The market leader in the cable and wire segments now wants to be among the top 3 sellers of products such as fans, lights, switches and switchgears. To this end, it has recruited talent from leading competitors in these segments such as Havells, Crompton and Panasonic among others, according to Gandharv Tongia, the chief financial officer of Polycab.
The company has set a target to achieve revenue of Rs 20,000 crore by FY26 from Rs 9,000 crore in FY21 under its Leap project. It closed FY22 with consolidated revenue of Rs 12,204 crore.
“What we identified as the immediate need when we embarked on this transformation initiative is that we should have more resources at the highest level so that they can lead all these initiatives,” Tongia told AND. “We would have hired almost 20 leaders and collectively they would have between 400 and 500 years of professional experience.”
These include Panasonic’s Vivek Sharma who has been hired as the new deputy general manager. Tapas Roy Chowdhury of Havells is now the president of the fan division at Polycab. Deepak Mitra has been hired from Crompton to lead rural market sales. Vipul Aggarwal of Havells is now vice president of supply chain at Polycab.
Polycab saw compound growth of 39% in the FMEG segment in FY2016-21, but the growth rate slowed in FY22.
“After an outstanding performance over the past five years, momentum softened in FY22 as management realigned its strategy with the Project Leap initiative,” BOB Capital analysts said Wednesday. Markets in a report. The company has taken various steps to regain its momentum by launching products in all price ranges and strengthening its presence in distribution.
In the cable and wire business, Polycab continues to be a market leader with over 22% market share in the organized market. Although it experienced healthy volume growth, margins came under some pressure in the March quarter due to rising input prices, particularly aluminum and copper.
The company was able to pass on some of the cost increases to its customers, Tongia said.
Polycab gave a capital expenditure forecast of Rs 300-350 crore for FY23, in line with previous years. The funds will go towards increasing exports, backward integration into manufacturing, building switch manufacturing capacity and maintenance, among others, according to Tongia.
Polycab India Ltd shares closed slightly higher at Rs 2,434 on BSE on Thursday, against a 2.14% drop in the benchmark Sensex. The stock has lost 1% since the start of this year.