Adani, Birla
After the Aditya Group, led by billionaire industrialist Gautam Adani and the Aditya Birla Group of Kumar Mangalam Birla, are now ready to face face-to-face in the wire and cable business. Both groups have announced to enter the field with a double -digit increase. In less than a month, both groups have announced to enter the wire and cable region. Due to the competition of these two groups, small companies in the cement sector have already been left behind. At the same time, unorganized and small companies dominate the wire and cable industry.
Competition estimates to intensify
The two large groups step into this area are estimated to intensify competition in the wire and cable industry. The sector has registered a 13 percent increase in revenue on an annual basis between financial year 2018-19 to 2023-24. The region is now moving towards an organized brand market. A day after Adani Group announced the landing in the region on 19 March, the shares of wire and cable companies listed have declined. The shares of the leading companies Polycab India and KEI Industries in the region came to a 52 -week low on March 20. Similarly, the share of Havels also broke five percent. The next day Finolex cables also fell by four percent. Describing the wire and cable as ‘the ideal zone for new entry with deeper pockets’, JM Financials said that this is an industry where no lone company holds a lonely company in wire business and more than 20 percent in cable business.
400 companies already in this sector
The industry consists of about 400 companies, including SMEs to large enterprises, which are between 50 and 400 crores of revenue. According to the global brokerage firm Jefferies, there are ‘attractive opportunities’ in India, a wire of about Rs 80,000 crore and cable industry (Rs 56,000 crore cable and Rs 24,000 crore wire). Jefferies’ analysts said, “There is enough space for new players in the wire and cable industry, as it is growing in a double digit and 30 percent of the industry is still with the unorganized sector.” The size of this industry will reach Rs 1,30,000 crore in the year 2028-29.
Cable demand remains strong
Motilal Oswal Financial Services said that the demand for wires and cable has become stronger and a long -term growth approach is also stable. Adani Enterprises formed a joint venture called Praneeta EcoCels in partnership with Pranita Ventures earlier this month through his subsidiary’s subsidiary Kutch Copper Limited (KCL), which will manufacture and sell metal products, cables and wires. The step has been raised about a month after Aditya Birla Group’s leading company Ultratech Cement on February 25, with an investment of Rs 1,800 crore in the next two years and the announcement of expanding its access to the construction price chain through a cable segment.
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