Cybele Industries Ltd Management Discussions

The global economy has demonstrated remarkable resilience, with growth holding steady and advanced and emerging economies countries returning to their target inflation levels after staying elevated for the past few years. The post- pandemic period saw a war between Russia and Ukraine. This was accompanied by supply chain disruptions, middle- eastern wars, and various other geopolitical crises, which led to a surge in inflation. However, despite predictions of a recession, the world economy avoided a downturn. The banking system proved robust, and major emerging market economies remained stable, avoiding sudden stops.

Indian Economic Overview

Indias economic landscape in 2024-25 is marked by resilience and growth. This reflects the countrys ability to maintain a strong economic trajectory despite global uncertainties.

According to provisional estimates of gross domestic product (GDP) growth released by the National Statistics Office (NSO), India registered the modest growth among major advanced and emerging market economies. This positions the country as a global economic leader.

Industry Review

Wires and Cables (W&C):

The consumer electrical industry in India plays a crucial role in the economy, significantly contributing to manufacturing production, GDP, and exports. It includes heavy electrical products like wires and cables (W&C) and light electrical products such as fast-moving electrical goods (FMEG), encompassing appliances like fans, lighting, appliances, switches and switchgears. The industry is highly competitive with many players offering diverse products and services.

Key Sub-Categories of Wires & Cables

A wire is a single conductor, while a cable consists of multiple conductors for transmitting electricity and telecommunication signals. The W&C market includes:

Housing Wires: Used in commercial, industrial, and residential properties to carry electrical current

Power Cables: Utilised for power transmission and distribution

Control and Instrumentation Cables: Multi-conductor cables for low-energy signals in power system monitoring and control

Communication Cables: Transmit information signals, including coaxial, fibre optic, data, ethernet, and twisted wire pairs Flexible and Specialty Cables: Used in consumer appliances, railways, mining, and specific sectors like marine and oil & Key Growth Drivers of Wires and Cables Market in India

Residential and Commercial Real Estate

The booming real estate market increases the demand for high-quality wiring and cabling solutions. As new buildings and complexes are developed, the need for reliable electrical infrastructure rises, directly boosting sales for Cybele Industries.

Push towards Renewable Energy

Under the Paris Agreement, countries like Japan, South Korea, India, and those from the European Union, have committed to achieving net zero emissions, with India targeting 2070. This global commitment has accelerated the adoption of renewable energy, particularly solar and wind power, creating significant growth opportunities for Indias consumer electrical industry. Cybele stands to benefit from this shift, with India aiming to install 500 GW of renewable energy

capacity by 2030, driven primarily by solar energy projects. The Interim Union Budget 2024-25 allocated the following:

Rooftop Solarisation: To cover 10 million homes with the rooftop solar scheme which will provide 300 units of free electricity each month to these households

EV Transition

The transition to EVs presents a significant growth opportunity for Cybele Industries in the W&C industry. With the Indian Government targeting 30% vehicle electrification by 2030 and implementing supportive policies such as the FAME India Scheme and PLI Scheme, the EV market is poised for rapid expansion. Additional initiatives like the Battery Swapping Policy and tax exemptions further stimulate EV adoption. Given the anticipated need for 20.5 Lakhs charging infrastructure installations by CY 2030, Cybele Industries is well- positioned to capitalise on the EV transition in India.

Rural Electrification

The enhancement of road connectivity between rural and urban areas has improved the living standards of rural households, leading to a significant increase in the demand for basic electrical needs. Although seven states have achieved full access to electricity more than 11.8 Lakhs households, still await access to electricity.

Since 1950, the number of villages with electricity has surged from 3,000 to 600,000, driving substantial growth in the electrical market. This expansion offers lucrative opportunities for companies like Cybele Industries to penetrate rural markets and meet the rising demand for wiring cables and FMEG products. The ongoing rural electrification drive is set to further stimulate demand as it requires the establishment and maintenance of new power infrastructure.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is engaged in the business of manufacture and sale of Building Cables, Flexible Cables, Power Cables, Submersible Pump Cables, Automotive Cables, Control Cables, Railway Signaling Cables and Harness Cables which are classified under the Industrial Structure as Electrical Cables and Wires. The company also in property development.

OPPORTUNITIES AND THREATS

The product portfolio of the Company is dominated by threats posed by manufacturers in un-organised sector. As the Government is initiating various measures to encourage the infrastructure and housing sector, there is possibility of increase in demand for cables and wires and also improvement in the real estate sector.

RISK AND CONCERNS

The fortune of the Company is dependent on entry barriers set up by electrical cables and wires business in the unorganized sector. Further as a manufacturer in the organized sector, the fixed costs in terms of administrative expenses are high.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control system monitored by Internal Auditors who are reporting to the Audit Committee. The Audit Committee is meeting periodically for reviewing the performance of the Company and formulating policies / issuing guide lines to the Management.

FINANCIAL PERFORMANCE

The Company incurred a loss of Rs.1180.68 lakhs during the year. The Company is taking necessary steps to improve the performance of the company.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company regularly deputes employees to seminars and various programmes to help them to enrich their professional skills and knowledge. The company has formulated incentive schemes to employees to increase the productivity and performance. The company maintains cordial relationship with workers and employees at all levels.

REPORTING OF FRAUD

The Auditors of the Company have not reported any fraud as specified under Section 143(12) of the Companies Act, 2013.

SECRETARIAL STANDARDS

The Company has complied with the applicable Secretarial Standards as amended from time to time.

DISCLOSURE OF ACCOUNTING TREATMENT:

Pursuant to the notification, issued by the Ministry of Corporate Affairs dated February16,2015 relating to the Companies (Indian Accounting Standards) Rules, 2015, the Company has adopted "IND AS" with effect from 1st April 2016. Accordingly, the financial statements for the year 2024-25 have been prepared incompliance with the said Rules.

ACKNOWLEDGEMENT

The Directors would like to place on record their sincere appreciation to its customers, vendors, dealers, suppliers, investors, business associates, bankers, Government Authorities for their continued support during the year. The Directors truly appreciates the contribution made by employees at all levels for their hard work, solidarity, co-operation and support.

(By Order of the Board) For CYBELE INDUSTRIES LIMITED

	ScV-
Place: Chennai	Thoraas P vk>y
Date: 12.08.2025	Managing Director
	DIN:01850040