India’s cables and wires industry just got a major jolt — and investors felt it immediately.
Shares of top players like Polycab, Havells, and KEI Industries saw a sharp fall of up to 13% on March 20, just a day after Adani Group announced its big entry into the sector. The market clearly didn’t take the news lightly, and this could be the beginning of a new era of competition in the electrical cables space.
What’s Behind the Market Reaction?
On March 19 (post-market hours), Adani Enterprises, the flagship company of the Adani Group, revealed that its subsidiary Kutch Copper has set up a new joint venture called Praneetha Ecocables Limited, in partnership with Praneetha Ventures.
Both companies will have an equal 50% stake in this new venture, which will focus on manufacturing and selling cables, wires, and other metal products.
This news hit existing cable manufacturers hard. Investors started selling off their shares in companies like Polycab, KEI, and Havells, worried that Adani’s entry might eat into their market share in the near future.
Stock Market Impact:
- KEI Industries: Dropped around 13%
- Polycab India: Fell over 11%
- Havells India: Down by approximately 9%
Interestingly, Adani Enterprises’ stock was trading in green, up at around ₹2,326 per share in early trade on March 20 — reflecting investor confidence in Adani Group’s expansion strategy.
Another Big Player Steps In: UltraTech Cement
Just days before this, another major Indian conglomerate Aditya Birla Group also made headlines. Its flagship company UltraTech Cement announced a plan to enter the wires and cables industry as well.
UltraTech is setting up a manufacturing facility in Bharuch, Gujarat, with an investment of ₹1,800 crore over the next two years. This back-to-back entry by two corporate powerhouses has added more pressure on current market leaders.
Why Is Everyone Targeting the Cables & Wires Segment?
Because it’s growing — fast.
India is undergoing massive infrastructure development, urban expansion, rural electrification, and digital transformation. All of this is driving demand for high-quality electrical cables and wires.
Experts suggest the sector could grow at 15–17% CAGR over the next few years, making it a highly profitable space for new players.
What’s Next for Existing Companies and Investors?
For industry leaders like Polycab, KEI, and Havells, it’s a clear signal to innovate and adapt. While they have strong brand value and established networks, the arrival of well-funded competitors could lead to:
- More competitive pricing
- Increased marketing spends
- Pressure on profit margins
- Need for faster innovation and product expansion
Investors may need to monitor performance and strategy updates from these companies closely over the coming quarters.
The cables and wires market in India is heating up. With both Adani Group and Aditya Birla Group making aggressive moves, the dynamics of this sector are bound to shift quickly.
For consumers, this could mean better choices and pricing.
For businesses, it’s a call to stay competitive and agile.
And for investors, it’s a time to stay watchful and informed
