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The Indian cable and wire industry has been hit by a significant downturn in recent days, with major players like KEI Industries, Polycab India, and Finolex Cables experiencing sharp declines in their stock prices. This sudden drop is largely attributed to the Adani Group's announcement of its entry into the sector through a new joint venture, Praneetha Ecocables Limited. The move has sent shockwaves across the market, intensifying competition and raising concerns among existing industry leaders.
On March 19, 2025, Adani Enterprises, the flagship company of the Adani Group, revealed that its wholly-owned subsidiary, Kutch Copper Limited, had incorporated a joint venture company named Praneetha Ecocables Limited. This new entity will focus on manufacturing, marketing, distributing, buying, and selling metal products, cables, and wires. Both Kutch Copper and Praneetha Ventures will hold a 50% equity stake in the company[1][2][3].
The announcement comes on the heels of another major conglomerate, the Aditya Birla Group, announcing its plans to enter the wires and cables business. UltraTech Cement, a leading company within the group, plans to set up a manufacturing facility in Bharuch, Gujarat, with an investment of Rs 1,800 crore over the next two years[1][3].
The news of Adani's entry into the sector has led to a significant sell-off in shares of existing cable and wire companies. KEI Industries saw its stock price plummet by as much as 14.3% to Rs 2,809.85 on the BSE, marking a sharp decline from its previous close[2]. Similarly, Polycab India's shares fell by nearly 9% to trade at Rs 4,972 apiece, while Havells India's stock dropped over 5% to Rs 1,479[1][4]. Finolex Cables also experienced a decline, with its stock falling by over 4% to Rs 830[1].
Key Points About the Decline:
The entry of Adani Group into the cables and wires sector is expected to intensify competition, which has already been heightened by the Aditya Birla Group's recent announcement. This increased competition could potentially disrupt the market share of existing players like Polycab, Havells, Finolex Cables, and KEI Industries[2][3].
Market Trends and Concerns:
While the immediate impact of Adani's entry has been negative for existing players, the long-term implications remain to be seen. The Indian cable and wire industry is expected to continue growing due to increasing demand from infrastructure projects and the electrical sector. However, companies will need to adapt to the changing competitive landscape by focusing on innovation, quality, and cost-effectiveness to maintain their market positions.
The recent downturn in cable and wire stocks highlights the challenges faced by existing industry leaders in the face of new entrants. As the sector continues to evolve, companies like KEI Industries, Polycab India, and Finolex Cables will need to strategize effectively to navigate the intensified competition and capitalize on emerging opportunities.
