India’s ₹80,000 crore wires and cables industry is witnessing a seismic shift as two industrial giants, Gautam Adani’s Adani Group and Kumar Mangalam Birla’s Aditya Birla Group, enter the fray. After their fierce competition in the cement sector, both conglomerates are now vying for dominance in this fast-growing market. With deep pockets, strategic synergies, and ambitious plans, their entry is set to disrupt a largely fragmented sector while accelerating its transition toward organized and branded players.

Why Wires and Cables?

The wires and cables industry represents an attractive opportunity due to its robust growth rate and increasing formalization. Between FY19 and FY24, the sector posted a compound annual growth rate (CAGR) of 13%, driven by infrastructure development, electrification projects, smart cities initiatives, and renewable energy expansion. Analysts project the market size to reach ₹1,30,000 crore by FY29.

Approximately 30% of the market remains unorganized, offering significant room for new entrants with financial strength to capture market share. Both Adani and Birla have identified this segment as a strategic adjacency to their existing businesses, leveraging their expertise in copper production—a key raw material for wires and cables manufacturing.

Strategic Moves by Adani Group

Adani Enterprises has entered the wires and cables sector through its subsidiary Kutch Copper Ltd (KCL), forming a joint venture with Praneetha Ventures to establish Praneetha Ecocables Ltd. This venture will manufacture metal products, cables, and wires while benefiting from synergies with Adani’s copper refinery operations in Gujarat.

Adani’s strategy focuses on forward integration within its copper arm and backward integration for its captive transmission business. This approach ensures cost efficiency and supply chain reliability, positioning the group to compete aggressively in pricing and scale.

Strategic Moves by Aditya Birla Group

The Aditya Birla Group’s flagship company UltraTech Cement has announced plans to invest ₹1,800 crore over the next two years to establish its presence in the wires and cables segment. UltraTech is setting up a greenfield plant near Bharuch, Gujarat, expected to be operational by December 2026.

Aditya Birla’s Hindalco Industries—a leader in copper production—provides critical synergies for this venture. The group’s strategy aligns with its broader vision of expanding into adjacencies within the construction value chain, which already includes cement and decorative paints under the brand “Birla Opus.”

Impact on Existing Players

The entry of these conglomerates has sent shockwaves through the stock market. Shares of established players like Polycab India, KEI Industries, Havells India, and Finolex Cables saw significant declines following announcements from Adani Enterprises and UltraTech Cement.

While existing players have enjoyed steady growth due to rising sales and strong brand equity, they now face intense competition from these deep-pocketed entrants capable of aggressive pricing strategies, R&D investments, and scaling operations rapidly. This disruption is expected to push the industry further toward formalization; analysts predict the organized sector’s share will grow from 74% in FY24 to 80% by FY27.

Challenges for Adani and Birla

Despite their financial strength and brand equity in building materials, success in the wires and cables sector will depend on overcoming key challenges:

1. Distribution Network: Building robust dealer networks is critical in an industry dominated by legacy players like Polycab India and Havells India. Effective trade relationships will be essential for penetrating regional markets.
2. Advertising & Promotion: Analysts suggest that new entrants will need significantly higher promotional spending to establish themselves against established brands with strong customer loyalty.
3. Timeframe for Scaling: It may take at least five years for these conglomerates to reach the scale of existing players who have spent decades building market presence.

Opportunities Ahead

1. Market Formalization: The entry of organized players like Adani and Birla will accelerate formalization in a sector still dominated by unorganized businesses. This shift creates opportunities for innovation and premium product offerings among established companies.
2. Synergies with Copper Businesses: Both groups can leverage their existing copper production capabilities—Adani via Kutch Copper Ltd and Birla via Hindalco—to ensure cost-effective manufacturing processes.
3. Sector Growth Potential: With demand driven by infrastructure projects, electrification initiatives, smart cities development, and renewable energy expansion, there is ample room for all players—new entrants included—to grow.

Conclusion

The emerging rivalry between Adani Group and Aditya Birla Group in India’s wires and cables sector signals a transformative phase for the industry. Their entry brings financial muscle, strategic synergies, and competitive pricing that are likely to shake up the status quo while accelerating formalization.

For existing players like Polycab India or Havells India, this disruption presents both challenges and opportunities—forcing them to innovate or move into premium segments while competing against unorganized businesses.

As these industrial giants expand their footprint in this high-growth sector alongside infrastructure development trends, their competition will redefine market dynamics while setting new benchmarks for efficiency and scale in India’s wires and cables industry.