Presented By:

Dipanway Bhabuk

Cable Industry in India The wire and cable industry has moved from being a small industry 20 years

back to a very large industry over the last decade.

about 35% of this industry is still in the unorganized sector.

The wire and cable industry comprises 40% of the entire electrical industry,

which is expected to double in size over the next five years.

Major Players of the organized sector are Polycab Wires Pvt. Ltd., Finolex

Cables Ltd., KEI Industries Ltd., Diamond Power Infrastructure Ltd.

Finolex Established : 1967

Headquarter : Pune, Maharashtra

Branch : Company has 28 branches all over India besides presence in the overseas

markets as well.

No. of Employees : About 1,500

Installed Capacity : Finolex claims to have the largest capacity to manufacture

electrical wires, auto cables, JFTC and others. It has capacity to manufacture power

cables upto 66 kV at this moment and this will be expanded upto 500 kV through its

JV with J Power Systems.

Product : Electrical Cables and Communication Cables

Operating Leverage It is a measurement of the degree to which a firm or project incurs a

combination of fixed and variable costs.

A business that has a higher proportion of fixed costs and a lower proportion

of variable costs is said to have used more operating leverage. Those

businesses with lower fixed costs and higher variable costs are said to

employ less operating leverage.

Calculation: Contribution

EBIT

Particulars 2013-14 2012-13 2011-12

Net Sales 23590.40 22706.80 20641.60

(-)Raw Materials Consumed 17556.60 16906.90 15557.60

(-)Power & Fuel Cost 370.70 406.90 325.70

(-)Employee Cost 848.30 845.90 694.80

(-)Other Manufacturing Expenses 569.90 541.70 453.10

Gross Profit(Contribution) 4244.90 4005.40 3610.40

Particulars 2013-14 2012-13 2011-12

Net Sales 23590.40 22706.80 20641.60

Gross Profit(Contribution) 4244.90 4005.40 3610.40

(-)General and Administration Expenses124.80 128.00 120.60

(-)Selling and Distribution Expenses 1443.60 1555.70 1347.50

(-)Miscellaneous Expenses 423.00 318.00 197.90

(-)Depreciation 484.30 466.30 394.70

EBIT (Operating Profit) 1769.20 1537.40 1549.70

Operating Leverage ( Contribution/EBIT) 2.40 2.61 2.33

All Figures in Rs. Crore

2.40

2.61

2.33

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2013-14 2012-13 2011-12

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Financial Year