— Kalpesh D. Shah,
Director, JSK Industries Pvt Ltd
Headquartered in Mumbai,
JSK Industries Pvt Ltd is a leading
manufacturer and specialist in power transmission and distribution
conductors. With a standing of nearly five decades, JSK is a
nationwide supplier to Power Grid Corporation of India and a host
of other power utilities.
Kalpesh D. Shah discusses the core
strengths of JSK Industries and gives a glimpse of the years ahead.
With generous investment outlays marked for power transmission,
Shah is very confident of serving the nation with environment- and
budget-friendly offerings. An interview by
Venugopal Pillai.
At the outset, please tell us in brief about the various power
conductors made by JSK. What have been product additions at
JSK in recent years?
We are manufacturing ACSR, AAC, AAAC, AACSR and various
HTLS conductors. Research, Development and upgradation is a
way of life for our group and hence, a continuous process.
Recently, we have developed various HTLS conductors like
coloured conductors, ACSS, AL59, TACSR, ACSR/AW etc.
Given that India has outlined major investment in the power
transmission sector, do you envisage any capacity expansion at
your Silvassa plant, in the near future?
We see a high growth in the demand in coming years in the
sector and hence, various expansion plans are under
implementation. Few expansions will be in India and few will be
out of the country, helping us improve our global presence.
We understand that JSK is a major supplier to Power Grid
Corporation of India. Given that PGCIL has outlined major
capital expenditure of Rs.1 lakh crore in the XII Plan period,
how do you gauge business prospects?
Business prospects, as far as PGCIL is concerned, are
definitely good. In the near future the higher inventory levels is
slowing down buying in the current year but in the long run we
see good demand. PGCIL has been one of the best customers
and even in the tariff-based bidding scenario we will be fully
supportive and committed to PGCIL so that it can maintain its
leading status in Indian power sector.
JSK has been catering to a large number of state power
transmission utilities. Over the years, especially after the
trifurcation of erstwhile state electricity boards, have you
noticed any change in the procurement policies of STUs?
Most utilities are now inviting EPC contractors for the work
executions and we have to supply to the contractors. In the said
scenario, entire procurement process becomes dependable on
the EPC contractor. If the contractor is capable, entire
procurement and execution process goes smooth and if the
contractor is incapable, we are stuck with unplanned inventories
or unplanned shutdowns as customer could not give
manufacturing clearance etc. Wherever the utility is directly
procuring the conductors, we have generally found things on
stream. Some utilities have surely failed to make payments in time
but compared to the past, such instances have now reduced
substantially.
What is your view on fluctuating prices of aluminium and how
does it impact long-term contracts?
Aluminium price fluctuations have been very high and erratic. Our
contracts are of both types —firm price and variable price. In the
firm price type of contracts, volatility sometimes results into order
cancellations as customer may be able to get a better price due to
lower raw material prices. In the variable type of contracts, we are
unable to get 100 per cent variation matching increase in the raw
material price. Price fluctuations ultimately affect our short term
and long term fund planning as well as material planning.
Given its vast experience in manufacturing of power conductors,
does JSK have near-term plans of evolving as an EPC contractor
in the power transmission sector, or even an IPTC?
At this stage we are more focused on expanding our product
range and create a set up to give improved services to our
customers within and outside India.
India is moving towards a regime of high-voltage and ultra
high-voltage power transmission. In view of this, is JSK
planning to manufacture special power conductors?
As already explained before, we are very focused on new R&D
and give the Indian power sector better value propositions
which can give technically superior products at much
affordable price. Our efforts are to see that maximum power is
transmitted to maximum distance at minimum cost.
To achieve carbon balance, beside conductor, we have
already started new packaging like hybrid drums and steel
drums for packing the conductors which not only saves
environment but also saves cost of freight and over all cost of
transmission line, if properly recycled.
On the technological front, we observe that some
multinationals are bringing newer technology, for instance
composite core, in power conductors. What is your view? Does
JSK also have plans in this direction?
We are discussing the same with few manufacturers of
composite core and ACCC manufacturers and very soon we will
be in a position to supply the same from in-house production.
However, availability of carbon core is very limited throughout
the world, it's very costly and also needs specific infrastructure
for stringing the same. So for a country like India, it looks like
these changes will take time to be popular for actual users and
we see that the market for such products will be limited in
India, at least in the near future.
Tell us more on JSK's export market. Which are currently your
leading export destinations?
Quality product and quality service are JSK's trademarks.
Because of well defined processes and efficient human
resource, in the last two years, we have been able to make
large inroads in the export market and have experienced great
response from overseas buyers. We are exporting throughout
Africa, Latin America, USA, Middle East, Asia, and also some
European countries. Looking at the response from the market,
we feel that a big chunk of our new expansions will focus on the
exports market.
Please summarize JSK's future plans and some key corporate
objectives that you would like to see JSK Industries attaining in
the medium term.Apart from growing as a businessman we have a feeling
of being a socially responsible business group, hence
want to serve our nation, with better product and service
which are not only environment-friendly but also budget friendly.