On 27 February 2025, Indian cable stocks saw a major crash as Aditya Birla’s flagship company and India’s Cement Giant, UltraTech Cement, announced its major entry into the cables and wires market.
UltraTech Entry into Cable Industry
The company has ambitious plans to invest Rs. 1,800 crores over 2 years to set up a production unit in Gujarat, funded through a mix of internal funds and borrowings.
The new plant is expected to be up and running by December 2026, aiming to tap into the strong growth potential of the cables and wires industry, which is expected to grow between 11% and 13% CAGR from FY24 to FY27 domestically.
This strategic move is part of UltraTech plan to expand its footprint in the construction value chain. The entry is likely to ramp up competition in the fragmented wires and cables industry, which saw a 13% CAGR growth from FY19 to FY24, according to Nuvama.
Nuvama brokerage firm also recently stated that the “Indian cable and wire industry is poised for significant growth in exports, with a shift from the unorganized to the organized market.” The share of organized players increased to 73% in FY24, up from 68% in FY19.
Indian cable and wire industry to see significant growth in exports; sector seeing a shift from unorganised to organised market: Nuvama
— ANI Digital (@ani_digital) February 27, 2025
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Below are some of the stocks affected by the Aditya Birla Group’s entry into the cables and wires industry:
Cable Stocks Crash by Up to 20%
Polycab India
- Overview: India’s leading wires and cables manufacturer, also involved in fast-moving electrical goods (FMEG), with a strong presence in various industries and a debt-free financial status.
- Market Cap: 73,978.72 Crores INR
- Stock Price: Trading at 4,918 INR per share, down 14.60% from the previous day’s close of 4,606.85 INR.
Finolex Cables
- Overview: India’s largest electrical and telecommunication cables manufacturer, established in 1958, offering a wide range of products including wires, switches, and smart home solutions.
- Market Cap: 12,895.08 Crores INR
- Stock Price: Trading at 843.15 INR per share, down 6.00% from the previous day’s close of 897 INR.
KEI Industries
- Overview: A leading Indian wires and cables manufacturer, offering EHV, MV, and LV solutions globally, with a strong presence in EPC services and exports to over 60 countries.
- Market Cap: Rs. 29,859.23 Crores INR
- Stock Price: Trading at Rs. 3,124.90 per share, down 17.68% from the previous day’s close of Rs. 3,796.05.
Havells India
- Overview: A leading FMEG company with a strong global presence, manufacturing a wide range of electrical products, including home appliances, lighting, and cables, under multiple prestigious brands.
- Market Cap: Rs. 91,771.73 Crores
- Stock Price: Trading at Rs. 1,463.80 per share, down 5.41% from the previous day’s close of Rs. 1,547.55.
R R Kabel
- Overview: A leading electrical conglomerate, part of RR Global, manufacturing premium wires and cables for residential, commercial, and industrial purposes, with a global presence in over 85 countries.
- Market Cap: Rs. 10,948.98 Crores
- Stock Price: Trading at Rs. 968.35 per share, down 12.72% from the previous day’s close of Rs. 1,109.50.
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| Company | Market Cap (Rs. Crores) | Price per Share (Rs.) | Down (%) | Previous Close (Rs.) |
| Polycab India | 73,978 | 4,918 | 14.60 | 4,606 |
| Finolex Cables | 12,895 | 843 | 6.00 | 897 |
| KEI Industries | 29,859 | 3,125 | 17.68 | 3,796 |
| Havells India | 91,772 | 1,464 | 5.41 | 1,547 |
| R R Kabel | 10,949 | 968 | 12.72 | 1,109 |
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