About Jainik Power Cables Limited
Business Overview
Jainik Power Cables began manufacturing aluminum wire rods in 2023, after over a decade of experience in aluminum rod trading. The company is a certified manufacturer and supplier, operating with stringent Environmental, Health, and Safety (EHS) standards and holds relevant ISO certifications.
The manufacturing facility is located in Sonipat, Haryana, and is authorized by the Haryana State Pollution Control Board for handling hazardous substances, including the use of mineral/synthetic oils in hydraulic systems.
A dedicated Quality Assurance Department conducts spectrometer-based purity checks to detect even hidden impurities. Products are supplied across multiple states, with a strong presence in Delhi, Haryana, Rajasthan, Uttar Pradesh, and Uttarakhand. As at March 31, 2025, the Company’s work force comprised 71 full time employees. The Banker to the Company is Kotak Mahindra Bank Limited.
Industry Analysis
Aluminium Industry Analysis: A Strategic Overview
Widespread Applications and Rising Demand
Aluminium, the third most abundant element in the Earth's crust, is recognized for its eco-friendly and versatile properties. It finds extensive use across sectors such as building and construction, power, automotive, packaging, and household appliances. The growing demand for this lightweight metal mirrors India's accelerating infrastructure development.
According to the European Journal of Business and Management, India's aluminium consumption was projected to reach 10 million tonnes by 2020. Globally, aluminium ranks second only to steel in usage, with an annual consumption of approximately 88 million tonnes (including recycled material). India's per capita consumption, however, stands at just 2.5 kg—far below the global average of 11 kg.
India’s Position and Growth Potential
India holds nearly 10% of the world’s bauxite reserves and has emerged as the fifth-largest aluminium producer globally. With a robust reserve of around 3 billion tonnes, the country’s aluminium sector is expanding rapidly. Currently, the electrical (31%) and building & construction (13%) sectors dominate domestic consumption, but emerging demand from solar and industrial applications is expected to drive future growth.
The aluminium extrusion market in India has experienced significant expansion—growing 150% from 300,000 tonnes in 2010 to 800,000 tonnes in 2018. Construction accounts for about 60% of this demand, while industrial and transportation sectors contribute 28% and 12%, respectively.
Extrusion and Architectural Innovation
The aluminium extrusion process involves shaping metal through a die to form uniform cross-sections, a technique increasingly embraced by modern architects. The advent of advanced technologies in aluminium processing has facilitated complex and aesthetically striking architectural designs, fostering innovation across the construction sector.
Sustainability and Market Drivers
Aluminium’s recyclability, coupled with its diverse applications, makes it integral to a sustainable future. The global push toward green technologies, recyclable materials, and energy-efficient solutions is fueling growth in aluminium consumption. The industry encompasses everything from bauxite mining to primary and secondary processing.
China remains the world leader in aluminium production and consumption, accounting for 36.7 million tonnes in 2020—around 56.7% of global output. Global demand surged in 2021, reaching record highs of 67.4 million tonnes (Harbor Intelligence), propelled by post-pandemic economic stimulus, tight scrap supply, and growing investment in green infrastructure and capital goods.
Sector-Wise Demand
Major end-users include the electrical and power sectors, automotive, construction, packaging (such as foils and beverage cans), and consumer durables (like refrigerators and washing machines). Unlike the West, where demand is distributed across multiple sectors, India's aluminium consumption is still concentrated primarily in electrical applications.
Government Initiatives and Future Outlook
India’s aluminium demand is set to rise sharply, driven by economic growth and government initiatives like "Make in India," 100% rural electrification, "Housing for All," Smart Cities, the ₹100 lakh crore National Infrastructure Pipeline, renewable energy targets, and FAME incentives for electric vehicles. Increased FDI inflows also support domestic industry growth.
Aluminium Nitride Market: A Niche Segment with High Potential
Aluminium nitride (AlN), known for its exceptional thermal conductivity, is gaining traction across high-tech applications. Produced via carbothermal reduction of aluminium oxide under nitrogen or ammonia gas, AlN exhibits superior electrical insulation, mechanical strength, and minimal toxicity compared to other nitrides.
Market Drivers and Applications
The rise in demand for thermally conductive materials, especially in EVs and semiconductor packaging, is propelling the aluminium nitride market. Its use in thermocouple insulators, evaporation boats, grinding media, and crystal-growing crucibles adds to its industrial relevance. However, higher production costs compared to alumina or zirconia remain a key challenge.
Segmentation and Growth Outlook
The market is segmented by grade (technical and analytical), production method (carbothermal, direct nitridation, and nitridation), form (powder, granules, sheets), and applications (microelectronics, automotive, aeronautics, emission control, and others). Asia-Pacific leads global consumption, and technical-grade AlN is expected to dominate due to its superior performance.
Key Market Players
Leading companies include TOYO ALUMINIUM K.K., Surmet Corporation, Liaoning Desunmet, FURUKAWA CO., LTD., Ferro Ceramic Grinding, MARUWA Co., Ltd., Tokuyama Corporation, Precision Ceramics USA, Thrutek Applied Materials, and CeramTec.
India’s Global Role in Aluminium Production
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In Q1 2022, global aluminium consumption reached 16.49 million tonnes against a production of 16.19 million tonnes.
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Global aluminium production rose to 69 million metric tonnes in 2022, up from 67.5 million in 2021 (US Geological Survey).
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India contributed 6.14% to global aluminium production in 2022.
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With 4 billion tonnes of high-grade bauxite, India ranks fourth globally in reserves.
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Despite a per capita consumption of just 2.5 kg, India is poised to triple its aluminium usage from 2.6 million tonnes in 2021 to 9.5 million tonnes by 2030.
Economic Momentum Supporting Aluminium Demand
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Aluminium consumption is projected to grow at a CAGR exceeding 10%, driven by electric vehicles, renewable energy, infrastructure upgrades, consumer goods, and strategic sectors like aerospace and defense.
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Before the pandemic, India and China led global growth in aluminium consumption, each maintaining around 10% annual growth.
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In India, aluminium demand doubled from 2.2 million tonnes in FY11 to 4 million tonnes in FY19.
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With strong GDP growth, urbanization, and a push for self-reliance in infrastructure, automotive, aviation, defense, and power, India's aluminium consumption is expected to hit 7.2 million tonnes within five years.
Business Strategies
1. Capacity Expansion
Increase installed capacity to enhance batch process efficiency, optimize power usage, and fully realize economies of scale.
2. Product Line Diversification
Expand manufacturing portfolio to include Aerial Bunch Cables, Power Cables, and Aluminum Conductors.
3. Operational Efficiency
Improve financial performance through cost optimization, streamlined production via Time and Motion studies, and adoption of eco-friendly methods such as solar energy for reduced electricity costs.
4. Customer Base Growth
Strengthen market share by increasing wallet share from existing clients and expanding outreach through established sales networks and product range.
Business Risk Factors and Concerns
1. Limited Manufacturing Experience
Only one year of experience in aluminum goods manufacturing may hinder operational efficiency and affect financial performance despite recent growth in revenue (CAGR of 128.45%) and EBITDA (CAGR of 221%) from FY 2023 to FY 2025.
2. Geographical Concentration Risk
All manufacturing operations are concentrated in Sonipat, Haryana, making the business vulnerable to regional disruptions, local competition, and infrastructure constraints.
3. Inventory and Demand Forecasting
Business performance relies heavily on accurate inventory management and demand prediction. Inaccurate forecasts can result in overstocking, reduced profitability, and cash flow issues.
4. Raw Material Price Volatility
Absence of long-term contracts for key raw materials like aluminum ingots and litho sheets exposes operations to market-driven price fluctuations, supply chain disruptions, and dependency risks.
5. Operational Challenges in Manufacturing
Transitioning from trading to manufacturing introduces complexities in production planning, process control, and quality assurance, posing risks of inefficiencies or customer dissatisfaction if not managed effectively.
Jainik Power Cables faces key business risks due to its recent entry into manufacturing, geographical concentration, inventory and supply chain challenges, and raw material price volatility. These factors may significantly impact operational efficiency, financial performance, and growth sustainability.
