Interview with Ashish Mangal, Managing Director, Dynamic Cables Ltd
Dynamic Cables Ltd began its journey 30 years ago by taking up manufacturing of conductors, from those humble beginnings the company has grown into one of the leading manufacturers and suppliers of MV and LV Aerial Bunched Cables, MV & LV XLPE Power Cables, LV PVC Power & Control Cables & ACSR /AAA/AA conductors used for transmission and distribution of electricity. The government is bolstering the power sector in India by providing fresh impetus to the completion of electrification projects apart from commissioning additional capacity. This has helped the overall industry tread on a healthy growth trajectory, informs Ashish Mangal, Managing Director, Dynamic Cables Ltd in an interaction with Electrical India…
Please take us through the journey of Dynamic Cables Ltd..
Dynamic Cables Ltd were initially formed as a partnership company in 1986, as “Dynamic Engineers”. We were manufacturing only super enamelled and DPC wires for the transformer industry till about 1995-96, whereupon, we started manufacturing overheads conductors to cater to requirements of majority of electricity boards in India.
With quality products and excellent customer services, we started getting queries of other related products also from the present customers as well as new prospective clients. This prompted us to plan a major expansion project in the year 2003, whereupon, we decided to enter into cable segment, especially, the aerial bunched cable. The unit was successfully established in the year 2006.
Planning forward, we started work on our next expansion in the year 2007 and the third unit, spread over 100000 sq ft was established in Vishwakarma Industrial Area (Jaipur) to manufacture LT and HT cables up to 33 KV, using Sioplas technology. With increasing demand from the market, we planned our fourth unit. This unit had been planned in the year 2016 over an area of 200000 sq ft and is established at Khatushyamji Industrial Area, Reengus, Rajasthan. The plant is expected to be operational by December 2017. With state-of-the-art technology, this plant includes a CCV line with the latest Dry Curing technology to manufacture XLPE cables with online curing.
Our biggest asset towards realization of these milestones has been the support of a dedicated & motivated workforce, which is a perfect mix of technical, managerial & operational personnel, which in turn give the company a solid base for further growth and expansion.
What are the products offered by the company catering to power industry?
Currently, our product range caters to the Distribution & Transmission Sector and comprises of LT & HT XLPE/PVC power cables, LT & HT XLPE Aerial bunched cables, LT PVC Control Cables, Communication cables, ACSR, AA, AAA & bare/Insulated copper conductors. We are also manufacturing and supplying the AL 59 type of conductors, these types of conductors are a new invention in the conductors industry. With our new Reengus plant getting operational by December 2017, we will be proudly adding the 66 KV high voltage cables to the existing range of cables.
What is the current scenario in cables and conductors segment?
The cable and conductor industry is highly capital intensive. A lot of capital is required to set up plants and machineries and then there is gestation period of about couple of years, before you can actually start producing and the capital has cost attached to it. Hence, this kind of industry requires a lot of patience, market intelligence, customer service (to retain and expand) and finally quality products to keep your plants working. Yet, power is one of the most critical components of infrastructure crucial for the economic growth and welfare of nations. The existence and development of adequate infrastructure is essential for sustained growth of the Indian economy. Hence, the government is bolstering the power sector in India by providing fresh impetus to the completion of electrification projects apart from commissioning additional capacity. This has helped the overall industry tread on a healthy growth trajectory. All in all there is a huge growth potential for the wire and cable sector in the years to come not only in India but also in various developing countries as well.
How is your cable vertical performing in the market?
If we talk about the markets, we forayed into cables during 2006. We were successful in getting orders from EPC contractors which is a big sector in the power transmission and distribution industry. Our mainstay still is supplying to Electricity utility Boards in India and overseas. Our overseas markets have grown gradually and at present we are supplying to around 30 countries, consistently adding on 3-4 more countries per year.
Our main focus was on building a solid base on which we can capitalize through our comprehensive cables portfolio to expand and globalize the Dynamic Cables Ltd. brand. For FY 2016-17, our turnover has been around INR 331 crore, out of which almost 40 per cent is conductors and 60 per cent is cables. In view of the above, our cable vertical is performing admirably and with new products in the pipeline, we will be looking to add more volume and revenue from the cables segment not only in India but also from exports. Dynamic Cables Ltd has recently been bestowed with Rajasthan State Award for Export Excellence for stellar performance in exports for 2013-14 by Rajasthan Government.
What technological innovations would like to incorporate in your products in order to make them more superior and competitive as compared to your peers?
We have been continuously working towards providing a world class product to our customers. Our facilities that are ISO 9001:2015 & OHSAS ISO 14001 compliant enable us to ensure this. Our products are regularly type tested from internationally recognized testing labs like CPRI & ERDA. Our main USP has always been that we offer high quality products with highly competitive prices and an excellent delivery service backed up by highly qualified personnel that are supportive on every step of order execution. We also offer customizable solutions to our clients based on their specific requirements.
The new plant which will be an amalgamation of Indo-German technology with state-of-the-art equipment and a world class internal testing lab shall also further help us establish a benchmark in technological advancement, production, testing, environment & manpower safety standards and thus help us achieve a definitive edge over our peers.
What kind of modern technologies are in demand in India now-a-days as far as cable segment is concerned?
With the Indian Government proposing to build smart cities across, the emphasis is now more on energy saving hardware, fibre optics, fire survival cables and state-of-the-art quality standards in cities. With our strategy towards setting up a fibre optic plant, we wish to cater to this requirement as currently there are only a handful of manufacturers in this space.
Further, impetus by India and other countries on renewable energy has given solar and wind energy sector a new lease of life. Due to this the requirement of solar dc cables and flexible cables, torsion cables has been generated worldwide. Many solar parks and wind farms are currently being setup and this development is a positive one as focus has shifted towards developing renewable Energy and opens up a new market for cable manufacturers.
Further, in India emphasis has been given on rural electrification and distribution and strengthening and upgrading of the current electric grid system, hence the demand for High Voltage (HV) and Extra High Voltage cables (EHV) is developing. In short, with the constant evolution of the transmission and distribution systems, there will always be an evolution in cable technology.
With regards to cable industry, what challenges and issues do you see as affecting the growth of the industry?
To sustain the envisaged annual GDP growth rate of around 8-9 per cent over the next 20 years, India will be required to increase the electricity generation capacity from around 180 GW presently to over 800 GW by 2032. This would require a matching up gradation and enhancement of the electricity transmission & distribution (T&D) segment. The opportunity is humongous and so are the challenges being faced by the industry. Some of them include:
• Lack of domestic availability of critical inputs/Raw materials
• Skill gap and manpower issue
• Lack of standardization of product specifications and design parameters
• Inadequate domestic testing and calibrating infrastructure
• Bureaucratic hurdles as most of the clients are either state or central government
• Absence of culture of innovation and R & D in industry
• Strong competition from neighbouring countries
• Land acquisition issues
• Low levels of exports
What kind of opportunities do you envisage for your company with the government’s project of 100 smart cities, ‘power for all’ scheme etc?
100 smart cities project is a boon to the cables industry as the scope lies in modernised sub stations, underground power distribution & robust IT connectivity and digitization. Dynamic Cables Ltd is already supplying to various private companies which are executing various electrification centric projects in selected cities. With our product range and established terms with private contractors, we are aiming towards catering to the Infrastructure sector as well as the power sector.
How was the last fiscal? What kind of turnover do you envisage for 2017-18 fiscal? Do you have any expansion plans?
Our growth has been cautious and consistent over the past decade. For the past three years, we have been able to consolidate our earnings which have resulted in a steady increase in our turnover. With an increasing overseas footprint and a new plant in the offing, we are targeting to maintain this positive upward trajectory towards not only revenues but also product range and market expansion. This perfect culmination of all aspects has contributed to a 15-20 per cent consistent growth in turnover and we expect the same in the next fiscal year as well. Our proposed turnover target is of INR 360 crore for the fiscal year 2017-18.
What are your plans to introduce new products?
With our most technically advanced Reengus plant getting operational by December 2017, the company will add the 66 KV High Voltage cables to the existing range of cables. The next phase is manufacturing 132 KV cables for which the infrastructure is being established.
The company also has plans to manufacture railway signaling cables for RDSO (Research Designs & Standard Organization), a division of Indian Railways. Further plans are also being worked for a new optical fiber cable plant. Through which we can look towards catering to the requirement of Optical Fibre cables in India & overseas. These are planned phases which shall be executed in the coming five years, which would give Dynamic Cables Ltd a formidable and expansive portfolio in coming times.