India's cable and wire industry witnessed a sudden jolt as stocks of major players like Polycab, Havells, and KEI Industries took a steep dive. The trigger? Adani's entry into the sector. In just one day, the market valuation of this segment plunged by ₹13,500 crores, sending investors into a frenzy.
- As on 20th March, the Adani share price (NSE: ADANIENT) stood at ₹2,388 and is seeing a spike since the announcement.
- It is significant to observe how the KEI share price has dipped close to 13%, while the Polycab India share price and Finolex India share price have also witnessed consequential dips of 6.2% and 4.5% respectively.
Stock Market Reaction: Who Got Hit the Hardest?
| Company | Share Price Fall (%) |
| KEI Industries | -12.6% |
| Polycab India | -6.2% |
| Finolex Cables | -4.5% |
| Havells India | -3.7% |
| Apar Industries | -1.5% |
| RR Kabel | +0.2% |
Data as of 20th March 2025 | Source: Google Finance
Why Are Giants like Adani Entering the Cable & Wire Industry?
In just a month, both Aditya Birla and Adani have forayed into the cables and wires industry, raising questions about the sudden interest in this sector. Here’s why:
1. Fastest-Growing Segment in the Electrical Industry
- The cable and wire industry has emerged as one of the most lucrative sectors, with a compound annual growth rate (CAGR) of over 15%.
- Companies like KEI Industries and Apar are projected to grow at 20-27% in 2025.
- Operating profit margins are steady at 10-15%, making it a highly profitable venture.
2. Rising Demand Due to Infrastructure Boom
- India’s urbanization drive, smart city projects, and renewable energy expansion are fueling the demand for high-quality cables and wires.
- Government initiatives such as ‘Power for All’ and ‘Make in India’ have further boosted demand.
3. Expansion by Existing Players
- Established players like Polycab, Havells, and KEI have already made massive investments to expand manufacturing capacities and enhance R&D capabilities.
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Industry Growth Trends for the Wires & Cables Industry
When we look at the Operating Profit Margin and who leads the pack for the Cable and Wire Industry, then it’s interesting to see how Polycab currently leads the pack. As on 20th March 2025, the Polycab share price (NSE: POLYCAB) stood at ₹5,102.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025E |
| Polycab | 12.3 | 11.9 | 9.8 | 13.1 | 14.7 | 13.0 |
| Havells | 11.1 | 12.7 | 11.6 | 9.5 | 11.3 | 10.7 |
| KEI | 10.9 | 11.4 | 9.2 | 9.0 | 10.1 | 10.3 |
| Apar | 9.6 | 2.6 | 4.0 | 9.7 | 10.5 | 9.2 |
| RR Kabel | 0.0 | 9.0 | 7.8 | 7.1 | 8.6 | 6.8 |
| Finolex | 14.6 | 13.3 | 11.0 | 11.0 | 11.5 | 9.5 |
| Total | 11.9 | 11.2 | 9.5 | 10.5 | 11.9 | 10.7 |
Polycab also leads when we look at data for the Capital Expenditure Plans that are made by leading companies, standing at ₹2,400 crores or a whopping 31.89% of the total capex.
Market Share Breakdown: Who Dominates India’s ₹1 Lakh Crore Cable Market?
India’s cable and wire industry is currently valued at ₹1,00,000 crore and is expected to grow to ₹1,22,000 crore by 2027. The top 6 players hold a 52% market share.
Also read: Polycab vs. Rivals - Who’ll win in 2025?
Market Share of Leading Companies
| Company | Market Share (%) |
| Polycab | 19.01% |
| Havells | 9.36% |
| KEI | 7.15% |
| Apar | 5.01% |
| RR Kabel | 6.53% |
| Finolex | 4.94% |
Conclusion: What’s Next for the Cable & Wire Industry?
With Adani and Aditya Birla entering the market, the competition in the ₹1 lakh crore cable industry is heating up. While established players like Polycab, Havells, and KEI hold significant market share, the influx of new competitors could reshape pricing strategies, innovation, and overall industry dynamics within the Indian stock market.
For investors, this sector presents both opportunities and risks—the long-term outlook remains strong, but short-term volatility could persist as major players jostle for dominance.
Disclaimer
Investment in securities market are subject to market risk, read all the documents carefully before investing. The past performance of the stocks are not necessarily indicative of future performance. Registration granted by SEBI, membership of a SEBI recognized supervisory body, and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors INDmoney Private Limited 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, Research Analyst Registration No. INH000018948.
Source: Internal Calculation, Google Finance, KIE, Company filings (Data as on 20th March 2025)
Research Analyst - Farhan Syed