CRI Pumps earmarks Rs 125 crore investment in first phase
Aug 17 2016 , Chennai
High-end wires and cables, developed by the company’s in-house R&D facility, can be used in the solar power industry, a fast growing segment in the country and the lead-free insulated cables are used in hygiene applications in the food industry and hospitals, among others.
“Out of the earmarked Rs 125 crore, we have already invested around Rs 95 crore in setting up the manufacturing facility. The products have been test marketed and have received very good response. We expect the wires & cables vertical to contribute around Rs 300 crore from sales in the domestic market alone, in the next full financial year (2017-18),” G Soundararajan, vice chairman, CRI Pumps told FC.
The wires & cables plant, established near Coimbatore, at present has a capacity to process over 10,000 tpa of copper and produce products worth around Rs 500 crore. “We will double this capacity in the next 2-3 years, as the demand for such products is very high,” he said.
The Indian wires and cables industry’s market size is estimated to be around Rs 40,000 crore. Of this, the target segment in which CRI has launched its products is about Rs 14,000 crore. This segment is expected to reach Rs 25,000 crore by 2021 with a CAGR of 15 per cent. “We hope to capture at least 4-5 per cent market share of that by 2021, by which this vertical will contribute at least Rs 1,100 crore to our company’s turnover,” Soundararajan said.
The company intends to leverage its strong relationship with EPC contractors, retailers and consultants for the wires and cables as well. “Besides our strong distribution and retail network in India, we will tap the overseas market opportunities, where we have seven subsidiaries in different countries and distributors in about 120 countries,” he pointed out.
The company clocked revenues of around Rs 460 crore in the June quarter of the current year and hopes to achieve a turnover of Rs 2,000 crore this fiscal. “In Q1 this year, we achieved a growth of 41 per cent in revenues,” Soundararajan said. Last year, the company had diversified into the manufacture of high-end non-metallic uPVC and CPVC pipes.