'Demand For Fibre Optic Cables Is Poised To Surge'

How has Finolex Cables fared over the past five years? 

In the past five years, Finolex underwent a transformative journey, achieving significant milestones. We diversified our wire and cable sector offerings, notably increasing electrical wire capacity by 30 per cent, from 20 lakh coils to 26 lakh coils per month. We introduced Fire Retardant Low Smoke or FRLS and halogen-free insulation options. In LAN cables, production expanded from 4,600 km per month 11,250 km per month, driven by advanced CAT-6 and CAT-6 plus LAN cables, meeting high bandwidth demand from video streaming services. Our auto cable sector saw growth, with capacity rising from 36,000 km/month to an impressive 59,000 km/month, driven by increasing demand.

What is your growth strategy? 

In pursuit of our growth strategy, we executed a strategic shift from a single-tier distribution model to a two-tier structure, engaging distributors and retailers. While we previously serviced around 4,000 channel partners through 26 Finolex depots nationwide, we've now expanded to 5,000 channel partners, notably adding 650 distributors and nearly 200,000 retailers to our network.

What has been the experience with entry into the Fast Moving Electrical Goods (FMEG) segment? 

In the last five years, our entry into the FMEG segment has been gradual and progressive, marked by the introduction of various products at different intervals. We began with the premium range of switches, followed by the classic range. Our fan collection includes ceiling, exhaust, table, wall-mounted, and pedestal variants, including energy-efficient BLDC fans. In the MCB segment, we've developed a diverse range covering MCBs, RCCBs, MCCBs, ELCBs, distribution boards, and changeovers. We've also ventured into water heaters with instant, storage, and immersion rod options. In the lighting segment, we offer consumer LED bulbs, batons, panels, and specialised inverter bulbs. With a comprehensive product range, our focus now shifts to driving growth in each category.

How are you planning to tap the growing demand for fibre optic cables due to the 5G rollout?

It's vital to note that the complete 5G experience is limited as only 30 per cent of towers are connected via fibre optic cables. This constraint persists until all towers are fiberised. As the 5G user base grows, and compact cell sites become necessary for faster speeds, the demand for fibre optic cables will surge. Currently, we have an 8 million fibre km (fkm) capacity in cables and nearly 4 million fkm in drawn fibre, using imported preforms for fibre drawing. In a move toward self-reliance, Finolex is implementing a backward integration plan, including a project targeting 4 million fKm capacity in preforms. This strategic approach prepares us for rising fibre optic cable demand.