Paving a strong presence across 152 countries globally, the German brand – Lapp India has been a trailblazer in designing, manufacturing and supplying data cables for fieldbus to ethernet technology, cables for special applications like robotics, servo cables, industrial connectors, glands, conduits and accessories. In this exclusive interview with TimesTech Buzz, Gary Bateman, Managing Director, Lapp India elaborates on various aspects driving the further growth in the cables, wires and connectors technology, key trends shaping this sector and their leadership in exploring and asserting their dominance in this segment.
TimesTech: Reliable connectivity, high performance, and efficiency are the major factors driving the digitalization transition across sectors. Lapp India’s focus and offerings driving the ahead growth.
Gary: We design, manufacture and supply data cables for fieldbus to ethernet technology, cables for special applications like robotics, servo cables, industrial connectors, glands, conduits and accessories, etc. in more than 152 countries globally. We are a single-source provider for industrial communication solutions, which is an industry that has been expanding widely in terms of applications. Our plug and play solution called ÖLFLEX CONNECT marks our transition from a component supplier to a developer of complex systems. With this, our clients don’t need to invest in their own assembly systems, can reduce storage and operating costs as well as save valuable time that would have otherwise been wasted in coordinating with multiple suppliers.
While we have a direct brand presence in Japan, Korea, Australia, China and India, customer access to our products is not just limited to the countries where those products are available. We have a significant presence across Asian markets and a strategic partnership for marketing TOSIBOX® in the Asia Pacific region. With this partnership, we help customers build and manage secure OT networks within minutes while providing tested and audited security as well as a globally patented point-to-point connection. To address the demands of different markets, we also export/import products manufactured by us in different countries as per customer requirements. We target our efforts into developing long-term and mutually beneficial cooperative relationships with our suppliers, customers and strategic partners to ensure extended presence in countries and engagement with more customers. Another prime focus for us is digitalisation, making way for delightful purchase experiences for our customers at every touchpoint. Digitalisation would help enhance our manufacturing facilities and automation of processes to provide better and faster services. It would also bring us closer to our customers by ensuring we are available 24 x 7 through our online portal and integrating customers and our ordering process at the back end. Through digitalisation, machines can take over routine jobs while humans can continue being creative and focus on solving the unique challenges of individual customers.
TimesTech: Key trends towards intensified networking and miniaturization?
Gary: With the advent of Industry 4.0 and the subsequent boost in digitalisation, industry automation has taken over sectors. The rate of digitalisation across sectors has increased, demanding seamless network connectivity for smooth operations. It is important to note that cables form the backbone of the industrial automation sector. Automation technology is changing the manufacturing industry as we know it, and two trends that have emerged from this transformation is intensified networking and miniaturization. There is a demand for hybrid and custom cable solutions that are compact, light, use minimal space and offer high-speed data transfer. Development and production processes, irrespective of the industries have become increasingly flexible, efficient and customer-centric. Additionally, due to industry requirements such as connectivity and individualization (need for customized machines as per specific requirements), there is a demand for connection technology that is more robust, standardised and considerably smaller.
TimesTech: What are the factors that are driving the growth of the cable and wire Industry?
Gary: The global wires and cables market size was valued at around USD 183.14 billion in 2020, and is estimated to grow at a compounded annual growth rate (CAGR) of 4.4 per cent from 2021 to 2028. In India, the wire and cable market comprises nearly 40 per cent of the electrical industry and is steadily growing at a CAGR of 15 per cent, boosted by urbanization and industrialization. Infrastructure has scope for massive growth in India, with the government’s sharp focus on smart cities and the rise of commercial and residential buildings. With the pandemic accelerating the digital boom across industries leading to scalable, faster, reliable, and interoperable communication protocols, there has been a boost in the demand for cables and wires.5G and the resultant advancements in communication are the major growth drivers for this industry. Even with the widespread use of 5G, cables will continue to function as an essential pillar of the infrastructure as data will continue to flow through conventional channels in combination with fibre-optic cables. New possibilities in industrial communication have opened up, all of which requires a higher data exchange and an increased number of high-capacity servers and storage devices. This demands for data center expansion which would, in turn, increase the demand for power and optical fiber cables. The emergence of Industry 4.0 has led to an increase in the number of interconnected devices to the network. Network traffic and data transfer are integral to both horizontal (between machines) and vertical directions (machine to MES and ERP). These industry developments promise great potential for wires, cables, and connection technology. Simultaneously, advancements in robotics and automation calls for agile, minimal cables that must be compact and lightweight, with high data transfer capacity. Lastly, with digitalization, most monitoring systems and control processes have become cloud-based. Wire and cable technology must adapt to these new systems that require scalability, adaptability, extensibility, and manageability while providing real-time performance with minimal scope for error.
TimesTech: What are the regional growth trends and the leading revenue-generating regions for the Network Cables Market?
Gary: 5G and wireless technology are expected to provide strong boosts to the network cables market in the years to come. Advancing electrification and networking in factories will demand even more cables to guarantee the high transmission rates required by the industry. Additionally, the data reliability and latency levels demanded by industrial production processes cannot be achieved through wireless solutions without disproportionately high costs. Several wireless connections can easily interfere with and eliminate one another. They are also interrupted by moving objects. On the other hand, cables are less susceptible to malicious disturbances and hacker attacks.
Providers of customised ready-to-use assemblies and end-to-end integrated solutions will be the go-to choice for customers. With the increasing number of players in the market, providers will need to create a differentiation in terms of quality, reliability and services provided. Customers will demand greater value from wire & cable providers to meet their changing needs with customised solutions.
Sectors such as textile, F&B, automation, robotics, machine tools, and oil & gas are the key revenue-generating segments where we provide network cables.
TimesTech: What makes Lapp India stand affront when compared to its competitors?
Gary: LAPP India is backed by a history of 60 years of manufacturing excellence along with a diverse product portfolio that symbolises reliability and durability. But the most significant differentiator for our company is how we are innovation-centric and constantly work towards bringing in new products based on cutting edge technology that is tailored to customers’ specific needs.
In terms of advantages over competitors, unlike many other multinational companies, we are driven by our local manufacturing facilities that specifically address Indian customer requirements and demands. We are not just a wire & cable manufacturer like many other players in the market, but a one-stop solution provider for all our customers’ needs. To provide a smooth and holistic customer experience, we provide them with access to both locally manufactured products that address their specific needs as well as a global product portfolio that can be accessed from any country that the customer is based of.
TimesTech: Key strategies you’re having for India?
Gary: This is the second-largest market of LAPP, and we have already established a strong presence in textiles, machine tools, automotive, railway, infrastructure and mining sectors in India. We are looking to add more segments to our customer base while ÖLFLEX® CONNECT will remain a major business priority as LAPP continues its journey as a one-stop solutions provider for all cable systems requirements. We are heavily investing in the Indian market, especially through R&D to understand industry challenges and work towards a wider segment presence. We will target our efforts towards addressing customer demands through products that are made in India- to provide locally made products of global quality standards. We have always believed that it is important to be closer to our customers to understand their requirements and offer a quick turnaround of solutions to support their business. Hence, we will focus on developing our state-of-the-art manufacturing capabilities with the newest cutting-edge technologies and triple the number of service points in India in the next few years. We will also be available online 24×7 through our wide and well-established channel partner network as well as directly from LAPP. We estimate our custom cable assembly solutions business to contribute 10% of the overall turnover of LAPP India within 5 years.
TimesTech: Impact of Automation in the manufacturing process, Industry 4.0 and Smart Factory and how is the company complementing its solutions to spur these changing dynamics and challenges and scopes it brings on the table.
Gary: With Industry 4.0 and the arrival of smart factories, data has become an integral element of business processes. It is the fuel that drives business-to-business (B2B) applications of factory automation and manufacturing engines. In such a setting, millions of devices and components in machines and production lines interact with each other through advanced deep learning and Artificial Intelligence (AI), enabling complex tasks to be remotely controlled and fully automated. This highlights the emphasis on data transmission, acquisition, accuracy and analysis as critical building blocks of the new industrial infrastructure. There is a requirement for reliable hard-wired or wireless connections for which Ethernet has been rapidly adopted over the years. However, the current rugged industrial space presents a challenging landscape that is significantly different from the commercial space that Ethernet technology has thrived in so far. Our latest tough IoT solutions portfolio has been tailored to withstand harsh industrial environments, perfectly connecting the critical Industry 4.0 elements including machine/device, sensor and the network. They are developed on the 3R principles – Reliability, Robustness and Ruggedness and are developed to meet the demands of flexibility and agility demanded by Industry 4.0.
TimesTech: Your latest offerings tailored for India and key sectors it shall complement?
Gary: LAPP India is known to be the pioneer in power and control cable manufacturing in India. Our brand ÖLFLEX® is synonymous with power and control cables. We also continue to be a market leader in cable and connection solutions for end-to-end industrial products across a range of industries such as F&B, oil and gas, automation, textiles, machine tools. We also manufacture data communication cables, cables for special applications like robotics, servo cables, industrial connectors, glands, conduits and accessories, etc. We are a single-source provider for industrial communication solutions, which is an industry witnessing impressive growth.
Our brand is strongly built on the core value of innovation- our primary focus is to offer innovative products and solutions that will bring greater value for all our customers. Currently, we offer end to end solutions for seamless network connectivity and aim to focus on plug and play solutions under our brand ÖLFLEX® CONNECT. For the next few years, we foresee significant developments in the automation and renewable energy sector, opening up opportunities for the wire & cable sector in India. Automation of systems has become an essential part of digitalisation, providing opportunities for the cables and connectors used in machinery. There is also a growing requirement for modular cable technology with the rise of smart manufacturing and industry 4.0. EV is another sector that is at a nascent stage in India but is poised for exponential growth in the coming years where cables and connectivity will play a critical role in development. We see tremendous potential for sectors such as food and beverage, infrastructure, oil and gas, and industrial communication to be major commercial drivers for the wire and cable industry in India.
