The Indian wires and cables market is growing rapidly, powered by large-scale electrification, rising urban demand, and government infrastructure projects. As of 2023, the sector was valued at around $8.7 billion and is forecast to reach $17 billion by 2032. This growth is due to its widespread use across residential, commercial, and industrial sectors. Wires and cables make up nearly 40% of India’s electrical industry, making it a key part of the nation’s development journey. Over the years, the market has been shifting from unorganised local players to larger, branded companies. Newer segments like electric vehicles, renewable energy, and data centres are further increasing demand. With this shift, major Indian conglomerates like the Adani Group and Aditya Birla Group are now entering the market, aiming to reshape the competitive landscape and capture long-term value.
Overview of the Indian wires and cables market
The Indian wires and cables market is experiencing significant growth, driven by rapid urbanisation, infrastructure development, and increased electrification across sectors. As of 2023, the market was valued at approximately $8.7 billion and is projected to nearly double to $17 billion by 2032 . This growth is attributed to the rising demand in residential, commercial, and industrial applications, including data centres and electric vehicles. Wires and cables constitute nearly 40% of India's electrical industry, underscoring their critical role in the nation's development. The sector is transitioning from a fragmented, unorganised setup to a more structured and branded market, with the organised sector's share increasing from 66% in FY18 to over 74% in FY24, and expected to reach 80% by FY27 . This shift presents opportunities for established players and new entrants alike to capitalise on the expanding market.
Market size and growth projections
The Indian wires and cables market has demonstrated robust growth, with a compound annual growth rate (CAGR) of approximately 13% between FY19 and FY24. This upward trajectory is expected to continue, fuelled by government initiatives in infrastructure, housing, and electrification. The market's expansion is also supported by the increasing adoption of renewable energy sources and the proliferation of electric vehicles, both of which require extensive wiring and cabling solutions. Additionally, the government's push for 'Make in India' and the Production Linked Incentive (PLI) schemes are encouraging domestic manufacturing, further propelling market growth. As the demand for high-quality, reliable, and efficient wiring solutions escalates, the market is poised to offer substantial opportunities for both existing players and new entrants aiming to establish a foothold in this dynamic sector.
Key players and market share
The Indian wires and cables market is dominated by key players such as Polycab India, Havells India, KEI Industries, and Finolex Cables. Polycab India leads the market, with its wires and cables segment accounting for approximately 88% of its product mix . Havells India, known for its diversified electrical products, holds a significant market share, particularly in the consumer segment. KEI Industries and Finolex Cables also maintain strong positions, catering to various industrial and residential needs. Despite the presence of these established companies, the market remains fragmented, with numerous small and unorganised players. However, the entry of conglomerates like Adani Group and Aditya Birla Group is expected to intensify competition and accelerate the shift towards a more organised market structure . This evolving landscape presents both challenges and opportunities for existing players to innovate and strengthen their market presence.
Adani Group's strategic entry via Praneetha Ecocables
The Adani Group has marked its entry into the wires and cables sector through the establishment of Praneetha Ecocables Ltd., a strategic move aimed at capitalising on the burgeoning demand in this industry. This venture aligns with Adani's broader infrastructure and energy portfolio, enabling the group to offer integrated solutions across various sectors. By leveraging its existing capabilities and resources, Adani aims to establish a strong presence in the wires and cables market, which is witnessing significant growth due to increased electrification and infrastructure development. The group's entry is expected to disrupt the existing market dynamics, introducing new competitive pressures and potentially reshaping the industry's landscape. This strategic initiative underscores Adani's commitment to diversifying its business operations and tapping into high-growth sectors that complement its core competencies.
Joint venture details with Kutch Copper
Praneetha Ecocables Ltd. is a 50:50 joint venture between the Adani Group and its subsidiary, Kutch Copper Ltd., which is currently setting up India's largest greenfield copper refinery in Gujarat. This collaboration is strategically designed to ensure a steady and cost-effective supply of copper, a critical raw material in wire and cable manufacturing. By integrating backwards into copper production, the joint venture aims to achieve greater control over the supply chain, reduce dependency on external suppliers, and enhance operational efficiency. This vertical integration is expected to provide a competitive edge in terms of pricing and quality, enabling Praneetha Ecocables to meet the growing demand for high-quality wiring solutions in various sectors, including power, infrastructure, and transportation. The synergy between Adani's infrastructure expertise and Kutch Copper's production capabilities positions the joint venture to become a significant player in the Indian wires and cables market.
Synergies with existing infrastructure projects
Adani's foray into the wires and cables sector through Praneetha Ecocables is strategically aligned with its extensive infrastructure projects across India. The group's involvement in power generation, renewable energy, ports, and transportation provides a ready market for its wiring solutions, facilitating seamless integration and supply chain optimisation. By producing copper in-house through Kutch Copper Ltd., Adani ensures a reliable and cost-effective supply of a critical raw material, enhancing the competitiveness of its cable manufacturing operations. This vertical integration not only reduces production costs but also mitigates risks associated with raw material price volatility. Furthermore, Adani's established logistics and distribution networks can be leveraged to efficiently deliver products across the country, ensuring timely availability and customer satisfaction. These synergies are expected to bolster Praneetha Ecocables' market position, enabling it to meet the rising demand for high-quality wiring solutions in India's rapidly developing infrastructure landscape.
UltraTech Cement's diversification into electrical components
UltraTech Cement, a flagship company of the Aditya Birla Group, has announced its entry into the wires and cables market, marking a significant diversification from its core cement business. This strategic move is aimed at expanding UltraTech's building materials portfolio, enabling the company to offer comprehensive solutions in the construction sector. By venturing into electrical components, UltraTech seeks to capitalise on the synergies between cement and wiring products, both of which are essential in construction projects. This diversification aligns with the company's vision to become a one-stop solution provider for builders and contractors, enhancing its value proposition and competitiveness. The initiative also reflects UltraTech's commitment to innovation and growth, as it explores new avenues to strengthen its market presence and drive long-term sustainability in a rapidly evolving industry landscape.
Investment plans and plant locations
UltraTech Cement plans to invest Rs. 18 billion (approximately $206 million) over the next two years to establish a new wires and cables manufacturing facility, with the plant expected to be operational by December 2026. While the exact location of the plant has not been disclosed, it is anticipated to be strategically situated to optimise logistics and supply chain efficiencies. This significant investment underscores UltraTech's commitment to diversifying its product offerings and tapping into the growing demand for electrical components in India's construction sector. The new facility will enable the company to produce high-quality wiring solutions, complementing its existing range of building materials. By integrating electrical components into its portfolio, UltraTech aims to provide comprehensive solutions to its customers, enhancing its competitiveness and market reach in the construction industry.
Integration with existing building materials portfolio
UltraTech Cement's entry into the wires and cables market is a strategic extension of its existing building materials portfolio, which includes cement, concrete, and other construction products. By adding electrical components to its offerings, UltraTech aims to provide a comprehensive suite of materials required for construction projects, positioning itself as a one-stop solution provider. This integration allows the company to leverage its established distribution networks, customer relationships, and brand reputation to promote its new product line effectively. Additionally, it enables UltraTech to capture a larger share of the construction market by meeting a broader range of customer needs. The move also aligns with the company's vision of driving innovation and sustainability in the construction industry, as it seeks to offer high-quality, efficient, and integrated building solutions that cater to the evolving demands of modern infrastructure development.
Market implications and competitive landscape
The entry of conglomerates like Adani Group and Aditya Birla Group into the Indian wires and cables market is poised to reshape the industry's competitive landscape. These large players bring substantial financial resources, advanced technologies, and extensive distribution networks, which can significantly enhance their market penetration and influence. Their presence is expected to intensify competition, prompting existing players to innovate, improve product quality, and optimise operations to maintain their market positions. Additionally, the increased competition may lead to price pressures, benefiting consumers but challenging smaller and unorganised players. The market is also likely to witness consolidation, as larger companies may acquire smaller firms to expand their capabilities and market share. Overall, the industry's dynamics are set to evolve rapidly, with increased emphasis on quality, efficiency, and integrated solutions, driven by the strategic moves of these major conglomerates.
Impact on existing players like Polycab and Havells
The entry of Adani Group and Aditya Birla Group into the wires and cables market presents both challenges and opportunities for established players like Polycab and Havells. These incumbents may face increased competition, potentially leading to market share erosion and pricing pressures. However, their established brand recognition, extensive distribution networks, and loyal customer bases provide a competitive advantage. To maintain their market positions, these companies may need to invest in innovation, enhance product quality, and explore strategic partnerships or acquisitions. Additionally, they can leverage their deep industry knowledge and experience to differentiate themselves through specialised offerings and superior customer service. The evolving market dynamics may also prompt these players to diversify their product portfolios and explore new markets, ensuring sustained growth and resilience in the face of heightened competition.
Potential challenges and opportunities
The Indian wires and cables market presents a mix of challenges and opportunities for industry players. One significant challenge is the volatility in raw material prices, particularly copper, which can impact production costs and profit margins. Additionally, the entry of large conglomerates intensifies competition, potentially leading to pricing pressures and market consolidation. However, these challenges are counterbalanced by substantial opportunities. The market's projected growth, driven by infrastructure development, urbanisation, and increased electrification, offers significant potential for expansion. Government initiatives like 'Make in India' and the Production Linked Incentive (PLI) scheme further support domestic manufacturing and innovation. Companies that can navigate the competitive landscape by investing in technology, enhancing operational efficiency, and offering high-quality, integrated solutions are well-positioned to capitalise on the market's growth and achieve long-term success.
Conclusion
India’s wires and cables sector is entering an exciting new phase of growth, innovation, and competition. With rising demand driven by electrification, smart infrastructure, and modern construction needs, the market offers strong opportunities for long-term expansion. The strategic entry of large players like Adani Group and UltraTech Cement (Aditya Birla Group) brings financial strength, supply chain efficiency, and technological know-how to the table. While this raises the competitive bar for established names like Polycab and Havells, it also pushes the industry towards better product quality and innovation. The shift from unorganised to organised players will help improve overall standards, transparency, and efficiency. For businesses, the key to success lies in agility, vertical integration, and customer-centric strategies. For investors and policymakers, the wires and cables market now represents a critical pillar in India’s development story.
