Wires and cables business grows at 24% in first half FY24; RR Kabel targets revenue of ₹6,500 crore

Jain said the company was also focused on improving its margins from the current 20% (gross) and 7% EBITDA (earnings before interest, tax, depreciation, and amortisation) levels.

RR Kabel is seeing demand from both the Indian and export markets.

“Exports are becoming a very big segment for us. We have seen almost similar growth in the domestic as well as in the export market. And right now, we hopefully will maintain this ratio of 71-29 (with 29% sales coming from exports),” Jain said, adding that the company is looking to introduce more value-added products in both markets to improve margins.

Besides cables and wires, RR Kabel also has a fast-moving electrical goods (FMEG) segment, which has lighting, fans and electrical appliances.

“We are very new because we started in 2019 only. It takes time to establish any market in FMEG. For this industry, this year was very muted with flat or flat to negative growth. Still, H1 (first half of FY24) to last H1 (first half of FY23), we have grown by 20% which is one of the best growth in this industry,” Jain said.

The segment, however, continues to remain at a loss but those are expected to narrow going forward.

“The way we are focusing on new products and new markets and strengthening our distribution network, we are expecting we will improve our performance in terms of revenue growth as well as improvement in profitability,” Jain added.