The company has already identified some 10 markets or customer sectors where imports from China have been traditionally higher.
Riding on the global wave of anti-China sentiments, wires, and cables manufacturer Polycab India plans to expand its presence in international markets where dependence on Chinese imports is higher, a senior company official said. The company is targeting markets like the US, Australia, Europe, and Africa, among others, its Chief Financial Officer (CFO) Gandharv Tongia told.
“As a strategy, we are specifically targeting the markets where local manufacturing is not so strong or the dependence on Chinese imports is large. These markets are now looking at India and we want to take advantage of this opportunity,” he said. The company has already identified some 10 markets or customer sectors where imports from China have been traditionally higher.
It has already established subsidiaries in the US and Australia for trading wires and cables. “We are in the process of establishing tie-ups with local partners to create a strong dealership network and other strategic partnerships. We have a leadership position in India, and we want to replicate the same globally as well,” he added.
With these measures, the company is targeting nearly 10 percent of its topline to be contributed by exports. “Barring the large one-time export order we bagged last year, which contributed to nearly 10-12 percent of the topline, the contribution of exports has been around 3 percent. We are hoping to take it to nearly 10 percent in the next 3-5 years,” Tongia added.
When asked about the impact of COVID-19 pandemic on the company’s domestic business, he said, “The topline took a hit during the June quarter due to the COVID-19 crisis as there was no business in April, but we maintained a positive P&L.”
He noted that while the consumer durable business, which contributes nearly 10 percent to the topline, performed well, cable and wire business was impacted as government and private CAPEX in infrastructure, construction, and real estate sectors, among others, came down during the period, thus pulling down the demand.
“However, we are seeing things improving now. Also, since ours is a distribution and dealership based business, we can reach out to our customers easily,” Tongia added. The company has nearly 3,500 dealers and distributors, 1.4 lakh retailers, and 30 warehouses in India. The company has nearly 3,500 dealers and distributors, 1.4 lakh retailers, and 30 warehouses in India.
When asked about the guidance for the fiscal, he said, “We are yet to analyse the COVID-19 situation. Now that the country is entering the unlock phase, once that is done, we will be giving our guidance.” The company has 25 manufacturing facilities, including two joint ventures with Techno and Trafigura, located across Gujarat, Maharashtra, Uttarakhand, and the union territory of Daman and Diu.
(Note: The story has been published without modifications to the text. Only the headline has been changed.)