Sterlite Electric IPO

Sterlite Electric Limited IPO Strengths

Broad Product Portfolio and Strong Order Book

Sterlite Electric Limited leverages an extensive product portfolio, including overhead conductors, power cables, OPGW, and MSI services, to offer solutions for power transmission and grid modernization projects. The company’s diverse, customized, and standard offerings address various voltage requirements, supported by a strong order book that reflects significant market demand and the firm’s robust business spread across key sectors.

Strategic Facilities and Value Chain Control

The company maintains a competitive edge through strategically located manufacturing facilities across India, which ensures supply-chain cost efficiency and rapid delivery times. This geographic advantage, coupled with end-to-end control over the value chain—from in-house design to finished goods—and continuous R&D and technological capabilities, significantly enhances product quality and operational efficiency.

Marquee Global and Domestic Customer Relationships

Sterlite Electric Limited has established long-standing relationships, often averaging over five years, with marquee global and domestic customers across multiple sectors, including utilities, infrastructure, and renewable energy. This stability is built on the firm’s commitment to quality, timely delivery, and a competitive value proposition, resulting in a diversified customer base with no single customer dependency exceeding 15.0% of revenue.

Positioning to Capitalize on Power Sector Growth

The company is well-positioned to capitalize on the substantial growth in the Indian and global power sectors, driven by rising energy demand, urbanization, and ambitious renewable energy targets. Its comprehensive product range in the expanding cables and conductors market, coupled with advanced manufacturing and R&D, allows it to effectively cater to the increasing demand for grid modernization and transmission infrastructure projects.

Strong Parentage and Power Sector Heritage

Benefiting from the strong parentage of the Vedanta Group, Sterlite Electric Limited draws on a rich power sector lineage and deep understanding of the Power T&D value chain. This heritage and extensive network provide a foundation for strategic alliances, enhanced credibility, and accumulated expertise, which is leveraged to drive innovation and excellence in specialized power products and transmission services.

Experienced Board and Qualified Management

The company is guided by an experienced Board of Directors and a qualified senior management team with diverse expertise in finance, operations, engineering, and technology. Their collective industry knowledge and proven leadership provide a strong basis for sustained growth, effective decision-making, and seizing market opportunities, ensuring the firm continues to innovate and meet customer demands efficiently.

More About Sterlite Electric Limited

Sterlite Electric Limited is a leading manufacturer of capital goods and provider of system integration solutions, specialising in the power transmission and distribution (Power T&D) industry. Serving both domestic and international markets, the company offers a wide range of overhead conductors, power cables, optical ground wire (OPGW), and master system integration (MSI) services. As part of the Vedanta Group, Sterlite Electric leverages its heritage to deliver comprehensive solutions across the Power T&D value chain, from generation to transmission and distribution.

The company’s lineage traces back to 2006 as the power conductor division of Sterlite Technologies Limited, with the grid business commencing in 2010. In 2016, the divisions were demerged to form Sterlite Power Transmission Limited (now Sterlite Electric Limited), focusing on power products and transmission-related manufacturing. By 2024, the infrastructure business was transferred to Sterlite Grid 5 Limited, allowing Sterlite Electric to concentrate on manufacturing overhead conductors, cables, and specialised EPC services with a long-term global vision.

Business Segments

Overhead Conductors and OPGW

Sterlite Electric manufactures a diverse range of conductors, including HPC, ACSR, STER-AL59 alloy, composite core, ACCC, ACSS, and GAP type conductors. The company held a 15% share of the Indian power conductors market in Fiscal 2025 and 25–28% in the high-ampacity and AL59 segment. Patented ACCC and GAP technologies enable solutions for challenging terrains and urban distribution corridors. The company also produces OPGW and accessories such as tension assemblies and vibration dampers. The closing order book for overhead conductors and OPGW was ₹53,890 million as of March 31, 2025.

Power Cables

Sterlite Electric manufactures medium, high, and extra-high voltage cables (66–220 kV), fibre-integrated cables, and high-ampacity cables. The company recently introduced LTDC solar cables and medium voltage covered conductors (MVCC), with plans to produce solar array cables. Integrated EPC solutions and advanced cable monitoring further strengthen the offering. The closing order book for power cables was ₹15,290 million.

MSI Services

The company provides grid uprate and upgrade solutions to enhance capacity, reliability, and efficiency of existing transmission lines. The closing order book for MSI services stood at ₹5,310 million.

Manufacturing and R&D

Sterlite Electric operates four strategically located manufacturing facilities in Jharsuguda, Piparia, Rakholi, and Haridwar, with annual installed capacities of 117,195 metric tonnes for conductors, 2,400 km for cables, and 21,000 km for OPGW. A strong R&D focus drives product innovation, including fibre-integrated and high-ampacity cables, ensuring efficiency, reliability, and compliance with industry standards.

Global Reach and Market Position

The company has served customers in over 70 countries, generating international revenue of ₹10,007 million, ₹16,576 million, and ₹11,800 million in Fiscals 2025, 2024, and 2023, respectively. Consistent revenue growth with a CAGR of 22.94% from Fiscal 2023 to 2025 highlights Sterlite Electric’s strong market position, technological expertise, and commitment to quality.

Industry Outlook

The Indian power transmission and distribution (T&D) equipment market is experiencing steady growth. The market reached approximately USD 11.58 billion in 2024 and is projected to grow to USD 21.83 billion by 2033, representing a CAGR of ~6.8% over 202533. Meanwhile, the broader T&D market (equipment, lines, cables) is forecast to grow at a CAGR of ~5.2% from 2025 to 2030, rising from about USD 27.77 billion in 2024 to USD 37.61 billion by 2030.

Within this, the wires and cables segment in India is showing even stronger momentum. One estimate puts the Indian wires & cables market at around USD 21.22 billion in 2025 and forecasts it to reach USD 32.85 billion by 2030, implying a CAGR of approximately 9.1%. The Indian insulated metallic wires and cables demand is expected to grow at around 6.4% CAGR between 202328.

For overhead conductors, the Indian market is estimated to grow at around 9.4% CAGR, driven by electrification and grid expansion.

Key Growth Drivers

• Strong push for renewable energy capacity (solar and wind) mandates expansion of transmission, evacuation and highvoltage infrastructure.

• Government initiatives such as grid modernisation, “One Nation, One Grid”, green energy corridors, rural electrification and smart grid rollout create demand for advanced conductors, cables and system integration.

• Increasing urbanisation, electrification of remote areas and requirement for high performance cables (EHV/HV) and conductors (ACCC, composite core) to reduce losses and enhance capacity.

• Export opportunities as India moves to be a global supplier of wires, cables and conductors, with rising export value.

SegmentSpecific Outlook

• Wires & Cables: Forecast to grow at ~9% CAGR from 2025 to 2030, reaching over USD 30 billion. Demand is driven by HV/EHV cables, solar/renewables evacuation cables, and urban underground network upgrades.

• Overhead Conductors/OPGW: With a CAGR near 9.4% in India, demand is driven by longdistance highvoltage transmission, challenging terrains (river crossings, urban corridors), and emerging technologies (composite core, ACCC).

• T&D Equipment / System Integration (MSI): The overall T&D equipment market growth around ~6%7% provides a favourable backdrop for integrators and grid upgrade players.

How Will Sterlite Electric Limited Benefit

• Sterlite Electric Limited is well-positioned to capitalise on India’s growing demand for power transmission and distribution infrastructure, benefiting from strong industry expansion.

• The company’s wide portfolio of overhead conductors, OPGW, and EHV/HV cables aligns with market growth in renewable energy evacuation and high-capacity transmission projects.

• Its patented ACCC and GAP conductor technologies give a competitive edge for challenging terrains and urban distribution corridors.

• Expansion of smart grids and government initiatives such as “One Nation, One Grid” provide opportunities for Sterlite’s master system integration (MSI) services.

• Rising exports of wires, cables, and conductors enable Sterlite Electric to enhance its global footprint and revenue diversification.

• Technological advancements and R&D capabilities support the development of high-performance products that meet evolving grid and renewable energy requirements.

• Strategic manufacturing locations ensure efficient supply chain and timely delivery to key domestic and international markets.

Peer Group Comparison

Name of the Company	Face Value (₹)	Total Revenue (₹ million)	P/E	EPS Basic	EPS Diluted	RoNW (%)	NAV (₹ per share)
Sterlite Electric Limited	2.00	49,557.60	N.A.	12.70	12.62	12.35	117.85
Peer Group
Apar Industries Limited	10.00	185,812.10	37.81	204.47	204.47	18.24	1,121.17
KEI Industries Limited	2.00	97,358.77	50.34	75.65	75.55	12.04	605.50
Universal Cables Limited	10.00	24,083.86	27.56	25.76	25.76	5.04	510.73

Key Strategies for Sterlite Electric Limited

Expand International Market Presence

Sterlite Electric Limited plans to deepen and broaden its global footprint by introducing new products, securing new customers, and penetrating new geographies, focusing on the USA and Europe for overhead conductors and the EU, Middle East, and Africa for power cables. This strategy aims to diversify revenue, leverage higher international margins, and mitigate regional economic risks.

Diversify into Allied Power Sectors

The company intends to expand its portfolio into allied sectors by leveraging existing manufacturing and R&D capabilities. This includes adding copper-alloy conductors for railway applications and diversifying power cables into wind, EV, locomotive, and marine segments. They also plan to target data centers and process industries with new intelligent cable offerings.

Focus on Premium Product Diversification

The firm will utilize its R&D and manufacturing expertise to introduce value-added, premium offerings, building on its successful transition to high-performance conductors like ACCC and GAP technology. This strategy, which includes developing Extra High Voltage (EHV) cables and intelligent cables with sensors, is designed to strengthen its competitive edge and improve profit margins.

Increase Capacity and Optimize Efficiency

Sterlite Electric Limited is increasing its manufacturing capabilities by setting up a new power cable facility in Vadodara to manufacture up to 550 kV HVDC/AC cables and expanding existing conductor capacity. The company will also focus on cost leadership through optimized sourcing, increased capacity utilization, and end-to-end digitalization to maximize operational efficiency.

Pursue Inorganic Growth Opportunities

The company plans to selectively pursue strategic joint ventures and acquisitions to accelerate growth, expand end-market opportunities, enter new geographic regions, and enhance technological capabilities. They are exploring opportunities in the line vertical (conductors/cables) and equipment vertical (substations), applying a disciplined approach to target companies based on growth potential and cultural fit.