Raising the bar KEI INDUSTRIES LIMITED

www.kei-ind.com

Annual Report 2006-07

Contents Financial Summary | 4, Chairman’s Letter | 6, Director’s Report | , Management Discussion and Analysis | , Report on Corporate Governance | , Auditor’s Certificate | , Auditor’s Report | , Financials | ,

Profile KEI Industries Limited is an established player in the power cables segment and the second largest power cable company in India. KEI Industries Limited (hereafter referred to as KEI) manufactures high and low tension cables (HT and LT), control and instrumentation cables, house wires and stainless steel wires. KEI is one of the few companies in the country to manufacture specialty cables including braided cables, fire survival and zero halogen cables. The company’s facilities are located at New Delhi, Bhiwadi (Rajasthan) and Silvassa (D&N H). KEI enjoys the distinction of flexibly switching production between HT and LT cables depending upon prevailing market conditions and demand. An ISO 9001: 2000 certified company, KEI follows the stringent quality standards laid out by BRE (UK), DIN, ASTM, IEEE, IEC, BS, VDE, SABs, NZ, AS, NEMA, NFC, BVQL, DNV, CPRI, ERDA, IDEMI, EIL, PDIL and SYT.

Corporate Information

The company’s shares are listed on the Bombay Stock Exchange, National Stock Exchange, stock exchanges in Delhi and Kolkatta and through its GDR & FCCB issue on the Luxembourg Stock Exchange.

K E I MA N A G E ME N T P E R S ON N E L Mr. S L Kakkar President Mr. Pawan Aggarwal Vice President Mr. Manoj Kakkar Vice President (Mktg) Mr. K.C. Sharma Vice President (Works-Cable) Mr. Deepak Kashyap Vice President (Projects)

COMPANY SECRETARY & COMPLIANCE OFFICER B O A R D O F D IR E CTORS

Mr. Kishore Kunal

SHARE TRANSFER AGENT

Mr. Anil Gupta Chairman-cum-Managing Director

AUDITORS

MAS SERVICES PVT. LTD. AB-4, Safdarjung Enclave New Delhi - 110 029. Tel.: 011-26104142, Fax: 011-26181081

Mr. Sunil Gupta Director Mrs. Archana Gupta Director Mr. Pawan Bholusaria Director Mr. K.G. Somani Director Mr. Vijay Bhushan Director Mr. Vikram Bhartia Director Mr. Rajeev Gupta Executive Director (Finance)

M/s. Jagdish Chand & Co. Chartered Accountants New Delhi

BANKERS DENA BANK PUNJAB NATIONAL BANK ING VYSYA BANK LTD. STATE BANK OF HYDERABAD YES BANK LTD. ICICI BANK LTD. BANK OF INDIA HSBC BANK LTD. STANDARD CHARTERED BANK HDFC BANK LTD.

Mr. Alok Maity General Manager (Works) Mr. S C Sharma General Manager (Business Development) Mr. Dilip Barnwal Deputy General Manager (Works)

REGISTERED OFFICE

Mr. Alok Shah Deputy General Manager (Mktg-East-Cable)

D-90 Okhla Industrial Area, Phase-I, New Delhi - 110 020.

Mr. Ajit Dinesh Durve Deputy General Manager (Mktg)

WO R K S O F F I C E

Mr. Ajay Mehra Deputy General Manager (Works)

• D-90 Okhla Industrial Area, Phase-I, New Delhi - 110 020.

Mr. Vishvesh Bhatia Deputy General Manager (Mktg)

• SP-919-920 RIICO Industrial Area, Phase-III, Bhiwadi Dist., Alwar (Raj.) - 301 019.

Mr. N S Yadav Deputy General Manager (Q C)

• 99/2/7 Madhuban Industrial Estate, Village Rakholi, Silvassa (D&H) - 396 230.

Mr. K Sunderajan Deputy General Manager (Mktg)

1

Raising the bar

With nearly four decades of solid experience, KEI is at the forefront of the industry manufacturing the widest and most comprehensive

product

basket. KEI is now raising the bar from manufacturing LT to HT by now embarking on plans to manufacture Extra High Tension cables which will serve the modern power transmission segment. Very few companies in the country possess the capabilities to manufacture this.

completing the entire value chain from manufacturing and supplying cables to executing EPC contracts and manufacturing and supplying transformers. The company is now raising the bar by

KEI enjoys wide acceptability across diverse sectors such as oil refineries, railways, power, cement, steel and various other industrial sectors due to its ability to custom manufacture highly specialised cables to the exacting product and application needs of its prestigious clientele.

Industry stalwarts

such as Suzlon Energy, Gail (India), Larsen &

Tourbo, Power Grid Corporation, Essar, Tata Steel, BPCL, HPCL, BHEL, NTPC, SAIL, Indian Railways, to name just a few;

their cabling requirements.

rely on KEI for

KEI is also the registered vendor with

over 100 Indian companies. KEI by carefully nurturing relationships, ensuring timely order execution and

being a reliable partner

is raising the bar of project execution

and client servicing vindicated by the record repeat orders received yearafter-year. By leveraging its technical, designing and customisation prowess to suit

24 countries and the company continued its successful march of raising the bar by winning prestigious orders overseas qualifying through rounds of tough different temperatures, KEI services clients across

tendering process and outbidding global leaders. KEI is also aggressively expanding its presence in the domestic retail segment with an aim to power homes, true to its credo, is raising the

first time in this industry in India: A product liability insurance for house wires – a testament made possible as quality is the hallmark of all KEI products. A promise made after fully appreciating that safety

industry bar by offering for the

of lives and valuable properties is sacrosanct and can never be compromised. This is just the beginning. As KEI steadfastly chalks out and implements powerful strategies that hold the potential to take us closer to our vision to be the number one player in the industry, naturally and rightfully.

2

3

Raising the bar

E me r g i n g e v e n s t r o n g e r wi t h e a c h p a s s i n g ye a r 401.68

For the past four years, we have been raising the bar and continuously strengthening our results year-after-year demonstrating the successful delivery of our strategies and the quality of our overall operational performance.

260.07

RS. IN MN PARTICULARS PAID UP CAPITAL CAPITAL EMPLOYED SALES LESS: EXCISE DUTY NET SALES PBDIT PBIT PBT PAT

2004

2005

2006

2007

79.20 338.46 1086.38 107.05 979.33

79.20 526.53 2302.29 267.76 2034.53

100.93 1379.90 3413.50 411.84 3001.65

117.94 3688.50 6815.14 776.04 6039.10

89.18 71.63 15.59 8.93

212.31 192.46 123.93 83.90

457.97 431.07 336.48 260.07

873.79 817.25 579.89 401.68

GROWTH RATIOS (PER CENT) NET SALES PBDIT PBIT PAT

2004 2005 2006 2007 PAT (Rs mn)

1401.99

6039.10 886.40 3001.65 2034.53

PROFITABILITY RATIOS PBDIT PBIT PBT PAT ROCE (PAT/CAPITAL EMPLOYED)

83.90 8.93

381.18

979.33

9.11 7.31 1.59 0.91 2.64

10.44 9.46 6.09 4.12 15.93

15.26 14.36 11.21 8.66 18.85

14.47 13.53 9.60 6.65 10.89

24.94 16.74 21.02 19.71

107.75 138.07 168.69 839.53

47.54 115.71 123.98 209.98

101.19 90.80 89.59 54.45

397.30

2004 2005 2006 2007

2004 2005 2006 2007

NET SALES (Rs mn)

GROSS BLOCK (Rs mn)

7.67

873.95 5.72 457.97

CAPITAL EMPLOYED FIXED ASSETS CURRENT ASSETS LESS: CURRENT LIABILITIES LESS: BANK BORROWING LESS: DEFERRED TAX LIABILITY CAPITAL EMPLOYED

O p e r a t io n a l h ig hlights 2007 was the first year of operations at full capacity for the HT cables segment. Commenced EPC operations and secured prestigious orders across the country. Export revenues grew by an impressive 270 per cent; an increase from Rs 226 mn in 2006 to Rs 835 mn in

4

274.24 619.29 346.73 173.85 34.49 338.46

288.81 1108.61 629.77 203.10 38.02 526.53

804.66 2003.60 991.43 377.02 59.86 1379.90

1409.65 5269.90 1994.33 922.04 74.68 3688.50

2.11

212.31 89.18

0.22

2004 2005 2006 2007

2004 2005 2006 2007

PBDIT (Rs mn)

EPS (Rs.)* * Shares of Rs. 10 /- each.

the current fiscal. Procured a brand enhancing export order to supply power cables in the Gulf region; its single largest order in history valued at Rs 250 mn. Raised USD 36 mn (Rs 1640 mn) through a Foreign Currency Convertible Bond (FCCB) issue in November 2006. The bonds have been issued at 1% coupon rate and are convertible within 5 years at the price of Rs 86.

Financial highlights Net sales increased 101 per cent to Rs 6039.10 mn (2006: Rs 3001.65 mn). PBIDTA up from Rs 458 mn in 2005-06 to Rs 874 mn in

2006-07, an increase of 91 per cent. PAT up 54 per cent to Rs 402 mn (2006: Rs 260.07 mn). EPS increased by Rs 1.95 from Rs 5.72 in 2005-06 to Rs 7.67 in 2006-07.

5

Dear Shareholders, 2 0 0 6 - 0 7 h a s b e e n y e t a n o t h e r y e a r o f s o l i d p e r f o r m a n c e f o r K E I . We achie v e d important financial and ope rating goals and continue d to b ui l d t h e b a s e f o r o u r f u t u re s u c c e s s . O u r re s u l t s re f l e c t a n a c t i v e a n d productive fiscal year at KEI. Revenues increased by nearly 100 per cent o v e r t h e p re v i o u s f i s c a l a n d p ro f i t s g re w b y 5 4 p e r c e n t . D u r i n g t h e c u r re n t y e a r, e x p o r t s h a v e g ro w n o v e r 270 per cent to touch R s 835 mn from R s 226 mn in the pre v ious ye ar. K E I i s r a i s i n g t h e b a r o f p e r f o r m a n c e b y g a i n i n g m o m e n t u m , e m e rg i n g s t ro n g e r, e f f i c i e n t l y a n d c o n s i s t e n t l y re c o rd i n g h i g h g ro w t h r a t e s a n d profits re s ulting in high re turns . A fe at facilitate d by s te adily i nv e sti ng in our gros s block, e xpanding our product offe ring, focus ing o n m ar k e t s e gme nts that offe r the gre ate s t pote ntial for grow th and pro f i tab i l i ty, branching out into new geographies, implementing operational e xce lle nce proce s s e s , s tre ngthe ning our pre s e nce in the EPC se g m e nt, f o r a y i n g i n t o t h e m a n u f a c t u re o f t r a n s f o r m e r s , b u i l d i n g a v i s i b l e pre s e nce in the re tail s e gme nt and at s ame time e mbarking o n d r i v i ng grow th through v olume s to be e v e n more cos t-e ffe ctiv e .

Business overview POSITIVE

From the Chairman’s desk

M e a s u re s t o re d u c e t h e d e m a n d - s u p p l y g a p i n t h e p o w e r s e c t o r w i l l continue to drive the demand for the cabling industr y for year ’s t o g e t h e r. T h e I n d i a n g o v e r n m e n t ’ s t h r u s t t o i m p ro v e i n t e r- re g i o n a l p o w e r t r a n s m i s s i o n a n d e m b a r k o n u n d e rg ro u n d c a b l i n g t o re d u c e d i s t r i b u t i o n l o s s e s w i l l a l s o p ro v i d e a p o s i t i v e d e m a n d i m p e t u s . T h e ongoing infras tructure and re alty boom and the huge cape x p l anne d i n v arious he av y indus trie s continue to cre ate unpre ce de nte d d e m and f o r p o w e r c a b l e s . O p p o r t u n i t i e s f o r t h e c a b l i n g s e c t o r a re a l s o r i p e i n Af r i c a , We s t A s i a a n d t h e G u l f re g i o n w h i c h a re p o i s e d t o m a k e s i g n i f i c a n t i n v e s t m e n t s i n t h e p o w e r s e c t o r. I n a n u t s h e l l , t h e re i s a robus t de mand pote ntial v is ible on the horiz on.

BRIEF

‘

KEI is raising the bar of performance by gaining momentum, emerging stronger, efficiently and consistently recording high growth rates and profits resulting in high ret urns.

6

DEMAND TRENDS

PERFORMANCE REVIEW

All the s trate gie s that the company had e mbarke d upon in the p re v i o us year have showed results. One of our key accomplishments included the timely completion and on track capacity expansion of the HT plant. Contribution of HT cables to the overall revenues has doubled. We have als o s ucce s s fully acquire d orde rs in the EPC s pace for cable sup p l y and l a y i n g o f c a b l e s . R e v e n u e f ro m s a l e s t o i n s t i t u t i o n a l c u s t o m e r s continue d to be robus t w hile re v e nue s from the e xport s e ctor w he re w e f o c u s e d o u r e n e rg y d u r i n g t h e y e a r ; h a v e g ro w n o v e r t h re e t i m e s a s compare d to the las t ye ar.

7

ro u t e a n d s u p p l e m e n t i t w i t h g re e n f i e l d e x p a n s i o n . A majority of the future e xpans ion plans are like ly to b e f u n d e d t h ro u g h f u n d s r a i s e d i n t h e F C C B i s s u e during the ye ar. House wires & retail focus

in close p roxim it y.

Cables O u r t o t a l re v e n u e s f ro m t h e c a b l e s s e g m e n t incre a se d b y 1 00 p er c en t a n d w a s Rs 5 9 6 7 mn . Ou r new f acility f o r p rod u c i n g H T c a b l es a t B h i w a d i wa s co mmissio n e d in M a rc h 2 0 0 6 a n d p rodu c t i on wa s on s t re a m b y J u n e 2 0 0 6 a n d w e a re h a p p y t o re p o r t re v e n u e s o f R s 4 4 5 m n f ro m t h i s . T h e c o m p a n y c o n t i n u e s t o a g g re s s i v e l y e x p a n d i t s c a p a c i t i e s a t Bhiwa d i a n d h as a c qu i red l a n d f or t h e s a me.

I n fa ct , k eep in g EP C con t ra ct s in m in d , KEI aims to foray into the manufacturing of EHV cables. C u r re n t l y, t h e c o m p a n y i s t e s t i n g a n d c o n d u c t i n g a f e a s i b i l i t y s t u d y o n i n c re m e n t a l m a n u f a c t u r i n g capabilities and investments required to manufacture c a b l e s o f 1 3 2 K V a n d 2 2 0 K V ( f ro m t h e e x i s t i n g capability to manufacture upto 66 KV). Also, while we h a v e a c q u i re d t h e l a n d t o b u i l d t h e n e w f a c i l i t y, w e will simultaneously be using the existing HT facility at Bhiwadi to conduct the testing and basic p ro d u c t i o n r u n s t o d e v e l o p a f e a s i b i l i t y re p o r t . T h i s e x e rc i s e w i l l g i v e u s a l e a d t i m e a n d e n a b l e u s t o j u m p s t a r t t h e p ro d u c t i o n a n d m e t i c u l o u s q u a l i t y a p p ro v a l p ro c e s s w h i c h t a k e s a l o n g p e r i o d . We e x p e c t t h i s l a n d m a r k p ro j e c t t o t a k e o f f i n t h e n e x t on e t o on e a n d h a lf y ea rs.

Expansion plans The f o ray in th e HT s egm en t a l s o a u gu r s w el l for t h e o v e r a l l g ro w t h o f t h e c o m p a n y a n d w e p l a n t o venture even deeper into EPC contracts segment. HT cables n o rm ally f or m t h e c ore el emen t of l a rg e EP C c o n t r a c t . Ke e p i n g t h i s i n m i n d , w e a re a g g re s s i v e l y e x p a n d i n g o u r m a n u f a c t u r i n g f a c i l i t i e s . To e n s u re m a x i m u m o p e r a t i o n a l e f f i c i e n c y, w e h a v e c h o s e n t o keep a m aj o rity o f ex p a n s i on pl a n i n a n d a rou n d t h e e x i s t i n g B h i w a d i p l a n t . T h e c o m p a n y h a s a c q u i re d 3 2 . 5 a c re s o f l a n d t o u p g r a d e t h e H T a n d LT p ro d u c t i o n f a c i l i t i e s a t B h i w a d i a n d a l s o d e v e l o p ano th e r g re e n f ie ld E H V / H T / LT prod u c t i on fa cilit y

8

Lo o k i n g a t t h e d e m a n d o p p o r t u n i t i e s i n t h e e x p o r t market and our success overseas; the development of our exclusive Export Oriented Unit at Chopanki (in c l o s e p ro x i m i t y t o B h i w a d i ) a t R a j a s t h a n i s f a s t p ro g re s s i n g a n d w e a re c o n f i d e n t o f c o m m e n c i n g com m ercia l p rod u ct ion b y Oct ob er 2 0 0 7 . Last year through my communication to shareholders, I h a d t o u c h e d o n p l a n s t o a c q u i re a c a b l e manufacturing plant overseas, we continue to look for a p p rop ria t e op p ort u n it ies in t h is reg a rd . To c omple te t h e e n t i re v a l u e c h a i n f o r t h e m a n u f a c t u re o f t r a n s f o r m e r s , w e m a y t a k e t h e i n o rg a n i c e x p a n s i o n

To cate r to the fas t grow ing re tail s e gme nt, w e hav e s ucce s s fully e xpande d our hous e w iring capacity. We h a v e f u r t h e r s t re n g t h e n e d o u r d i s t r i b u t i o n n e t w o r k and hav e launche d an aggre s s iv e brand building and v is ibility campaign. A s a f u t u re s t r a t e g y, w e a re n o w c o n t e m p l a t i n g a foray into the s yne rgis tic e le ctrical product bus ine s s w hich w ould e s s e ntially e ncompas s the manufacture and supply of various power ancillaries and household e l e c t r i c a l p ro d u c t s . We b e l i e v e t h a t t h i s v e r t i c a l diversification would enable us to offer integrated product offe ring to our e xis ting cus tome rs .

Future prospects A s w e m o v e a h e a d , i n t h e c o m i n g y e a r s w e a re confident that all the strategies that we have e mbarke d upon w ould yie ld fruitful re s ults for us like the y hav e in the pas t and e nable us to s e t e v e n more ambitious targets. And with our continued disciplined g ro w t h a p p ro a c h , w e w i l l b e r a i s i n g t h e b a r o f pe rformance ; as w e s triv e to acce le rate re v e nue s by more than thre e time s in a s pan of thre e ye ars . On a concluding note, I would like to thank our Board o f D i re c t o r s f o r t h e i r v a l u a b l e a d v i c e a n d g u i d a n c e , our employees for their unstinting devotion and our stakeholders, bankers and institutions for their continue d s upport.

Anil Gupta Ch a irm a n -cu m -M a n a gin g Direct or

9

C o s t e ffic ie n c y me a s u r e s On the operational side, KEI has set u p a warehouse at the Bhiwadi plant, a s a de-bottle necking initiative. And to reduce costs by improving efficienci e s , KEI has implemented an ERP-BAAN system which will enable faster integration of data and bring about transparency in operations.

K E I ’ s s t a t e - o f- t h e - a r t m a n u f a c t u r i n g f a c i l i t i e s a re s e c o n d t o n o n e . T h e ro b u s t m a n u f a c t u r i n g f a c i l i t i e s a re supplemented by the latest technology and innovative manufacturing proce s s e s to de liv e r s upe rior cos t-e ffe ctiv e and quality cable s and w ire s . The company is on an aggre s s iv e e xpans ion driv e and has s ucce s s fully comple te d of the e xpans ion of the hous e w ire facilities at Silvassa. With a capital outlay of Rs 140 mn, the company is confide nt of ge ne rating ne arly 100 pe r ce nt re v e nue from the s ame in the coming ye ar.

Going ahead, capex plans

KEI

has

embarked

upon

major

1. In Februar y 2007, the company has acquired 5.5 acres of land near its existing plant in Bhiwadi which will be utilized for the e xpans ion and upgradation HT / LT cable s . 2. The company has als o acquire d anothe r 27 acre s of land near Bhiwadi for setting up a green field EHT/HT/LT cables plant.

Robust manufacturing facilities 10

3 . T h e c o m p a n y h a s u t i l i z e d 8 a c re s o f l a n d ( a t C h o p a n k i ) n e a r t h e e x i s t i n g B h i w a d i f a c i l i t y p re s e n t i n i t s b o o k s t o de v e lop a 100% Export O rie nte d Unit (E.O.U.) to cate r to t h e f a s t g ro w i n g e x p o r t m a r k e t . A n E . O. U . s t a t u s w i l l enable KEI to enjoy tax incentives which in turn would i m p ro v e t h e n e t p ro f i t m a rg i n o f t h e c o m p a n y. T h e inv e s tme nts e nv is age d for this plant are R s 60 mn and it is e xpe cte d to be comple te d by O ctobe r 2007. The s e aggre s s iv e e xpans ion proje cts w ill he lp the company t o re p o r t h i g h e r u t i l i z a t i o n l e v e l s , f a c i l i t a t e b e t t e r o p e r a t i o n a l c o n t ro l s , t r a n s l a t e i n t o s i g n i f i c a n t s a v i n g s o n manufacturing and administrative overheads. Most i m p o r t a n t l y, t h i s w i l l l a y t h e f o u n d a t i o n f o r t a k i n g o n a n d e x e c u t i n g h i g h v a l u e E P C p ro j e c t s a n d e n a b l e K E I t o e xpand its footprints ov e rs e as .

11

Quality is supremely im port ant Supported by a competent team of technocrats and quality checkers, the company implements stringent control measures all through the production line. Supervision by its well trained and experienced personnel enables KEI to deliver reliable products as per customers needs. Purchase of raw material through trusted vendors and testing of all raw ma t e r i a l u s e d e n s u r e s c o ns i s t e n c y a n d q u a l i t y . The company’s customer oriented approach and its focus on quality and customer contentment h a s wo n i t a d i s t i n g u i s h e d l i s t o f c l i e n t s .

Domestic institutional sales in per cern t

Prod u ct b rea k u p

L e a d i n g d o me s t i c c u s t o me r s

2006

2007

CUSTOMERS

SEGMENT

LT ca b les

72

76.7

S uz lon Ene rgy Ltd

E ne rg y

HT ca b les

-

6.70

Bharat He av y Ele ctric Ltd

E ng i ne e r i ng

Es s ar Cons truction Ltd

E ng i ne e r i ng

Hindus tan Pe trole um Corporation Ltd

R e f i ne r i e s

Jindal Pow e r Ltd

Po w e r Tr ansm i ssi o n

Lars e n & Tourbo Ltd

Inte r nati o nal E P Cs

Tata S te e l Ltd

S te e l

Hou se wires & ot h ers

12

KEI’s key intent is to remain the trusted partner of choice in the domestic industr y and emerge as the le ade r by re taining its compe titiv e ne s s in quality, cos t and de liv e r y capab i l i ti e s.

28

16.59

13

Domestic retail segment U n p a r a l l e l e d g ro w t h o p p o r t u n i t i e s b e c k o n K E I t o aggre ssiv e ly e n tre n c h i n t o t h e ret a i l s ec t or.

B r a n d b u ild in g A s t h e f u n d a m e n t a l d e m a n d s i t u a t i o n re m a i n s buoyant, KEI will during FY 07-08 be unfurling a massive brand building and visibility exercise to make “KEI” a household name. KEI aims to build a brand equit y b y le v e ra g in g i t s s a f et y a n d qu a l i t y offerin g s f o r i t s h o u s e w i re s p ro d u c t . T h e c o m p a n y h a s a p p o i n t e d t h e re p u t e d i n t e r n a t i o n a l a d v e r t i s i n g agen cy D e n tsu C o mm u n i c a t i on s f or t h e d ev elop m en t of this massive advertising campaign. The a g g re s s i v e m a s s m e d i a c a m p a i g n w i l l a l s o b e

14

supported by advertisements in trade journals, ou t d oor a d vert isin g a n d a d vert isin g a t p oin t of s ale s a t d e a l e r o u t l e t s . D u r i n g t h e f o r t h c o m i n g y e a r, t h e c o m p a n y p l a n s t o u n f u r l a n e l e c t ro n i c m e d i a ca m p a ig n en com p a ssin g T V a n d ra d io.

Product liability G oin g a st ep a h ea d a s a b ra n d b u ild in g exerc is e , KEI for t h e first t im e in I n d ia h a s in t rod u ced t h e conce pt o f p ro d u c t l i a b i l i t y i n s u r a n c e f o r h o u s e w i re s . T h i s i n i t i a t i v e p ro m i s e s t o e n h a n c e t h e c o m p a n y ’ s goodwill with its customers and also results in raising t h e b a r o f q u a l i t y, s a f e t y a n d c o n f i d e n c e i n t h e in d u st r y.

Expanding capacities To f a c i l i t a t e t h e g ro w t h , K E I h a s a l re a d y e x p a n d e d the capacity for hous e w ire s at S ilv as s a to 2,50,000 kms. With an estimated capex of Rs 190 mn this e xpans ion is like ly to ge ne rate re v e nue s o f at le as t fiv e to s ix folds .

S t r e n g t h e n i n g d e a l e r s h i p n e t wo r k To i n c re a s e i t s re a c h , K E I h a s d e v e l o p e d a s t ro n g ne tw ork of approv e d de ale rs i n a n d a ro u n d t h e c o u n t r y a n d i s c o n t i n u o u s l y s t re n g t h e n i n g i t s dis tribution ne tw ork. The company is als o tr ying to re ce iv e maximum approv e d v e ndor s tatus dire ctly

f ro m c o n t r a c t o r s w h i c h w i l l e n s u re n o t o n l y re p e a t o rd e r s i n t h e f u t u re b u t a l s o e n s u re f a v o r a b l e re comme ndation to architec ts w ho w i l l d e te r m i ne the buying pre fe re nce of e nd u se r s. KE I und e r stand s the importance of de ale rs and the v al uab l e re l ati o nshi p s t h e y h a v e w i t h t h e i r c u s t o m e r s . C u r re n t l y, t h e company has 25 dealers and is planning to ramp up its dealer network by adding 40 authorized dealers in the ne xt 12 months . With all essentials in place for its retail strategy, KEI plans to add value by consistently meeting customers cabling needs with an assurance of safety and quality alw ays .

15

2007 w as a major tipping point for KEI in the e xport market and the company surpassed several mile s tone s : R e p o r t e d e x p o r t re v e n u e s w o r t h R s 8 3 5 m n a s c o m p a re d t o R s 2 2 6 m n i n t h e p re v i o u s y e a r, a n incre as e of 270 pe r ce nt. B a g g e d i t s b i g g e s t e x p o r t o rd e r i n h i s t o r y - a pre s tigious orde r for the s upply of HT and LT cable s from the s tate authoritie s in the Gulf. Forayed into new geographies such as Mauritius and We s t Indie s . Appointed additional marketing persons and dealers which would enable the company to penetrate into t h e E a s t Af r i c a n a n d S o u t h Af r i c a n m a r k e t particularly in Nige ria and Ghana. S tre ngthe ne d its marke ting office in Dubai to cate r to the grow ing de mand in the Gulf countrie s . Appointed distributors in England. The company already exports stainless steel wires to the European market but to further entrench itself in the high value E u ro p e a n m a r k e t , K E I i s l o o k i n g a t u n f u r l i n g a n a g g re s s i v e m a r k e t i n g a n d re l a t i o n s h i p b u i l d i n g e xe rcis e in this re gion. Continued to ser vice prestigious industr y leaders in the inte rnational EPC s e gme nt. Commenced the development Gre e nfie ld EO U plant ne ar Bhiw adi.

work

on

the

With a w e ll thought out marke ting plan couple d w ith t h e a g g re s s i v e e x p a n s i o n p l a n s , K E I i s c o n f i d e n t o f grow ing the e xport re v e nue s by ov e r tw o folds .

Stellar success in

exports market Global footprints

16

COUNTRY

TYPE

UAE

Elec tr i c al c ab l e s

France Italy

Ele c tr i c al c ab l e s & s ta i nl e ss ste e l w i re s S ta i nl e ss ste e l w i re s

S ingapore

Ele c tr i c al c ab l e s

S cotland

Ele c tr i c al c ab l e s

OF CABLES SUPPLIED

17