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The wires and cables manufacturer Polycab India is set to exceed its ambitious revenue targets due to a strong demand environment and strategic initiatives, said the company’s Chief Financial Officer (CFO), Gandharv Tongia.
“The demand environment is robust,” Tongia told ETCFO. “Railways, highways, real estate, and private capex are all contributing positively to our industry.”
Polycab has already achieved a top line of Rs 18,000 crore in FY24, nearing its target of Rs 20,000 crore by FY26. “Given the spread of infrastructure and new manufacturing capacities, we believe the industry will grow at a significantly better rate,” Tongia noted. “As the leading player in our segment, we expect to provide industry-leading growth.”
The company plans to recalibrate its guidance for the next three to five years in light of its rapid progress. “We will likely revise our targets sometime this year,” Tongia added.
Increased Capital Expenditure
In light of the strong demand, Polycab is significantly increasing its capital expenditure. “Three to four years back, we used to spend around Rs 400 to Rs 450 crore per annum on capital assets or capex,” Tongia explained. “Last year, our guidance for FY24 was Rs 700 to Rs 800 crore, and we invested Rs 850 crore. We believe that, given the robust demand environment, we will need to invest anywhere between Rs 1,000 to Rs 1,100 crore every year for the next three years.”
This substantial investment aims to help Polycab gain more market share and meet the nation’s growing demand. “This investment will help us gain more market share and meet the nation’s growing demand,” Tongia emphasized.
Focus on Exports
Exports are a key focus for Polycab, with a goal to have 10 per cent of its top line come from the exports business. “We are setting up additional manufacturing capacities, securing necessary approvals, and ensuring local distribution networks are in place,” Tongia said. “These initiatives should help us achieve our 10 per cent export contribution target.”
