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| Polycab Wires slashes prices by 20% in two months | |
| BS Reporter / Kolkata/ Bhubaneswar November 21, 2008, 0:19 IST | |
Amidst slump in the demand for cables and wires in the country in the wake of economic downturn, Mumbai-based Polycab Wires Limited has slashed prices of its products by around 20 per cent in the past two months.
The company may further announce a price cut of five to seven per cent for its products soon to boost sales in the backdrop of sagging demand for wires and cables. The revised prices will be applicable to new orders bagged by the company from its customers.
Addressing mediapersons here, Inder T Jaisinghani, chairman and managing director of Polycab Wires said, “Like other industries, the cables and wires industry in the country has also been impacted by the financial meltdown. We have already reduced prices of our products by about 20 per cent in the past couple of months after the fall in raw material prices and we may further announce a price cut of five to seven per cent soon if the situation demands.”
With a turnover of over Rs 2,000 crore, Polycab Wires is the largest manufacturer of cables and wires in India and the company is the market leader in this segment, having a market share of more than 60 per cent in the domestic market. The company also exports its products to countries in West Asia, Europe and Africa, with exports accounting for nearly 10 per cent of its turnover.
However, Polycab Wires has not been able to secure fresh orders from the overseas markets following the global financial meltdown. “Exports have been hit hard due to economic slowdown and the company has not bagged fresh export orders after the slowdown. Though exports account for ten per cent of our turnover, the share of exports may be negligible if the financial crisis deepens further and continues for long”, Jaisinghani informed.
Talking on the company’s performance in the Orissa market, he said, “We achieved sales worth Rs 200 crore of our products in the Orissa market last year. The company is committed to its presence and growth in Orissa which has emerged as a very important industrial destination due to its vast mining resources, port facilities and a stable political leadership.”
Polycab Wires has a manufacturing facility at Daman spread over an area of 14 acres with a built-up area of over 3 lakh sq ft. The company manufactures a wide range of products including aerial bunched cables, HT cables, rubber cables, submersible cables, instrumentation cables, dry and jelly filled telecommunication cables, railway signalling cables, PVC pipes and accessories and coaxial cables to name a few.
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