Indian copper wire rod market is expected to grow by 12% YoY. Eying the expected supply-demand gap a 50:50 strategic JV between India’s largest wire and cable producer Polycab India Ltd. and World’s leading independent commodity trading and logistics company Trafigura Pte. Ltd. was announced on 11th August 2016, giving birth to Ryker Base Pvt. Ltd.
This is Trafigura’s first base metal manufacturing investment in the Indian Subcontinent. The manufacturing unit thus set up at Asoj, Gujarat is spread over an area of 16 acres and at an investment of Rs. 167 Cr. The Copper Cathod-to-Rod unit has an annual capacity of 240,000 metric tonnes.
According to the press release of Trafigura on 11th August 2016 Jeremy Weir, CEO, Trafigura said “Trafigura, has been trading with Indian counterparts since inception. We established our first dedicated operating subsidiary in 2009, leveraging local and international knowledge to consistently understand and address the challenges in the country’s commodity and metals industry. We are committed to the Indian market and our new investment which fits with the flagship ‘Make in India’ programme of the Government of India,”
Inder Jaisinghani, Chairman and M.D Polycab India also Commented in the same press release “In line with Polycab’s efforts to produce energy efficient products we will construct a technologically advanced copper rod mill which will save on energy consumption and significantly reduce carbon emissions.”
“We see a great opportunity for managing our working capital and inventory management with this backward integration JV with Trafigura, our long standing partner,” continued Inder Jaisinghani. He further added “Polycab has predominantly served a domestic customer base and with the projected growth of the country our partnership with Trafigura strengthens Polycab’s resolve of providing high quality material at local costs. This partnership will ensure consistent and high quality copper rods for the increasing demands of the country.”
In an interview with wire & Cable India in October 2017, Mr. Sandeep Bhargava, President, Strategic Sourcing Polycab India & Director, Ryker Base Pvt. Ltd. mentioned about the advanced technology to be used “This is the prime reason to select this (CONTIROD) technology. If we were to compare the offerings of this technology to the current available technologies in India, we have a 26.9 percent reduction in fuel consumption, a 60 percent reduction in electricity consumption and a reduction of 70.6 kg CO2 per tonne of metal produced”
This plant shall be mainly serving the demand of Polycab. It is expected that self-consumption would be upto 60 % and 40 % would be available for sales to the market.
In January 2019 the hot commissioning of the plant got completed and is under trail operation. For testing purposes the rods are supplied to Polycab India. It is expected that the commercial production to take place within April 2019.