On this 25th year of Polycab as structured organisation it gives me immensepleasure to place before you the first Integrated Annual Report of Polycab India Limitedfor FY 2020-21. This is a decisive step towards improving transparency ensuringsustainability and promoting inclusive growth. I believe realigning our principalstowards progressing across multiple capitals of our business model will lead to tremendousvalue creation for all stakeholders while cementing our market leadership position.
With initiation of our business continuity plan last year we started prioritisingsafety and well-being of our employees partners and customers. This year our corporatesocial responsibility initiatives reached even deeper and farther. We proactivelysupported communities across India either directly or by partnering with governmentlocal administrations or NGO partners with monetary aid or through distribution driveswhich included ration kits essentials such as masks sanitisers and medicines. Theseefforts were well recognised by the local administration and the communities. On theoperations front all our factories offices and warehouses have been operational incompliance with local guidelines and following global best practices. We continue to standwith the community fight the pandemic on a front foot.
The year saw our team working from home and we leveraged this as an opportunity tostrengthen our skillsets with more focused training sessions. We played to our corestrengths -manufacturing distribution innovation and technology to sustain ourleadership in the wires and cables segment while strengthening our consumer electricalsbusiness. We worked on developing new ranges of consumer-centric products based on ourdeep understanding of the market and launched new products across categories. Ourmanufacturing excellence was bolstered through process improvements investments incapacity building deployment of cutting-edge technology and automation including dataanalytics and artificial intelligence driven tools. A robust R&D backbone and seamlessbackend integration for quality raw materials strengthened our brand position and enabledus to stay ahead of the curve. We grew our market reach in the Tier-II and Tier-III citiesand continued with our branding initiatives during the year to improve brand connect. Ourexperience centers were redesigned as Polycab Galleria to engage more meaningfully withcustomers and influencers and strengthen our presence in the consumer electricals segment.
Amidst the upheaval we continued to remain nimble with unwavering focus on businessexecution. As a result our revenue increased from Rs 88.3 billion in FY20 to Rs 89.3billion in FY21 despite pandemic-induced disruptions. Economic contractions witnessed inthe first half of the year put our antifragility to the test. It was not until the latterhalf that India began its upward trajectory. Consumer and market sentiments improved ascrucial indicators such as the infra investments GST revenues IIP PMI buildingmaterials consumption among others began to indicate an economic rebound. Our core wiresand cables business was supported by distribution expansion portfolio augmentationhigher realisation and favourable macro environment in second half. Our efforts to becomea premium global player is progressing well. Normalised exports portfolio saw strongtraction during the year. Our swelling portfolio of global quality certifications alongwith product approvals from large multinational organisations proves our commitment toquality consistency and creditability. A sharp rebound in global demand for commoditiescoupled with supply side interruptions led to record surges in input prices. This waslargely mitigated through calibrated price escalations hedging mechanisms and betterproduction planning. We received multiple product approvals for our inhouse manufacturedhigh end cables used in sectors such as defence railways and automobiles. We are thefirst Company in India to receive Automotive Research Association of India (ARAI) testcertificates on ISO 16942 cables for electric vehicle (EV) applications. We worked as aproject implementation agency (PIA) with BharatNet's Phase-II and received several awardsand accolades. Consumer electricals vertical continued its strong momentum withstandingall disruptions. The year was marked with impressive broad-based growth and market sharegains across categories. At Rs 10.3 billion in revenue the business achieved a majormilestone. Within the fans category we emerged leader in few geographical clusters.Lighting business posted strong industry leading growth over last year despite toughmarket conditions and input cost inflation. Our strategic interventions to unlocksynergies helped revive growth in categories like switches and switchgears. A focusedprogramme is underway to develop premium and value-added products which resonates betterto market trends. Augmenting our brand architecture we launched a new brand Hohm from thehouse of Polycab. It is a premium IoT based FMEG portfolio which will cater to evolvingneeds of consumers in this digital age. All of Hohm products are made in India and most ofthem are manufactured inhouse. Hohm is a significant step in our journey of innovation andtransforming Polycab into an aspirational brand.
Profitable growth has been our core agenda. Strategic interventions in terms ofpricing cost optimisation and enhanced portfolio mix helped mitigate sharp surge in inputcosts and improve operating profitability during the year. Our Financial position wasstronger than ever with net cash position of over Rs 9 billion as of year end.
We are encouraged by the government's continued efforts to calibrate our healthinfrastructure and ongoing progress on the vaccination front. Initiatives like AtmanirbharBharat National Infrastructure Pipeline and the recently introduced production linkedincentives (PLIs) to bolster domestic manufacturing augurs well wires and cables industry.Favourable developments on account of policy reforms normal monsoons easing of liquidityposition reduction of interest rates and boosting entrepreneurship with initiatives forMSMEs strengthen the case for India becoming a $5 trillion economy. These structuraldevelopments offer tremendous growth potential and we intend to work relentlesslyleverage our core competencies and stay ahead of the curve.
During the year we flagged off a strategic cost optimisation initiative ProjectUdaan. We are quite optimistic that it will help us build a lean cost structure which issustainable while institutionalising new ways of working. While the implementation isstill underway and benefits will accrue over the next two years I am happy to report thatwe have identified and are unlocking significant value already. We also initiated ProjectShikhar to strengthen our engagement with key influencers i.e. Retailers Electricians& Small contractors. This programme seeks to expand our retail reach in 300 highpotential cities across India over the next two years. We intend to reach to over half ofall the retailers directly in these cities and drive 3x sales from these markets. OurExperts Program' emphasis on inclusive growth by imparting personal and professionalskills to participants along with monetary incentives. Our extensive focus ondigitalisation and creating a robust IT infrastructure has helped us improve crossfunctional operating efficiencies and transform customer experience. Our onlinemultiplatform dealer portal now generates over 70% of our domestic products business. Weare also digitalising and integrating our supply chain including warehouses and logisticsusing RFID GPRS sensors and scanners. Document management process is being madeintuitive with intelligent workflows across the organisation. We have meticulously alignedindividual goals with company goals through an upgraded robust performance managementsystem. Lastly we have embarked on a five-year transformational journey. By FY26 weaspire to cross Rs 200 billion in sales with significant market share improvement acrosscategories. I believe we are at an inflection point of our organisation's growthtrajectory and the next five years will be driven by customer-centricity future-readyorganisation structure digital transformation and a sharp focus on EnvironmentSustainability and Governance. We are dedicated to using our resources in a responsiblemanner. Our endeavour to serve the communities have a positive impact on environment andensuring corporate governance form an integral part of our business.
Gratified by your support
Before I conclude I take this opportunity to thank the Board for effectively steeringthe Company in these unprecedented times. I am grateful to the leadership team and ouremployees for their relentless efforts and contributions towards upholding businesscontinuity and enabling growth. To our stakeholders including our partners supplierscustomers consumers influencers bankers government authorities and to you ourshareholders I express my gratitude for reposing your faith in us. Let us together make adifference and scale new heights of progress in the impending year.
Inder T. Jaisinghani
Chairman & Managing Director