Adani and Birla Gear Up for a High-Stakes Battle in Wires & Cables

After their fierce rivalry in the cement sector, billionaire Gautam Adani's Adani Group and Kumar Mangalam Birla’s Aditya Birla Group are now set to clash in the high-growth wires and cables industry. This move marks a significant shift in an industry traditionally dominated by smaller, unorganized players.

Market Disruption on the Horizon

The entry of these two conglomerates is expected to disrupt the status quo significantly. The wires and cables industry has seen a robust 13% compound annual growth rate (CAGR) in revenue between FY19 and FY24, signaling a shift towards an organized, branded market.

Why Wires & Cables?

"Relying on deep pockets, wires & cables are an ideal segment for new entrants," said JM Financials. The industry is fragmented, with no single player commanding more than 15% of the wires market or 20% in cables. It comprises nearly 400 players, ranging from SMEs to large enterprises.

Strategic Moves by the Giants

Adani Enterprises, through its subsidiary Kutch Copper Ltd (KCL), has formed a joint venture to manufacture and sell metal products, cables, and wires. Similarly, Aditya Birla Group’s UltraTech Cement announced an Rs 1,800 crore investment to enter this segment, including setting up a greenfield plant near Bharuch, Gujarat.

Synergies with Copper Businesses

Both groups have a presence in the copper industry, a key raw material for wires and cables. This strategic move is seen as part of a forward integration strategy for Adani’s copper business and possibly backward integration for its captive group transmission business.