RR Kabel on expansion spree

RR Kabel is already a popular brand among architects and real estate project developers. So, introducing LED lights under Arraystorm brand is a right for match for us.
Shreegopal Kabra, Managing Director & Group President, RR Global

RR Kabel, a part of RR Global, is a globally renowned Indian brand offering a comprehensive range of electrical products and solutions. The company has recently acquired Arraystorm Lighting Pvt Ltd – a Bengaluru-based premium LED company. The company also plans to launch two new ranges of products – fire alarm cable and E-Beam cable. Here, in an interview with Subhajit Roy, Shreegopal Kabra, Managing Director & Group President, RR Global shares more details about the acquisition and product range expansion plans.

Mr. Kabra, congratulations on successful acquisition of Arraystorm Lighting. Could you let us know more about this development?
We have acquired Arraystorm Lighting because we were looking into the space of commercial lighting. Though we are already present in the B2C lighting segment, we thought of expanding our horizon in the B2B segment that also in the commercial lighting space as there is huge business potential. In India, there is a demand of over 50 million square feet new commercial space every year. So we bought entire business of Arraystorm which is one of India’s finest and most renowned commercial LED lighting manufacturers. RR Kabel is already a popular brand among architects and real estate project developers. So, introducing LED lights under Arraystorm brand is a right for match for us. With this new business, we are adding prestigious clients like Google, Amazon and Boston Consulting Group (BCG) in our clientele.

RR Kabel is part of RR Global, a USD 850 million company in the electrical sector with a presence across 85 countries globally. Could you tell us how the acquisition will further consolidate your position in the global market?
During the first one year, we would like to concentrate only on the Indian market, and then we will go global. We acquired Arraystorm that was owned by Kores India in March this year. But for the last 6-7 months, we could not do much due to the pandemic. So, we plan to take this brand to the global markets by the end of next year.

What is the kind of capacity you’re looking at for the Arraystorm’s lighting products?
This is a niche market segment and we are targeting around Rs 100 crore revenue from this business in next three years.

How would you like to position this lighting brand and its products in the market?
We would like to maintain its existing brand i.e. Arraystorm under RR Kabel’s business. The products are purely B2B – not a B2C. The products i.e. lighting solutions for office lighting will be specified by architects and we develop the products to a client’s specific requirement. Initially, Arraystorm LED lighting solutions will be made available through a few of our selected dealers. We’ll expand our network later.

You are a late entrant in the lighting business – isn’t it going to be challenging?
Though we are a late entrant in this particular business segment, we’re not new in the lighting market. Also, we are ready to overcome the challenges.

After diversifying into commercial lighting solutions business, what’s next for you?
We are developing two new ranges of products. In January 2021, we will be introducing our fire alarm cable and by March we will introduce a range of electron beam irradiated cable or popularly known as E-Beam cable. Fire alarm cable can be a big market for India as faulty or low-quality cables plays a devastating role in any type of fire. Similarly, as a lot of activities are happening on the railways modernization and safety, we expect huge demand for E-Beam cable. We are also developing HT cables which are expected to be launched soon.

Are these new ranges of cables going to be of international standards?
I feel proud to inform you that RR Kabel is the only company in India which got 100 percent REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) compliance cable. We adhere to highest degree of safety not only in terms of product delivery but also in terms of manufacturing.

What will be the total investment for new product development and factory expansion?
We invest on an average Rs 100 crore every year for R&D and product development. This time, we will make a similar investment for the product development and buying machines for the same. We will set up the production line at our manufacturing facility at Waghodia near Vadodara in Gujarat.