### **Overview** RR Kabel Limited, founded in 1995, is a leading Indian manufacturer in the consumer electrical products industry, with over 25 years of operating history. The company is recognized as a fast-growing, innovation-driven organization operating in two core business segments: **Wires & Cables (W&C)** and **Fast-Moving Electrical Goods (FMEG)**. As of FY2024–25, RR Kabel is the **fourth-largest wires and cables player by value in India**, with a strong position in the B2C housewire market and a global footprint across **74+ countries**. --- ### **Business Segments & Revenue Mix** - **Wires & Cables (W&C)**: - Contributes **88%** of total revenue (FY24–25: ₹7,618.2 crores, up 15.5% YoY). - Dominates B2C revenue share among Indian peers, with brand trust and safety as key differentiators. - Key products: House wires, power cables, MV/HV cables (up to 66 kV), special cables for infrastructure, renewables, data centers, and EVs. - Market share: ~5% in organized W&C sector; ~10% in housing wires; ~10% in export segment. - **Fast-Moving Electrical Goods (FMEG)**: - Contributes **12–13%** of total revenue and growing as the fastest-growing segment. - Products: Fans (BLDC, decorative, exhaust), lighting (downlights, TPW), switches, switchgears, and home appliances (water heaters, coolers, etc.). - Segment launched strategically via acquisitions: **Arraystorm Lighting (2019–20)** and **Luminous Home Electrical Business (May 2022)**. - Positioned as one of the **fastest-growing FMEG players among listed companies**, with best-in-class gross margin improvement. --- ### **Strategic Initiatives** #### **1. Project RRise (FY25–28)** - Enterprise-wide transformation focused on: - **Profitable Growth**: Expand capacity, innovate products, improve mix. - **Operational Resilience**: Digitize supply chain, improve working capital. - **Future-Ready Capabilities**: Sustainability, smart products, global certifications. - Supported by **₹1,200 crore capex (2025–28)**, **80% allocated to W&C capacity expansion**. #### **2. Capacity Expansion** - Plan to increase **W&C manufacturing capacity by 1.7x** to 7.6 million ckm. - **Waghodia (Gujarat)**: +36,000 MT. - **Silvassa (D&NH)**: +6,000 MT. - Current utilization: **Wires ~70%, Cables ~90–95%**, signaling room for volume growth. - Prior capex of **₹500 crore (completed Mar 2025)** has improved power cable output. #### **3. FMEG Expansion & Brand Building** - **'RR Signature'** is the dedicated premium brand for FMEG, targeting **economy, mid-premium, and premium segments**. - Strategic sponsorships: **Kolkata Knight Riders (IPL)** and **UP Warriorz (WPL)** to build brand visibility and youth appeal. - **Project Lakshya**: Expanded distribution for fans and lights via field sales officers and unified under RR Signature. - **Project KaRRma**: Focuses on expanding market share and retail penetration in house wires, including micro & nano markets. #### **4. Product Innovation & R&D** - **Pioneer in LS0H (Low Smoke Zero Halogen) technology**—enhances fire safety in cables. - Launched **FIREX LS0H-EBXL**, a halogen-free, low-smoke wire with **2x current carrying capacity** and compliance with CEA standards. - Developing **46+ new products** as of Mar 2025, including: - Smart fans, energy-efficient BLDC fans. - Designer lighting, panel lights, downlights. - Switches and switchgears for residential and commercial use. - **EV Charging Cables**: Positioned to benefit from India’s EV push (30% electrification target by 2030). - Owns **NABL-certified lab** capable of **694 quality and safety tests**. - R&D team of **82+ engineers**, with centers at Waghodia and manufacturing sites. --- ### **Manufacturing & Capabilities** - **5 Integrated Facilities**: - **W&C (2)**: Waghodia (Gujarat), Silvassa (D&NH) — annual capacity: 4.47 million ckm. - **FMEG (3)**: Roorkee (Uttarakhand), Bengaluru (Karnataka), Gagret (Himachal Pradesh). - **Backward Integration**: In-house production of **PVC, LS0H, XLPE, and solar cable compounds** enhances cost control and quality. - **High-tech Processes**: Robotic rotor machining, automated paint shops, digitized inspections. - **Fan Capacity**: 3.3 million units/year (Roorkee: 1.5M, Gagret: 1.8M premium units). - **Lighting Capacity**: 1.9 million units/year (Bengaluru: customizable, designer lighting). --- ### **Distribution & Market Reach** - **Pan-India Network** (as of Mar 2025): - **4,400+ distributors**, **4,500+ dealers**, **191,000+ retailers**. - **583,000+ trained electricians** — one of the largest electrician networks in India. - **E-commerce leadership**: #1 exhaust fan brand on Amazon; #1 TPW (decorative lighting) brand on Flipkart (FY23–24). - **Global Presence**: - **Exports to 74 countries** (North America, APAC, Europe, Middle East). - **10 long-standing distributors** manage ~90% of export volume. - Products are ~90% **branded under 'RR Kabel'**, with select private label manufacturing. - **42 international certifications** (including REACH, RoHS, CE, CPR) support compliance in regulated markets. - Benefits from **China Plus One** diversification trend. - **Logistics**: 22 offices, 23 warehouses (Jan 2025); 39 national operational locations (Jul 2024). --- ### **Operational & Financial Performance** - **Working Capital**: Improved from **88 days (FY22)** to **56 days (FY25)** through inventory and receivables optimization. - **Volume Trends (9MFY25)**: - Domestic cable volume: **+18% YoY**. - Domestic wire volume: **–10% YoY**. - Export cable volume: **+7%**, export wires: **–9%** — strategic shift toward higher-margin cables. - **Copper Price Risk**: More exposed than peers due to lag in passing cost changes in B2C wire segment. --- ### **Sustainability & Future Focus** - Focus on **energy-efficient cables**, **recyclable materials**, and **eco-friendly manufacturing**. - Investments in **smart and sustainable products**: EV charging cables, solar cables, BLDC fans, smart lighting. - Positioned to benefit from government initiatives: - **FAME India, PLI Scheme, Battery Swapping Policy, 5G rollout, renewable energy expansion**.