Hello, zerodha daily brif team, I liked the way you described the W&C and Logistics industry,
I have a question,
Regarding the W&C industry ratio of Capx to production, can make an impact on old and new players? and what about the diversified inner markets like specialized wire like robotics etc. many industry players in this sectors hold specialized mkt. Can big players like polycab enter into that market and play volume game ?
Hey, thanks for your comment! We don't have specific numbers on their capex ratio, but incumbents are certainly scaling up big time. If there's a real estate or government spend slowdown, they'll have excess capacity and supply of wires, and the prices will crash.
As for your second question - that's already happening on some level! And top players like Polycab and KEI are getting into this market. They haven't mentioned robotics in their con-call -> however, Chinese wire companies are some of their main competition, and considering the robotics industry is mostly based in China today, their own wire companies might benefit the most out of a robotics boom.
I like how you have written everyday banal things have entire industries. Interesting read.
❤️
Thank you so much!
Nice piece of article. Esp the cables one! Thanks a lot!
Thank you!
Glad you liked it :)
Hello, zerodha daily brif team, I liked the way you described the W&C and Logistics industry,
I have a question,
Regarding the W&C industry ratio of Capx to production, can make an impact on old and new players? and what about the diversified inner markets like specialized wire like robotics etc. many industry players in this sectors hold specialized mkt. Can big players like polycab enter into that market and play volume game ?
Hey, thanks for your comment! We don't have specific numbers on their capex ratio, but incumbents are certainly scaling up big time. If there's a real estate or government spend slowdown, they'll have excess capacity and supply of wires, and the prices will crash.
As for your second question - that's already happening on some level! And top players like Polycab and KEI are getting into this market. They haven't mentioned robotics in their con-call -> however, Chinese wire companies are some of their main competition, and considering the robotics industry is mostly based in China today, their own wire companies might benefit the most out of a robotics boom.