Getting wired for new competition

Entry of Adani and Birla groups is likely to intensify competition, consolidation in cables & wires sector

- ARSHAD KHAN

THE entry of two of India's largest business houses -- the Aditya Birla Group and the Adani Group -- into the cables and wires (C&W) market underscores the growth potential of this sector. The Indian C&W industry, valued at $9 billion in 2024, has been growing at a compound annual growth rate (CAGR) of 12-13% over the past five years and is expected to maintain this momentum. Industry experts project that the market could double in size by FY29, driven by strong demand from key sectors such as infra, housing, power, railways, renewables and data centres.

Aditya Birla Group's UltraTech earlier this year announced plans to enter the C&W market with a capital expenditure of Rs 1,800 crore over the next two years while Adani Enterprises' subsidiary, Kutch Copper Limited (KCL), which has completed the incorporation of a joint venture company - Praneetha Ecocables Limited (PEL) - will focus on the manufacturing, marketing, and distribution of metal products, cables, and wires.

Manish Valecha, deputy head of research, Anand Rathi Institutional Equities, said that the growth outlook remains strong and the C&W industry is projected to grow at a 12-14% CAGR going ahead. Rising exports and increased capacity will further drive growth, meeting the robust domestic and global demand, added Valecha.