Market

The key to economic development is electric

power and the key to bringing it from
generating stations to factories, offices and
homes is cables. In this critical function KEI is a
major player.
It seems reasonable to assume that if the
government continues to push for 8% growth in
the gross domestic product (GDP), power
must grow exponentially. With such strong
investments proposed across this core sector,
the role of the cable industry in India will
become even more pronounced.
In the present scenario Indias Planning
Commission has proposed capacity addition of
about 78,700 MW during the eleventh 5-year
plan, straddling the period between 2007 and
2012. Cables account for 3 - 3.50% of the total
power generation cost, 1.50 - 2% of power
transmission project cost and approximately
10% of power distribution costs.
However, the mounting power deficits of
yesteryears have had their toll. Today, this
pressure has resulted in frenzied activity and has
increased the demand for lower transmission
losses, better equipment and higher voltage
power generation. In response, major cable
companies have ventured into manufacturing
extra high voltage (EHV) cables even as they
have expanded capacities to meet
rising demand.
In this scenario, KEI is a
unique company offering its
customers a distinctive
range of specialty products
fire-survival, zero halogen
and braided cables. State-
of-the-art manufacturing
facilities, stringent quality
control measures and
constant research and
development efforts have
made it possible for KEI to
manufacture premium
quality products.
Sales for this eminent
player in the industry
rose to Rs. 973 crore
(US$ 216.20 million) in 2009/10 and has already
crossed Rs. 1250 crore (US$ 277.80 million) in
2010/11. With a strong global presence across
more than 40 countries, the company derives
almost 12% of its revenue from overseas
markets.
The market size of the cables and wires
industry in India was estimated to be around
Rs. 15,000 crore (US$ 3.30 billion) in the
2009/10 financial year ; of this cables alone
accounted for a turnover of between Rs. 9500
(US$ 2.10 billion) and Rs. 10,000 crore
(US$ 2.20 billion) and wires the remaining.
Market data would suggest that approximately
70% of the industry is in the organised sector
with the balance comprising the unorganised
segment and small regional players.
In the last eight years the cumulative annual
growth rate (CAGR) for the wires and cables
industry has been pegged at 12%.
Achievements
A comprehensive spectrum of product offerings
backed by over four decades of an unblemished
track record makes KEI one of the frontrunners
in the industry today. Having secured the low
tension- and high tension- cables domain, KEI
has now embarked on an expansion plan that
will propel it to a new league of manufacturers.
The big leap takes KEI to the realm of extra
high voltage (EHV) cables an essential input
into modern power transmission. Few
companies in India have this technology.
While KEIs range of world-class products
speaks volumes for the organisations
accomplishments the ISO certification for its
merchandise exemplifies its triumph. The
certification is not only a fitting recognition of
the quality of its cables and wires it is also a
clear determinant of the advantage it exerts
over other players in the market.
Another feather in the cap for KEI has been
the inking of a foreign technical collaboration
with the reputed Swiss company Brugg Kabel
AG for manufacturing EHV cables in capacities
of up to 220KV.
Even as its product offerings were being
revamped a distinguished rating agency was
scoring KEI on corporate governance
parameters. Credit Analysis and Research
Limited (CARE) gave KEI a rating of CGR 3.
On a scale of one to six, where one denotes
the highest level, KEIs score suggests that the
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company has adopted corporate governance
practices which would provide its stakeholders
a good level of comfort.
KEI Industries Limited is also the first cable
manufacturing company to win the National
Accreditation Board for Testing and Calibration
Laboratories (NABL) certification. NABL is an
autonomous body under the aegis of the
Government of Indias Department of Science
and Technology which provides accreditation
services to laboratories that are testing and
measuring in accordance with the ISO/IEC
standards.
History
Established in 1968 as a partnership firm under
the name Krishna Electrical Industries with the
prime business activity of manufacturing cables
for the Department of Telecommunications
(DoT), the firm was converted into a public
limited company under the abbreviated name
KEI Industries Limited.
In the following year, KEI acquired Matchless, a
company which was engaged in the manufacture
of stainless steel wires. Currently KEI
manufactures a variety of cables including EHV,
HT and LT cables and
other specialised control
and instrumentation cables.
Under the enlightened
leadership of its founder-
chairman, the late
D N Gupta, KEI resolutely
marched forward. With its
formidable high-tech savvy
in wires and cables, broad
application know-how
and ability to provide
customised power cable
solutions, the company has
continuously delivered
growth that has caught the
eye of its shareholders.
Since value-addition is
the key to business growth,
KEIs ability to assist a wide
variety of customers in
minimising power loss and
environmental hazards has
been the subject of great
satisfaction. Continuous
product innovation and
research and development
have been the historical
drivers of the companys
products and services.
Its core strength lies in
attracting and retaining
dedicated and skilled
professionals, offering its
employees a friendly work
culture and giving them
the opportunity to grow
and develop.
Product
KEI is clearly product
centric. The companys
philosophy is to
create the highest
degree of customer
satisfaction through a
vast range of class
products.
Its impressive
portfolio includes
EHV cables up to
220kV, MV and HT
cables, control and
instrumentation
cables, rubber cables,
thermocouple cables,
zero halogen cables,
braided cables, single-
and multi- core
flexible cables, house
wires and stainless
steel wires.
This imposing product range is the result
of careful market surveys and a deep
understanding of the needs and requirements of
a highly fractured customer base.
The companys constant
reassurance is enshrined in its
commitment to continuously
develop new products, improve
quality and bring cutting-edge
technologies to bear on its
offerings. The company believes
that improvement of processes
and products with concomitant
customer satisfaction is, ultimately,
the magic mantra for
organisational growth.
Recent Developments
Rising demand across all its key
business sectors power,
engineering and manufacturing has driven KEI
to invest extensively in creating additional
manufacturing capacity and
upgrading technology.
This emphasis can be
seen at all its manufacturing
units but is most
pronounced at its plant in
Bhiwadi which is engaged in
manufacturing HT and LT
power cables. The Indian
governments effort at
bridging the gap between
growing demand and
lagging supply has
necessitated the
development of super
thermal power projects and
the transmission of power
at very high voltages. To
help in its evacuation and
benefit from a business
opportunity, KEIs
collaboration agreement
with Brugg Kabel AG will
go a long way in meeting
this challenge.
As a part of KEIs
ongoing strategy of forward
integration, it has diversified
into the engineering,
procurement and
commissioning (EPC)
business, providing turnkey
solutions for various
electrical and power-related
projects.
Promotion
KEI has used different,
innovative media to
promote its products and
strengthen its image. In
pursuit of this, the company
has participated prominently in domestic and
international fairs and exhibitions such as
Elecrama in India and Wire Dsseldorf in
Germany.
The exposure has not only won the brand
new customers it has also won it enduring
goodwill and appreciation.
Other than focused participation, KEI has
adopted a number of promotional measures to
reach retail audiences. The companys highly
visible bus panels, wall paintings and in-shop
branding efforts have all helped boost its reach
and penetration. It attained very high visibility
in Delhi, for instance, where it took 40
metro station panels. The companys first TV
commercial was launched in 2008.
As part of its corporate social responsibility,
KEI contributes extensively in building a stronger
peoples base for Indias future by participating
in the ISKON mid-day meal foundation
programme. This initiative provides food for
under privileged children.
The brand is consummately interactive. Public
relations and promotional activities are an
integral part of its operations through arranging
media interviews of top officials and providing
content for feature stories in the press.
Brand Values
The core brand value for KEI is building long-
lasting partnerships with customers and
suppliers. In this endeavour it allows no
compromise.
As an ISO 9001:2000 certified company, KEI
carries out stringent quality control measures
under close watch of a skilled team of
technocrats. Thanks to this inflexible decree,
KEI has earned a rock-solid reputation.
Repeat orders received year after year from
satisfied customers bear witness to this one
indelible fact.
www.kei-ind.com
75 BUSINESS SUPERBRANDS
Extra high voltage- high tension- low tension-
and control- and instrumentation- cables
constitute a major portion of the total sales of
the company
With focus on the business-to-consumer
segment, KEI has launched a sustained effort to
strengthen its distribution and retail network
KEI employs approximately 2000 people
KEI is present in almost every city, leveraging its
strength from its nineteen regional offices
Bhiwadi, Silvassa and Chopanki are the three
bases where KEI has its manufacturing facilities
Its new collaboration partner, Brugg Kabel AG
is a timeless company with a reputation that
goes back more than 100 years
Things you didnt know about
KEI
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