Polycab India: The success of any nation hinges on a strong foundation, and the Fast Moving Electrical Goods ( FMEG ) industry plays a crucial role in building this very foundation. Polycab India Ltd, a leading player in this sector, exemplifies this contribution. 

The FMEG industry caters to the ever – growing demand for electrical appliances, wires and other necessities that power our homes, industries and cities. From the essential wires and cables that carry electricity throughout a building to the sophisticated fans and switches that control its flow, FMEG products ensure our comfort, safety and productivity. 

Polycab Ltd, through its commitment to innovation and quality, stands at the forefront of this industry. Their extensive product portfolio consisting of wires, cables and electrical appliances address the diverse needs of modern construction and living.

With its continuous efforts and dedication the company saw a good performance in the current year and as a result its share price rose by 94% compared to that of the previous year. Come let’s learn more about the company.

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Industry Overview Of Polycab India

The Indian wires and cables (W&C) industry, estimated at ₹680-730 billion in FY23, has been witnessing robust growth driven by several megatrends. The government’s strong focus on infrastructure development, with budgeted capital investment of ₹10 lakh crore in FY24, has been a key growth driver. Sectors like power, railways, real estate, renewables, and defense have been the major beneficiaries, fueling demand for W&C products.

The residential real estate sector is in an upcycle, with housing sales hitting a 9-year high in 2022, driven by factors like low interest rates, government initiatives like PMAY, and the need for larger homes due to work-from-home culture. This has boosted demand for household electrical appliances, including wires and cables.

The government’s target of achieving 500 GW of installed renewable energy capacity by 2030 is expected to create significant demand for power transmission cables. Additionally, the growth in IT and telecom sectors, fueled by the surge in data centers, 5G transition, and increasing adoption of fiber-to-the-home (FTTH) connectivity, is driving the demand for optical fiber cables.

Organized players in the W&C industry have been gaining market share, aided by increased consumer awareness and pandemic-led disruptions that impacted smaller players. Globally, India has emerged as an attractive destination for companies seeking to diversify their supply chains, presenting export opportunities for Indian W&C companies.

In the FMEG (Fast-Moving Electrical Goods) segment, megatrends like premiumization, India’s demographic dividend, government initiatives like Housing for All and Smart Cities, and the rise of smart homes are propelling growth. Organized players are focusing on innovation, efficient distribution channels, and alternate sales modes like e-commerce to capture market share.

Company Overview Of Polycab India

Polycab India Ltd is engaged in a business of manufacturing and selling wires & cables and Fast moving electrical goods (FMEG) like Electric fans, LED lights and luminaries, solar products, switches and switch gears and accessories. The company was incorporated on Jan 10th, 1996 and is headquartered in Mumbai, Maharashtra

The company has 25 manufacturing facilities including two joint ventures with Techno and Trafigura. These manufacturing facilities are located in the states of Maharashtra, Gujarat, Uttarakhand and the Union Territory of Daman and Diu. 

Polycab Ltd exports their products to around 70 countries and they have 2,05,000 retailers to connect their consumers. Currently they hold 24% of the market share. Out of its total product mix 88% is being held by wires and cables, 7% is being held by FMEG and remaining 5% is from their EPC business. Polycab India Ltd got listed in Indian stock exchanges on 18th of April 2019. 

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Financials Of Polycab India

FY 2023FY 2022FY 2021FY 2020
Revenue (in crores)14,10712,2038,729.238,829.96
Net profit (in crores)1,282.25845.23841.81765.62

In the Financial year 2023, Polycab Limited saw a substantial increase in revenue by 15.60% to reach 14,107 crores as compared to 12,203 crores in FY 2023. Analyzing three years, encompassing FY 2021 to FY 2023, the company displayed a good compound annual Growth Rate (CAGR) of 16.91% in revenue. 

Polycab Ltd in FY 23 also increased its net profit margin by 51.70% to 1,282.25 crores as opposed to 845.23 crores in FY 22. This increase in revenue and net profit happened because of increased demand from various infrastructure projects, real estate sector, and private capital expenditure across industries.

Polycab also increased its domestic market share in the organized Cables & Wires market to around 25-26%, up from 22-24% in the previous year, which aided by volume growth of 30-40% in the segment. In FY 23, Polycab maintained favorable financial metrics with a Return on Equity (ROE) of 21.06% and a Return on Capital Employed (ROCE) of 28.06%

Future Plans Of Polycab India

Polycab Limited plans to invest Rs. 10-11 billion each year over the next 2-3 years to expand manufacturing capacities across various product lines like Extra High Voltage (EHV) cables, special purpose cables, cables for international business, and Optical Fiber Cables (OFC). This includes setting up a new EHV cable manufacturing plant in Halol, which is expected to be operational by the end of FY26.

Polycab has secured orders worth around Rs. 48 billion under the government’s RDSS (Revamped Distribution Sector Scheme) scheme for power distribution projects, which is expected to be executed over the next 3-4 years.

The company is also continuously focusing on launching new premium product ranges across categories like wires, fans, switches, and switchgears to drive premiumization and improve profitability.

Polycab plans to implement changes in the FMEG (Fast Moving Electrical Goods) business over the next 2-3 quarters to improve execution, distribution network, new product development, and influencer management, aiming for better-than-industry-average growth rates.

Polycab is planning to unveil a new mid-term goal plan during the current financial year, succeeding their previous Project LEAP target of achieving Rs. 200 billion in annual revenues by FY26.


Polycab’s Ltd track record speaks for itself. With a strong market share, consistent growth and a focus on quality, the company established itself as a leader in the FMEG industry. Their ability to adapt to changing market trends, such as increasing demand for B2C products and a focus on sustainability, positions them well for continued success. 

Polycab Ltd has the potential to further solidify its position. Continued investment in research and development, brand building and strategic expansion into new markets can propel them to even greater heights. As India’s infrastructure development continues to surge, Polycab Ltd is well positioned to be a key player in powering the nation’s growth. Do you think the company might fall down in the future? Do let me know in the comments below.

Written by Pavunkumar V M

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