RR Kabel MD Announces Rs.500 Cr Investment for FY25 Product Development

In a recent interview, RR Kabel’s promotor and Managing Director, Shreegopal Kabra, discussed various topics related to the company’s business strategies, product developments, and regulatory concerns. RR Kabel was listed in 2018 and since then the company hasn’t seen many internal changes but the listing did make it easier to raise funds for the company, if needed.

About the new products:

RR Kabel’s MD, Mr. Kabra, claimed that the company has always been a pioneer in developing safe electrical products. He mentioned the new product launch Firex low smoke zero halogen cables. To mark its differentiation, he gave the example of PVC, a popular electrical cable, which transmits 100%v  smoke whereas the new LSZH would transmit only 70%. These new Firex LSZH aims to reduce smoke and toxicity during fires, emphasizing its importance in preventing fire-related casualties,

His regulatory concerns:

Mr. Kabra raised concerns about the lack of strict implementation of fire safety regulations and standards in India. He quoted 2 cases which leads to the urgent need os these rules. Firstly, he exclaimed that in India 60 people succumb to death daily due to fire-related hazards. Secondly, due to the lack of strict rules, other companies sell high-quality products in exports but domestically they retain the sale of low-quality products. Mr. Kabra goes on to explain that no cable in the world cannot catch fire, but what we could prevent and what he aims for with the new electrical cables of the company is the reduction of smoke it produces once it catches fire.

RR Kabel’s Market Concerns:

Mr. Kabra highlighted that the company feels optimistic about future reforms and investments under the new government. He also highlighted the strong position of the company, given that it is the sole exporter in the world that exports electrical products in 40 countries. For this reason, he emphasized on the importance of better enforcement of the Bureau of Indian Standards (BIS) to ensure the safety of electrical products. He also calls for the government to adopt stricter laws for electrical and fire safety, similar to those in the food and pharmaceutical industries.

Conclusion

The company plans to expand its manufacturing capacity by 2025, based on significant investments in both wires and cables and to enhance its footprint in the FMEG sector, leveraging its acquisition of Luminous.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.