Wire Bulletin - Jan 11

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VOLUME II | ISSUE I | JANUARY 2011

Rs. 125

WIRE BULLETIN India’s Quarterly Bulletin Dedicated to the Wire and Cable Industry

Sterlite signs deal with CTC Cable

ASK THE EXPERT Q: I am a mechanical engineering student and a member of a group project for a Manufacturing Processes course. Our student group was instructed to design a process for the manufacture of 2024 Aluminium wire. We must focus on defining the complete process parameters. Can you help provide your expertise?

See answer on p. 17

NEWS BITES • Tata Steel plans to invest Rs 4,500 crore this fiscal for various projects, followed by Rs 7,000 crore in 2011-12. The company is also in the process of placing orders for the six-million tonne Orissa project and should start production in three to four years. • Steel Authority of India Ltd’s Ranchibased R&D Centre for Iron and Steel (RDCIS) proposes to develop 18 new products in 2010-11, in collaboration with SAIL’s manufacturing units.

& Sterlite Technologies, provider of transmission solutions for the power and telecom industries, and CTC Cable Corp. have announced a strategic relationship wherein the former would manufacture specialty ACCC power conductors for the Indian market, using CTC’s patented ACCC conductor technology. “Sterlite has been engaged in actively exploring the latest technologies to make it easier, faster and more cost-effective for utility companies to build power infrastructures. India needs to rapidly increase the current-carrying capacity on its grid to keep pace with its economic development. ACCC conductors would offer India a unique ability to increase the current-carry-

Prysmian-Ravin targets 10% market share for cables Prysmian, a global player in the energy and telecommunications cables industry, and Ravin Cables Ltd., its Indian joint venture subsidiary, recently presented their development strategies and growth objectives for the Indian market.

QUOTABLE QUOTES I have been a great believer in the “India growth story.” ~ Wilfried Aulbur, MD & CEO, Mercedes Benz India seems to be one of the only “fewIndia bright beacons in the otherwise dark and confused global economic scenario.” ~ Prashanth Narayan, VP & Head (PMS Investments), ING Investment Management India

IN THIS ISSUE: Editorial .............................. 2 Calendar & Event Review ..... 3 Industry News ..................... 4 Business Innovation ............ 6 Corporate Focus.................. 8 Featured Concepts ............ 10 Global News...................... 12 Products, Media, & Technology .................... 13 Production Tips ................. 16 Ask the Expert ................... 17 Technical Article................ 18 Economic News ................. 21 People on the Move........... 22 Ad Showcase..................... 24

ing capacity of the existing lines and to significantly improve the overall economics on new lines,” said Rajendra Mishra, COO (Power), Sterlite Technologies. US-based Composite Technology Corporation (CTC) develops, produces, and markets innovative energy efficient products and renewable energy projects for the electrical utility industry. CTC’s products incorporate advanced composite materials and innovative design solutions that provide solutions to efficiently modernise the electrical grid systems. CTC’s principal subsidiary is CTC Cable Corp. and its primary product is the patented ACCC® conductor for transmission and distribution power lines. The ACCC® product line is designed around advanced composite materials which enable the highly efficient transmission of electricity.|WB

Vijay Karia and Fabio Romeo. “Our commitment is to establish a credible and sustainable full range cables sup-

plier in the Indian market, targeting a 10 per cent market share, said Fabio Romeo, COO, Prysmian Group, at a meeting with Indian journalists in Mumbai. “Furthermore, by leveraging on Prysmian’s state-of-the-art technology, expertise, and capabilities, we believe that Ravin Cables can become one of the top three cable systems suppliers in India. To deliver these ambitious objectives, we are committed to implementing a long-term investment programme involving resources, training, technologies, and manufacturing facilities. “The group’s initial plan is to invest in a new high voltage cable manufacturing unit of up to 220 kV as well as to improve Ravin’s product offer in the industrial cables market in sectors that include automotive, mining, and renewable energies.” continued on p. 5

Havells doubles its capacity Electrical and power equipment major Havells India has doubled its cable and wire manufacturing capability at an investment of Rs 120 crore. The company, which has a 10 per cent share of India’s Rs 12,000 crore cable and wire industry (including electricals), expanded its manufacturing plant at Alwar in Rajasthan to make Rs 2,400 crore worth of electrical goods. “The expansion is in line with the demand the market is witnessing in both the domestic and international markets,” said Sunil Sikka, President, Havells India. According to Sikka, the capacity expansion will also help the company in meeting the growing domestic demand and also to target new emerging markets such as the Middle East and Africa regions. The company expects the demand of its cable and wire products to hit Rs 1,800 crore by 2012 from the

organised construction sector and independent home builders. “We now have the capacity and it is up to the marketing division to do its job, which they would be able to achieve as there is a 10-15 per cent growth in the market,” Sikka said. He added that the investment of Rs 120 crore was a part of the Rs 200 crore expansion plan which the company had earmarked. “We regularly invest in capital expenditure for the company’s expansion,” he said. The state-of-the-art wire and cable plant in Alwar was first acquired by the company in 1996. The plant manufactures various ranges of low tension, high tension, and electrical high voltage cables. Currently, the USD 1.2 billion company is present in 50 countries with 11 domestic and four international manufacturing plants which churn out products like switchgears, motors, geysers, fans, CFL lamps, and luminaires.|WB

Global wire and cable market to cross USD 113.9 Bn According to a new report by Global Industry Analysts, Inc., a market research publishing company, the global market for insulated wire and cable is forecast to exceed USD 113.9 billion by the year 2015. The factors influencing the market in a major way include a resurgence of the global construction industry and the robust expansion of the energy sector. Further, the rise of smart grids in matured economies and increased investments in high-speed rail networks are poised to drive market growth in the next few years. The insulated wire and cable market suffered a severe blow during 2008 and 2009 mainly because of the global economic recession. Slowdown in construction activity, especially in matured markets such as North America and Europe, and decline in worldwide automotive sector impacted the wire and cable revenues to a noticeable extent. Likewise, the weak demand for wire and cable products in other end-use sectors such as telecommunications and electronic equipment also discouraged market growth. However, the wire and cable market is expected to witness significant demand growth in the coming years driven by robust expansion in the wind energy, nuclear energy, and other green energy sectors. Information processing and communications—two of the largest markets— are expected to prop up growth in the global insulated wire and cable market. In wireless communications, applications such as base station transmission units and antenna towers are expected to drive the demand for wire and cable. Asia-Pacific represents the largest as well as the fastest growing regional market for insulated wire and cable worldwide, as stated by the new market research report. Prior to the onset of global economic recession in 2008, the Asia-Pacific insulated wire and cable market grew by leaps and bounds driven by huge growth in telecommunications, energy, and construction/infrastructure sectors. The insulated wire and cable market witnessed a decline in 2009 in the region and is likely to recover by 2011 driven by growing demand for telecommunications, data wire, and cable products, especially in China and India. The telecommunications, data wire, and cable category constitutes the largest as well as the fastest growing segment in the global insulated wire and cable market. continued on p. 5 A D V E R T I S M E N T

See page 7.


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