Polycab India Targets Twice The Growth Rate Of FMEG Industry In Five Years

Driven by a demand surge, Polycab India is poised to grow at 1.5 times the industry rate in the wires and cables business and at two times the industry rate in the fast-moving electrical goods sector over the next five years, the company’s management said.

Speaking to NDTV Profit, Polycab India’s Chief Financial Officer, Gandharv Tongia, elaborated on 'Project Spring,' a transformation project aimed at unlocking its growth potential. 

“Project Spring is a transformation project spanning 2025 to 2030. In the next five years, we believe the cable and wire business will grow at 1.5x the industry growth rate, with an Ebitda margin of 11% to 13%,” he said.

“In FMEG business, we will grow at 2x the industry growth rate with an Ebitda margin of 8% to 10% in the next five years,” the top executive added.

Polycab’s Chairman and Managing Director, Inder Jaisinghani, stated the company expects to improve its compound annual growth rate (CAGR) to 27%, driven by strong demand, while also sustaining a healthy Ebitda.

“We will (maintain our CAGR) because demand is there. We just have to see how we can really be part of the partnership along with our clients to support them,” he said.

To support the growth that the company aims to achieve by 2030, Polycab India needs capex of around Rs 8,000 crore, all of which will be funded through internal accruals, Tongia said.

“To support this growth, we will have to probably pump in anywhere between Rs 6,000 crore and Rs 8,000 crore as capex, and all of this will come from internal accruals. We are already sitting on a good amount of cash, and every year, the company is accumulating cash through internal accruals,” he mentioned.

“All this will be used for expanding capacities, and dividend payout also will be improved over the period. Probably, it will get to north of Rs 30 in a few years from now,” Tongia added.