Adani and Birla set to clash in wires & cables sector after cement rivalry – The Times of India-OxBig News Network

After dominating the cement industry, billionaire Gautam Adani‘s Adani Group and Kumar Mangalam Birla’s Aditya Birla Group are gearing up for another showdown—this time in the high-growth wires and cables sector.
Both conglomerates recently announced their foray into the segment, intensifying competition in an industry largely dominated by unorganized players and smaller companies.
New battle for market share
The wires and cables industry has posted a robust 13% compound annual growth rate (CAGR) in revenue between FY19 and FY24, shifting towards an organized, branded market. The entry of Adani and Aditya Birla into this space is expected to disrupt the status quo significantly, according to news agency PTI.
This was reflected in the stock market as shares of key industry players plummeted following Adani Enterprises’ announcement on March 19. Polycab India and KEI Industries hit their 52-week lows on March 20, while Havells dropped 5% and Finolex Cables fell 4% the following day.
Why wires & cables ?
“Relying on deep pockets, wires & cables are an ideal segment for new entrants,” said JM Financials. The industry is fragmented, with no single player commanding more than 15% of the wires market or 20% in cables. It comprises nearly 400 players, ranging from SMEs to large enterprises, with revenues between Rs 50-400 crore.
Global brokerage Jefferies estimates the Indian cables and wires industry at Rs 80,000 crore—Rs 56,000 crore from cables and Rs 24,000 crore from wires—and sees it as an “attractive opportunity” due to its double-digit growth and 30% unorganized segment.
Motilal Oswal Financial Services also highlighted strong demand, projecting the industry to grow at double the real GDP rate (12-13%), with the market size expected to reach Rs 1,30,000 crore by FY29.
Strategic moves by Adani and Aditya Birla
Adani Enterprises, through its subsidiary Kutch Copper Ltd (KCL), formed a joint venture, Praneetha Ecocables, with Praneetha Ventures to manufacture and sell metal products, cables, and wires.
This comes shortly after Aditya Birla Group’s flagship company, UltraTech Cement, announced an Rs 1,800 crore investment over the next two years to enter the wires and cables segment. UltraTech also plans to set up a greenfield plant near Bharuch, Gujarat, expected to be commissioned by December 2026.
This expansion aligns with Aditya Birla’s strategy to diversify within the construction value chain, complementing its recent launch of the ‘Birla Opus’ decorative paints brand.
Synergies with copper businesses
Both groups have a presence in the copper industry, a key raw material for wires and cables. Aditya Birla’s Hindalco, a leader in aluminum and copper production, could create synergies for its wires and cables business, while Adani’s Kutch Copper provides similar advantages for its operations.
Analysts at Jefferies noted, “The companies’ entry into this segment is part of a forward integration strategy for Adani’s copper business and possibly backward integration for its captive group transmission business. This project could take 3-4 years to materialize.”
Expanding construction ecosystems
Adani’s move into the cement sector in September 2022, through the acquisition of Ambuja Cement from Swiss firm Holcim for USD 6.4 billion (around Rs 51,000 crore), marked its aggressive expansion strategy. It is now the second-largest cement producer in India, challenging UltraTech through acquisitions like Penna Industries, Sanghi Industries, and CK Birla Group’s Orient Cement.
Similarly, UltraTech has acquired India Cements, Kesoram Industries’ cement business, and UAE-based RAKWCT over the past two years, aiming for a 200 MTPA capacity by FY27 to maintain its leadership.