Adani & Birla Shake Up the Wires & Cables Industry – What It Means for the Market!
Adani and Aditya Birla Group are making significant moves into the wires and cables industry, recognizing its massive growth potential. The Indian market, valued at $8.7 billion in 2023, is expected to reach $17 billion by 2032 due to increasing electrification across various sectors. Aditya Birla Group is investing ₹1,800 crore in a manufacturing plant in Gujarat under UltraTech Cement, expanding its construction ecosystem alongside its paints and building materials businesses.
It also launched Birla Pivot, a B2B e-commerce platform streamlining procurement. Meanwhile, Adani Group is entering the sector with Praneetha Ecocables Ltd., a joint venture with Kutch Copper Ltd., which is setting up India’s largest copper refinery, giving Adani a cost and supply advantage. With these giants entering the space, existing players like Polycab, KEI, Finolex, and Havells are facing increased competition, as Adani and Birla bring deep pockets, aggressive pricing, and acquisition strategies.
The organized sector’s share has already grown from 66% in FY18 to 74% in FY24 and is projected to reach 80% by FY27. While listed companies may experience pricing pressure, they can adapt through innovation, premium products, and government incentives like the PLI scheme. Given Adani and Birla’s history in the cement industry, they might expand through acquisitions, leading to a more competitive, efficient, and innovation-driven wires and cables market.
Adani & Birla Shake Up the Wires & Cables Industry – What It Means for the Market!
India’s business giants, Adani Group and Aditya Birla Group, are making significant investments in the wires and cables industry. But what’s driving their interest in this sector? Let’s break it down.
A Booming Market
India’s wires and cables industry is on a rapid growth trajectory. Valued at $8.7 billion in 2023, it is expected to nearly double to $17 billion by 2032. This surge is fueled by the country’s expanding electrification needs—ranging from homes and factories to electric vehicles (EVs), solar farms, and data centers. With wires and cables accounting for 40% of India’s electrical industry, they play a critical role in infrastructure development.
Aditya Birla Group’s Plan: A One-Stop Shop for Builders
The Aditya Birla Group recently announced a ₹1,800 crore investment to establish a wires and cables manufacturing plant in Gujarat under its subsidiary, UltraTech Cement. While it may seem unusual for a cement company to enter the cables business, it aligns with Birla’s strategy to dominate the construction materials market.
Already a key player in cement and paints (Birla Opus), the group aims to provide a comprehensive solution for builders by adding wires and cables to its portfolio. To streamline this ecosystem, it launched Birla Pivot, a B2B e-commerce platform for construction materials, which surpassed ₹1,000 crore in revenue in FY24. By offering everything from cement to cables under one umbrella, the company seeks to reduce costs, increase margins, and simplify procurement. This vertical integration strategy positions it competitively in a fragmented market.
Adani Group’s Copper Advantage
Adani is entering the sector through Praneetha Ecocables Ltd., a joint venture linked to its subsidiary Kutch Copper Ltd., which is developing India’s largest greenfield copper refinery in Gujarat. Since copper is a critical raw material for cables, in-house production gives Adani a cost and supply-chain advantage.
Additionally, Adani’s existing businesses—including cement (Ambuja, ACC), renewable energy, ports, and infrastructure—are major consumers of wires and cables. By manufacturing these internally, Adani can reduce reliance on external suppliers and optimize operations across its companies.
Shaking Up the Industry
The entry of Adani and Birla has disrupted the sector, impacting established players like Polycab India, KEI Industries, and Havells India, whose stock prices have dropped in response. Large corporations bring financial strength, aggressive pricing, and acquisition capabilities, which could accelerate the industry’s formalization.
The organized sector’s market share has grown from 66% in FY18 to over 74% in FY24 and is expected to reach 80% by FY27. This shift could put smaller, unorganized players at risk.
Opportunities for Existing Companies
Despite rising competition, existing players have opportunities to adapt by:
- Innovating with specialized, high-quality cables that India currently imports.
- Leveraging government incentives such as the Production-Linked Incentive (PLI) scheme for telecom and white goods.
- Focusing on premium segments like advanced infrastructure and high-tech applications.
What’s Next? Acquisitions on the Horizon
Both Adani and Birla have a history of expansion through acquisitions, particularly in cement. Adani acquired Ambuja Cement and ACC, while Birla recently bought a stake in The India Cement. Experts predict similar consolidation strategies in the wires and cables industry, allowing them to rapidly scale production and capture market share.
The Big Picture
While short-term disruptions are expected, the long-term outlook remains positive. Increased competition could lead to greater efficiency, better regulation, and enhanced innovation. Consumers may benefit from lower prices and higher-quality products, while Adani and Birla’s investments reflect confidence in India’s infrastructure growth, aligning with national priorities like renewable energy and EV expansion.
In conclusion, the wires and cables industry is on the brink of transformation. Whether through aggressive pricing, vertical integration, or strategic acquisitions, Adani and Birla are set to reshape the market. Existing players must adapt quickly, but the result could be a stronger, more dynamic industry—powering India’s future.