Finolex Cables expects to more than double turnover to Rs 11,000 cr

Finolex Cables, which leads the electrical and communication cables segments, hopes to net Rs 500 crore in revenue from each of the five fast-moving consumer electrical segments it recently entered, by fiscal 2028, which will also help it more than double its present revenue.

The Pune-headquartered company made around Rs 200 crore, or about 5 per cent of its top line last fiscal from these segments. It also expects to more than double its turnover to Rs 11,000 crore by that time, which is likely to sniff at Rs 5,000 crore this fiscal going by the first nine months' numbers with the December quarter alone crossing Rs 1,150 crore.

The company entered the fast moving consumer electric segment in 2020 and have already made some good traction with our switches, ECBs, fans, lightings, and water heaters. Last year we closed with around Rs 200 crore, or about 5 percent of the top line.

"Over the next five fiscals, we hope to make Rs 500 crore from each of these five new products or about 25 per cent of our total turnover of Rs 11,000 crore, by FY28," chairman Deepak K Chhabria told PTI.

Chhabria, who is at loggerheads with his first cousin Prakash Chhabria, the chairman of Finolex Industries, refused to comment on the ongoing legal battle for management control of the holding company, saying the matter is pending before the courts.

However, he hinted at his readiness for an out-of-court settlement provided Prakash is also willing. Prakash, who is said to be away in London for some years now, could not be contacted for comments.

Finolex Cables is the largest manufacturer of electrical and communication cables and pioneered the segment among domestic manufacturers, and its wire and cable products are used in applications such as automobiles, lighting, cable TV, telephones, and computers to industrial applications. It also the largest domestic manufacturer of optic fibre cables for 5G network.

Its products, manufactured at its four plants at Urse and Pimpri near Pune, Goa, and Roorkee in Uttarakhand, retails them across around 2 lakh retailers.

In electrical wires, Finolex is the market leader with around 23 per cent market share in the organized space which is about Rs 20,000 crore. Other major players in this space include Havells, V Guard, Polycab, RR Kable and Kei among others.

Of the close to Rs 4,000 crore revenue in FY22, he said only 5 per cent came in from exports and he is not looking at exports as a key area, Chhabria said.

The Finolex counter closed 2.2 per cent down at Rs 779.85 on the BSE.