From a small shop in Lohar Chawl to a big FMEG brand: Nilesh Malani shares Polycab’s story

Incorporated as a small shop about six decades ago by Mumbai-based Jaisinghani family that had migrated from Pakistan, Polycab is today one of the leading players in the fast moving electrical goods (FMEG) sector. exchange4media caught up with Nilesh Malani, CMO of Polycab India, to understand the success journey of the brand. 

Excerpts: 

Please take us through the inception of Polycab?

It all started in 1968 when Late Thakurdas Jaisinghani established a small shop in Lohar Chawl (Mumbai) where he used to sell electrical goods. Subsequently, the business was managed by his four sons. 

In 1975, they opened up a factory in MIDC Andheri (Mumbai) and started manufacturing cables and wires. Then they scaled up the entire business and opened another manufacturing unit in Halol (Gujarat). In 1996, the brand Polycab was established, and in 2019, we were listed in the stock exchange. 

At present, we have more than 1,65,000 retailers and 4,100 distributors across the country and we export to more than 100 countries. 

What were the challenges that Polycab faced in the beginning?

In the beginning, resources and manpower were limited. The family really struggled a lot to establish itself in the trade. Another challenge was the learning- such as where to sell, how to manufacture and which type of products to make. 

Then, there were other infrastructural challenges such as logistics. Those initial years were very difficult. Jaisinghanis withstood those hardships, learnt everything on the job and reached the position they are at today. 

Tell us about the initial investors and the business journey.

There was no investor in the beginning. It was all organic and homegrown money which the family earned from the business and put it back to expand the business. 

In the last five years, we have been growing handsomely. We are the market leader in the cables and wires segment, and at the same time, strengthening ourselves in the FMEG sector. Our CAGR is more than 30 per cent by gaining the shares of competitors. Overall, things are very bullish. 

What are your thoughts on leadership and marketing? 

We have redefined the entire marketing approach by focusing a lot on the influencer segment. Influencers are very important for marketing these days. 

Today, consumers don’t seek cheap products but they seek value for money. I believe that leaders should be able to give solutions to problems, identify the need gap and deliver value for money to consumers.  

For the same reasons, we launched Polycab green wire which is energy-efficient. It was projected as a sustainable product throughout consumer communication. As a result, our sales have grown 4X even as the green wire comes at a 20 per cent premium compared to other wires. 

We came up with a novel concept of ‘Polycab Galleria’ in eight cities where you can experience the products and then order them online or there itself. Similarly, Polycab arena has been set up for distributors and retailers.  

Leadership is how to differentiate your brand from others and how you create a sustainable brand. 

How has the FMEG sector of India evolved over the years?

Twenty five years ago, we had regular bulbs and tubelights. Now, everyone is using LEDs, people want IoT and sensor-enabled products. Similar revolution is seen in the fans. 

Earlier the focus was on aesthetics, now consumers want aesthetics plus technology, such as smart control of all electric appliances in the entire house on the phone wherever you are. 

We are leveraging our strength in technology and in-house manufacturing capabilities to manufacture energy-efficient BLDC fans, LEDs, switches, switchgears. 

The BLDC fans are 60% more energy-efficient. Within two years, you can save money equivalent to the cost of the fan. 

We are always upping the game in terms of R&D to give the best product in line with consumer demand. Polycab is also educating trade partners, retailers and consumers on how they can benefit from these products. 

Besides, the e-commerce segment has grown too big in the last few years and it's valued at Rs 1,500 crore. 

What are your plans for the future?

We want to up our game in the FMEG sector and establish leadership in the segment by strengthening digitization of the brand. Besides, we want to be a talent magnet to get better talent. We aim to take our business to Rs 20,000 crore by 2026. 

Is there any plan to acquire your competitors? 

Last year we acquired Silvan Innovations (an IoT firm) which was in sync with our business plans.  In future, whenever such opportunity comes, we will be open for acquisitions.