Transformation Realized: How a cables company took a leap to reach the next level

Through the Digital salesman initiative, the cables company undertook secondary sales transformation and enhanced sales force effectiveness. Strengthening the channel partner network and adding new partners to ensure network sustainability was a key step in the transformation. A new sales excellence vertical, along with various programs for talent and capability enhancement, improved its effectiveness. To enhance the supply side, the company focused on optimizing its network and planning processes.

Creating long-term value

EY worked with RR Kabel and TPG to execute the transformation by analyzing the end-to-end route-to-market capability. The company’s key strengths were its extreme focus on product quality and high levels of employee and channel loyalty. Therefore, the focus areas of the transformation process were preserving the company’s key strengths and giving it an institutional framework that can withstand inter-generational transitions as well as economic cycles. Various departments within the company were at different levels of maturity. While cables and wires functioned like a well-oiled machine, the consumer business was quite young. Therefore, one of the target areas was to use the strength of a robust incumbent management team to support new hires who had been brought on board to address critical gaps. 

The execution was supported by change management across all managerial and employee levels. Pilot implementations were done to perfect the go-to-market approach. RR Kabel also hired new senior leaders, upgraded its Enterprise resource planning (ERP) system, and revamped the sales function. New market strategies were devised during the pandemic, with the support of EY. Every district in the country was mapped out and there was continuous tracking of the situation on the ground. As a result, as markets opened, the company was able to bounce back. 

Another key aspect of the transformation was to take the sales organization closer to their consumers. The organization moved away from celebrating sales when the first customer (i.e., primary channel partner) was billed, to tracking and celebrating when an electrician bought wire and used it at a consumer’s house. The theme for transformation has been “loyalty to legacy”, which started by first generating loyalty at the electrician level and then ensuring the loyalty stays with RR Kabel, thereby creating the legacy.

The intense efforts are showing results. RR Kabel has opened new outlets in towns to have stronger last-mile control over distribution. Last year, the company reported an EBITDA growth of 40% YoY. It also reported high double-digit volume sales growth, neutralizing the COVID-19 impact and far outstripping industry growth, with pilot markets growing 3.5x of control markets. More importantly, the employees, management and promoters are in sync with their vision for the company’s future. 

The fledgling consumer durables business has also doubled in size, completed an acquisition, and integrated the organizations, thereby creating a high growth portfolio for the future. The transformation roadmap has been further customized to drive this business and has helped deliver industry leading performance across segments.