Company Name: Finolex Cables Ltd
Founded By: PP and KP Chabra
Finolex Cables Limited is a producer of electrical and communication cables and copper rods. The Company’s business sections include Electrical Cables, Communication Cables, Copper Rods and Others. The Electrical Cables product includes 1,100 Volts polyvinyl chloride (PVC) insulated cables; motor winding PVC shielded cables and three core flat cables; automotive/battery cables, and elevator cables. Communication Cables includes jelly filled telephone cables, LAN cables, coaxial cables, speaker cables, optic fibre cables and CCTV cables. The Copper rods products offer continuous cast copper (CCC) rods of more than 8 millimetres diameter.
Others include Electrical Switches, which comprise of switches, sockets and regulators, and Lamps, which include retrofit and non-retrofit CFL as well as T5 Tube Lights fittings and LED diode base lighting switches.
How It All started
In the year 1945, two young and skilled brothers P.P. and K.P. Chhabria moved to Pune from Karachi in search of employment and within six months set up a small shop. Their shop used to sell electric cable. Fortunately, their retail business became quite successful. A large order in the mid-1950’s from the Defence Department for wire joins for trucks and tanks boosted their confidence and they decided to start creating cables themselves
After starting as a small-scale manufacturing unit in 1956, they factory-made PVC insulated cables for the auto industry. Finolex brand was intuitive from “Fine” and “Flexibles” and “O” with an electric arc across it – suggesting the electrical cable business the company was in. Their persistent search for growth and tough persistence put them in some difficult times. In 1972 the enterprise was converted into a limited company.
After that there has been no looking back and after a public offering in July 1983, Finolex Cables Limited boarded on a continuous process of expansion and modernisation which enabled it to become the largest cable manufacturer in the country.
Their relentless quest for growth saw the brothers establishing Finolex Industries Limited (FIL) in 1981. The company required to manufacture Rigid PVC Pipes and Fittings at Pune, which find large-scale application in the agriculture sector. In a smart move towards backward combination, the company has set up a PVC resin manufacturing facility at Ratnagiri around the West coast of India.
Launching and Growth Over Years
During the year 1992-93 Creole Holdings Company Ltd and Finolex Finance Ltd became divisions of the company. During the year 1995-96 the company formed a combined venture with Essex Group Inc. USA and AT and T USA for manufacturing Continuous Cast Copper Rods and with AT&T USA for manufacturing Fibre Optic Cables respectively. During the year 1997-98 Finoram Sheets Ltd became the subsidiary company since the equity contribution went up from 50% to 57.88%.
In December 1999 the company’s manufacturing facility at Verna in Goa commenced their commercial production. While 1999-2000 the company developed 50% shareholding of SX Mauritius Holdings Inc. Mauritius held in the joint undertaking company Finolex Essex Businesses and hence Finolex Essex Industries became a wholly owned subordinate of Finolex Cables and was retitled as Finolex Wire Products. Also Finoram Sheets Ltd was amalgamated with the company during the year.
During the year 2001-02 the company was acquired optic business of Finolex Technologies Ltd which is involved in the manufacture of Optic Fibre Cables. The Company’s Optic Fibre Division undertook an expansion during the year which was commissioned in September 2004. During the year 2002-03, the company launched V-SAT Cables for V-SAT application for connecting the Dish to the Base Station. The company introduced a new variant of the optic fibre cable called ‘TOP Cable’ wherein the glass fibres are totally encapsulated by extruded FRP sheath over the loose tube.
They also introduced UPS Cables used for providing power from the UPS to the computer/ appliances in the networking environment. During the year 2004-05 the company in collaboration with a Private sector insurance company introduced a personal accident insurance scheme for the benefit of the eligible electricians from all over the country.
The company witnessed a GDP growth of over 7% for the third year in a row in 2016-17. Although the Indian economy recorded slow-down with a GDP of 6.7% in 2017- 18, it couldn’t slow the GDP growth average from reaching 7.3% for the period from 2014-15 to 2017-18, which is the highest when compared to major economies of the world.
This growth was achieved in a setting of lower inflation, better current account balance and an eminent reduction in the fiscal deficit to GDP ratio. At that time The World Bank projected India’s economic growth to accelerate to 7.3% in 2018-19 and 7.5% in the next fiscal year.
Improvement in private intake, increase in capacity operation and a restoration in the private capex cycle will be pouring higher growth in 2018-19. The newly-introduced GST and E-way Bill in the parliament are predicted to boost efficiency and growth.
The Indian wires and cables market is projected to be 24,000 crore with topmost 10 players making up 55% of the market. Both Finolex and Havells have a market share of 9% each with almost alike incomes of over 2,000 crore each, next to the general market leader Polycab which holds market share of 17%.
The industry has over 200 small and average sized manufacturers whose products are 10-20% cheaper, making the business a very competitive. However, organised companies have been able to associate their position due to a shift in the customer’s preference towards branded and quality products. As it is a basic product it is used across many sectors such as engineering, consumer goods, building, railways, capital goods and organisation, the wires and cables industry is composed for a healthy growth in the coming years.
Stressing on the essential element through the campaign, Finolex Pipes took a social media stand, demonstrating their brand as the torchbearers of water. The campaign uses a practical approach meant to help people question what is truly precious, through the campaign tagline of – Would water be more precious if it came in this shape?
To show this idea, water, from its fluid form was moulded into figures that attract all our attention- expensive iPhones, large homes, diamonds or even our beautiful body, baby or livelihood for that matter. Through this campaign the brand strived to shed some light on the issue, by separating the things that drag most of our attention with water.
Finolex Cables Limited is India’s largest and a leading producer of Electrical and Communication cables. Its wire and cable are used in many applications such as automobile lighting cable TV telephone and computers to industrial applications stirring every person in his daily life. In recent years Finolex has added Electrical Switches LED-based Lamps Fans low voltage MCB’s (Miniature Circuit Breaker) and a range of Water Heaters.
The company’s manufacturing services are located at Verna in Goa, Pune in Maharashtra and Roorkee in Uttarakhand. To fulfil the need of Copper Rods for both types of cables the company makings Continuous Cast Copper Rods (CCC) in the Plant at Goa. Currently, only a small part of this production of CCC rods is sold to third-party customers. The company started with the manufacture of PVC insulated electrical cables for the automobile industry. Over the years the company has become the country’s largest electrical and telecommunication cables manufacturer.