—Mahendra Sanghvi, Director, Krishna Copper Pvt Ltd

Mumbai-headquartered Krishna Copper is a leading name in copper products used in a wide section of industries. Mahendra Sanghvi speaks about his company’s activities and future plans, whilst giving an understanding of the intricacies of the copper industry. He is upbeat on the prospects for copper products, mainly thin copper foils, from key industries like transformers and cables & conductors. Sanghvi shares his company’s plans of diversifying into a range of copper alloys and also creating a good brand image for Krishna Copper.

Please take us through the various copper products made by Krishna Copper.
Krishna Copper is engaged in the manufacture of copper flats, strips, rods, squares, profiles, sections, components, sheets, plates, foils, silver-bearing copper, wires, etc. Our products are manufactured using the best quality raw materials sourced from India & European manufacturers. We satisfy our clients with best quality and uncompromised products. We have the ability and are pioneers in providing best products conforming to international standards like ASTM /BS/DIN/IS STDS.

We also are leading manufacturers in satisfying demands of oxygen-free and Camber approved material in copper.

What industries do you broadly cater to and which are currently your company’s biggest demand drivers?
We cater to a wide set of industries that includes switchgear, power plants, transformers, cables & conductors, panel boards, forgings & precision component manufacturers, motor & pumps industries, earthing material, furnace and heavy machine manufacturers, radiators, etc.

Our current focus is towards increasing our share in copper foils that are required in cables and transformer industries, which are showing phenomenal growth in India. In fact, we have already implemented best machines to produce thin copper foils of size 0.02 mm.

Given that the power sector is expected to witness huge investment in the XII Plan period and beyond, how do you see the prospects for the copper industry?
Increased government spending in the power sector and grant of infrastructure status will surely give this sector a big boost. Foreign investment in the power sector, coming from clean energy sources like hydropower and solar, will definitely result in a high demand for copper.

Modernization of the power sector, improving rural electrification and reducing power shortages will give boost the demand for copper. India has yet to see a boom in metals like copper! It is not long before India will be recognized in international charts and will be accounted for its growing demand, even influencing world copper prices.  Like China, India’s consumption will also be a major factor determining LME Price.

Over the past decade, India has created significant copper refining capacity (Birla Copper, Vedanta, etc). Has this resulted in reduced reliance on imports?
Yes, companies like Birla and Vedanta have surely played a key role helping India to reduce dependence on imports of copper but still there is a huge scope for further enhancement in terms of range & quality of copper. A major breakthrough will be seen once GST is levied in India. Products like oxygen-free copper, CC rods of diameter 20mm and above are yet uncovered areas. These companies will be looking at these products to improve their market share further.
 
There is a concern that the electrical equipment industry does not use oxygen-free copper, resulting in inefficiency. What is your view?
Yes, oxygen-free copper is a very efficient form of copper that helps in reducing electrical losses and wastage. However, in India, people still prefer cheaper products compared to high-cost products, overlooking the quality aspect. This discourages manufacturers to enhance production of OFHC, OFC copper, etc. Once all industries understand the benefits of oxygen-free copper, there will be a great scope. It could also open up channels for all copper products to go oxygen-free.

We hear that international copper prices can be very erratic. How do you cope with the situation whilst executing your contracts?
Well, after the ups and downs of copper in 2008 and after the meltdown of Lehman Brothers and other US financial institutions, we have adopted a “fixed-stock” strategy. We have been keeping a fixed quantity of stock at any given point in time. Monthly reviews are taken. We also try to recycle wastage and bring in efficiency of operations, so we can save more. Whatever we sell has mostly been booked by us in the same week to avoid any fluctuation risks. We also have deal in other materials like copper cathode, bars, CC rods, scrap—depending on market demands—to hedge our risks.

What are the logistics-related challenges faced by you during import of copper scrap?
The biggest challenge we face is when copper is imported by sea from African or European countries. We and also many other companies import from these countries. The current time gap of 40-50 days must be immediately looked into, and reduced.

Please discuss what have been the technological advancements in the copper recycling industry?
Many companies have accepted and change the style of copper melting, also with support from the government. Companies are increasingly conscious of reducing pollution and emission of hazardous gases during copper melting. All major countries have set up establishment s in India for selling their high-end equipment and machines. Many companies have also imported and installed latest machines to reduce pollution and increase efficiency of production.

Given the big demand for copper products from the electrical equipment industry, are you planning capacity expansion or diversifying into newer copper products?
Yes, we have already started increasing our product range and are looking to soon introduce alloys like copper nickel, brass, manganese bronze, phosphor bronze, aluminium bronze, leaded bronze, etc. We expect to achieve a good brand image for copper and copper alloys in near future.

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