Polycab’s Growth Focus with Rs 300 Cr Capex In FY21
Polycab India Limited, one of the leading companies in the Indian electrical industry, has planned capital expenditure of Rs. 300 crore during the ongoing fiscal year FY21.
Polycab’s Capital Expenditure Plan
Polycab plans to invest 65% of the amount, which translates to Rs. 195 Cr in a combination of backward integration and Cable & Wire business.
In the Cable and Wire segment Polycab will be investing in setting up capabilities for special cables as well as cables destined for exports. Polycab India is planning to focus on import-substitute cables and also wants to set up a facility for manufacturing such import-substitute cables, promoting “Make in India”.
The remainder of Capex of around Rs. 105 Cr will go towards Polycab’s FMEG segment. This will include capital investment in its fan factory as well as factories for pipes.
Project Leap – Polycab’s Growth Plans
Polycab has recently launched “Project Leap” under which it has set a target to achieve over Rs 20,000 Cr revenue in the coming 5 years. To achieve the target, Polycab plans to increase focus on FMEG sector by increasing B2C product portfolio, creating premium version of products, sales through online channels. Increasing contribution of exports to the overall business is another area where Polycab is working.
To strengthen FMEG segment, recently Polycab has also signed an agreement to acquire a 100% stake in Silvan Innovation Labs based out of Bengaluru. Earlier, in April 2021, in line with the strategy Polycab had also launched Home Automation range “Hohm”.
Polycab’s FMEG Financial Results
FMEG business segment of Polycab has grew 24 per cent to Rs.1,034.10 crore in FY21 from Rs.835.60 crore in FY20.
Read More on Polycab’s financial Results.
About Polycab India Limited: it is one of India’s leading company in wires and cables. It also manufactures and sells FMEG products. The company has a network of 3464 authorized dealers and distributors and 29 warehouses.