Pune-based Finolex Cables has flagged rising input costs and potential production disruptions if the ongoing conflict in West Asia persists, with a senior executive warning that raw material prices have already surged sharply.
“Ever since the war began, we have seen prices of raw materials such as polyvinyl chloride (PVC) go up by 20–25%. If the war continues for at least two weeks, our production could be impacted,” Amit Mathur, president (sales and marketing), said.
He added that while most of the company’s heating processes are electrified, copper casting depends on LNG, making operations vulnerable to energy supply disruptions. “There is a shortage of raw materials. However, copper prices have remained stable or softened slightly after the war. The weakening of the rupee in recent months has also pushed up input costs,” he said.
Mathur said the company plans to pass on higher costs to customers amid the sustained pressure on margins.
Finolex Cables is targeting Rs 1,000 crore in revenue from Tamil Nadu in the next financial year, driven by industrial expansion, rising electric vehicle (EV) adoption, solar installations and data centre demand.
“The southern market contributes nearly 40% to our revenue, and Tamil Nadu alone accounts for about 40% of that. We expect to generate around Rs 800 crore from the state this year,” Mathur said, adding that the company clocked around 35% growth in India in the last quarter.
The company is focusing on supplying cables for data centres, with Tamil Nadu emerging as a key hub after Maharashtra. It offers a range of products including power cables, optical fibre cables and LAN cables to cater to this segment.
Finolex also has rate contracts with major real estate developers such as Baashyam Constructions and Casa Grand, and is generating about ₹5 crore per month from conduit business in Tamil Nadu.
The company aims to double its overall revenue from about Rs 5,000 crore to Rs 10,000 crore over the next few years.
As part of its expansion, Finolex has invested around Rs 250 crore out of a planned Rs 600-crore capital expenditure to manufacture preforms—key raw materials for optical fibre cables—near Pune. Earlier, these were largely imported.
In the EV segment, the company supplies auto and battery cables to automakers such as Tata Motors, Mahindra & Mahindra and Maruti Suzuki.
Mathur added that the company’s retail business remains strong, supported by a network of nearly 3 lakh retailers and over 5,000 channel partners and distributors across India.