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The global wires and cables market size was USD 181.28 billion in 2021 and is projected to grow from USD 200.23 billion in 2022 to USD 294.73 billion in 2029, exhibiting a CAGR of 5.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared t o pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -8.8% in 2020 as compared to 2019.

A wire Is a single electrical conductor, whereas a group of wires bundled in an assembly is called a cable. Various cables, such as coaxial cables, are widely used for transmitting electric power and communication signals across industry verticals. Increasing investments in transmission & distribution of electric power and growth in demand from data centers and the telecom industry will drive the wire and cables market growth during the projected period. High cash inflow in smart and projects and up-grading power transmission systems are also expected to boost the demand for wires & cables. Significant investment in smart grids has resulted in and growing necessity for grid interconnections; additionally, rising funds in underground cables and progression in renewable energy have escalated the adoption of wires and cables.

Increasing Demand for Renewable Power Generation to Aid Market Growth

Governments have implemented vast targets to deploy green energy technologies to reduce dependency on fossil fuels. Adherence of various nations to exceed the required objectives will likely provide a great opportunity for the market. The increasing setup of wind turbines and solar farms has increasingly led to the growth of requirements for wires and cables. According to the IRENA,the worlds renewable energy capacity has risen from 2,542,035 MW in 2019 to 2,802,004 in 2020, portraying a 10.23% increase year-on-year.

Moreover, there has been a growth in offshore renewable technologies like offshore wind farms. The offshore wind turbines are connected to p-ower cables that must be buried in seafloors to transmit power. Further, subsea umbilical cables are also required for the constant maintenance activities of these wind turbines. Similarly, solar PV is installed on water instead of land in recent times, called the floating PV. The floating PV system is fixed on a floating platform with an anchoring system in water bodies and is connected by subsea power cables. The increasing reliance on renewable energy has led to massive development in renewable energy infrastructure worldwide, which has increased the demand for wires and cables.

INDIAN ECONOMY

Indian Wires and Cables Market would grow on the back of rapidly growing investment by the government towards the development of infrastructural projects. The development of smart cities in the country along with the increase in electronic devices in the household would increase the dem and for wires and cables in the Indian market. The development of manufacturing industries as a part of the Make in India initiative would also result in the growth of the wires and cables market during the forecast period.

Indian wires and cables market is expected to witness progressive growth in the upcoming six years backed by the growing telecommunication sector in the country. The increased number of internet subscribers due to rising internet penetration rapidly from past years is an active contrib utor to the India wires and cables market growth. On the other side, telecom operators are spending in bulk on the integration of telecom towers in rural areas and all this can be possible with the needful resources for the same and as a result, the use of wires and cables is rising in the telecom sector which tends to ensure better signals through consistent power supply. As a result, it is estimated to strengthen India wires and cables market growth in the forthcoming years.

The India - Electric Wire And Cable Market size is estimated to grow at a CAGR of 4.63% between 2022 and 2027. The market size is forecast to increase by USD 2,189.92 million. The growth of the market depends on several factors, such as growth in renewable power generation in India, the expansion and revamping of transmission and distribution (T&D) infrastructure in India, and the increase in investment in metro railways.

This report extensively covers market segmentation by end-user (railway, power, construction, telecom, and others) and type (power cable and specialty cable). It also includes an in-depth analysis of drivers, trends, and challenges.

India Electric Wire and Cable Market Dynamics

Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.

Driver - Growth in renewable power generation in India

One of the main factors that is significantly contributing to the growth of the electric wire and cable market in India is the substantial growth of renewable power generation in the region. As a result, there is an increase in demand for efficient, durable, and technologically advanced wiring solutions across the region.

Moreover, there is an increased requirement for reliable interconnections and transmission systems. fuelled by the expansion of solar and wind energy installations across the nation. As a result, the demand for electric wires and cables has surged as they are an essential component of these energy networks, enabling the seamless transfer of generated electricity to distribution grids and end consumers. Hence, such factors are expected to drive India electric wire and cable market growth during the forecast period.

Trends - Increase in sales of HVDC power cables

There is increasing adoption of High-voltage direct current (HVDC) underground power cables as they are considered the best option for long-distance and high-voltage safe power transfer. The main advantage of HVDC power systems is that they offer a reliable option for long- distance bulk power delivery.

Moreover, several energy products are announced by the European Commission for the construction of cross-border infrastructure to create an internal energy market and enhance the security of the energy supply. As a result, it will fuel the demand for high-voltage direct current (HVDC) underground power cables for the transfer of high loads of electricity across the country. Hence, such factors are positively impacting the market which in turn will drive the India electric wire and cable market growth during the forecast period.

Challenge - Volatility in raw material prices of electric wire and cable

The electric wire and cable market in India highly depends on materials such as copper and aluminum for the efficient conduction of electricity. the price of these raw materials is influenced by several factors such as supply-demand imbalances, geopolitical tensions, and economic conditions.

Moreover, such factors are fluctuating the prices of these raw materials which in turn is impacting the cost structure of cable production, resulting in pricing inconsistencies, and profitability concerns. As a result, several manufacturers find it challenging to maintain stable pricing for their products, creating hindrances in forecasting and budgeting. Hence, such factors are expected to hinder the India electric wire and cable market growth during the forecast period.

India Electric Wire and Cable Market Segmentation by End-user and Type End-user Segment Analysis:

The railway segment is estimated to witness significant growth during the forecast period. One of the main countries with the largest railway network in the world after Russia and China is India. The Indian railway network includes 126,366 km of tracks covering a distance of 67,956 km. Factors such as the expansion and modernization of the countrys railway network is significantly contributing to the growth of this segment.

The railway segment was the largest segment and was valued at USD 2,070.06 million in 2017. There is an increasing investment by the Indian government in the railway sector with the goal of improving connectivity and enhancing transport infrastructure, resulting in an increase in demand for electric wires and cables. Furthermore, the electrification of railway tracks is fuelling the demand for electric wire and cable in the region. Furthermore, there is a growing focus by the Indian government on renewable energy sources which has further fuelled the demand for electric wires and cables in the railway segment, as solar panels are being increasingly installed in railway stations and on rooftops of trains. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the India electric wire and cable market growth during the forecast period.

Type Segment Analysis:

Based on type, the segment is classified into power cable and specialty cable. A power cable can be referred to as an electrical cable that is made of one or more electrical conductors that are usually held together by a sheath. The main advantage of a power cable is that it can be buried in the ground, run overhead, or exposed as permanent wiring within buildings. Some of the main classifications of power cables include low-tension cables (LT cables) high-tension cables (HT cables) low-tension cables (LT cables). Factors such as the continuous flow of investments by the government of India into strengthening the national power transmission infrastructure are fuelling the growth of the segment which in turn will drive the market growth in India during the forecast period.

Segment Overview

The India electric wire and cable market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

• End-user Outlook (USD Million, 2017 - 2027)

• Railway

• Power

• Construction

• Telecom

• Others

• Type Outlook (USD Million, 2017 - 2027)

• Power cable

• Specialty cable

• Primary Market Drivers:

• Rising urbanization and industrialization in developing countries are driving the growth of this market

• Increasing demand for self-driven vehicles is another factor driving the growth of this market

Major Market Restraints:

• Increasing cost of raw material is restraining the growth of this market

• Investment problems faced by the manufacturer is another factor restraining the growth of this market

The international wire and cable market is extremely fragmented and the major players in the sector have used myriad strategies including new product launches, expansions, agreements, joint ventures, partnerships, acquisitions, etc. to widen their presence in this market.

Incidentally, the fibre-based network is the building block for futuristic technologies such as 5G, and India has the potential to become the fibre capital of the world with the launching of the PLI, they said.

For the past couple of years, the manufacturers of optic-fibre cable (OFC) have been demanded that they be included on the list of segments that would receive benefits under the Central Governments production-linked incentive (PLI) scheme for telecom equipment manufacturing.

Structural

Demand for Cables & wires is driven by capital expenditure from three major stakeholders - the government (power distribution and infrastructure investment), corporates (building and factories) and individuals (housing). As per report, this makes the industry a very good play on the recovery in Indias capex i.e. gross fixed capital formation (GFCF). Demand growth in the Cable & Wire sector has a very strong correlation with growth in GFCF.

Report also believes the Cable & Wire industry is on the positive side of structural mega trends such as:

• The rising contribution of renewable power in the power generation mix

• The trend to move overhead electric transmission networks in large cities underground

• The adoption of safer and environmentally-friendly wiring solutions

• Growth tailwinds from investment in urban transportation (metros), railway electrification and electric vehicles (particularly charging stations).

• Rising digitalisation.

OPPORTUNITIES

WIRE AND CABLE MARKET IN INDIA

Wire is a piece of metal that is used to carry electric current on the other hand, cable contain a number of wires inside a plastic or rubber which is used to carry electric signals. Copper, aluminium, plastics and alloys are the materials which are used to make these wires and cables. They are widely used in industries like defence and gas, oil, automotive etc. These days, due to increasing residences and houses in developing countries, there is an increase in the use of the wires and cables.

The domestic cables and wires industry has registered robust growth over the last five years led by the governments focus on providing power to all and gradual pickup from the housing market. The wire and cables market in India has the potential to grow by USD 1.65 billion during 2021-2025, and the markets growth momentum will accelerate at a CAGR of 3.80%. The development of infrastructural projects by the government and investment is driving the growth of the wire and cable market in India.

The market is expected to be driven by factors such as the growth in renewable power generation in India, the expansion and revamping of Transmission & Distribution infrastructure in India, and increasing investments in metro railways. Increased investments in smart grid projects and up-gradation of power transmission and distribution systems are also estimated to propel the demand for wires & cables globally. Significant investments in smart grid technology have resulted in an increasing need for grid interconnections. Additionally, rising investments in underground cables and the growth of renewable energy are set to escalate the adoption of wires and cables. Wire and cables demand is directly dependent on the growth of the manufacturing industry and infrastructure in the power, telecommunications, residential and commercial sectors. Thus the governments initiatives on various fronts like - power, housing, infrastructure and digitization are sure to generate a lot of business for the wire and cable industry in the foreseeable future. Likewise, with the governments emphasis on pushing renewable energy to the forefront, the industry is now looking forward to supplying cables for solar and wind power applications in addition to oil and gas, railways and other specialized segments. Wires and cables are deployed across an extensive range of applications which include consumer electronics, utilities, material handling, automotive, and entertainment/leisure amongst others. Growing inclination toward the expansion of prevailing grid networks coupled with lack of efficient electric infrastructure will propel the industry outlook over the forecast timeline.

Increasing Demand for Renewable Power Generation is a Vital Trend

Increasing awareness about the potential of renewable power has led to the significant adoption of renewable energy. In addition to this, supportive government initiatives for the development of renewable power are also a prominent factor responsible for the growth of renewable power generation, which, in turn, would further drive the demand for wires and cables. According to EIAs International Energy Outlook 2019 report, 28% of the global power came from renewable energy in 2018, with the majority contributions from wind, solar, and hydropower. The EIA forecasts that renewables will account for almost half—49%—of the global electricity output by 2050.

Growing Demand from Data Centers and IT Facilities is a Current Trend

The increasing number of data centers and IT facilities for higher levels of availability, security, and affordable connectivity of IT infrastructure would increase the applications of wires & cables. Hyperscale deployments and liquid cooling are anticipated to be trending in 2020 and in the coming years, which is likely to fuel the demand for data centers and IT facilities. AC/DC power, ground, copper, and fiber optic are the prominent network cables used in data centers for Ethernet applications. According to Cisco, the global cloud data center traffic is projected to reach 20.6 zettabytes (ZB) per year by 2021, up from 6ZB per year in 2016. It depicts an increase of 628 hyperscale data centers globally in 2021 compared to 338 in 2016.

Demand for Cables in Railways

Transportation sector is growing very fast, the world population will witness significant growth in this sector in the coming years. The railways industry is playing a vital role in this growth, railways is the important sector that consumes wires and cables on a large scale. Hence railways cables are very important in order to meet the current challenges the railway industry is faced with. It doesnt matter if it is the current supply on board or in the base of the rail, various control tasks, data transmission or if a complete cable network is required - in all fields cables for highest performance requirements are needed.

5G Infrastructure will Create the Demand for Cables

The 5G revolution promises astonishing gigabit-per-second data rates and near-instantaneous connectivity. It is projected to have a mass impact across many industries and change the lives of billions of both consumers and suppliers worldwide. When telecom carriers need to connect a microwave antenna to the indoor unit, they have one of three cable options to choose from: these include coaxial cable, a fiber-optic cable or a twisted-pair high frequency cable, all of which come with benefits and drawbacks.

Twisted high frequency cables have seen a rise in popularity in line with the rollout of 5G trials. The benefit of using twisted high frequency cables to connect the microwave antenna to the indoor unit is that you can combine both the data and power in one cable. This means that, for the carriers, there is a big cost and materials saving — you effectively cut the cost by half as you only require the installation of one cable, whereas with other cable types, you will need separate power and data cables. Connecting the increased number of antennas for 5G with fiber-optic cables could be extremely expensive. Therefore, high frequency cables have seen an increase in popularity over the past few years, and we predict that this will only increase as they are not just cost-efficient but also much easier to install than other cable types. Twisted high frequency cables are much more robust, resistant to the environment and they can be easily terminated on site by the installer.

Fiber-optic cables, on the other hand, are more sensitive to conditions such as humidity and dust levels. Most of the time the fiber-optic cable is pre-terminated, meaning that the installer just has to plug in both ends. However, the fiber-optic cable only carries data. Power must be provided by a separate cable, which generally has to be cut to length, stripped and terminated.

However, twisted high frequency cables are not the answer for every installation. Their performance tends to drop off over long distances. This means that the carrier will be obliged to use another type of cable if the antenna is too far from the indoor unit or the antenna will need to be placed in a closer, possibly less convenient, position. To help mobile carriers tackle the many challenges of 5G, companies like Nexans have developed a 5G ultra-dense infrastructure network with innovative fiber-optic cables and components and a new high frequency twisted pair especially designed for the needs of new microwave networks.

Industry Challenges

The wire and cable industry has vast potential in growth in coming years but it has some challenges also, the increasing price rise and competition from Chinese imports. The wire and cable industry is experiencing volatility in raw material prices, as the price of copper continues to increase, profit margins are squeezed and they become uncompetitive in the international market. County is experiencing an all time high price of fuel its direct impact on domestic transportation, in result wire and cable transportation has increased. Also, a large section of the industry is still unorganised; there is a lack of quality product offerings from these players due to non-compliance with the product guidelines.

CYCLICAL

The analysis/report of demand from key end markets makes is positive about the prospects of a cyclical recovery. For example, domestic Cable & Wire industry volumes declined by more than 15% over FY20 and FY21 due to COVID-19. On this benign base, report says - strong double- digit volume growth for the industry over next 2-3 years and high single-digit volume growth over the medium term.

THREATS

Manufacturing activities are generally considered essential as they drive the industrialization of underdeveloped economies globally, and therefore, they have been mostly exempted from the lockdown measures. As a result, the demand for wires and cables has remained stable in this sector. The spread of COVID-19 poses a significant threat to the global industry. Emerging economies such as China and India are the major countries for establishing new power plants, increasing focus on building smart infrastructure, and introducing advanced communication facilities, thereby stoking the uptake of wires and cables.

KEY PRODUCT SEGMENTS

The Company is one of the leading manufacturers of wires and cables, serving clients in India and abroad in various sectors, with all the latest certifications (ISO 9001, ISO 14001, BS ISO 45001). The broad segmentation of the products manufactured by the Company are as follows:

Types of Cables	Application
Quad Cables	Specialized safety cables used by Railways for counting incoming & outgoing axles / coaches at any particular section to ensure no coach is left behind.
Railway Signalling Cables	Used for transmitting signals to signal posts for smooth movement of trains.
Fire Survival Cables	Used to maintain circuit integrity in case of fire for 3 hours up to 950o C, to ensure transmission of signals to safety equipment.
Fire Retardant Low Smoke Zero Halogen (LSZH) Cables	Ensures better visibility and low toxicity in case of fire.
Highly Flexible Multi-core Copper Shielded Abrasion Resistant Thermoplastic Polyurethanes (TPU) Sheathed Cables	Used for gas insulated substations.
EHV/MV/HV/LV Power Cables	Used for supplying power.
LV Control Cables	Used for special purposes in various sectors.
Polythene Insulated Jelly Filled (PIJF) Telecom	Used for last mile connectivity.
Fire Alarm & Communication Cables	Used for fire detection & alert equipment.
Ethylene Propylene Rubber (EPR)-Chloro- Sulfonated Polyethylene (CSP)-Polychloroprene (PCP)-Silicon Cables	Used at high temperature in mines, steel, ship building & wind energy generation industry.
Flexible and Building Wires	Building Wire cables-for building wiring on wall surface in conduit.
Industrial wiring cables-for wiring of panel & other electrical equipments including UPS cabling.	Building Wire cables-for building wiring on wall surface in conduit.
Low voltage Cables and Instrumentation and Control cables	Used for power transmission, Single Transmission
Aerial Bunch Cables	Used for power transmission and distribution
High Voltage Cables	Used for power transmission
Extra High Voltage Cables	Used for power transmission
Overhead Conductors	Used for power transmission and distribution

SECTOR THAT WE SERVE OUR GROWTH PARTNERS

INDIAN RAILWAYS

The railway sector played a critical role in addressing supply chain challenges during the lockdown when other modes of transport came to a halt. While several projects continue to face challenges due to difficulties in labour mobilisation and procurement of specialised equipment, work on IRs mega infrastructure projects such as 100 per cent electrification are continuing as per schedule. Going forward, IR is expected to increase its focus on the freight segment to make up for the losses incurred due to suspension of passenger trains. In addition, the sector is also looking to tap new sources of funding including private investment for faster infrastructure development.

The National Infrastructure Pipeline envisages a planned capital investment of over Rs. 13 trillion for the railways sector by 2024-25. IR has a target to complete over 17,000 km of new line, doubling and gauge conversion works by 2023-24.

Indian Railway network is growing at a healthy rate. In the next five years, Indian railway market will be the third largest, accounting for 10% of the global market. The government has announced two key initiatives for seeking private investments-running passenger trains by private operators across the railways network and redevelopment of railway stations across the country. According to Indian Railways, these projects have the potential of bringing an investment of over US$ 7.5 billion in the next five years.

Adarsh Station Scheme has been started since 2009-10 and presently, railway stations are upgraded/modernised based on identified need of providing better enhanced passenger amenities at stations. Under the scheme, 1253 stations have been identified for development, out of which 1201 stations so far have been developed. The remaining 52 stations were planned to be developed by 2021- 22.

The Indian Railway launched the National Rail Plan, Vision 2024, to accelerate implementation of critical projects, such as multitrack congested routes, achieve 100% electrification, upgrade the speed to 160 kmph on Delhi-Howrah and Delhi-Mumbai routes, upgrade the speed to 130 kmph on all other golden quadrilateral-golden diagonal (GQ /GD) routes and eliminate all level crossings on the GQ /GD route, by 2024.

METRO TRAIN

Growing Indian Metro Railway Sector

The Indian Metro Rail system has traveled from 35 Km (including 27 Km of Kolkata Metro) in 2002 to 638.91 km in last 17 years and currently has 13 operational metro systems in 18 cities.

This already decent sized metro system is expanding rather ambitiously. It is estimated that by 2024 approximately 600 km of metro lines shall be made operational through expansion of existing systems and completion of 5 under- construction metro systems in Navi Mumbai, Pune, Kanpur, Bhopal and Indore city. A further 1050 Km are expected to be added over a 5 year period starting 2024, making a total of 1650 Km of additional network in next 10 years. There are 7 more cites of India- Agra, Patna, Surat, Meerut, Visakhapatna, Varanasi and Dehradun (Doon Valley) which have metro projects in planning stage and 10 cities: Gwalior, Guwahati, Srinagar, Coimbatore, Ludhiana, Prayagraj, Ranchi, Jabalpur, Bareilly, Gorakhpur where metro projects have been proposed.

After a very long gap between Indias first Calcutta (Kolkata) Metro project in 1984 which was undertaken by the Indian Railways, Delhi Metro Rail Corporation Ltd. (DMRC) had inaugurated the first section of its metro rail project in 2002. Looking at the immense success of Delhi Metro, new systems were developed in Bangalore, Mumbai, Lucknow and other cities in order to ease the heavily loaded urban transportation infrastructure.

10 years from now India is expected to have 32+ operational metro rail systems. This mass transit system is proving to be an effective solution for urban transportation, supporting the growth of rapidly growing cities. This immense growth is directly impacting the demand for modern metro coaches and emergence of a thriving Metro Rail Coach Industry in India.

POWER TRANSMISSION AND DISTRIBUTION SECTOR

India has set ambitious targets for the power sector and aiming for 24X7 powers for all, with 450 GW of renewable capacity by 2030. Many of the governments major initiatives, such as Make In India or Aatma nirbhar Bharat, require access to reasonably priced, high quality power to take off.

However, the distribution sector has been the Achilles heel of the power sector, consistently making large losses, reflecting weaknesses in operations, infrastructure, and regulation. The country will not be able to achieve a high-growth, low- carbon economy unless the distribution sector achieves profitability. The solution to this problem will include smart meters and smart grids, but the most important solutions might lie in institutional smartness - whether in power procurement, in ensuring high-quality regulation, or in encouraging private participation in distribution.

DISCOM RESTRUCTURING

The distribution sector has been largely vertically unbundled—the three different functions of generation, transmission, and distribution have now been separated. While there might be de jure unbundling, the degree of de facto unbundling might vary. In states such as Gujarat, the unbundling was an important step towards improving the performance of discoms. Most discoms are state- owned, and only about 10 percent of Indias population is served by private distribution licensees. Higher private participation in distribution holds out the possibility of greater efficiency.

With the outbreak of Covid-19 and the ensuing economic slowdown, the cable and conductor segment has undoubtedly witnessed a corresponding demand slowdown. At the same time, domestic manufacturing has suffered owing to supply chain disruptions. However, there is expected to be robust demand for cables and conductors in the medium to long term, primarily on the back of the expanding T&D network and infrastructure.

It is worth noting that the government has announced a $1.4 trillion National Infrastructure Pipeline for the infrastructure sector over a five-year period, aligned with the vision to make India a $5 trillion economy by 2024- 25. Infrastructure spending by the government will boost demand for cables and wires.

RENEWABLE ENERGY SECTOR

Indian renewable energy sector is the fourth most attractive renewable energy market in the world1. India was ranked fifth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2019.

Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR of 17.33% between FY16-20. With the increased support of Government and improved economics, the sector has become attractive from investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role. The government is aiming to achieve 227 GW of renewable energy capacity (including 114 GW of solar capacity addition and 67 GW of wind power capacity) by 2022, more than its 175 GW target as per the Paris Agreement. The government plans to establish renewable energy capacity of 523 GW (including 73 GW from Hydro) by 2030.

India had 95.7 GW of renewable energy capacity, and represents 25% of the overall installed power capacity, providing a great opportunity for the expansion of green data centres.

The country is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030 - about 280 GW (over 60%) is expected from solar.

With a potential capacity of 363 GW and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.

The Government is committed to increased use of clean energy sources and is already undertaking various large- scale sustainable power projects and promoting green energy heavily. In addition, renewable energy has the potential to create many employment opportunities at all levels, especially in rural areas. The Ministry of New and Renewable Energy (MNRE) has set an ambitious target to set up renewable energy capacities to the tune of 227 GW by 2022, of which about 114 GW is planned for solar, 67 GW for wind and other for hydro and bio among other. Indias renewable energy sector is expected to attract investment worth US$ 80 billion in the next four years. About 5,000 Compressed Biogas plants will be set up across India by 2023.

It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy as more efficient batteries will be used to store electricity, which will further cut the solar energy cost by 66% as compared to the current cost. *Use of renewables in place of coal will save India Rs. 54,000 crore (US$ 8.43 billion) annually3. Renewable energy will account for 55% of the total installed power capacity by 2030.

As per the Central Electricity Authority (CEA) estimates, by 2029-30, the share of renewable energy generation would increase from 18% to 44%, while that of thermal is expected to reduce from 78% to 52%.

According to the year-end review by the Ministry of New and Renewable Energy, another 49.59 GW of renewable energy capacity is under installation and an additional 27.41 GW of capacity has been tendered. This puts the total capacity of renewable energy projects (already commissioned or in the pipeline) at ~167 GW.

The Government of India wants to develop a green city in every state of the country, powered by renewable energy. The green city will mainstream environment-friendly power through solar rooftop systems on all its houses, solar parks on the citys outskirts, waste to energy plants and electric mobility-enabled public transport systems.

TELECOMMUNICATION SECTOR

The cables, cable assemblies, and connectors play a crucial role in the Telecommunication sector. The telecom cables are used to transmit electromagnetic waves/signals, electric signals, and light signals. These cables are used in the enterprise network equipment, subscriber equipment, wireline network equipment, and multiservice operator equipment. The telecommunication sector is creating an opportunity for the manufacturers to design a highly efficient standardized as well as customized cables and connectors.

The future of the telecom cable market looks promising with opportunities in the telecommunication infrastructure, CATV, data center, and computer networking markets. The global telecom cable market was expected to decline from 2020 due to global economic recession led by COVID-19. However, market will witness recovery in the year 2022 and it is expected to reach an estimated $57.2 billion by 2025 with a CAGR of 4% to 6% from 2020 to 2025. The major growth drivers for this market are increasing demand for internet connectivity, increasing subscriber base, and growing investment in telecom infrastructure.

Within the telecom cable market, telecommunication will remain the largest application due to growing deployment of fiber optic cable for long range communication and digital transformation in the telecommunication industry. It is predictsed that CATV is expected to witness the highest growth during the forecast period supported by increasing demand for high definition video content and growth in smart devices.

Asia Pacific is expected to remain the largest region and witness the highest growth over the forecast period due to growing demand for cloud based technology with high connectivity speed and increasing investment in IT infrastructure.

ELECTRIC CARS

The production and sales of new vehicles had come to a halt across the globe as the entire supply chain had been disrupted during the initial outbreak of COVID-19. OEMs had to wait until lockdowns were lifted to resume production, which affected their businesses. Hence, vehicle manufacturers are expected to adjust production volumes. Also, component manufacturing was suspended, and small Tier II and Tier III manufacturers could have faced liquidity issues. The automotive industry is highly capital- intensive and relies on frequent financing to continue operations. Thus, the suspension of production during the outbreak and lower demand are expected to have an unprecedented impact on electric vehicle charging station manufacturers and suppliers.

Electric vehicle market however, has not been negatively affected due to COVID-19 as there was high growth in the sales of EVs during the pandemic. This led to a growing demand for EV charging cables around the world. However, in the first few months, the production of most companies was affected due to lockdowns and logistics problems. However, post lockdowns, the demand for EV charging cables surged as governments around the world increasingly encouraged changing to low emission fuel vehicles. Many countries also increased their EV charging stations and related infrastructure across their states. This led to a growing demand for EVs in the years to come.

An increase in the adoption and use of electric vehicles has accentuated the need for charging infrastructure and EV charging cables. Leading markets for electric vehicles such as China, the US, and Germany are investing significantly in electric vehicles and EV charging infrastructure along with research & development for faster and efficient charging methods. Significant investments by automakers are expected to cater to the rising demand for EVs and play a major role in the evolution of the electric vehicle charging cable market.

The rising demand for high-speed charging stations has compelled manufacturers of EV charging cables to develop advanced technology cables. Most of the DC charging stations operate on 400 V to 480 V and can charge up to about 50kW. Leading EV charging cable manufacturers have launched various new products to ease the charging process. Further advancements in EV charging cables are expected to act as an opportunity for the growth of the market.

FUTURE OUTLOOK & FRESH AVENUES

The existence of the following extremely strong demand drivers will ensure healthy growth for the sector over the next few years.

1. Investment in the Power Sector

2. Increasing focus on defence and aviation infrastructure.

3. Expansions in refinery and petrochemical project

4. Housing & Construction Boom

5. Boom in Railway sector, augmentation in capacities of Railway programs and Urban Transport/Rapid & Metros.

6. Enlarging the scope & adoption of the Smart City concept

7. Opening of fresh avenues in the export front

8. State Electricity Boards.

One of the Companys greatest strengths is the ability to customize products as per clients requirements. The cable industry is expected to develop into a market to favour such players. Thus CMI possesses the first-mover advantage as they have already customized products successfully for clients.

Shelter of multiple product ranges is a special risk-mitigating feature protecting the company against any cyclicality or downturn of any one industry/ sector at any given point in time.

Approvals available with the company ensure an order book in the range of 300 - 500 crores at any given point of time and we still have adequate market credibility of execution. One of the Companys greatest strengths is its ability to customize products as per the clients requirements. The cable industry is expected to grow into a market to favour such players. Thus CMI possesses the first-mover advantage as they have already customized products successfully for clients such as the Indian Railways, Delhi Metro Rail Corp., ISRO, BHEL, NTPC, Ircon International Ltd., L&T, IOCL, EIL, Alstom T&D India Ltd., Vishakhapatnam Steel Plant, Numaligarh Refinery Limited, IOT Infrastructure& Energy Services Ltd., Satish Dhawan Space Research Centre, Siemens Information Processing Services Pvt. Ltd. Etc.

We have already established a presence in overseas markets and exports are executed to the clients spread in various countries such as Bhutan, Bangladesh, Dubai, Egypt, Germany, Kuwait, Malawi, Mauritius, Malaysia, Myanmar, Nepal, Nigeria, Qatar, Rwanda, Switzerland, Senegal, Singapore, Sharjah, Sri Lanka, United Kingdom, Uganda, Zambia, etc. There are a lot of scopes to spread geographically in the overseas trade. Our exploration has opened fresh avenues of contract manufacturing in the export market and an aggressive approach in this front may expand the clientele base extensively. The reason for increased focus on Exports is also based on the lucrative business model of advance payments and the shorter cycle of credit realization. Settling of deadly COVID waves has augmented space for restoration of the lost business with growth-oriented policies finding place worldwide for a well-shaped business environment insight.

PERFORMANCE OF THE COMPANY FINANCIAL PERFORMANCE

• The company has closed at total revenue of Rs. 2,359.30 Lakhs during FY ended March 31, 2023 as compared to Rs. 7,092.63 Lakhs during the previous FY ended March 31, 2022.

• Business loss (before tax) of Rs. 11,744.49 Lakhs is posted for FY ended March 31, 2023 as against net profit of Rs. Rs. 18,141.75 Lakhs for FY ended March 31, 2022.

• Net loss of Rs. 11,009.02 Lakhs is posted (after exceptional items of Rs. 9,025.46 Lakhs) for FY ended March 31, 2023 as against net loss (after tax) of Rs. 14,289.72 Lakhs for FY ended March 31, 2022.

• EPS of the company stood at (Rs. 68.69) as at March 31, 2023 as compared to (Rs. 89.16) as at March 31, 2022.

FINANCIAL HIGHLIGHTS

(in Crores)

Particulars	2022-23	2021-22	2020-21	2019-20
Revenue from Operations	22.03	67.75	201.70	498.29
PBT	-117.45	-181.42	-218.21	10.33
EPS (Rs.)	-68.69	-89.16	-128.47	2.46
PAT	-110.09	-142.90	-194.60	3.70
Net worth	-134.47	-24.37	117.12	306.62

OPERATIONAL PERFORMANCE

CMI Limited is undergoing Corporate Insolvency Resolution Process (CIRP) as per the order dated July 28, 2023, pronounced on August 01, 2023, by the Honble National Company Law Tribunal (NCLT) in Delhi. The application for the insolvency proceedings was filed by Canara Bank, identified as the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The Honble National Company Law Tribunal (NCLT) has taken the necessary steps by approving the appointment of Mr. Deepak Maini as the Interim Resolution Professional (IRP) and subsequently confirmed as Resolution Professional by the Committee of Creditors responsible for conducting the CIRP of CMI Limited under section 16 of the Insolvency and Bankruptcy Code 2016.

During the CIRP, the RP will play a crucial role in managing the affairs of the company, taking control of its assets, and is taking efforts to revive the Company and is endeavouring to improve the Companys operational performance.

PROFITABILITY

Low sales performance led to inadequate profitability to meet the fixed and variable cost of the company ending up with genuine business loss of Rs. 11,009.02 Lakhs in FY 2022-23. Underutilisation of capacities and operational inefficiencies resulting in operational deficits at Baddi plant remained a cause of concern for achieving the required profitability.

Financial position has taken fresh load under exceptional items comprising of net profit or loss on sale of fixed assets, claims and liquidated damages, provision for doubtful debts, provision for decrease in value of inventory and disputed items now accounted. Total loss has thus increased to Rs. 11,009.02 Lakhs which is significantly disproportionate to previous years due to the abnormalities occurred in FY 2022-23 as explained above.

KEY FINANCIAL RATIOS

In accordance with the SEBI (Listing and Disclosure Requirements) (Amendment) Regulations, 2018, the Company is required to provide details of significant change (changes of 25% or more as compare to immediately preceding financial Year) in key sector specific ratios. The Company has identified following ratios as key financial ratios:

Particulars	31.03.2022	31.03.2023	Change (%)	Reason of Change
Operating Profit/ Net Sales (%)	-192.65	-115.25	-77.4	Due to incurring of losses
Net Profit/Net Sales (%)	-201.15	-466.62	265.47	Low sales performance was unable to generate required profitability to meet the fixed and variable cost of the company ending up with genuine business losses in FY 2022-23. The mounting financial costs of the company are also evident.
Return on Net Worth (%)	843.79	86.67	757.12	Business Losses have caused dilution of TNW which in turn has also adversely effected return on Net Worth.
Interest Coverage Ratio (Times)	-3.19	-229.62	226.43	Losses suffered in the FY has adversely impacted the repaying capacity depicted in lowering of DSCR.
Debt / Equity Ratio	-3.28	-0.28	-3	Owing to losses incurred in the company causing depletion of net worth
Current Ratio	0.51	0.23	0.28	Due to decrease in current assets higher than the change in current liabilities
Inventory Turnov er Ratio (Months)	8.52	11.76	-3.24	Due to sizeable decline in Revenue from operations vis a vis rate of decrease in average inventory
Inventory Turnov er Ratio (%)	71	98	-27	Due to sizeable decline in Revenue from operations vis a vis rate of decrease in average inventory
Debtors Turnover Ratio (Months)	6.6	3.24	3.36	Due to sharp decline in Revenue from operations without corresponding decrease in Trade Receivables
Debtors Turnover Ratio (%)	55	27	28	Due to sharp decline in Revenue from operations without corresponding decrease in Trade Receivables
Net profit margin (%)	-201.15	-466.62	265.47	Due to incurring of losses

HUMAN RESOURCES

The Companys HR policies are developed proactively with the goal of producing a professional, skilled, and talented workforce. Employee-friendly policies emphasize recruiting and staffing; remuneration and benefits; training and skill development; and keeping personnel through suitable incentives. To boost employee morale and ensure high work productivity, the Company strives to build and maintain a safe, conducive, and engaging work environment. It has also developed a well-designed appraisal system to connect individual efforts with the Companys long-term strategy and growth objectives. The Company constantly performs several upgradation and development programs to improve its personnels technical and management skill sets. This comprises, among other things, technical training programs in 360-degree machine guarding, cable production and design, machine SOPs, and material handling. Leadership/ team building, communication and negotiation, conflict management, and stress management are examples of behavioral training. It also provides a platform for employees of all levels to communicate and exchange information and ideas, helping to improve the Companys overall workforce competencies.

By order of the board (Power Suspended)

For CMI Limited

Sd/-

(Amit Jain)

Chairman cum Managing Director

DIN:00041300

Powers of the board are suspended from the Insolvency Commencement Date

Taken on record by

Deepak Maini

Resolution Professional

CMI Limited.

(Reg. No. IBBI/IPA-001/IP-P00676/2017-2018/11149)