Wire and cable sector opening up

Although the major part of the wire and cable industry is unorganised, the industry has been doing exceptionally well, especially communication cables
 Cable and wire industry has established itself as one of the backbones of modern information age. The increasing importance for power, light and communication has kept demand high for wire and cable. This trend will continue as demand for reliable, efficient energy and data communications will strengthen the wire and cable industry. The industry is a volume-driven product and has evolved from the unorganised to the organised sector. However, about 35 per cent of this industry is still in the unorganised.
Current status About 40 per cent of the entire electrical industry is composed by wire and cable industry, and it is expected to be double in the next 5 years. The global wire and cable market is valued at $127 billion in 2010. This market is expected to increase at a 9.4 per cent CAGR to reach nearly $200 billion in 2015. Due to the good response from the power and infrastructure segments, the wire and cable industry is growing at a CAGR of 15 per cent. As the new government is focusing on ‘Make In India,” the industry can grow at similar rate for the next 5 years.
Product sectorsThe wire and cable industry has transformed from being a small to a large industry over the last decade. Today the industry has grown into several product segments.LV energy: These cables is used for the transmission of energy and rated at below 1kV.Power cable: All energy cable rated at 1kV and above.External telecom: These are metallic cable, which are used in telecommunication networks.Internal/Data: These are used for the transmission of voice/data, including internal telephone cable and LAN data cable.Winding wire: The round and flat enamelled and taped wires which are used in the windings of motors, transformers etc.Fibre optics: The cables that contain optical fibres.
Growth driversInvestment made by various private companies in power sector has opened up the wire and cable industry. Even the growth potential in the telecom sector as well as the various policy pronouncements by the government towards bringing about improved digital connectivity has added advantage to the industry.
The rollout of 3G and broadband on a pan-India basis is an important growth driver because this will boost the market. Government impetus in refineries, power and fertilizers will offer a boost to the cable industry as almost all manufacturing companies need cables. Auto sector and railways are also important sectors consuming wires and cables on a large scale.

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