VOLUME II | ISSUE IV | OCTOBER 2011
Rs. 125
WIRE BULLETIN India’s Quarterly Bulletin Dedicated to the Wire and Cable Industry
ASK THE EXPERT Q: Why do blisters take place on enameled copper strips or wire?
Q: Why is the excess enamel
application that causes roughness on conductor referred to as a high point?
See the answers on p. 17
NEWS BITES • Thirty five Indian companies are ranked among the top 200 Asia-Pacific corporations in Forbes Asia’s ‘Best Under A Billion’ list for this year. • The output of eight infrastructure industries rose at its fastest pace in 15 months in July.
Motherson Sumi Systems merges wiring harness business Auto parts maker Motherson Sumi Systems Ltd. has merged two units and a group company with itself to consolidate its wiring harnesses and plastic components business. The exchange ratio for the merger of group firm Sumi Motherson Innovative Engineering Limited (SMIEL) with Motherson Sumi was to be decided on the basis of valuation made by Deloitte, G.N. Gauba, Chief Financial Officer, told Reuters. SMIEL is jointly owned by Motherson Sumi’s founder, V.C. Sehgal, and other key shareholders of the Sumitomo Group. SMIEL, which makes wiring harnesses and other plastic components, had a profit of Rs 85.9 million rupees on sales of Rs 1.36 billion rupees in FY10, Motherson Sumi said in a statement. “The merger will bring our wiring harness business in India under one entity
Long steel maker RINL shifts focus to flat steel
• India will receive a loan of Euro 200 million from the European Union for the development of renewable energy resources.
QUOTABLE QUOTES is a tremendous growth story, “andIndia is truly one of the rising stars of the global economy.” ~ Eric D Landheer, Head of Asia Pacific, NASDAQ OMX and technology should “beInnovation used to make services and products available to consumers at the bottom of the pyramid.” ~ Ratan Tata, Chairman, Tata Group
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
and make decision-making easier for the business and help us serve customers better,” Gauba said. Motherson Sumi, which makes a range of auto parts from rearview mirrors to wiring harness and hightension cords, counts Volkswagen, Ford, General Motors, Hyundai Motor Co., and Maruti Suzuki among its major clients. Motherson Sumi will also absorb its two wholly-owned units: wiring harnesses maker MSSL Global Wiring Ltd. and India Nails Manufacturing Pvt. Ltd. that owns mainly land and building.|WB
Bishnoi Rashtriya Ispat Nigam Ltd. (RINL), India’s largest long steel maker with products like bars, re-bars and wire rods which are used in the construction and infrastructure space, has decided to expand into the flat steel business with the changing dynamics of demand. “We are looking to enter the flat steel segment in a big way,” said P.K. Bishnoi, Chairman and Managing Director, RINL. Flat steel is mainly used in sectors like automobile and consumer goods. “Up to 7.3 million tonnes (MT) capacity from the current 3.3 MT would be for
long steel. However, the 4 MT that we plan to add after the 7.3 MT expansion will focus on flat steel,” Bishnoi said. RINL is already in talks with Bharat Heavy Electricals Ltd. (BHEL) and Steel Authority of India Ltd. (SAIL) for joint ventures (JVs) to cater to the country’s flat steel demand. It is also in talks with banks to raise Rs 22,500 crore to fund the expansion. Bishnoi said that talks with BHEL for an equal JV in a Rs 5,500-crore plant to manufacture CRGO and CRNO steel, used in making transformers, were on. RINL has proposed SAIL to form a JV for making steel, according to him. As per the proposal, the plant will be set up at RINL’s Vizag facility and SAIL will supply iron ore to it. RINL is also in the process of setting up a railway axle plant. “Indian Railways has given us the land and axle making is a very high value-added product,” he said.|WB
Tata Steel invests in wire rod mill in England Tata Steel is investing GBP 1.2 million in two new high-tech machines at its wire rod rolling mill in Scunthorpe to increase quality and efficiency and to boost production of the most technically demanding steels. The investment in a new testing machine will improve quality testing on the company’s ‘cold heading’ product range, which includes steels used in fasteners for the automotive, mechanical engineering, and construction sectors. A new size and shape measuring gauge at the mill will provide machine operators with rapid feedback on rod dimensions during the steel rolling process. The investment will not result in increased overall production at the rod mill but will enable Tata Steel to increase its focus on the most demanding and safety critical fastener products for the automotive industry. The fasteners can be used in anything from attaching car bonnets to
LS Cable to invest millions in India and USA LS Cable & System announced that the firm will invest USD 96 million to set up local plants in North America and India. The cable maker will build a new power cable production facility in Tarboro, North Carolina, USA, while adding a power cable production line to its existing plant in India. The investment of USD 60 million will be made through Superior Essex, LS Cable & System’s U.S. subsidiary, to establish a production and sales base for power cable products in the North American market. LS Cable said in a statement that it is the first such investment to be made by a Korean cable manufacturer. This investment is part of the company’s global strategy to expand further into the U.S., one of the largest power cable markets in the world. In the early stage, the firm will focus on producing low- and medium-voltage cable products before shifting to high-voltage cables. The rest of the investment worth USD 36 million will go to a power cable production line that will be added to LS Cable’s communications cable plant in Gurgaon, Haryana. The firm expects the expansion to be complete within 2011 and the production to commence in 2012.
Map of Haryana. LS Cable aims to become the largest cable manufacturer in India by 2015, generating sales of USD 136 million from the power cable business alone. LS Cable’s President and CEO Son Jong-ho said in a statement, “With power business localisation, LS Cable & System will secure a foundation for entry into both advanced and emerging power markets. Starting from this investment, the company will accelerate its march towards becoming the Global No. 1 by 2015.”|WB
A D V E R T I S M E N T
See page 7. securing children’s car safety harnesses. Jon Bolton, director of Tata Steel’s Long Products Hub said, “This investment, like the GBP 8 million Clydebridge investments we announced earlier, supports our ambition to focus on making premium products for profitable markets.” It is anticipated that both the machines will be commissioned in October 2011.|WB