Finolex Cables Ltd, India's leading manufacturer of Electrical and Telecommunication Cables, has announced a significant expansion of its manufacturing capabilities. The company has been a trusted name in the industry since its inception in 1956, starting with the manufacture of PVC insulated electrical cables for the automobile industry.
The company has allocated a capex of 200 crore over the next few months for enhancing its manufacturing capabilities at Urse, Pune. This capex is directed towards enhancing production capabilities to meet the requirements of the Solar Power Industry and the Automotive Industry, bringing in-house certain value additions which were outsourced earlier and further expansion of the Optic Fiber line.
The expansion plans of Finolex are aimed at meeting the growing demand for solar cables, automotive cables, and optic fiber cables. The company has procured specialized radiation technology equipment to set up a manufacturing plant at Urse to produce solar cables using controlled electron e-beam technology. This will enable the company to produce high-quality solar cables and add value to the solar power industry.
The company has established its reputation as an innovative leader and quality manufacturer by continuously upgrading technology, modernizing manufacturing facilities and maintaining the highest standards of quality and services. Every cable is manufactured with the latest state-of-the-art machines using bright annealed electrolytic grade copper of 99.97% pure manufactured in-house and is insulated with virgin grade PVC, also formulated in-house. In a move towards backward integration, the company has set up a Copper Rod manufacturing facility at Goa and in-house PVC compound manufacturing facilities at Urse, Pimpri, and Roorkee plants for self-sufficiency and qualitative control.
The construction sector, which accounts for 60% of its electrical wires and cables revenue, is another focus area for Finolex. The company has recently added additional machinery at its Goa plant to meet demand for its PVC conduits. This will enable Finolex to establish business relationships with project developers and offer a comprehensive range of wires, MCBs, switches, lighting, etc.
Finolex has been at the forefront of introducing innovative products to the market. As the first company in India to introduce Flame Retardant Low Smoke (FR-LSH) electrical wires, the company has been recommending its usage for concealed and conduit wiring. The FR-LSH wires emit very little smoke and toxic gases and retard the spread of fire, making them ideal for safety-conscious consumers.
The process of urbanization along with investments in the power sector has resulted in a large demand for High Voltage (HV)/ Extra High Voltage (EHV) Power cables. Finolex's J Power Systems manufacturing facility is well-equipped to produce EHV XLPE (Extra High Voltage Cross Linked Poly Ethylene) Insulated Power Cables as it is the only plant in India to have a 121 mtr long vertical column. The company has been able to make entry to most of the utilities pan India be it state utilities or private utilities. Finolex has also been successful in exporting EHV cables to countries like Indonesia, Myanmar, Kuwait, etc., helping meet the Government of India’s Atmanirbhar initiative.
With a focus on expanding into adjacent categories, the company has identified untapped markets in Tier 2 and 3 towns and plans to increase its penetration by adding 50,000 retailers over the next three months to bring the retailer count to 200,000 by March 2023. Additionally, Finolex has launched an affordable wire range to meet the needs of this audience.
In response to changing consumer preferences, Finolex has been expanding its product range to include adjacent categories while maintaining its focus on selling only high-quality 'A' grade products. Its existing retail channels now include Fans, Water Heaters, Switches, Switchgear, Lighting, and Room Heaters, achieving healthy double-digit growth.
Last year, the company launched a range of room heaters. The room heaters come in six high-performance, stylishly designed variants with features such as oil-filled, quartz tube, fan blower, convector, and halogen. Recognizing that consumers are seeking practical and energy-efficient appliances, Finolex has just entered the small home appliances segment with the launch of a range of steam and dry irons. The company is also planning to enter the smart switches and smart door lock categories.
To keep up with its growth strategy, Finolex is focused on setting up a robust two-tier distribution model to ensure its products are available on the store shelves of many more retail outlets across the country. Its ambitious plan is to enhance retail outreach to 200,000 retailers by the end of the financial year, which will drive the conversion of the large unorganized market to the branded universe of quality products that offer better performance and higher service levels.
The company is committed to maintaining its strategic edge through ongoing investment in state-of-the-art manufacturing facilities and innovative product development. The company's expansion plans demonstrate its dedication to meeting the evolving needs of its customers and contributing to the growth of the Indian economy.
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