Our export business has continued to Widen its Footprint, Dynamic Cables
Dynamic Cables has become a global player in supply of cables and overhead conductors. The company has continuously been expanding its capacity, capability and product range by improving and expanding existing facilities and also setting up new facilities from time to time. In the wake of its new plant at Rajasthan, Ashish Mangal, Director, Dynamic Cables, elaborates about the company’s growth strategies in an interview with Huned Contractor
Q. Could you provide a history of the company and its journey so far?
Dynamic Cables was incorporated in 1986, whereupon we forayed into manufacturing overhead conductors to cater to the requirements of a majority of the electricity boards in India. The increase in demand in the cables segment in India prompted us to plan a major expansion project in the year 2003, following which we decided to enter into the cable segment, especially the aerial bunched cable. This unit was successfully established in 2006. Planning forward, we started working on our next expansion in 2007 and the third unit, spread over 1,00,000 sq. feet, was established in Jaipur to manufacture LT and HT cables up to 33 KV, using Sioplas technology.
With the need for further expansion and increased demand, we set up a fourth unit, which is based at the Khatushyamji Industrial Area in Rajasthan. This ultra-modern plant will help in designing, manufacturing, testing and supplying the entire range of cables and conductors up to 66 KV. This also includes a CCV line with dry curing technology to manufacture XLPE cables with online curing. In 2017, we further took a monumental step by making our company public through the means of an Initial Public Offer (IPO). We have been able to cautiously grow in the past 30 years and have established ourselves in terms of product quality and service.
Q. Could you elaborate about your product portfolio and application areas?
Currently, our product range comprises LV and MV XLPE/PVC power cables, LV and MV XLPE aerial bunched cables, LV PVC control cables, communication cables, ACSR, AA, AAA and bare/insulated copper conductors. We are also manufacturing and supplying the AL 59 type of conductors. With our new Reengus plant in Rajasthan, we have added the 66 KV high-voltage cables to the existing range of cables. Our products are generally used for the power distribution and transmission line projects as well as industrial and infrastructure works.
We are approved by the state-owned electric utilities companies, including Power Grid Corporation of India Limited. Our clientele includes BHEL, Larsen & Toubro, TATA International, Bajaj Electricals Ltd., Reliance, BSES, Indian Railways, DMRC and Kolkata Metro along with all the major state electricity boards and power distribution companies in India .Our products are also widely used amongst various Indian EPC clients working in India and overseas such as Larsen & Toubro, Sterling & Wilson, Tata Projects, Adani Transmission, and others.
Q. What is the current manufacturing capacity and infrastructure?
The company has continuously been expanding its capacity, capability and product range by improving and expanding the existing facilities and also setting up new facilities from time to time. We currently have four state-of-the-art manufacturing facilities.
All our manufacturing facilities are ISO 9001:2015 and OHSAS 18001:2007-complaint. Our products are CE-certified and are type tested from globally recognised NABL-accredited testing laboratories such as CPRI, ERDA and TAG Corporation.
Our current total manufacturing capacity for LV cables (control cables, aerial bunched cables, communication cables, and single-core and multi-core power cables) is 67,000 km per annum. Our total capacity for MV cables (single-core, multi-core cables and MV aerial bunched cables) is 4,300 km per annum while ACSR, AA, AAA and copper conductors up to seven strands can be manufactured up to 54,000 km per annum while the above seven strand conductors can be manufactured at 12,000 km per annum.
Q. Are there any new projects that the company will launch this year?
Currently the flagship project for the company this year is our new Reengus manufacturing facility which adds the 66 KV high-voltage cables to the existing range of cables.
The company also has plans to manufacture railway signaling cables for RDSO (Research Designs & Standard Organization), a division of Indian Railways. The certification procedure for developing solar cables is also under process.
Q. What kind of R&D does the company engage in?
In-house research and development has played an important role as we are looking to expand our range of products by including solar cables and railway signaling cables. Further, we have been able to develop a system to ensure optimum utilisation of working machinery which gives us maximum output with minimum wastage of raw materials.
The company has also researched and developed HTLS and AL59 conductors. We are also researching on tapping other sectors such as industrial machinery and automobiles through customizing our products to better cater to these sectors.
Q. Are there any emerging sectors that the company would like to tap in the coming years?
We have in our sights the ‘Smart Cities’ project, railways, renewable energy and telecommunications. The investment in railways has grown tremendously in recent years as the government has revealed a number of major plans to modernize and expand our existing rail networks. Cables are the rudimentary requirement to support such plans. The telecommunication sector, especially for fiber optics solutions, has also been adopted globally and hence has seen an evolution. This is one sector that has emerged rapidly and we would like to tap into it. Meanwhile, renewable energy, especially solar power, is seeing increased investment globally. With our ever increasing range of products we hope to judiciously enter this segment as well.
Q. What about exports?
Our export business has continued to widen its footprint. As of today we are exporting our products to over 30 countries. Almost the entire range of products being manufactured by us is being exported to various private contractors and electricity utility companies. Major exports have been to the African continent and then towards the Asian subcontinent. The company is also making efforts to expand into the South American and European markets either through strategic tie-ups or direct supply. As recognition of our efforts, we have been awarded the Rajasthan State Award for Export Excellence for the year 2013-14.
Q. In your opinion, what will be the trigger factors for the growth of the cable industry in 2018?
With the Indian government proposing to build smart cities across India, the emphasis is now on reliable and energy-efficient underground cabling solutions and energy-saving equipment as well as fiber optics and specialised cables. Further, the country is predicted to develop metro rail in at least 50 cities across India, where development of each project will require around USD 150 million as investment. All this presents a huge growth opportunity. Meanwhile, further impetus by India and other countries to commercialize renewable energy generation has given the solar and wind energy sector a new lease of life due to which the requirement of solar DC cables, flexible cables and torsion cables has been generated worldwide. The ‘Digital India’ initiative also requires an overall investment of Rs 4,50,000 crore and this opens new avenues for growth.
Q. What is your long-term vision and mission for the company?
Dynamic Cables’ strategy for long-term growth is through cost rationalization with efficient improvements and innovations, targeting investments across growth markets, enriching the product portfolio and enhancing brand visibility to leverage more opportunities in various sectors. The company, in the next ten years, will strive towards building a global brand. We are evolving as time progresses, carefully and gradually, with one eye on our past experiences and the other on the future.
