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Polycab India Ltd.

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ABOUT

  • Polycab India Limited incorporated as 'Polycab Wires Private Limited' on January 10, 1996 is India’s leading wires and cables manufacturing company.
  • It also produces fast moving electrical goods (“FMEG”) under its brand name.
  • The Company manufactures and sells diverse range of wires and cables.
  • The key products of the company includes power cables, control cables, instrumentation cables, solar cables, building wires, flexible cables, flexible/single multi core cables, communication cables and others including welding cables, submersible flat and round cables, rubber cables, overhead conductors, railway signaling cables, specialty cables and green wires.
  • Polycab India has 25 manufacturing facilities, including two joint ventures with Techno and Trafigura, located across the states of Gujarat, Maharashtra and Uttarakhand and the union territory of Daman and Diu.

 

BUSINESS STRATEGY

  • Enhance and strengthen our leadership position in wires and cables - Growing at a CAGR of approximately 23% from Fiscals 2014 to 2018 in terms of production volume, POLYCAB India ltd. is expected to reach an estimated 26.2 million kms by Fiscal 2023. Seeing the future growth due to government initiatives in power and infrastructure industry, the company seeks to enhance, maintain and strengthen its leadership position in the wires and cables market in India. The company also aims towards growing its share of business and expand geographically.
  • Continue to expand our FMEG business - Polycab India Limited believes that their FMEG business has potential for future growth. The Company seeks to grow and strengthen their market position in the FMEG market in India and abroad by leveraging on their brand, distribution network, and diverse customer base and manufacturing capabilities. The company also aims to grow their market share in their existing FMEG product segments with a focus on expanding their distribution reach, increasing rural penetration and greater retail expansion.
  • Expand distribution reach - Polycab India ltd. intends to increase the size of the number of authorized dealers and distributors all over India so that their addressable market size increases. The company also plans to penetrate into new towns through these additional dealers and distributors. The company also intends to add regional distribution centers in cities like Hyderabad and Kolkata and smaller warehouses in other locations depending on the market potential and their sales plans. Making the best use of technology the company also has plans to implement auto-replenishment modules across their warehouses to help them better monitor and manage the inventory levels at our authorized distributors and dealers.
  • Continue to invest in technology to improve operational efficiencies, customer satisfaction and sales – Polycab India’s main focus is on optimizing and automating their production processes to improve returns. The aim to identify opportunities to implement production improvements and dedicate R&D resources to enhance the production processes. The company believes that adoption of automated production technology will be based on cost and customer service considerations, with a view to equipping the company with the optimal production capability. The company also wants to use technology to aid their supply chain management to ensure high quality, low costs and on time delivery for our customers.
  • Strengthen brand recognition - Giving ample importance to brand awareness and customer loyalty the Polycab India working towards making more promotional and marketing efforts. The company seeks to increase its visibility and brand recognition through increased advertising in print and social media and television campaigns. The company will also instigate one-to-one interactions with authorized distributors, authorized dealers and end-consumers. Strengthening influencers activities targeted at retailers, electricians, contractors, consultants, builders, industrial customers and government agencies is also company’s major concern.

 

INITIAL PUBLIC OFFER (IPO)

Bid/Offer Opens On: April 5,2019
Issue Type: Book Building Issue IPO
Bid/Offer Closes On: April 9,2019
Issue Price: Rs 533 – Rs538
Issue Size: 17,582,000 Equity Shares
Face Value: Rs 10 per Equity Share
Market Lot: 27 Equity shares
Listing At: NSE,BSE

 

SUBSIDARIES

  • Dowells Cable Accessories Private Limited – Incorporated in December 1, 2015 under the Companies Act, 2013 Dowells Cable Accessories deals with business like inter alia, manufacturing, designing, importing, exporting, of soldering or other types of cable sockets for electrical wires, connectors and accessories.
  • Tirupati Reels Private Limited – Incorporated January 21, 2015 under the Companies Act, 2013 inter alia, manufacturing, exporting, importing, dealing and distributing the reels, drums, pallets, packaging material made of wood, steel or any articles and its by-products.
  • Polycab Wires Italy SRL – Incorporated July 9, 2012 Polycab Wires Italy deals with business like inter alia, manufacturing, engineering, promotion, development and marketing of electrical cables, and supply of services and consultancies to companies in the sector of marketing.

JOINT VENTURES

  • Ryker Base Private Limited – Incorporated in July 15, 2016 under the Companies Act, 2013 deals with business like inter alia, manufacturing, formulating, processing, producing, converting, distilling, refine making, buying, selling and dealing in conductors, wires, cables and rods made of all ferrous and non-ferrous metals and their compounds.
  • Techno Electromech Private Limited – Incorporated in January 25, 2011 at Vadodara under the Companies Act, 1956 Techno Electromech is involved in the business like inter alia, manufacturing of light emitting diodes, lighting and luminaries, and LED drivers.

 

PROMOTERS

  • INDER T. JAISINGHANI
  • AJAY T. JAISINGHANI
  • RAMESH T. JAISINGHANI
  • GIRDHARI T. JAISINGHANI

 

SHAREHOLDING PATTERN

Shareholders Number of Equity Shares Percentage of Share Capital (%)
Inder T. Jaisinghani 23,540,579 16.67
Girdhari T. Jaisinghani 23,423,533 16.59
Ajay T. Jaisinghani 23,342,506 16.53
Ramesh T. Jaisinghani 23,339,964 16.53
IFC 21,176,446 15.00
Bharat A. Jaisinghani 6,001,992 4.25
Nikhil R. Jaisinghani 6,001,892 4.25
Anil H. Hariani 5,820,363 4.12
Kunal I. Jaisinghani 5,820,263 4.12
Ramakrishnan Ramamurthi 2,737,000 1.94
Total 141,204,538 100

 

INDUSTRIAL ANALYSIS

REVIEW AND OUTLOOK OF INDIAN CABLE AND WIRE INDUSTRY

  • Size of the domestic cables and wires industry (million km.)

         

  • Domestic industry size of cables and wires industry (on the basis of manufacturers’ realisation) (Rs billion)

         

  • Projected size of domestic cables and wires industry - Till FY23 (million km)

        

  • Projected size of domestic cables and wires industry - On the basis of manufacturers’ realisation (in Rs billion)

         

REVIEW AND OUTLOOK OF INDIAN LIGHTINGS INDUSTRY

  • Size of domestic lighting industry (Rs billion)

         

         

  • Segment-wise Share industry (%)

         

  REVIEW AND OUTLOOK OF INDIAN SWITCHGEAR INDUSTRY

  • Size of domestic Switchgear Industry (Rs Billion)

         

REVIEW AND OUTLOOK OF THE INDIAN FANS INDUSTRY

         

  • Size of Domestic Fan Industry (Rs billion)

         

REVIEW AND OUTLOOK OF INDIAN WATER HEATERS INDUSTRY

  • Size of domestic electric water heater industry (Rs billion)

        

      

COMPANY ANALYSIS

FINANCIAL OVERVIEW  

(Figures in Million)

Year

Total Income

Net Profit

Total Assets Long Term Borrowing Total Expenses

As at 31 March 2016

57,473.49 1847.04 38,747.40 1008.54 54,819.33

As at 31 March 2017

61,225.40 2329.56 45,788.08 1617.65 57,608.93

As at 31 March 2018

69,861.38 3709.20 44,432.58 1589.49 64097.28

As at 31 Dec 2017

48,782.31 1809.79 46,054.77 1661.78 45,945.54

As at 31 Dec 2018

55,610.52 3582.23 53,859.07 937.74 50,102.90

 

  • Total Income

         

  • Net Profit

        

  • Total Assets  

         

  • Long Term Borrowing

         

  • Total Expenses

         

STATISTICAL OVERVIEW

Year RoNW( %) EPS (Rs)
2016 10.37 13.09
2017 11.67 16.48
2018 15.76 26.23

 

MAJOR INDUSTRY PLAYERS AND COMPARISION

(Figures in Crore)

Name Net Profit Total Assets Total Debts
Polycab 501.44 2,569.67 180.93
KEI Industries 181.87 985.73 458.25
Universal Cables 69 886.25 519.68
Cord Cables Ind 7.35 197.38 81.41

 

REFERENCES

  • POLYCAB INDIA LIMITED RED HERRING PROSPECTUS (Sebi.gov.in)
  • www.polycab.com
  • Moneycontrol.com

                                                   

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