Cable Stocks Drop: KEI, Polycab, Havells Slide; Adani Announces Foray Into Wires Business

Shares of leading cable and wires manufacturers, including KEI Industries, Polycab India, and Havells India, witnessed a sharp decline on March 20, 2025, after the Adani Group announced its entry into the segment.

This move follows a similar announcement from the Birla Group’s UltraTech Cement last month.

Adani Group’s Foray into Cables and Wires

In an exchange filing on March 19, 2025, Adani Enterprises, the flagship company of the Adani Group, revealed that its wholly-owned subsidiary, Kutch Copper Ltd., has set up a joint venture (JV) called Praneetha Ecocables Ltd.

Kutch Copper will hold a 50% stake in the new company, which will focus on manufacturing, marketing, and distribution of cables, wires, and metal products.

This development has brought Adani Enterprises into the spotlight, as investors assess the implications of its entry into the cables and wires sector.

The presence of a large corporate player like Adani is expected to intensify competition in the market.

Market Reaction: Share Prices Under Pressure

The announcement led to a sharp sell-off in incumbent cable stocks. As of 10:15 AM on the NSE, KEI Industries dropped 13.13% to ₹2,852.25, Polycab India declined 8.84% to ₹4,957.90, and Havells India fell 4.42% to ₹1,489.15.

Competitive Landscape in the Cable Industry

The move by 2 major conglomerates—Adani and Birla—within a short span indicates growing interest in the sector, driven by rising infrastructure demand, industrial expansion, and increased electrification across India.

Conclusion

While existing manufacturers may face near-term stock price pressure, their established market presence, distribution channels, and brand value could help them navigate this changing landscape.

Investors will be closely watching how these new entrants execute their expansion plans and how incumbent players respond to the evolving market dynamics.

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