Oswal Cables IPO

Oswal Cables Limited is an integrated manufacturer of high voltage conductivity products with a voltage spectrum of up to 765 kV. Its products are deployed across critical energy infrastructure, including transmission and distribution, renewable energy integration, railways, and industrial applications.

Key Strengths

• Comprehensive High Voltage Range: Capable of manufacturing conductors and cables up to 765 kV, allowing it to serve large-scale infrastructure projects.
• High Entry Barriers: The industry requires stringent certifications and long supplier registration processes (6–12 months) with government utilities and institutional customers. Oswal’s status as an RDSO-approved supplier further strengthens its moat.
• Diversified & De-risked Business Model: Its revenue is spread across diverse end-use industries (Energy, Railways, Renewables, Mobility) and multiple geographies (22 Indian states and 28 countries).
• Strategic Partnerships: The company has a Memorandum of Understanding (MoU) with Tokyo Rope International Inc. (Japan) to jointly develop aluminum conductor fiber reinforced conductors (ACFR).
• Financial Efficiency: In Fiscal 2025, the company recorded the highest Return on Equity (RoE) of 27.42% and the highest Inventory Turnover Ratio among its listed peer group.
• Sustainability Focus: The company generates approximately 200% of its total energy consumption from its own captive renewable energy assets (wind and solar).

Growth Strategies and Future Plans

• Capacity Expansion (The Proposed Project): The company plans to set up a new manufacturing unit in Jaipur to increase its aggregate cable capacity to 151,200 KMPA. This project includes new product lines such as medium voltage underground cables, building wires, and solar DC cables.
• Inorganic Growth: Oswal intends to pursue strategic acquisitions, partnerships, and technical collaborations with companies in India and overseas markets (Asia, Africa, and Latin America) to enhance its product range and market reach.
• Backward Integration: The company plans to establish in-house rolling machines to process aluminum and copper into rods, which are currently sourced from external suppliers. This is expected to improve supply chain flexibility and efficiency.
• Renewable Energy Focus: It aims to leverage its technical expertise to provide pre-tender technical support for solar projects and increase its revenue share from the growing renewable energy sector.
• Geographical Expansion: The company is exploring the establishment of offices in new international regions to strengthen its local presence and market development.
• Deleveraging: Part of the IPO proceeds (up to ₹400 million) will be used to repay existing borrowings to improve the debt-to-equity ratio and enhance financial flexibility for future expansion