The cable industry is currently facing considerable challenges, with several key players experiencing significant stock declines. Companies like KEI Industries, Polycab India, and Finolex Cables have seen their shares plummet by nearly 16% amid concerns over market disruptions. This uncertainty has intensified following the announcement of new entrants like the Aditya Birla Group and the Adani Group, both of which are venturing into the wires and cables sector.

Adani Group’s Bold Move into the Cable Market

In a recent disclosure, Adani Enterprises revealed that its subsidiary, Kutch Copper, has established a joint venture named Praneetah Ecocables. This new entity, in which Kutch Copper holds a 50% stake, is set to engage in the manufacturing, marketing, and distribution of cables, wires, and other metal products.

• Key Details:
  • Joint venture named Praneetah Ecocables
  • Kutch Copper holds 50% equity
  • Focus on manufacturing and distribution of cables and wires

As a result of this announcement, stock prices for several companies in the cable and wire sector took a hit. Finolex Cables saw a 5% drop, reaching a low of ₹874.65 on the National Stock Exchange, while Polycab India shares fell by 8.3%, trading at ₹4,985.75.

Market Reaction and Stock Performance

Interestingly, shares of Adani Enterprises have shown resilience, rising by 1.2% to an intra-day high of ₹2,348 during Thursday’s trading session. According to the exchange filing, the incorporation of Praneetah Ecocables was finalized on March 19, 2025, confirming the joint venture’s establishment.

Competitive Landscape Shifts

This development comes hot on the heels of an announcement from UltraTech Cement, which unveiled ambitious plans for the wires and cables market. The company has earmarked ₹1,800 crore for expansion over the next two years, with plans to build a manufacturing facility near Bharuch, Gujarat. This facility is expected to be operational by December 2026.

Conclusion

The entry of major industrial players into the wires and cables sector signals a significant shift in the competitive landscape. As the market grapples with these changes, stakeholders will be keenly observing how established companies respond to the increasing competition. The next few months will be crucial in determining which firms can navigate this challenging environment successfully.

For those interested in the evolving dynamics of the cable industry, it’s essential to stay informed about developments that could affect stock performance and market stability.