Orient Cables IPO

Orient Cables (India) Limited IPO Strengths

Strong Market Position in a High-Barrier Industry

Orient Cables (India) Limited is a top-five player in India’s networking cables sector, holding approximately 22% market share as of Fiscal 2025. The company’s standing is fortified by its comprehensive product range and its presence in a market with high entry barriers due to stringent quality standards and long customer onboarding processes.

Diversified and Customized Product Portfolio

The company manufactures a wide array of customized cables and solutions for telecommunications and IT, including networking, specialty power, and optical fiber cables. This diverse portfolio, which is tailored to customer specifications, positions the company as a one-stop-shop for passive networking solutions, allowing it to capitalize on growth in sectors like broadband and data centers.

Enduring Customer Relationships

Orient Cables has cultivated long-term relationships with a marquee client base, including major telecom companies. With high customer retention and a track record of meeting stringent technical specifications, the company has secured a competitive advantage, which provides revenue visibility and facilitates the cross-selling of new products.

Strategic Manufacturing and Innovation

The company’s strategically located facilities in Bhiwadi, Rajasthan, are a key strength. These facilities are supported by strong vertical integration, which includes in-house processing of copper and PVC manufacturing. This focus on vertical integration, coupled with a commitment to product innovation and stringent quality controls, enables Orient Cables to optimize costs and maintain high-quality standards.

Experienced Leadership and Professional Management

The company benefits from a hands-on management team with extensive domain expertise. The experienced promoters and senior management are actively involved in strategic decision-making, product development, and business operations. Their collective experience has been crucial in the company’s growth and its ability to anticipate and respond to evolving market trends.

More About Orient Cables (India) Limited

Orient Cables (India) Limited is a manufacturing company with nearly two decades of expertise in networking cables and passive networking equipment. The company serves high-growth sectors, including broadband, telecom, data centres, renewable energy, smart building automation and security, system integration, FMEG, and automotive. Its product portfolio is divided into three primary segments:

• Networking Cables and Solutions

• Specialty Power and Optical Fibre Cables and Solutions

• Other Allied Products

The company offers customized products to meet specific customer requirements, enhancing its appeal to marquee clients.

Market Positioning

According to the 1Lattice Report, Orient Cables is among India’s top five networking cable companies, holding approximately 22% market share in Fiscal 2025. Being one of the youngest players with a comprehensive product range, it increased its market share from 16% in Fiscal 2022. Its revenue CAGR from Fiscal 2023 to Fiscal 2025 was an impressive 23.18%, outpacing the industry average of 11.48%. The company also leads peers in ROE and ROCE while maintaining low net working capital days, reflecting efficient capital utilization.

Manufacturing and Product Innovation

To meet growing demand, Orient Cables has expanded its manufacturing capacity to 794,976 km of cables as of March 31, 2025. The company focuses on continuous product customization and development, including:

• E-Beam Irradiated Specialty Cables

• Solar Junction Boxes

• Tethered Drone Systems

• Harnesses and Power Cords

These products cater to renewable energy, data centres, E-mobility, FMEG, defence, aerospace, and railway sectors.

Customer Base and International Presence

Orient Cables primarily serves large telecom providers, OEMs, and resellers. It maintains long-standing relationships with top customers, some exceeding eight years. The company also exports to countries including UAE, Qatar, USA, Australia, New Zealand, Nepal, Singapore, and the Netherlands. Export revenue grew at a CAGR of 9.7% from Fiscal 2023 to Fiscal 2025.

Research, Development, and Leadership

The company’s R&D and quality departments drive innovation through pilot manufacturing, testing, and global certifications such as ETL, UL, CPR, and CE. Its management team, led by Promoter Vipul Nagpal with over 19 years of industry experience, along with a skilled workforce of 1,497 employees, positions the company to capitalize on future growth opportunities

Industry Outlook

The Indian wires and cables industry is poised for substantial growth, driven by technological advancements, infrastructure development, and expanding end-user sectors.

Market Size and Growth

• The Indian wires and cables market was valued at approximately USD 17.27 billion in 2023 and is projected to reach USD 24.48 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.1% .

• The optical fiber cables segment is experiencing significant expansion, with projections indicating a growth from USD 1.73 billion in 2024 to nearly USD 7.5 billion by 2032, reflecting a CAGR of 20.11% .

• The structured cabling market is also on an upward trajectory, expected to grow from USD 739.9 million in 2024 to USD 1.5 billion by 2030, at a CAGR of 12.8% .

Growth Drivers

• Infrastructure Development: Ongoing investments in smart grid projects and the upgradation of power transmission and distribution systems are pivotal in driving market growth .

• Telecommunication Expansion: The increasing demand for high-speed internet and data services, coupled with government initiatives and investments in telecom infrastructure, are propelling the telecom cable market .

• Renewable Energy Projects: India’s ambitious renewable energy targets necessitate the deployment of specialized cables, such as solar cables, to support the growing energy sector.

Market Trends

• The industry is witnessing a shift towards high-performance cables, including low-smoke zero-halogen (LSZH) and flame-retardant cables, to meet stringent safety standards.

• There is a growing emphasis on the adoption of automation and smart technologies in manufacturing processes, enhancing efficiency and product quality.

• Companies are increasingly focusing on sustainability, with initiatives aimed at reducing the environmental impact of cable production and promoting the use of recyclable materials.

How Will Orient Cables (India) Limited Benefit

• Orient Cables (India) Limited is well-positioned to capitalize on the growing demand for high-speed broadband and telecom infrastructure, increasing its market share in networking cables.

• The rapid expansion of the optical fiber segment presents opportunities for the company’s specialty and optical fiber cables, driving higher revenues and exports.

• Investments in renewable energy projects create demand for solar cables and other customized power solutions, aligning with the company’s expanding product portfolio.

• Rising adoption of structured cabling and high-performance cables, such as LSZH and flame-retardant types, enables Orient Cables to offer technologically advanced solutions to premium clients.

• Automation and smart manufacturing trends allow the company to optimize production efficiency, reduce costs, and maintain consistent product quality.

• Sustainability initiatives and eco-friendly manufacturing align with global standards, strengthening the company’s brand reputation domestically and internationally.

• Increasing infrastructure and industrial growth across India provide long-term demand stability, supporting consistent revenue growth.

Peer Group Comparison

Name of the Company	Face Value (₹)	EPS (Basic) (₹)	NAV (₹)	P/E	RoNW (%)
Orient Cables (India) Limited	15.22	5.22	17.71	[●]	34.58%
Peer Groups
RR Kabel Limited	5	27.57	190.37	48.79	15.65%
Polycab India Limited	10	134.34	658.58	50.07	22.54%
Finolex Cables Limited	2	45.82	359.31	21.11	13.42%
Havells India Limited	12	23.48	133.04	65.49	18.63%
KEI Industries Limited	2	75.55	605.50	50.39	15.59%
Paramount Communications Limited	22.85	2.85	23.51	20.43	12.95%
Birla Cable Limited	10	1.63	84.42	110.17	1.94%
Sterlite Technologies Limited	2	(2.54)	40.79	N/M	(5.23)%

Key Strategies for Orient Cables (India) Limited

Further Capitalizing on Market Position

Orient Cables (India) Limited plans to leverage its strong market position in networking cables and optical fibre to capitalize on robust industry growth. The company aims to expand its market share by introducing new, high-margin products and increasing production capacity to meet rising demand.

Diversifying Product Portfolio

The company is focused on diversifying its specialized product portfolio through innovation, targeting high-growth and emerging areas. This includes expanding into the FMEG sector with products like power strips, and manufacturing high-performance Electron Beam (E-beam) irradiated cables, EV charging assemblies, and solar junction boxes.

Expanding Geographical Footprint

Orient Cables (India) Limited intends to enhance its geographical presence by expanding into new international markets such as Europe, Australia, and the US. The company will use a tailored approach for each region, leveraging existing relationships with multinational customers to increase volumes and improve margins.

Enhancing Operational Efficiency and Capacity

The company aims to enhance its operational efficiency and expand capacity to meet growing domestic and international demand. This includes strategic investments in new machinery, civil infrastructure, and technology upgrades, such as implementing an E-beam irradiated cable plant and improving in-house processes.