Electric Wires and Cable Market in India 2012
Electrical wires and cables market is growing at a steady pace as the government is investing heavily in infrastructure development. Increase in capacity of the existing power plants and commissioning of the new ones have resulted in higher demand for electric wires and cables. Due to the roll out of 3G and broadband, demand for electric wires and cables is likely to increase in the future.
The report provides a brief introduction to the cables and wires market. It shows the distribution of global cable and wire industry. It also provides the classification and a comparison between Polyethylene (PE) and Poly Vinyl Chloride (PVC)cables on various parameters. The market overview section gives a snapshot of the Indian electrical equipment industry. It also highlights the market size, growth and the segmentation. Porter’s five forces analysis helps to understand the prevailing structure of the electric wires and cable market. The import-export section highlights the amount of import and export with respect to electric wires and cables over last four years and the major countries of import and export.
The drivers include the huge investments made by various private companies in power sector as well as the increasing budget allocation by the government on the power sector. Power sector is the largest consumer of cables in India. Another important driver is the roll out of 3G and broadband on a pan-India basis which will boost the market as demand will increase as players look to enhance broadband penetration levels. Government impetus in refineries, power and fertilizers will offer a boost to the cable industry as almost all manufacturing companies need cables. Robust industrialization and growing urbanization are the other important drivers identified. Auto sector and railways are the other important sectors consuming wires and cables on a large scale. Additionally, growth will be fueled by urbanization as cables and wires will be required in buildings and offices. Challenges identified include increasing price rise and competition from Chinese imports. As the price of copper continues to increase, profit margins are squeezed and they become uncompetitive in the international market. The next section deals with government initiatives where the credit lending subsidiary scheme is explained. It also highlights the rules and regulations the wire manufacturers need to adhere.
The competition section offers a bubble chart where the relative positions of the players are depicted with respect to their revenue, net profit and market capitalization. It also includes profiles of the major players in the market along with their financials. Key ratios and list of important contact persons are also listed. Key geographic areas and major business segments are also included. Key developments that have taken place in the market have been identified. The last section deals with the strategic recommendations where the critical success factors important to this industry have been depicted. The Appendix section describes various associations and exhibitions pertaining to this sector.
The cable industry had been generally growing at around 15% annually during 2003-08. This was largely due to the liberalization and government’s focus on the infrastructure and power sectors. Since 2008, due to the global meltdown, industry in general, both domestic and overseas had witnessed a severe drop from the peak demand of 2007 alongwith a liquidity crunch. Due to this the cable industry globally experienced pressures on both top-lines and bottom-lines with only a marginal growth during 2008-09 & 2009-10. The cable industry also saw some consolidation.
Europe has slowed down considerably, while the pace of activities has increased in India and South Asia in general, the Middle East & Africa. Considerable investments are...
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