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How to Establish PVC Cables Manufacturing Business in India?

calendar07 Sep, 2021
timeReading Time: 6 Minutes
Establish PVC Cables Manufacturing Business in India

A cable includes multiple wires which are twisted, bonded, or braided together to form an assembly. The cables & wires are encapsulated with insulating materials, generally, polyethylene or PVC, to ensure protection to users & the surrounding environment. PVC cables act as a primary component for transmitting and distributing electric power. They are prominently used in distribution systems, substations, house wiring, distribution systems, street lighting. PVC insulated cables & wires are prominently used for power distribution. PVC cables manufacturing process is quite straightforward. Anybody intending to venture into this business can get started with a smaller investment. 

PVC Cables Manufacturing – An Overview on Market Potential

  • The electric cable & wire market in India has witnessed massive growth in the past few years and have managed to thrive @ 16% CAGR in the period 2015-2019.  
  • The insulated cable & wire market in India is expected to grow @ 10.3% CAGR through 2023, mainly on account of ever-increasing government investment towards infrastructure development projects.
  • Rapid urbanization across the nation under smart cities mission paired with the escalating number of electronic items per household & development of manufacturing facilities under the initiative, viz ‘Make in India’, which is stimulating demand for power, are projected to scale up market demand in near future. Furthermore, escalating demand for reliable & efficient data communication from rural regions & tier II & III cities and towns would influence the nation’s insulated cable market. 
  • The cables & wires cable market in our country comprises almost 40% of the electrical industry & is thriving @ 15% CAGR as a result of the development of the power & infrastructure sectors. The Indian cable & wires market is highly fragmented, mainly dominated by small and medium enterprises.
  • The production of high voltage durable & specialty cables is mainly catered by the organized sector. Meanwhile, the unorganized sector deals with the production of low-voltage cables. 
  • The ever-increasing demand for cable and wires can also be credited to the advent of cutting-edge technologies by manufacturers in India & prompt expansion of automated and low-cost manufacturing technologies, which have considerably improve the production of cables and wires. 
  • The worldwide cable market size was projected at 186.09 billion dollars in 2017 and is expected to experience a CAGR of 6.4% over the projected period. Ever-rising reserves in growing renewable energy production, smart grid technology, & government[1] initiatives for advancing the distribution & transmission system are projected to steer this market. 
  • Increasing utilization of smart grid technology has met the growing demand for grid interconnections, resulting in increased investments in underground cables & new submarines. Additionally, the market growth is credited to the increasing high voltage direct current links & offshore wind farms. 
  • The demand for cables & wires largely depends on the expansion and diversification of the industrial regime & infrastructure development in the power generation, telecommunication, & commercial sectors.
  • Rising global population and swift urbanization have escalated the demand in these regions, thereby underpinning plenty of opportunities to the global cable & wire market. 

Read our article:Know the Complete Rundown of Documents Required For Startup India Registration

Mandatory Permits and Licenses for PVC Cables Manufacturing

Entities looking to start PVC Cables Manufacturing unit are mandated to procure the following licenses and registrations.

Mandatory Permits and Licenses for PVC Cables Manufacturing

Get an Incorporation certificate 

An incorporation certificate, broadly known as COI, is a must-have requisite for entities intending to operate in a legalized manner. To avail COI, the unregistered entity needs to visit the MCA’s portal and filed a relevant e-form. Presently, MCA facilitates incorporation certificates to the following business structures: 

  • LLP 
  • Private Limited company 
  • Public Limited Company 
  • One person Company 

Key points to ponder 

  • Entities willing to operate as a partnership firm are required to draft a partnership deed, enclosing all mandatory clauses. 
  • The form of the company’s incorporation is known as SPICe+. This form is segmented into two parts i.e. Part A and Part B. Part A enables the applicant to register a proposed company’s name. Meanwhile, Part B offers the services like EPFO registration, ESIC registration, Bank Account opening, Professional tax registration, GST registration, etc. 

Factory License 

Entities with production capabilities are entitled to avail of factory licenses without an exception. It is accorded by the Labour department of the respective state and comes with limited validity. The online disbursement of the factory license is done on the Labour department’s portal against the prescribed application and standard fees. 

Trade License 

A trade license is a legal document that accords consent to the applicant (individual seeking a run a business) to start a particular business or trade in a specific locality. The application for the trade license can be filed on the web-based portal of the Municipal Corporation. While filing up an e-form, the applicant will be prompted to upload the documents in the prescribed file format. 

  • PAN card.
  • Incorporation certificate (COI)
  • Aadhaar card of the business owner 
  • Non-Objection Certificate from an immediate neighbor.
  • Property tax payment receipt.
  • Lease documents/ consent letter from the property owner.

NOC from SPCB 

PVC cable manufacturing units emit a moderate level of pollution, predominately in the form of land contamination, and thus they must obtain NOC from the state pollution control board. The prescribed application needs to be submitted to the concerned authority for the grant of such a NOC. While submitting the form, the applicant is also required to upload plenty of documents such as floor plan, company registration, number of machinery, power usages, so on and so forth. 

BIS Certification 

BIS certification is a mandate for PVC cable manufacturing units since their products affect human life in one way or other. BIS has laid down certain mandatory standards for such entities related to the production and quality of the cables. The grant of BIS certification is done based on conformity assessment and certain testing which shall be conducted after the submission of the prescribed application. Further, the on-site verification could be conducted by the BIS’s official, which is a chargeable service. 

PVC Cables Manufacturing Equipment and Testing Apparatus 

  • PVC extruder & Wire coating equipment 50mm complete with cooling via supply stand fitted with unit control panel with automatic temp. Indicator & electrical motors. 
  • Wire Straightening machine
  • Printing Machine for the cable
  • Weight Measuring machine 
  • Coiling Machine
  • Extrusion Dies, Nozzles. 
  • Spark Tester
  • Travelling Microscope 0.100 mm (magnification 10X, least count 0.001)
  • Chemical Balance 0.200 gram (Least measure 0.1 mg)
  • Vernier Micrometer
  • Kalvin’s Double Bridge
  • Electrically heater thermostatically controlled Air-cooled Oven
  • Tensile testing machine
  • Pressure test apparatus for the purpose of Hot deformation
  • High Voltage test set AC (0 to 10 KV)

Raw Material Requirement For PVC Cables Manufacturing

The required raw materials include PVC Compound (Cable Grade), E.C. Grade Aluminium Wire, and packaging consumables. The raw materials can be secured either from a wholesale market or from the OEM of the said items.

PVC Cables Manufacturing Process

  • Copper conductor (wire) of the specific size is fed into the extruder machine wherein PVC is coated around the wire to the prescribed thickness. Next, the PVC coated is passed through the cooling vessel and then sent to the take-off system. Further, the wire is sent to the coiling machine where it is coiled into the prescribed length & tested as per IS specification.
  • PVC cable or wires are available as a Thermoplastic dielectric. PVC wires utilize a PVC compound that offers required resistance against the short circuit currents & overload with both coarse & fire protection systems. 
  • Laying up: Cores are examined for the physical and electric characteristics during the production process. For cables, cores are created via an advanced laying machine, equipped with a sector correction machine. 
  • Laid-up cables are outfitted with high-quality PVC insulation which is softer as compared to outer sheath & and is compatible with 
  • Laid-up cables are provided with insulation of high-quality PVC polymer which is softer than outer sheath and is compatible with the temperature rating of the cables. 
  • Cables are covered with polymer/PVC outer sheaths with several traits of sheathing compounds. 
  • The testing of cables is the final step. Following are tests are conducted on the prepared cables. 
PVC Cables Manufacturing Process

PVC Cables Manufacturing: Quality Control & Standards

The Bureau of Indian Standard, aka BIS, has underpinned certain specifications:

1. IS: 694 – 1977 PVC insulated wires for operating voltage up to & including 100 volts (second revision)

2. IS 5831 – 1970 PVC insulation & sheath of Electric wires.

3. IS 8130 – 1976 Conductors for insulated Electric wires & flexible coils.

Conclusion 

PVC cables manufacturing business is one of those ventures that seek moderate investments and adheres to good growth potential. According to the prevailing conditions, the market for PVC coated wires is less likely to encounter any severe dip in near future. Therefore, anybody planning to jump into this venture need not think twice. 

Read our article:Benefits of Startup India Registration in India

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