Polycab Case Study: Business Model, Financials, Competitors, and Growth Outlook

Polycab India is one of the leading manufacturers of wires and cables in the nation. It is engaged in the business of manufacturing wires and cables. Along with these products, Polycab offers FMCG products such as electric fans, LED lighting and luminaires, switches & switchgear, solar products, and conduits & accessories. Let’s look at its company profile, financials, market position, and segments. 

All About Polycab

This reputed company was incorporated in 1964, in Mumbai as a private limited company under the Companies Act, of 1956. The company’s consolidated turnover of INR 14,108 Crores in FY23. The company focuses on brand positioning, new product development, scaling operations, customer-centricity, talent acquisition, go-to-market excellence, and good governance. 

In FY23, the revenue of Polycab contributed to a consolidated 9.8% of the revenue in international business. The company also has expanded its footprint in 93 countries. The company is enhancing its reach and distribution in B2C business and increasing its presence in white spaces for B2B business. 

Key Metrics

Market Cap	₹ 73,244 Cr.
Current Price	₹ 4,881
High / Low	₹ 5,733 / 2,754
Stock P/E	44
Book Value	₹ 479
Dividend Yield	0.41 %
ROCE	27.0 %
ROE	20.0 %
Face Value	₹ 10.0

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Product Mix

Products	Sales in FY23
Wires and Cables	89%
FMEG	9%
Copper and others	2%

The figure presents an overview of the segments for Polycab India in the FY 2023. The company’s total revenue was INR 14,108 Crores, of which 89% came from wires and cables, 9% from FMEG (fast-moving electric goods), and  2% from copper plus other sources.

Revenue of Polycab

Year	Revenue in (INR Crores)
FY19	7,986
FY20	8,830
FY21	8,792
FY22	12,204
FY23	1,41,078

The figure represents a CAGR of 15% in revenue between FY19 and FY23.

Products Offered by Polycab

This company has a diversified range of products and their main products are wires and cables segments. These are: 

• Control and power cables
• Instrumentation cables
• Building wires and green wires
• Welding cables

Project Leap

Project Leap is a multi-year transformational programme aimed at having the right methodology in place which will enable them to achieve INR 200 billion of the top line by FY26. Progressing towards the goal, the company witnessed strong Q3FY24 performance and generated revenue of ₹4,340 crore, growing by 17% YoY.

Competitors of Polycab

The industry faces tough competition due to its low barriers to entry. Some of them are :

• KEI industries
• Sterlite Techno
• Finolex cables
• Precision wires
• Universal cables.

A New Era

In an era, where branding plays a critical role in establishing a company’s identity and connection with customers, Polycab identifies the significance of refreshing its brand and staying in touch with technological advancements. The company engages in deep research and development which helped them to scale up its businesses in the FMEG segment. The company also introduced a new tagline “Ideas. Connected.” which builds on the idea of a future where innovative products simplify lives. Their main intention is to connect with their customers deeply and build brand loyalty. 

The main pillars of the new brand will constitute a diverse range of products and services such as home automation products, FMEG goods, improved customer experience, and sustainable cables and wires. Polycab’s growth momentum is driven by the growth in its B2C business and sustenance in B2B business while expanding its footprints internationally. 

Growth Outlook

In 2024, Polycab is planning to witness substantial growth in its business with more focus on 2 of its product segments – Wires and Cables and FMEG (Fast Moving Electrical Goods).

By FY26, the company aims to achieve the following objectives:

• Attain revenue of ₹20,000 crores.
• Achieve EBITDA margin of 10-12% in the FMEG segment.
• Achieve 2 times market growth in emerging segments.
• Secure over 10% of its contribution from online channels.
• Build stronger and more robust relations with the customers.

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Conclusion

Polycab India has established itself as a leader in the wire industry, with a strong focus on innovation, customer-centricity, and sustainable growth. The company’s strategic initiatives, such as Project Leap and brand revitalization, are driving its expansion and success in both domestic and international markets. 

Looking forward, the company has plans to grow even more. Polycab wants to acquire greater market share and meet the increasing demand for their products in global markets.  

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