Proxy to Steel sector without being cyclical

Investing Strategies
1

Hello,

I’m actually engaged in the business of Cable manufacturing where we supply cables for capex needs of companies in the Chemical, Oil & Gas & Metal sector.

Tata Steel and JSW are my clients. And we’ve figured from talking to people at the ground level that Tata Steel plans to 3x their production capacity and JSW plans to 4x theirs.

I would love to get your opinion on how you would play this massive capex cycle and the increase in capacity. Without being affected by the cyclical nature of the steel business?

Thanks

2

Which cable manufacturers cater to Chemical, Oil & Gas & Metal sector?
The ones I am aware of like Vindhya caters to optical cable category for Internet and related fields.

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4

So power, control and instrumentation cables can be used across all sector. E.g. in the listed space we’re competing with Cords Cables.

Optic cables also cater to all industries!

5

That’s the guidance they’ve given the world but the figures to to the contractors and project pipeline seems more aggressive than these figures.

6

As heard in Apl Appollo concall…these increase in capacity will not matter to Apl appollo…By the time these capacities come onboard, market would have increased accorsingly

7

You can check the refractories space - Refractories Companies - Screener

They will benefit from capex plans in steel and cement

1 Like
8

You can also look into iron ore mining companies like GPIL. The are increasing both their mining as well as pellet capacity in the next 2/3yrs.

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Thanks Vaibhav! That’s the kind of solution I was looking for! I’ll study this space

10

GPIL is looking super! Thanks for the suggestion.