In a significant development, the Adani Group has announced its foray into the wires and cables industry, a move that has sent ripples through the stock market. Shares of leading players in the sector, including KEI Industries and Polycab India, witnessed a sharp decline of up to 13% on Thursday, March 20, 2025.
The Adani Group’s flagship company, Adani Enterprises, revealed that its wholly-owned subsidiary, Kutch Copper Ltd., has formed a joint venture named Praneetha Ecocables Ltd. This new entity will focus on manufacturing, marketing, and distributing cables, wires, and metal products. The announcement marks Adani’s entry into a sector currently dominated by established players like KEI Industries, Polycab India, Havells India, and Finolex Cables.
The market reaction to this news has been swift, with KEI Industries’ shares dropping by 14% and Polycab India’s shares falling by 9%. Other industry leaders, such as Havells India and Finolex Cables, also experienced declines of over 4% each. This follows a similar trend observed earlier when the Birla Group’s UltraTech Cement announced its entry into the wires and cables business.
Industry experts have noted that while the entry of a major conglomerate like Adani Group signals increased competition, the long gestation period required for growth in this sector may mitigate immediate impacts. Investors are advised to monitor developments closely as the landscape of the wires and cables industry evolves.
Stay tuned for more updates on this developing story.
