Cable production industry can be called as conversion industry. The industry is largely affected by raw material costs variations- particularly inventory levels of non-ferrous metals like copper and aluminium, forex fluctuations needs careful monitoring of financial resources. Material costs cover as much as 60% of cables on average. So a better technology and energy efficient process means a better bottom line.
Another challenge is its buyers are large number of consolidated buyers – wholesalers, energy and telecom operators. They tend to have a larger power in bargain leaving little with cable manufacturers
The industry also face challenge of keeping up with technology improvements whether in manufacturing process or in quality standards which keeps evolving