PT Voksel Electric Tbk (VOKS), a prominent cable manufacturer, is poised to leverage a slight increase in cable prices this year to enhance its performance. The company's Corporate Secretary, Masrana, revealed that cable prices have witnessed 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 centered 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 leveraging the expertise of its controlling shareholder, Hengtong Optic-Electric International Co. Ltd., a Hong Kong-based company renowned in the cable industry. In December 2023, Hengtong Optic-Electric acquired a significant stake in VOKS, signaling 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. Particularly, developments 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 seen 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.