WCA November 2018

India Insight

ACCC order Sterlite Power has received an order worth $47 million from GS South Korea for the supply of high performance ACCC conductor. “This is the largest ever global order for ACCC in this region. Significantly, we were the first player to pioneer this technology in India in 2011,” said Manish Agarwal, CEO, solutions business, Sterlite Power. “We expect to double the volume by focusing on the South Asian Association for Regional Cooperation (SAARC) and other countries,” he added. The ACCC will be used for a new 169km 400kV transmission line in a Bangladesh project. Sterlite Power – India Website : www.sterlitepower.com Indian copper not in crisis Copper-consuming industries in India are switching to a combination of imports and increased sourcing from the other large private producer Hindalco, after the closure of the Vedanta-Sterlite copper facility. The Vedanta-Sterlite smelter had recently accounted for 48 per cent of the country’s refined copper production, supplying mostly to domestic manufacturers who use refined copper for electrical wires, cables, tubes, motors, transformers, automotive harnesses and other engineering products. The company exported over a third of its production. Coimbatore-based Stark Industries, which sells nearly 2,000 alternating current electric motors every month, is experiencing delays in copper wire supply since the shutdown of the Sterlite plant. The company now sources wire from an intermediary who converts refined copper into wires after enamelling and insulation processes. Manufacturers who had sourced from Sterlite Copper say the closure has not yet had any material impact. A global commodity, copper is usually sourced in India through a combination of domestic suppliers and imports, with Aditya Birla Group company Hindalco and Sterlite Copper being the two large producers. “In place of two factories in India, we have only one. This simply means that we have to plan in advance to tap external sources in the interim,” said Milan M Mehta, managing director of Precision Wires, a Mumbai-based wire manufacturer with a capacity of 35,000 tonnes a year.

Aerospace wiring GKN Fokker Elmo and the Indian state of Maharashtra have signed a memorandum of understanding for investment in a second manufacturing facility for wiring interconnection systems in India. The new site, a fully owned GKN Aerospace business, is located in Pune and scheduled to come on-line in the fourth quarter of 2018. Production will start in the first quarter of 2019. The site will focus on the assembly of wiring systems for commercial aircraft and will operate alongside the existing Bangalore joint venture for wiring systems for the defence market. The plans also include the installation of the proprietary wiring design and manufacturing system in use throughout all manufacturing locations worldwide to ensure consistent quality. GKN Aerospace, GKN Driveline and GKN Powder Metallurgy have made significant investment in India in recent years. The three businesses operate eight locations in India with 2,000 employees. India is an important country in GKN Aerospace’s plan to expand its Asian footprint. GKN Aerospace recently also announced a new facility in Malaysia, another element of the Asian expansion plan. By the time both sites are fully operational around 15 per cent of GKN Aerospace’s employees will be based in Asia. Pune offers favourable conditions in the areas of business development, labour, education, training and infrastructure, and is conveniently located for the company’s major Indian customers. GKN Fokker Elmo – India Website : www.gkn.com High expectations Syska Group has entered the wire and cable sector in India after making developments in the LED lighting, mobile accessories and personal care appliances market. Syska will introduce flame-retardant and flame-retardant low- smoke wires in sizes between 0.75mm 2 and 6mm 2 in 90m, 180m and 300m coil lengths. In support of the government’s “Make in India” initiative, Syska is investing in a fourth manufacturing plant in Rewari (Haryana). This will be used for manufacturing a range of wire and cable. The area of plant is approximately 150,000ft 2 , and at present is manufacturing between 600,000 and 700,000 coils a month. Commenting on the new business Mr Rajesh Uttamchandani, director, Syska Group, said: “We can see exponential opportunities for [the wire and cable] business in India. The segment is expected to boom with growing demand for power and light. This is further fuelled by low penetration of organised players in the Indian market.” Syska Group – India Website : www.sskgroup.in

Precision Wires India Ltd – India Website : www.precisionwires.com

Hindalco Industries – India Website : www.hindalco.com

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