Polycab, KEI, Havells Down Over 10%; Adani Group Forays in Cables & Wires Segment

Shares in the cables and wires segment came under intense pressure on March 20 following renewed concerns of Adani Group’s foray into the market. Last month, UltraTech Cement made a similar move in the cables and wires space, thereby increasing competition in the industry.

Additionally, sharp rise in copper and aluminium, which are the key raw materials used in the cables and wires, have inflated the costs in recent times.

Adani’s entry in Cables and Wires

Adani Enterprises entered into the cables and wires industry via a joint venture between its wholly-owned subsidiary Kutch Copper Limited (KCL) and Praneetha Ventures. Praneetha Ventures will be responsible for manufacturing, marketing, and distribution of metal products, including cables and wires.

In an exchange filing on March 20, Adani Enterprises said, “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.”

Share price drop

Amid heightened competition and surging input prices, shares of Polycab India fell by 7.6% on March 20 to ₹5,021 apiece, while KEI Industries crashed by 10% to hit ₹3,000. Meanwhile, Havells India and R R Kabel fell by 5.5% and 4.25% respectively.

As per analysts, the entry on Adani Enterprises in the C&W segment won’t hamper the earnings of the key players between FY25–28. However, investors will be keeping a close watch on key developments as it could have a considerable bearing on the demand-supply dynamics of the C&W sector.

Copper prices

On March 19, The price of copper peaked above $10,000 per ton on the London Metal Exchange (LME) on March 19. The surge can be attributed to Donald Trump’s directive to the US Commerce Department to investigate possible levies on the metal, citing national security concerns.

Trump’s comments have prompted the buyers to ramp up the purchase of refined copper this month. Since the beginning of the year, copper prices on the LME have soared past 14%. However, this surge still lags behind the 26% surge in copper futures in New York, clocking an all-time-high.

As per analysts, copper and aluminium account for 55-60% of the raw material cost in the cables and wires industry, which in turn makes it prone to copper price fluctuations. Aluminium constitutes about 15-20% of the raw material cost. Overall, copper and aluminium contribute about 75% of the raw material cost in the cable and wire industry.