Adani and Birla set to clash in wires & cables sector after cement rivalry

After dominating the cement industry, the Adani Group of billionaire Gautam Adani and Kumar Mangalam Birla Aditya Birla Group Another performance is gearing up-this time in high-development wires and cable region.
The two conglomerates recently announced in the section, dominating the competition in an industry by acutely unorganized players and small companies.
New fight for market share
The wiring and cable industry have posted a strong 13% mixed annual growth rate (CAGR) in revenue between FY 19 and FY14, transferring to an organized, branded market. Adani’s entry and Aditya Birla According to news agency PTI, the status quo at this place is expected to be greatly disrupted.
This was reflected in the stock market as the shares of the leading industry players declined after the announcement of Adani Enterprises on 19 March. Polycab India and Kei Industries hit their 52-week climb on March 20, while Havels fell 5% and Finolex cable fell 4% the next day.
Why wire and cable?
JM Financial said, “Relying on deep pockets, wires and cables is an ideal segment for new entry.” The industry is fragmented, in which no player has more than 15% of the wiring market or more than 20% in cables. It consists of about 400 players, including SME to large enterprises, revenue between Rs 50-400 crore.
Global Brokerage Jeffers estimates Indians Cable and wire industry For Rs 80,000 crore-Rs 56,000 crore from cable and Rs 24,000 crore from wires-and see it as a “attractive opportunity” due to double-point increase and 30% unorganized section.
Motel Oswal Financial Services also highlighted the strong demand, introduced the industry to grow double from the actual GDP rate (12–13%), the market size is expected to reach Rs 1,30,000 crore by FY 29 by FY 29.
Strategic tricks by Adani and Aditya Birla
Adani Enterprises, through its a subsidiary Kach Copper Limited (KCL), formed a joint venture with Pranta Ventures to manufacture and sell metal products, cables and wires.
Shortly thereafter, Aditya Birla Group’s leading company, UltraTech Cement announced an investment of Rs 1,800 crore in the next two years to enter the wires and cables segment. UltraTech has also planned to set up a greenfield plant near Greench, Gujarat near Bhojrat by December 2026.
This expansion aligns with Aditya Birla’s strategy to diversify within the construction price chain, which complements its recent launch of the ‘Birla Ops’ decorative paints brand.
Coordination with copper businesses
Both groups have the presence in the copper industry, a major raw material for wires and cables. In the production of aluminum and copper, a leader of Aditya Birla, a leader of Aditya Birla, can create synergy for his wires and cable business, while Adani’s Kach copper provides the same benefits for its operation.
Jefferies’ analysts said, “The entry of companies in this segment is part of an further integration strategy for Adani’s copper trading and possibly backward integration for its captive group transmission business. The project may take 3-4 years in materiality.”
Expansion of construction ecosystems
Step in Adani’s cement sector in September 2022, for the 6.4 billion USD (about Rs 51,000 crore) (about Rs 51,000 crore), through the acquisition of Ambuja Cement from Swiss firm Holsim, marked its aggressive expansion strategy. It is now the second largest cement manufacturer in India, which challenges UltraTech through acquisitions like Penen Industries, Sanghi Industries and CK Birla Group’s Orient Cement.
Similarly, UltraTech has acquired India Cements, Cement Business of Kesoram Industries and UAE-based Rakwct in the last two years, which targets 200 MTPA capacity to maintain its leadership by FY 27.