Polycab India to invest Rs 200 crore annually in consumer product segment: Inder T Jaisinghani, CMD
"Polycab Experience Centre showcases the wide range of quality product under the roof to make sure that consumer experience and choose them", says Inder T Jaisinghani, Chairman and Managing Director, Polycab India Limited, during an interview with Zee Business.
"Polycab Experience Centre showcases the wide range of quality product under the roof to make sure that consumer experience and choose them", says Inder T Jaisinghani, Chairman and Managing Director, Polycab India Limited. During an interview with Swati Khandelwal, Zee Business, Jaisinghani said, "they have a plan to invest around Rs 200 crore to increase their capacity on consumer product segment". Edited Excerpts:
Q: The company has launched a new experience centre for customers. Tell us something about it?
A: Earlier, we were only into wire and cable production and it has been almost 3-4 years since when we entered into consumer products. There is a need to inform people about the range of products that we offer and that's why we came up with the Experience Centre. The centre will be used to inform people about the range of products that we offer and experience them and have knowledge about it. More such experience centres will be opened in future as it will help us to grow in the consumer product segment.
Q: How corporate tax cut will benefit Polycab India?
A: Corporate tax rate cut has benefitted us a lot and boosted us to increase our manufacturing capacity in consumer and other products. We had planned our CapEx for the purpose but the rate cut will help us in saving a certain amount, which can be invested further. Besides, this rate cut will help in increasing the number of industries in India and provide employment opportunities. It is a great move as it will help every country to save.
Q: What is the situation of consumer electrical amid an ongoing slowdown in the consumption segment? Do you feel that your company will perform better during the festive season?
A: The year has been slow till date but we will try hard to bring the same business. For the purpose, we will have to work hard and bring it back but it is a tough job. However, it can be attained by entering into almost every segments and district, where we are not present. It is good as it will allow us to enter into new segments of business and areas, where we can find new distributors and customers.
Q: Rural and rail electrification has been the driving factors for wire companies including Polycab, whose 90% revenue comes from wires, in the past. What is going to be the growth drivers for your company in the near future?
A: Affordable houses is the biggest growth driver, however, the market for real estate builders is not so good at present. But there is a demand in affordable house segment and it will continue to grow by 10-15% at a continuous pace as our Prime Minister Narendra Modi speaks about 'Home for Everybody'. Wire, cable and consumer products will be needed in case of affordable houses, however, its demand is slow at present, but it will grow within the next six months and this will be continuous growth. Similarly, more cables are required for 'Light to Every Home' because, in the process, the contractors are responsible to take electricity to every village and connect every house with it. Thus, it has been in demand and has continued to grow. Besides, I don't think that anyone can stop India from growing.
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Q: Fast Moving Electrical Goods (FMEG) will contribute 25% to your business in future. So, how much Capex has been planned to achieve this?
A: We have plans to invest around Rs 150-200 crore every year as we will have to increase our capacity in the consumer product segment. Currently, the consumer product segment has a contribution of 8% and we will have to increase our capacity to raise its contribution to 25%. In fact, you can provide a qualitative product only if the product is manufactured at your facilities as you can't maintain it through trading. That's why we are manufacturing almost every product. And, in this hunt, we have been adding new factories for different purposes like we have added facilities for light, fan and switchgear among others and will keep adding them in future as well.
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