PT Voksel Electric Tbk (VOKS), a leading cable manufacturer, is gearing up to leverage a slight increase in cable prices this year to enhance its performance. Masrana, the company's Corporate Secretary, revealed that cable prices have experienced a modest uptick compared to the previous year, ranging from 5% to 10%, depending on the cable type.
Masrana emphasized that Voksel Electric's strategy for the year remains focused on efficiency, productivity, and quality enhancement. The company aims to capitalize on the price increase while ensuring competitiveness in the market.
One of Voksel Electric's key strategies involves optimizing its business value chain, particularly by leveraging the expertise of its controlling shareholder, Hengtong Optic-Electric International Co. Ltd., a Hong Kong-based company renowned in the cable industry. Hengtong Optic-Electric's acquisition of a significant stake in VOKS in December 2023 signals strategic shifts within the company.
Despite setting slightly conservative business targets for the year, Masrana cited considerations of the political climate. However, Voksel Electric remains optimistic about leveraging ongoing development projects to drive business growth. Projects such as the Main Distribution Material (MDU) and Refinery Development Master Plan (RDMP) projects in Balikpapan are expected to boost demand for electric cables, aligning with Voksel's business expansion plans.
The company's sales in the electric cable sector have already experienced growth, attributed to increased demand from development projects and manufacturing cost efficiency measures implemented in 2023. With a focus on efficiency, quality, and strategic alignment with market trends, Voksel Electric aims to capitalize on the evolving landscape of the cable industry to drive sustainable growth and performance enhancement.