The shares of cable and wire companies plunged by up to 10% on Thursday after the Adani Group announced its entry into the cables and wires industry. This marks the second major setback for the sector in recent months, following the Birla Group’s announcement of entering the segment through UltraTech Cement.
Cable and Wire Companies Face Heavy Losses
As soon as the stock market opened on Thursday, shares of companies in the cable and wire industry plummeted. Following Adani Group’s big announcement, these stocks saw significant declines:
- KEI Industries shares dropped 10%, reaching ₹2,951.55 on the BSE.
- Polycab India shares fell by more than 7%, trading at ₹5,039.65.
- Havells India shares declined by over 4%, settling at ₹1,473.65.
- RR Kabel shares also fell by more than 3%, reaching ₹872.80.
KEI Industries expects that 75% of its total product mix will consist of the cables business, but the sudden competition from Adani Group has shaken investor confidence.
Adani Enterprises Forms Joint Venture in Cable and Wire Segment
Adani Enterprises, the flagship company of Adani Group, disclosed in an exchange filing that its wholly owned subsidiary Kutch Copper Limited (KCL) has formed a joint venture (JV) with Pranita Ventures Private Limited. The newly formed company, Pranita Ecocables Limited, will focus on the manufacturing, marketing, and distribution of metal products, cables, and wires.
The JV will be structured with a 50:50 ownership between the two companies. Following this announcement, Adani Enterprises shares declined, trading at ₹2,305.25 on the BSE on Thursday.
This move marks Adani Group’s significant expansion into yet another industry, intensifying competition and causing a ripple effect across the stock market. Investors are now closely watching how existing cable and wire companies respond to this aggressive market entry.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
