Cable and wire harnessing industry
Cable and wire harnessing industry in India is expected to grow up from US$ 540 million in 2022 to US$ 1434 million in the year 2029. This growth is about three times the market size today, which offers a significant opportunity to DCS Systems. DCX is involved in manufacturing a comprehensive array of cables and wire harnesses assemblies for a variety of uses including Communication systems, Sensors, Surveillance systems, Missile systems, Military Armoured Vehicles, Air Defence Systems, Reconnaissance and Observation systems, Multifunction Displays, and other Electronic Warfare Systems. The company earns over 96% of the total revenue from this segment in FY 2021.
In addition, the government of India is pushing for the indigenization of defense production. Cable Harness and Wiring are basic requirements across land, naval, and air platforms. This initiative by the Government of India will further boost company performance in the future.
Aerospace and Defense
The Indian aerospace and defense sector will reach a market size of US$ 70 billion by 2030. The government of India has increased foreign direct investment in the Indian defense sector from the current 49% to 74% under the automatic route. About 108 systems and sub-systems will be developed indigenously. This will further generate demand for cables and connectors across the Indian defense environment. To push the make-in-India concept, the Government of India has increased its defense budget outlay for the financial year 2022-2023 is INR 5.25 trillion from INR 4.78 trillion in 2021-2022. This represents a 10% increase over the last budget.
At the international level, Russia’s invasion of Ukraine raised the defense budget across the countries. DCX systems is an established name in the international market. The company has made long-term investments in the Israeli market which processes high-end advanced and modern technology in the last several years. Further, the company has forged a deeply penetrating OEM customer relationship. This will further boost the performance of the company.
Cable and Wire Harnessing Industry Competition
DCX Systems India Limited operates in five segments including system integration, cable and wire harness assembly, MRO, EMS, and Electro-mechanical assembly. No other companies are operating in all these segments. However, ‘cable and wire harness assembly’ is an important area in the defense industry. The key competitors in this segment are CYIENT DLM PVT Ltd., SASMOS HET TECHNOLOGIES, and ALMPHENOL. INTERCONNECT INDIA PVT Ltd.