Nearly 40 percent of the electrical industry constitutes of the market of wires and cables in India. Owing to the growing demand in the power and infrastructure segments, this industry has attained a growth rate of 15 percent year over year. It is primarily because of the implementation of different government projects Ujwal Discom Assurance Yojana (UDAY), Deendayal Upadhyay Gram Jyoti Yojana (DDYGJY) and Integrated Power Development Scheme (IPDS) among several others,enhancing the demand for wires and cables which has proven to be very fruitful for the native manufacturers. Further, Indian Railway Mission 41K has generated the potential for Indian wires and cables industry through electrification of 38,000 km route. Under DDUGJY, the government has envisaged the electrification of all villages.
A forecast done by the Energy Economics and Financial Analysis (IEEFA) states that the market of wires and cables will double its revenue in the 10 years. The demand that this market is going to experience in near future would require a proper electrical infrastructure for the supply to be perfect. For the native manufacturers, this will serve as the golden opportunity to build names for their respective brands. The requirement of electrical material is arising from the remotest corners of the country where efforts are being made to bring electricity to every household.
The central government has announced an outlay of 2.6 lakh cr. for the transmission and distribution sector for the five year period which is ending in the 2022 financial year. Another factor that is opening up further opportunities in this sector is the government’s focus on high voltage transmission that aims to provide 24/7 electricity. The government’s target of generation of 100 GW of solar energy by 2022 and measures such as excise duty exemption for ferro-silicon magnesium used for manufacturing components for wind-operated electric power generators have augmented the demand for electrical wires and cables.
Samuel Ansorge, CEO, Brugg Cables states “On the one hand, we see a lot of new power generation due to the new climate politics. This results in substantial adaption of the transmission network. A general trend is to replace overhead lines with underground cables, which is more environmentally friendly. A big trend as well is the upcoming projects for HVDC connections. In the renewable segment we see huge on and offshore wind parks coming up”.