ACL Cables in India Report 2022

ACL Cables in India
INTERNATIONAL BUSINESS

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ACL Cables in India
Contents
INTRODUCTION.................................................................................................................................2
Overview of the ACL Cables...................................................................................................................2
Drivers compelling the firms to expand at international levels.............................................................2
Product readiness for internationalisation..............................................................................................3
Macro environment and national competitiveness.................................................................................4
12C framework..................................................................................................................................4
Appropriate entry and Internationalisation strategy...............................................................................5
PESTLE ANALYSIS........................................................................................................................5
Porter’s diamond in India..................................................................................................................6
Gantt Chart............................................................................................................................................7
Conclusion.............................................................................................................................................8
References.............................................................................................................................................8

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ACL Cables in India
INTRODUCTION
Internationalisation process for any company is difficult and it further not easier for the
companies that is not operational at the international levels to achieve the desired outcomes
from their process of internationalisation. In this regards the role of the strategies that has
been selected by the companies to enter into any specific market is also essential. Selection of
strategies must be on the basis of all the types of analysis about any country. With the help of
effective strategies related to market entry a company will be able to make their expansion
process smooth. This report will discuss the drivers that compel organisation to expand at the
level levels along with the readiness of the selected product for internationalisation. In this
regard macro-environment analysis along with competitiveness of the nation and its culture
has been described. At last appropriate entry strategy and internationalisation strategy has
been provided.
Overview of the ACL Cables
ACL Cables is one of the biggest manufacturers of Cables in Sri Lanka. This company was
established back in the year 1962 (ACL Cables, 2019). This company believes in innovation
and development of new technologies. The mission of the company is to expand their range
of services and products and become most competitive in the global markets for achieving the
continuous growth. The nature of the company suggests that it is innovative firm that aims to
transform the technologies in the industry and at the same time legal status depicts that it is a
fully functional organisation.
Drivers compelling the firms to expand at international levels
There are different drivers that promote any company to expand at the international levels.
Some of the drivers are:
 Opportunities in the international market: Since China is a small market where this
company has already gained a lot of control hence it might have impact on the growth
potential of the ACL for which they will need bigger markets to expand and achieve
higher growths (Devex, 2019).
 Financial resources: This Company has a financial resource that is high so it will not
face challenges in expanding in the overseas market. They can easily expand in other
markets with the financial base that they have.

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ACL Cables in India
 Local situation: Sri Lanka is going through lots of socio-political changes. Due to this
the local situation for doing business has also got impacted. Higher investment by the
Chinese companies in Sri Lanka has an impact on the operations of the local firms.
 Increasing taxes on exports: It is seen that many of the products of the company faces
a higher taxes in different parts of the world. This increased taxes has impact on the
prices of the products which makes them lesser competitive.
Product readiness for internationalisation
In the internationalisation process of ACL Cable there are many stages that need to be
followed. Internationalisation path that needs to be followed can be understood through
Uppsala Model where Market Knowledge leads to Market Commitment which leads to
Market knowledge which further leads to market commitment and so on. This mean for
entering into any market a company needs to gain more market knowledge and then they
should be more committed towards that particular market.
This company aims to expand in India one of the fastest emerging countries in the world. The
product that they aim to go in other country is ACL Cables. They are selling 250 cables in
approx. 20 categories and they are innovating it further to innovate their products. The
products of this company are of higher quality and they have received international test
certifications which include ISO 9002, ISO 901-2000 & ISO 14001 environmental
management system certificates (ACL Cables, 2019).
These products in the Sri Lankan market have been successful which can be understood by
the success stories of the company. This company has 45% share in the local market and
manufacturers the largest range of Cables in Sri Lanka. This company has grown to be a
Group of firms which has around 70% share in the cable market within Sri Lanka. ACL is the
most wanted after brand cables within Sri Lanka which also supplies 80% of the need of Duty
Free projects owned by overseas investors and approved by Board of Investment surpassing
foreign cable supplies. Every big institutions of Sri Lanka have used ACL Cables (The
Sunday Times, 2008).
This product of the company is also feasible in the international markets. This can be
understood in terms of the fact that the products are of higher quality which will be welcomed
in different parts of the world. Risks analysis and financial analysis shows that the company
is able to achieve higher profits in the Indian market. This can be understood in terms of the

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fact that the purchasing power of the people in India makes the product feasible in the Indian
market. Cash flow of the company is also high which will ensure that company will be able to
make better expansion into Indian market (ft.lk, 2019). The forecast of the Indian market
suggests that India will expand in different industry hence the demands for cables will
increase which will be a great opportunity for ACL Cables.
Macro environment and national competitiveness
12C framework
 Country: India has a good relationship with different countries all across the globe. At
the same time it is the fifth biggest purchasing power in the world. Annual GDP
growth rate of India in the year 2017 has 6.6% growth rate. The GDP of India is
around 2.6 lakh crores USD. India has high population and higher potential of
infrastructure development.
 Concentration: India is a country having more than 1.37 billion people. The
concentration in the Indian market is very high. With high density of 21,000 people
per square kilometer (54,000/square mile) they have a higher chance to develop the
network infrastructure (Worldpopulationreview, 2019). India is the youngest country
in the world in terms of the average age of the people all across the globe.
 Culture/customer behaviour: In is one of the most diverse nations in the world with
large numbers of people from different cultural background lives in this country.
Country has many religions living and Hindu, Sikhs, Buddhist and Jains make up
around 80-82% of the nation’s population. The literacy rate of India is around
74.04%. There is no specific language that can be said as official language of India.
 Choices: India is one of the biggest markets in the world and hence it is attracting
large numbers of companies for doing business. Some of the major cable companies
in India include Polycab Wires Pvt. Ltd., Sterlite technologies Ltd., Finolex Cables
Ltd., Havells India Ltd. etc. are some of the companies that provides large numbers of
options to the people at different price ranges and quality (Wire&CablesIndia, 2019).
The product knowledge of people is also increasing which will is having impact on
the purchasing style of the people.
 Consumption: The consumption of cables within the nation is very much high. With
increasing purchasing power of the people and new infrastructural mechanism in the
country will boost consumption of the products in any particular market. The wire and

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cable industry growth is around 15% and will start growing at the CAGR of around
20% in the coming 5 years (Wire&CablesIndia, 2019).
 Contractual obligations: The regulatory and legal obligations have been tried to make
more transparent and technology is helping the nation in achieving so.
 Commitment: Indian trade system does not provide any kind of restrictions on any
kind of product that is culturally stable. Many kinds of taxes have been relieved for
the companies that are investing in different regions of the nation. The introduction of
GST has further made the process easier.
 Channels: India has developed transportation infrastructure for all three ways i.e. Air,
Water and Land transportation. The distribution channel within the country is
strengthening enough to develop a supply chain that is more advanced and ensure that
quality is maintained even when the product is going through the supply cycle.
 Communication: There is no official language in the country but Hindi and English
are the two major languages within the country.
 Capacity to pay: India has developed a capacity to pay that is much better than Sri
Lanka and many other countries. Increasing per-capita income has boosted the
capacity to pay within the nation.
 Currency: The currency used is India Rupees. The value of the Indian Rupee is also
on the lower side where 1 Indian Rupee equals around 0.014 United States Dollar.
 Caveats: Among the different challenges, the major challenges in the Indian market
includes higher amount of corruption, slower growth of the vital industries especially
the manufacturing and construction industry is showing the slowest growth rate where
the consumption of cables is very high.
Appropriate entry and Internationalisation strategy
PESTLE ANALYSIS
In order to understand the external environment PESTLE analysis can be beneficial.
 Political: India has a complex bureaucratic structure which enhances corruption. This
might have negative impact on the cost of expansion. However new economic
policies by the existing government has a positive impact on the investments.
 Economic: Introduction of GST has simplified the taxation system for the companies
that aim to do business in India. Apart from this India is one of the fastest growing

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economies of the world hence there are large numbers of investors available which
can provide funds to ACL Cables (Nimalathasan, 2010).
 Social: There are large numbers of people who have come out of poverty and these
people are demanding for better lifestyle for which infrastructure development is the
major requirement and hence it is an opportunity for the company to expand its
business.
 Technology: India is becoming technologically advanced nation. At a very fast speed
network development is being done in different parts of the India. This will enhance
the cable requirements within the nation. This requirement will further enhance in the
developing cities and the government projects such as “Smart Cities” (Namalathasan,
2010).
 Legal: In the recent years the legalities related to the investments within the country
has also been reduced. This has reduced the complexities of the businesses to make
easy expansion within India. Legalities involved in making partnerships have also
been made lesser complex.
 Environment: Environmental concerns in the nation are increasing and this increase in
the environmental conditions will have direct impact on the expansion. Companies are
forced to develop products that are environment friendly and the ones that are
sustainable.
Porter’s diamond in India
 Factor conditions: There is a very high burden on the India’s resources due to higher
amount of population within the firm. It has a human resource that is highly skilled
and will provide boost to the Indian economy.
 Demand condition: The customer demands in different industries are enhancing and
this increase in the demand condition is an opportunity for the ACL Cables but they
also need to ensure that they continuously enhance their quality so as to fulfil this
increasing demand in the nation.
 Related and supporting industries: India is having a highly developed service industry
which will support all the other industries. It is also seen that IT industry of India is
very big which provides support to cable industries in the industry. Supporting
industries like power and telecommunication is performing well but infrastructure and
manufacturing growth is slow (Dasharathmahajan and Nandanwar, 2015).

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ACL Cables in India
 Firm strategy, structure and rivalry: Firm’s strategy is to make regular innovations in
their products so as to achieve quality that is unmatchable by their rivals. The firm’s
structure is hierarchical. The rivalry has become cut-throat.
 Government: India has a democratic government that will support new kinds of
investments within the country. Skill development initiatives by government will give
boost to the development of industries.
 Chances: India will become super-power in the coming time hence they will have
more chances to expand its different industries.
The entry mode that can be selected on the basis of this analysis is FDI. This is because the
routes for FDI has been made easier for the firms and at the same time there is huge talent
base within the nation that will help them in making their business successful within the
country.
Gantt Chart
It is critical that any process within the organisation completes on time. Due to this it is
critical that timeline is being designed so that every process gets completed on time. Gantt
Chart for this implementation process is as follows:
Actions The time required to complete the activities (in years)
Years Year 1 Year 2
Months 1-4 5-8 9-12 1-
4
5-8 9
-
1
2
1-4 5
-
8
9-
1
2
1
-
1
2
1-
12
Accessing the need of
internationalisation
Finding appropriate resources
for the process of
internationalisation
Doing appropriate market
research
Adding new investors that

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ACL Cables in India
could fund this
internationalisation process
Designing of the strategies
Implementation of the
strategies
Conclusion
From the above based report it can be concluded that India is one of the best nations to do
business. ACL being one of the biggest cable companies of Sri Lanka has a huge scope in
India. Some of the factors that are Opportunities in the international market, financial
resources, local situation and increasing taxes on exports are forcing ACL Cables to adopt
internationalisation. 12 C analysis and PESTLE analysis suggests that the competitiveness in
India is increasing and with huge demands this company can apply FDI to make expansion
within the country.

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ACL Cables in India
References
ACL Cables, 2019. Cables. [Online] Available at: http://www.acl.lk/cables. [Accessed on 27th
September 2019]
ACL Cables, 2019. Company Overview. [Online] Available at:
http://www.acl.lk/company_overview. [Accessed on 27th September 2019]
Dasharathmahajan, R. and Nandanwar, K., 2015. Wire and cable industry in India: A study
on marketing strateigies of branded wire and cable companies. ZENITH International Journal
of Business Economics & Management Research, 5(7), pp.17-21.
Devex, 2019. ACL Cables PLC. [Online] Available at:
https://www.devex.com/organizations/acl-cables-plc-101851. [Accessed on 27th September
2019]
ft.lk, 2019. ACL Cables, only cable brand to rank amongst Sri Lanka’s top 50 companies for
3rd consecutive year. [Online] Available at: http://www.ft.lk/business/ACL-Cables--only-
cable-brand-to-rank-amongst-Sri-Lanka-s-top-50-companies-for-3rd-consecutive-year/34-
656030. [Accessed on 27th September 2019]
Namalathasan, B., 2010. Capital Structure and its Impact on Profit Ability: A Study of Listed
Manufacturing Companies in SRI Lanka. Ekonomika, Journal for Economic Theory and
Practice and Social Issues, 56(1350-2019-2397), pp.83-92.
Nimalathasan, B., 2010. Working capital management and its impact on profitability: A study
of selected listed manufacturing companies in Sri Lanka. Manager, (12), pp.76-82.
The Sunday Times, 2008. Sri Lanka’s ACL Cables wins Asia Pacific Quality Award.
[Online] Available at: http://www.sundaytimes.lk/080629/FinancialTimes/ft340.html.
[Accessed on 27th September 2019]
Wire&CablesIndia, 2019. 5 Sectors to Give Unprecedented Boost to Wire and Cable
Consumption in India: Cable & Wire Fair 2017. [Online] Available at:
http://www.wirecable.in/2018/04/5-sectors-to-give-unprecedented-boost-to-wire-and-cable-
consumption-in-india-cable-wire-fair-2017-2/. [Accessed on 27th September 2019]

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Wire&CablesIndia, 2019. TOP CABLE COMPANIES IN INDIA. [Online] Available at:
http://www.wirecable.in/2014/10/top-cable-companies-in-india/. [Accessed on 27th
September 2019]
Worldpopulationreview, 2019. India Population 2019. [Online] Available at:
http://worldpopulationreview.com/countries/india-population/. [Accessed on 27th September
2019]