India’s wires and cables industry is changing fast. Two of the country’s biggest business groups, Adani and Aditya Birla, have stepped into the market, which was mostly run by smaller companies. Their entry has already shaken things up, causing stock prices of big players like Polycab, KEI Industries, and RR Kabel to fall.
This raises an important question—will Adani and Birla take over this market, or will existing companies fight back?
Why Are Adani and Birla Entering the Wires and Cables Market?
India’s wires and cables industry is growing quickly. It is expected to almost double from $8.7 billion in 2023 to $17 billion by 2032. The demand is rising because of more electrification, new infrastructure projects, renewable energy growth, and urbanisation. Industries like real estate, telecom, power transmission, and transport need good-quality cables, and local manufacturers are working to meet this demand.
Seeing this opportunity, Adani and Birla have entered with big plans. Aditya Birla Group, through UltraTech Cement, has announced an investment of ₹1,800 crore. This includes setting up a new plant in Gujarat. This move fits into Birla’s goal of becoming a one-stop solution for construction materials. After expanding into paints, white cement, and wall putty, wires and cables are the next step. Birla also owns Hindalco, a company that produces copper and aluminum, which will help in making wires and cables.
Adani Group has launched Praneetha Ecocables Ltd., a joint venture under Kutch Copper Ltd. (KCL). Adani is using its usual strategy—entering a market and using its existing coal, power, logistics, and infrastructure businesses to gain an edge. Its Kutch Copper refinery, which will be India’s largest copper refinery, will give it better control over raw materials and costs. This move is also linked to Adani’s renewable energy plans, since high-quality cables are important for solar and wind power projects.
How Is the Market Reacting?
The entry of Adani and Birla has made existing companies and investors nervous. When Adani announced its new business, stock prices of major players dropped. KEI Industries’ shares fell by 14.3%, while Polycab and Havells India lost up to 8.5%. Investors fear that competition will increase, which may reduce profits for existing companies.
The market was already moving towards bigger, organised companies, with their share growing from 68% in FY19 to 74% in FY24, and it is expected to reach 80% by FY27. With Adani and Birla stepping in, smaller businesses may struggle to survive, leading to market consolidation. Existing companies must now improve their products and expand into new areas to stay ahead.
Existing Cables & Wires Market Leaders in India
Will Adani and Birla Dominate the Market?
Even though Adani and Birla have money and strong business connections, they will face tough competition from companies that have been in this industry for decades. Companies like Polycab, KEI Industries, Finolex Cables, and Havells already have strong brand trust, a wide dealer network, and high-quality products. These companies also invest in research and development, which helps them create specialised cables such as fiber-optic and fire-resistant wires.
To stay strong, these existing companies may increase exports, as India is growing as a global supplier of wires and cables. Government policies, such as the Production-Linked Incentive (PLI) schemes, could also help them grow further.
Challenges for Adani and Birla
Despite their strong entry, Adani and Birla will face challenges in this business.
One major challenge is copper price fluctuations. Copper is an important material for making cables. Even though Adani’s Kutch Copper refinery gives it an advantage, global price changes can still impact profits.
Another challenge is the huge investment needed to build factories, create supply chains, and establish dealer networks. Unlike cement or power, the wires and cables business depends on strong customer relationships. Companies like Polycab and KEI Industries have built trust over many years with electricians, contractors, and industrial buyers. Adani and Birla cannot easily break into this market overnight.
Also, the wires and cables industry is very competitive. No company holds more than 20% of the cable market or 15% of the wires market. While Adani and Birla may disrupt the market, it will take a long time for them to dominate it.
What Lies Ahead for the Industry?
The wires and cables industry in India is going through a major transformation. There will be more competition, innovation, and market consolidation in the coming years. While Adani and Birla will expand quickly, existing companies will fight back by focusing on high-end products, customer service, and better dealer networks.
As the demand for quality cables increases, India’s exports could also grow, making the country an important player in the global market. Government support, along with more infrastructure projects, means this sector will keep growing.
However, in the short term, we may see price wars and lower profits. The real challenge for Adani and Birla will be whether they can expand quickly, keep prices competitive, and build trust with customers.
Final Thoughts
The competition between Adani and Birla in the wires and cables industry is just starting. Both companies are using their business strengths, and the industry is about to see big changes. But will they become market leaders or just disrupt the space? That remains to be seen.
One thing is clear—existing players will not give up easily. As Adani and Birla push forward, this competition will be exciting to watch!
FAQs
They see huge growth potential due to electrification, infrastructure expansion, and rising demand for high-quality cables in India.
They have announced a ₹1,800 crore investment through UltraTech Cement, with a new plant in Gujarat.
Adani has launched Praneetha Ecocables Ltd. through Kutch Copper Ltd., aiming to leverage synergies with its cement, copper, and power businesses.
Stocks of KEI Industries, Polycab, and RR Kabel dropped as investors feared increased competition and margin pressure.
They could trigger price wars, increased consolidation, and higher competition, forcing existing players to focus on premium products and exports.
