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 area. Both these groups are competing hard by beating small companies in the cement sector. At the same time, unorganized and small companies dominate the wire and cable industry.
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. This area 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 20 March. Similarly, the share of Havels also lost five percent. The next day Finolex cables also fell by four percent.
Describing the wire and cable as an ideal area for new admissions with deep pockets, JM Financials said, "This is an industry where no single company holds 15 percent stake in wire business and more than 20 percent in cable business."
There are about 400 players in the industry, including SMEs to large enterprises, whose revenue is between 50 and 400 crores. According to the global brokerage firm Jefferies, there are attractive opportunities in India about Rs 80,000 crore wire 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 the double digit and 30 percent of the industry is still with the unorganized sector. In the year 2028-29, the size of this industry will reach Rs 1,30,000 crore.
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, through his subsidiary's subsidiary Kutch Copper Limited (KCL), formed a joint venture called Praneeta EcoCels in partnership with Pranita Ventures earlier this month, which will manufacture and sell metal products, cables and stars.
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.
