The size of the wires and cables industry in India is estimated at about Rs 40,000 crores - with specialised cables accounting for roughly Rs 10,000 crores. The wires and cables market is on a high with increasing demand for power, light and communication. Riding on this demand wave is CMI Limited - a leading manufacturer of cables in the country – with specialised cables. The company is working on various niche segments, as they offer better margins, says Amit Jain, CMD, CMI Ltd, which is exhibiting at Hannover Messe 2019. According to him, Make in India initiatives has given an enormous boost to the domestic manufacturing sector with sustainable growth in GDP. In this interview with Rakesh Rao, Amit Jain highlights on new opportunities in India and advantages offered by the country to manufacturing sector.
What will be the highlights of CMI Ltd’s stall at Hannover Messe 2019?
CMI Ltd will focus on the entire range of cables available with us. However, the company will focus mainly on fire survival cables. These cables ensure transmission of signals to safety equipment and continue to perform and carry the service voltage even while under fire (maintained for 90 minutes at high temperature of 950?C). In addition, the company will also focus on renewable power cables & specialised cables.
How is CMI Ltd serving its customers?
CMI Limited (CMIL) is a leading manufacturer of various types of cables for industries such as railways, oil & gas, telecommunications, energy, industrial, power, renewal power and petrochemicals, etc. The company, headquartered in Delhi, is the recipient of prestigious ISO 9001, 14001 and OHSAS 18001 certifications. The company has presence in the entire value chain of the wire and cable industry, starting from design, development and manufacturing to marketing and distribution of cables, making it an integrated wire and cable player in the Indian market.
CMIL caters to the requirements of a broad spectrum of industries and clients through our diversified range of cables. The comprehensive product portfolio includes electric cables for railways, metro projects, utilities, buildings, data transmission, instrumentation, submarine cables, control cables, special cables and extra high voltage (EHV) cables. CMI Ltd manufacturing plants are located at Faridabad and Baddi (Himachal Pradesh) possess state-of-the-art production lines along with R&D and testing facilities apart from the capabilities to serve clients across industries.
How are you able to manage the growing demand for your products & services?
CMI Ltd’s both the plants are designed in such a way that they can manufacture any type of cable except for the optical fiber cables. Thus, the demand for our products always remains constant and growing. The plants are capable of manufacturing power cables, railway cables, control and instrumentation cables, telecom cables, renewable power cables, specialised cables (like fire survival cables that can withstand fire and extend functionality even in extreme fire situations).
How to you plan to take your company to next phase of growth?
We are working in various niche segments, doing business of Rs 5-10 crore in a year with various clients on individual level. Better possibilities are there in the future. Niche segments always have better margins. We serve customers like ISRO, Siemens, etc. We are catering 10-15 per cent of our overall business volume in the niche segments.
In our growth plan, we would like to increase this percentage by adding some more clients under these categories. We are also doing some Capex as required for Baddi plant, which will be implemented soon as to make the Baddi plant fungible to manufacture all type of cables as of Faridabad plant. We are also in the process of increasing the capacity utilisation of the Baddi plant by adding new clients across all sectors.
What your assessment of the present status of India’s manufacturing sector?
India's manufacturing sector output is expected to register robust growth. By introducing GST last year, a lot of friction points have been removed; thus helping in smooth functioning of manufacturing and other businesses. GST has led to cost reduction, lowering compliance burden, supply chain efficiency and an elimination of the cascading impact of the earlier tax regime. A number of proactive Government initiatives like Make in India, FDI policy, and Skill India, along with the country’s higher rank on the Ease of Doing Business Index, have been instrumental in reviving growth.
What has been the effect of “Make in India” campaign and other government initiatives on the manufacturing sector?
Make in India initiative’s primary goal is of encouraging multinational and domestic companies to manufacture their products in India, making the country a global manufacturing hub. Make in India initiatives has given an enormous boost to the domestic manufacturing sector with sustainable growth in GDP. With the economy becoming domestically oriented, the dependence on imports is also reduced to a great extent.
Under the Make in India initiative only Indian companies are entertained in the most of the tenders floated by the Government and, therefore, multinational companies are forming joint ventures with domestic players to make an entry in the booming economy of India. CMI Ltd is also open to form any joint venture in this regard.
What are the advantages offered by India that can make it the global hub for manufacturing?
Availability of skilled and non-skilled manpower and ready market for the product and services are some of the best advantages which India can offer. With government taking a number of proactive policy initiatives like GST, FDI policy, Skill India, etc, Indian market has become more lucrative for manufacturers.
Would you like to give any message for visitors/exhibitors at Hannover Messe 2019?
Hannover Messe provides a great opportunity to meet potential customers and generate leads, increase your awareness about the company and its offering. It is a great platform to understand the new technology, new products and explore export opportunities.