Finolex Cables (FCL), the flagship company of the Finolex Group, started off by manufacturing PVC insulated electrical cables for the automobile industry in 1958 in Pune. Today, the company is recognised as one having the widest range of cable products and is nicknamed as the ‘total cable solutions provider’.
FCL is the domestic market leader in electrical wires due to its superior quality and customer validated trouble- free performance.
The company has manufacturing facilities at Pimpri and Urse in Pune as well as in Goa and Uttarakhand. FCL operates in three main segments— electrical cables, communication cables and copper rods. A broad segmentation of its products includes PVC insulated cables, rodent repellent multi-core flexible industrial cables, power and control cables, high voltage power cables (up to 33 kV), polyethylene insulated jelly filled telephone cables, auto and battery cables, LAN cables, switchboard cables and fiber optic cables, among others.
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Company projection
Electrical cables are the focal point of business for the company and contributed around 85 per cent of the total net sales in FY15. FCL has expanded its product profile by venturing into manufacture of CFLs, LED lamps and electrical switches, a move that has brought additional market reach at minimal cost expansion. For FY16, the company plans to introduce a new range of switches including ‘electronic touch’ models.
The central government has recently announced its Digital India programme, which is expected to involve a fiber network of approximately 1 million cable kilometers connecting the length and breadth of the country. This project would provide a huge opportunity for the company’s fiber optic business.
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That said, with improved asset utilisation, reduced debt levels and overall improvement in productivity, the company is well positioned to grab any growth opportunity in the future. In additon, Global Depository Receipts (GDR) of Finolex Cables is listed on the Luxembourg Stock Exchange. Investors with a medium to long term investment horizon can invest in the company’s scrip, which has churned impressive returns of 325 per cent from January 04, 2013 till October 26, 2015.a
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