Pan-India dealer survey: Demand weak, but market shares intact
We met/ spoke to around 100 dealers across the country. For almost two thirds of them, sales has either remained flat or fallen in the last three months. Most felt that competition has intensified, with companies looking beyond their geographical strongholds and expanding product offerings. However, very few appear to be succeeding. A case in point is Polycab (largest wires company), which despite its established distribution network, appears to be seeing only a tepid response to its new product launches. Consequently, companies such as Havells, Finolex Cables and Schneider have sustained their pricing premium. We initiate on Finolex Cables with a BUY stance and maintain our BUY recs on Havells and V - Guard.