After Ambuja Cement vs UltraTech Cement, Gautam Adani, Kumar Mangalam Birla now set to compete in another industry, it is...

Two of India's biggest business groups, Adani and Aditya Birla, are entering the fast-growing wires and cables sector, setting the stage for intense competition. Both conglomerates, which are already rivals in the cement industry, announced their plans within a month of each other.

According to the Economic Times, the Indian wires and cables market, valued at Rs 80,000 crore, has been growing at a compound annual growth rate (CAGR) of 13% between FY19 and FY24. Analysts believe the market is shifting towards organised and branded players, creating an opportunity for large businesses like Adani and Birla to make an impact. Currently, no single company holds more than a 15% share in the wires segment and 20% in the cables segment, making it an attractive industry for new entrants with strong financial backing.

Following Adani Enterprises’ announcement on March 19 about entering the sector, stock prices of existing players such as Polycab India, KEI Industries, Havells, and Finolex Cables declined. Investors anticipate heightened competition, which may disrupt the industry.

Adani Group is entering this market through Kutch Copper Ltd (KCL), which has formed a joint venture, Praneetha Ecocables, with Praneetha Ventures. This venture will manufacture and sell metal products, including cables and wires.

On the other hand, Aditya Birla Group’s flagship company, UltraTech Cement, declared its entry into the sector on February 25. It plans to invest Rs 1,800 crore over the next two years and set up a manufacturing plant in Gujarat, expected to be operational by December 2026. This move aligns with Aditya Birla’s strategy to expand into related sectors within the construction industry. The company recently launched its paint business under the brand ‘Birla Opus’ and aims to become a one-stop solution provider for construction materials.