Polycab, KEI, Havells shares crash up to 15% as Adani Enterprises’ entry heats up competition in cables & wires biz

Shares of major players in the cables and wires segment came under heavy selling pressure in intraday trade on Thursday, March 20, amid renewed concerns following Adani Group’s entry into the market. This comes just weeks after UltraTech Cement’s foray into the segment, further intensifying concerns over increased competition in the industry. 

In addition, the sharp rise in both copper and aluminum prices—key raw materials used in cables & wires—has pushed costs to multi-month highs, further weighing on sentiment.

Adani Group forays into Cables and Wires

Adani Enterprises announced its entry into the cables and wires industry through a joint venture between its wholly-owned subsidiary Kutch Copper Limited (KCL) and Praneetha Ventures.

The newly incorporated company, Praneetha Ecocables Limited (PEL), will be engaged in the manufacturing, marketing, and distribution of metal products, including cables and wires.

This move positions Adani as the second major conglomerate to enter the cables and wires sector, following the Birla Group, which announced its foray into the industry last month through UltraTech Cement.

"We would like to inform that Kutch Copper Limited (“KCL”), a wholly owned subsidiary of the Company, has completed the incorporation process of a joint venture company, namely “PRANEETHA ECOCABLES LIMITED” (“PEL”), on March 19, 2025, with Praneetha Ventures Private Limited. KCL shall hold 50% of the equity share capital of PEL," Adani Enterprises stated in its Wednesday filing.

KEI Industries share price drops 15%, Polycab 8%

Amid increasing competition and rising input prices, shares of Polycab India, the largest cables & wires company in India, tumbled 7.6% in today's session, reaching ₹5,021 apiece, while KEI Industries crashed 15% to hit a 15-month low of ₹2,802 apiece. Meanwhile, Havells India fell 5.5% in trade to ₹1,472 apiece. Similarly, R R Kabel shares dropped 4.25% to ₹878.20 apiece

Meanwhile, analysts believe that the entry of Adani and the Birla Group is unlikely to impact the FY25–28 earnings of cables & wires (C&W) players. However, they will be watching for any additional announcements by the companies that could have a longer-term effect on the demand-supply dynamics of the C&W sector.

Copper prices top $10000

Copper prices surged above $10,000 per ton on the London Metal Exchange on Wednesday, marking the first time since October. The bull run for copper follows former President Donald Trump’s directive to the US Commerce Department to investigate possible levies on the metal, citing national security concerns.

His comments have prompted buyers to ramp up purchases of refined copper this month. Since the start of the year, copper prices on the LME have risen 14%. However, this increase lags behind the 26% surge in copper futures in New York, which are approaching an all-time high.

The price gap has created a significant incentive for traders and producers to move supplies to the US before any potential tariffs take effect, Bloomberg reported.

According to the analysts, copper accounts for approximately 55-60% of the raw material cost in the cables and wires industry, making it highly sensitive to fluctuations in copper prices. Aluminum also constitutes a significant portion of raw material costs, ranging between 15-20%.

Together, copper and aluminum make up nearly 75% of the total raw material cost for cables and wires. Meanwhile, Trump has already imposed 25% import tariffs on steel and aluminum, levied duties on Canada, Mexico, and China, and promised sweeping "reciprocal" tariffs starting next month.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.