DDev Plastiks Industries – A Smallcap Gem

My two cents on consumer electrical industry as ddev in proxy player in this sector

India is the third largest producer and the second largest consumer of electricity in the world. contributing approximately 8% to the country’s manufacturing production, approximately 1.5% to India’s GDP and approximately 1.5% to India’s exports.
consumer electrical industry entails heavy electrical products such as W&C (A wire is a single conductor, whereas a cable is a group of conductors) and light electrical products such as FMEG.
The W&C and FMEGs were estimated at approximately 1.80 lakh crores in 2023 and it are expected to grow at a CAGR of approximately 10% till 2027 (Market value: 2,66,500)
In 2023, the total domestic market for W&C industry was estimated at approximately 75 thousand crores (41% of consumer electrical industry), It has grown at a CAGR of approximately 11% from 33,500 crore in 2015 to 75 thousand crore in FY2023 and is further expected to grow at a CAGR of approximately 13% till 2027 to reach a market value of 1,20,000 crore.
W&C market can be divided into 5 key sub-categories, namely housing wires, power cables, control and instrumentation cables, communication cables and flexible and specialty cables. Housing wires constitute approximately 32.8% (24,535 crore) of the wires and cables market in India.

There are six key factors supported by a positive macro environment that are expected to provide growth in the W&C and FMEG industry between 2022 and 2032:

1. Public and private investment outlay in infrastructure
2. Continued growth of residential real estate sector
3. Resilient commercial real estate sector
4. Transition of automobiles and transport towards electric vehicles (“EVs”)
5. Rural electrification 6. Push towards renewable energy

The domestic W&C and FMEG industry is pivoting towards branded play. The share of branded play in domestic W&C and FMEG industry has grown from 60% in Fiscal 2015 to approximately 76% in Fiscal 2023 and is projected to reach approximately 82% by Fiscal 2027
Nearly 72% of the wires and cables market in India is controlled by branded play. Within this 72%, five leading players namely Polycab, KEI, Havells, RR Kabel and Finolex, garner approximately 60%–62% market share and the balance, 38%–40%, is controlled by challenger brands like Syska and V-Guard. Polycab is the market leader, having approximately 16% market share by value, followed by KEI (approximately 8% market share), Havells (approximately 8% market share), Finolex (approximately 6% market share) and RR Kabel (approximately 5% market share). RR Kabel is the fifth largest player in wires and cables market in India.