Finolex Cables Ltd is an Indian company that manufactures electrical and telecommunication wires. It started by making wires for the automobile industry and has since expanded its product range. The document discusses Finolex's business practices, clients, best practices, missing practices, and flawed practices. It also provides solutions to improve in areas like corporate governance, after sales service, product range, compensation, digital presence, advertising spend, and inaccurate claims.

1. Business Marketing
Topic : Finolex Cables Ltd.
Submitted by -
Group Member Details:
Names Roll No.
Akanksha Gohil

2. Introduction:
Finolex cables ltd is a leading company which manufactures electrical and telecommunication wires and
is a flagship company of the Finolex group. With superior quality and trouble free performance
validation, its product range is used for electrical usage, transmission of voice, data and images, for
domestic, commercial and industrial applications and for electrical products. The company offers
electrical wires for almost every segment of the market.
The company started its operation with the manufacture of PVC insulated electrical cables for the
automobile industry. The company also manufactures PVC sheets for roofing, signage and interiors. As
the tagline of the company goes by “Suraksha, Behtar ElectriKAL ke liye!”, the wires are insulated with
flame retardant PVC compound, manufactured in-house which makes the wiring ideal for conduit
wiring. Finolex Cables has always been striving for offering better products to market on time. For
achieving this, Finolex Cables has set up four modern state-of-the-art plants located in Pimpri (Pune),
Urse (Pune), Goa & Roorkee (Uttarakhand).
Clients:
Major business clients of Finolex:
 Indian Railways
 Pune metro rail corporation
 Military Engineering Services
 Delhi Metro Rail Corporation

3. Best Practices:-
1. Jelly filled telecom cables (JFTC) contributed to 90% of Finolex Cable revenue, as
landlines were the main source of communication in the 1990’s. After the advent of mobile
system, the product lost the demand that it earlier had. After the JFTC crisis, the company
understood the importance of diversification. Since then it has forayed in communication
cable, optical fiber cable, co-axial cable, etc.
2. The firm is doing backward integration to manufacture its own copper. It ensures the
quality of raw material.
3. In order to ensure that the product are easily available anywhere the Finolex Cables has
developed a network of 28 depots,4000 distributors and 30000 dealers
4. The firm has never compromised on quality,
which has helped it gain the trust in the market. It has
ISO 9001 systems certification across all product
lines and plants. Also it has Environment
Management Systems ISO 14001 certification.
5. Finolex Cable has done capacity expansion on a
continuous basis for two main reasons: First, is to
ensure there is growth with the market. Second, it
helps keep cost under control. The company follows
a simple policy of going for expansion whenever it reaches to 75% of capacity utilization for
a product.
6. Finolex Cable has entered into partnership with global players, which has helped it, gain
competitive advantage. For example, Finolex has collaborated with ESSEX Group of USA,
which has helped the firm to bring Continuos Cast Copper Rod technology to India. Similarly,
it has partners like GE, AT&T Sumitomo Electric Industries, etc.
7. Innovation and being the first one to bring a new product in the market has helped Finolex
Cable establish its market position. It was the first one in the market to introduce products like
multi strand wires, auto cables, FRLSH cables, etc.

4. Missing Practices:-
1. Finolex Cables has also not been able to diversify efficiently in the fast-moving electrical goods
(FMEG) sector. The segment is posting a loss at the earnings before interest and tax level.
2. Finolex Cables are spending very less on their advertising. They spend less than 1% of their
revenues on advertising. In comparison, closest peer Polycab India Ltd has been able to move
faster in the FMEG space in recent years because of better brand visibility.
3. The size range in Multicore cables offered by Finolex is from 0.5 sq. Mm to 50sq. Mm which is
very limited as compared to its competitors Hindustan Vidyut products Ltd., Polycab who are
offering size up to 630 sq.mm and 120 sq. mm respectively.
4. Lack of Corporate Governance : In April 2019, Prakash Chhabria (Promoter Entity, FCL) and
Deepak Chhabria (Executive Chairman, FCL) had accused each other of scheming to gain
control of Finolex Cables Ltd (FCL). This includes FCL stating that Prakash Chabaria had
submitted fraudulent document to the board of Orbit electricals, and latter company denying all
the allegations.
5. Finolex Cables is shifting its focus from B2B to B2C, whereas its closest competitor Polycab is
aggressively moving towards B2B.
6. Inventory build-up in anticipation of supply constraints hurts gross margins for finolex.
They anticipated supply constraints due to issues related to Vedanta’s Sterlite copper facility,
industry players built up inventories towards June-end. However, LME copper prices declined
sharply forcing the company to cut product prices and take a hit on gross margins.

5. Flawed practices:
1. Although the company boasts of market leadership for the past five decades, there are some
flaws in the compensation packages among the employees and there are employees who are not
satisfied with their learning curve.
2. Some of the business customers of Finolex cables complained of poor after sales service.
3. Offering too many deals and discounts. Customers that buy your product or service just because
of low prices may not be there to stick. It may not be sustainable in the long run, and you surely
can spend your valuable time to acquire quality customers rather than the ones with higher churn.
You need to focus on customers that care about the value you create, not the price.
4. The company lacks on the business and employment oriented service platform LinkedIn. The
company is highly inactive on the platform. Also, It is not just about being active, it is about
reaching out to your customers.
5. Upon deeper investigation, we found that the company charges high cost for the cables and wires
although the company follows differential pricing in the retail segment.
6. Furthermore, the company boasts that the wires it manufactures have more than 100%
conductivity. This is actually contradictory to the fact that for a wire to have more conductivity,
there should be less resistance, which means there would be more current that would be drawn
and there would be greater consumption of energy.

6. Solutions:
1. As of now Finolex Cables is leading in wires and cables segment for retail market. They
should start focusing on their another product to capture the market where its competitors
are doing a great job.
2. Strict Corporate Governance rules should be incorporated, so that mishaps like the above
mentioned (Missing Practices, Point: 4) do not occur. Because such incidences tarnish the
brand image and thus affects customer's inclination towards the brand also.
3. They should focus on their after sales service, because it is the key to maintain customers
and become more profitable.
4. Although they have very vast product range, but they need to focus on competitor’s
product range also.
5. They should revise their compensation package and try to bench mark it as per the
industry standard.
6. They have worked on their digital presence, but they should improve their LinkedIn
visibility also, as LinkedIn is the corporate social media platform.
7. They should not claim wrong things (i.ie., 100% conductivity), because if there is 100%
conductivity in the wire then energy consumption increases which is not helpful for the
brand to communicate to their customers, who require less energy consumption, from
these kind of electrical products.
8. They spend less than 1% of their revenues on advertising , so to increase their visibility,
they should spend more on advertising and marketing.