Billionaire industrialists Gautam Adani and Kumar Mangalam Birla, after dominating the cement industry, are now gearing up for a fierce battle in the high-growth wires and cables industry. With both conglomerates announcing their ambitious foray into the segment within a month of each other, the sector is set for a major transformation.
The Indian wires and cables industry has been growing at a 13% CAGR from FY19 to FY24 and is steadily shifting towards an organized market. The entry of two of India’s most powerful business houses is expected to disrupt the space, impacting smaller players and reshaping industry dynamics.
Stock Market Reacts to the Big Players’ Entry
The news of Adani Enterprises entering the sector on March 19 sent shockwaves through the stock market. The share prices of established players like Polycab India and KEI Industries hit 52-week lows the very next day. Shares of Havells India dropped by 5%, while Finolex Cables dipped by 4%.
With 400+ players in the market, ranging from small to large enterprises, analysts predict that deep-pocketed giants like Adani and Aditya Birla will change the game by driving brand consolidation and setting new industry standards.
A Lucrative Opportunity in a Growing Market
According to Jefferies, the Indian cable and wire industry is currently valued at ₹80,000 crore, with ₹56,000 crore from cables and ₹24,000 crore from wires. The industry still has 30% unorganized players, making it ripe for structured expansion. The market is expected to reach a staggering ₹1,30,000 crore by FY29.
JM Financials has termed the wires and cables sector as an “ideal segment for new entrants with deep pockets”, citing the lack of a dominant player with more than 15% market share in wires and 20% in cables.
Adani and Aditya Birla: Strategic Moves Unfold
Adani’s Game Plan
Adani Enterprises, through its subsidiary Kutch Copper Ltd (KCL), has entered into a joint venture with Praneetha Ventures to form Praneetha Ecocables, which will manufacture and sell metal products, cables, and wires. This move aligns with Adani’s strategy of forward integration within its copper business, leveraging the strength of Kutch Copper to fuel growth.
Aditya Birla’s Bold Expansion
On February 25, UltraTech Cement, the flagship firm of Aditya Birla Group, announced an ₹1,800 crore investment in the wires and cables segment. The group is setting up a greenfield manufacturing plant in Bharuch, Gujarat, expected to be operational by December 2026.
This is part of Aditya Birla’s larger vision to expand its presence in the construction value chain, following the launch of Birla Opus Paints. The group also plans to leverage Hindalco’s aluminum and copper production capabilities to integrate its wire and cable business seamlessly.
Also Read : Srilekha Palle: A Visionary Leader in Healthcare and Community Advocacy