RR KABEL CFO aims to achieve double-digit market share by 2028

In an exclusive conversation with ETCFO, Rajesh Jain, the Chief Financial Officer of RR KABEL, has revealed the company's strategic ambition to achieve a double-digit market share in the industry by the year 2028. Jain emphasized the significance of surpassing the industry growth average, stating that attaining anything above 10 per cent would be a commendable target for sustained growth.

"In the next five years, RR Kables aims to secure a market share in the low double digits. By consistently surpassing industry averages, our goal is to achieve the 10 per cent mark," Jain told ETCFO.

The CFO sheds light on the company's financial performance in H1 of FY24 and outlines ambitious plans for future growth.

Edited excerpts from the interaction

Q: Could you outline the long-term targets that RR KABEL has set for itself, considering its current strategic initiatives and market projections?

Rajesh Jain: The company anticipates the industry to grow at 13 to 14 per cent, outperforming the overall economic growth. As for RR KABEL, we aim to achieve a market share in the low double digits, around 10 per cent, over the next 5 years.

Q: Could you elaborate on the factors you believe have been instrumental in the promising H1 results for RR KABEL?

Rajesh Jain: Our wire and cable segment, particularly cable manufacturing at Vadodara, has been a significant contributor. With almost 30 per cent year-on-year growth in volume terms, our success is attributed to robust demand fueled by infrastructure growth and optimistic middle-class consumers.

Q: Delving into the future, could you elaborate on RR KABEL's upcoming major projects and capex plans?

Rajesh Jain: We have a comprehensive Capex plan of Rs 500 crores over the next two years, focusing on doubling our power cable capacity, expanding copper wire production, introducing an E Beam facility, and establishing a PVC compound manufacturing facility. This investment will be self-funded, and we have ample cash generation to support our growth initiatives.

Q: As the CFO, what key priorities and expectations in FY24?

Rajesh Jain: Our primary focus is on delivering quality products, ensuring safety, environmental compliance, and expanding our brand through a robust distribution network. Sustainable growth remains at the forefront of our strategy.

Q: In the pursuit of your 2028 goal to attain a double-digit market share, what challenges do you anticipate, and what strategic measures does RR KABEL plan to implement to overcome them?

Rajesh Jain: The positive aspect within our industry currently is that we are experiencing a favorable demand cycle, and at present, we do not identify any significant challenges. Our primary focus should be on enhancing our market presence, making strategic investments, improving brand visibility, and reaching our end customers effectively.