Polycab India

Polycab India Ltd is the country’s largest integrated manufacturer of wires and cables, and a prominent player in the fast-moving electrical goods (FMEG) industry.

The company’s 25 manufacturing facilities span five strategic locations in India -- Gujarat, Maharashtra, Uttarakhand, Tamil Nadu and the Union Territory of Daman. The company has also built a network of over 4,300 authorised distributors that have established presence through more than 2 lakh retail outlets across the country.

Polycab’s journey began in 1964 when Thakurdas Jaisinghani established Sind Electric Stores that dealt in various electrical products. The family business was managed from 1968 by his sons Girdhari, Inder, Ajay and Ramesh.

In 1975, the family founded a partnership firm in the name of Thakur Industries. In 1983, a firm named Polycab Industries was founded by Jaisinghani brothers and was registered as a small-scale industrial unit. They had a factory at Halol, Gujarat, for manufacturing PVC insulated wires, cables copper and aluminium and bare copper wires.

In 1996, it was incorporated as Polycab Wires Pvt. Ltd at Mumbai as a private limited company. In 2018, the company was converted into a public limited company and the word private was struck off from its name.

In 2019, Polycab India Ltd listed on NSE and BSE after a successful ₹1,345 crore initial public offering (IPO) being subscribed 52 times. Polycab share price has surged over 428% in the last three years. The company's market capitalisation stood at over ₹82,500 crore as of December 20, 2023.

Business segments

Polycab India operates in two major segments -- wires and cables (which contributed 89% to external sales in FY23) and fast moving electrical goods (contributed 9% to FY23 sales). Besides that, the company operates some other international businesses in the same space.

Wires and Cables (W&C):

Polycab is India’s dominant manufacturer and seller of a varied range of wires and cables for retail and industrial use, catering to a diverse customer base across a wide range of industries.

FMEG:

The company’s FMEG business, which began in 2013-14, is a high-growth segment. It features a growing product mix across different price points that caters to the complete spectrum of customers. The company is present in segments such as fans, lighting luminaires, switches, switchgears, water heaters, pipes and agro pumps.

International Business:

Polycab’s international business delivers superior electrical products and solutions, tailored to meet the ever-changing demands of its customers.

Financial highlights

Polycab achieved double-digit growth in both revenue and profitability in 2022-23. The strong performance was primarily driven by robust volume growth in its wires and cables business. In FY23, the company achieved a 16% increase in revenue to ₹14,107.8 crore. The company’s PAT increased 27% to reach ₹1,282.3 crore during the year. PAT margin rose by around 220 bps to reach 9.1% in FY23. Favourable business mix translated into an EBITDA margin of 13% for FY23. Polycab declared a dividend of ₹20 per share in FY23, representing a payout ratio of 23.5%.