Sterlite Power Transmission Limited
Market Assessment of UG Power Cables in India
( 11 kV to 400 kV)
September 16, 2017
EY refers to the global organization, and/or one or more of the independent member firms of Ernst & Young Global Limited
Contents
Background
1 Global wires and cable market context
Indian wires and cable market as per research report 3
Indian wires and cable market as per competitors landscape
2
Market Analysis
10
3
Customer Segmentation 22
4
Competitive Landscape 27
Page 2 Market Assessment of Power Cables in India
Global wires and cable market– Overview
Cable market is estimated to grow globally at CAGR 6.8%; HV(51%) constitutes major market segment
Global context
Global wires and cable market size (USD billion) Global cable market size (USD billion)
250 33.3% 238.1 40.0%
221.0
205.2 99.8
200 188.4 179.4 188.3 30.0%
164.2 @ CAGR 6.8%
Market Size 77.5
US$ billion
% growth
150 123.2 20.0%
14.7%
9.0%
100 10.0%
5.0% 7.7% 7.7%
50 0.0% 2016
-4.8% 2020
0 -10.0%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Market Value % growth
Sources: ICF, BCC research and EY Analysis Source: Technavio
Global market share by voltage (revenue) Global growth in segments (USD billion)
Voltage wise 50.7
41.7
16% 2016 2020
LV ( <1 kV) 33.3
27.1
MV ( 1 kV to 33 kV ) 51% 15.8
13.2
33%
HV ( >33 kV)
LV MV HV
Source: Technavio Source: Technavio
Page 3 Market Assessment of Power Cables in India
Global wires and cable market– Overview
T&D space and APAC region will be growth driver whereas challenges are from fluctuating raw materials prices,
regulations and competition from local vendor
Global context
Geography Cable market projection ( USD billion) Cable growth rate - Region wise (%)
wise 10.0%
120
9.0% 9.0%
100 8.6%
19.6
80 18.5 8.0% 7.8%
Americas 17.6 EMEA
16.0 16.8
APAC 7.0% 7.2%
60 APAC
EMEA 59.2 6.6%
50.6 54.5 5.7% Americas
40 44.3 47.2 6.0% 5.3% 5.5%
4.9% 5.1% 6.0%
20 5.0% 5.6%
5.3%
17.3 18.1 19.0 20.0 21.1 4.6% 5.0%
0 4.0%
2016 2017 2018 2019 2020 2017 2018 2019 2020 2021
Source: Technavio and EY transfer pricing report Source: Technavio
► APAC region to drive growth ~65-70% incremental growth forecasted
Growth Drivers
► Increased demand of electricity in emerging economies to push demand in T&D space
► Growing demand from construction, industrial sector in developing economies
► Rise in sales of HVDC power cables
Global ► The global cable market is concentrated
Players ► Top five leading players occupy around 60% of the overall market revenue
► ABB, Prysmin Group, General Cables Technologies Corporation, NKT Cables, and Nexans`
Page 4 Market Assessment of Power Cables in India
Who says what?
Various sources suggest Indian wires and cable market is INR 38,356 cr and Indian cable market is INR 21,217 cr
Source Estimates
Estimates: Power Cable
Crisil ► FY17 : INR 15,300 cr and
► FY 20 : INR 26,500 cr
► CAGR of 14.0%.
► Exports is estimated in FY 17 to be INR 2,500 cr.
Estimates Wire and Cable:
Technavio
► FY15 : INR 31,000 cr (INR 4,095 cr exported and INR 6,045 cr imported in FY15)
► FY 20 : INR 64,025 cr
► CAGR of 15.6%.
► Market is 65% organised.
Estimates Wire and Cable market:
IEEMA
► FY15 : INR 33,000 cr
Page 5 Market Assessment of Power Cables in India
Who says what?
Various sources suggest Indian wires and cable market is INR 38,356 cr and Indian cable market is INR 21,217 cr
Source Estimates
Estimates Wire and cable:
Netscribe ► FY18 : INR 52,200 cr
► CAGR of 15.0%
► 35 % is unorganised.
► Wires and cable market is 40% of electrical equipment industry.
Estimates Wire and Cable:
Ken ► FY16 : INR 35,538 cr
► CAGR of 18.5%
Estimates Cable market:
► FY12: INR 17,600 cr
IEEMA mission
plan ► FY22 : INR 70,000 cr
► In FY 12 cable export is INR 2,000 & import is INR 3,000 cr & it is 28% of EE industry
► KEC : Housing cable market is INR 8000 cr & Cable non-residential is INR 12,000 cr in FY16
Manufacturer’s
► Havells : Annual Indian cable market INR 20,400 cr per annum in FY16
view
► CCI : Indian wire and cable market size in FY16 : INR 41,400 cr & growing at CAGR of 18.5%
Page 6 Market Assessment of Power Cables in India
