Adani Group's entry into the wire and cable market has sent ripples through the sector. Shares of several companies, including KEI and Polycab, fell by as much as 15%, raising investor concerns.
Adani Enterprises enters wire market: The Adani Group's entry into the wire and cable business has created a stir in the sector. Following this news on Thursday, March 20th, a significant drop was observed in the share prices of major companies involved in wire and cable manufacturing. It is believed that this new entrant will further intensify competition, potentially impacting the market share of existing companies.
Significant Drop in Shares of Major Companies
Following Adani Group's announcement, investor sentiment was impacted, leading to a decline of up to 15% in the share prices of KEI Industries, Polycab India, RR Kabel, Finolex Cables, and Havells India on the BSE. In contrast, the benchmark BSE Sensex index was up 464 points or 0.61% at 75,913 at 11 am.
Adani Group Forms New Joint Venture Company
Adani Enterprises stated in a stock exchange filing on Wednesday that its subsidiary, Kachchh Copper Limited, has formed a 50:50 joint venture company, 'Pranita Ecocables Limited', with Pranita Ventures Private Limited. Through this joint venture, the Adani Group has officially entered the business of manufacturing, marketing, procurement, and sales of metal products, cables, and wires.
Impact on the Stock Market: A Major Blow to Companies
KEI Industries' shares experienced an intraday fall of 14.55%, closing at ₹2,802.10 per share. Trading volume for this stock on the BSE was approximately 106,000 shares, significantly higher than its two-week average of 14,000 shares.
Furthermore, Polycab India's share price dropped by 9.58% to ₹4,920 per share. Havells India's share price fell by 5.5% to ₹1,470.8, while Finolex Cables' share price decreased by 4.7% to ₹827 per share. Conversely, Adani Enterprises' share price saw an intraday increase of 1.6%.
Birla Group Already Entered the Wire and Cable Industry
It is noteworthy that the Adani Group's entry into the wire and cable sector comes after the Birla Group's prior entry into the industry. In February 2025, UltraTech Cement informed the stock exchange of its approval to enter the wire and cable segment. Just weeks after this announcement, the Adani Group also made its presence known in this sector.
According to analysts, the entry of large corporate groups into this sector will shift the unorganized market share towards organized companies and promote healthy competition. The market share of organized companies was 68% in FY 2018-19, increasing to 73% in FY 2023-24.
