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Chart Beat: Exports a bright spot for cables & wires companies
![Wxports of cables & wires at $1,513 million during 9MFY24, were nearly 55% more than imports. (Image: Pixabay) Wxports of cables & wires at $1,513 million during 9MFY24, were nearly 55% more than imports. (Image: Pixabay)](https://www.livemint.com/lm-img/img/2024/04/15/600x338/gb9cb16618d07925151086d046c0522b1ed44ddc598e5cbc3bc23be01cd3c1bf0f4b2b738876661ce2a7bc23fd2d6f1a495cae96e06fea70ded3721b4de14cdb8_1280_1713163219394_1713163242245.jpg)
Summary
- Favorable government policies will aid domestic companies in increasing their production as well as help them find new geographies to increase revenue, said Motilal Oswal
Exports of cables & wires from India have been increasing and companies can capitalize on this trend. Data sourced from Motilal Oswal Financial Services shows that over FY17-23, cables & wires’ exports clocked a compound annual growth rate (CAGR) of 16%.
During the same period, the CAGR for imports stood at about 8%. For the nine-month ended December (9MFY24), exports grew about 15% year-on-year compared to the 7.5% year-on-year growth seen in imports. Put another way, exports of cables & wires at $1,513 million during 9MFY24, were nearly 55% more than imports. The upshot is that India is now a net exporter of cables & wires.
Against this backdrop, Polycab India Ltd, KEI Industries Ltd and RR Kabel Ltd find themselves in a sweet spot. For 9MFY24, export contribution as a percentage of total revenues for Polycab, KEI and RR Kabel stood at 8.1%, 14.5% and 27.1%, respectively.
“Favorable government policies such as PLI schemes, development of ecosystems for component manufacturing, import substitution as well as China+1 strategy will aid domestic companies in increasing their production as well as help them find new geographies to increase revenue," said the Motilal Oswal report.