress is when people have a high rate of literacy. Keeping this in mind, the company has decided to channelise their entire CSR funds and more to the cause of educating underprivileged children in government schools in and around their manufacturing units. In addition to funding, they are also engaged with these schools and local administration in a collaborative way to ensure holistic education. 

Q6. Do you have any messages for our readers?

We are known as a quality and trusted manufacturer. Our slogan is –‘Safety is not expensive. It is priceless’. We design our cables with safety in mind. Our vision for the future is to achieve a turnover of  Rs 1,000 crore in the next three years.