After the cement sector, now two veteran business groups Adani and Aditya Birla will be face to face in the cable and wire (C&W) industry. Both groups have announced to enter the region. Recently, after Aditya Birla Group, now the Adani Group has also stepped into the industry through joint venture.
Aadani Group’s new company
Kutch Copper Limited (KCL), a fully owned subsidiary of Adani Enterprises Limited, has formed a joint venture company named Pranita Eockels Limited (PEL) in partnership with Pranita Ventures Private Limited. The company will focus on the manufacture, marketing, distribution and sale of metal products, cable and wire. At present, the company’s commercial operations have not begun.
Ultratech cement has also entered
Last month, Aditya Birla Group’s company Ultratech Cement also announced an entry into the sector. The company plans to invest Rs 1,800 crore in the next two years. Significantly, the cement business also has a direct competition between Adani and Birla Group, where Ambuja Cements, ACC and Sanghi Cement of Adani Group are prominent players.
Impact on small companies, competition will increase
Experts believe that the cable and wire industry, which was still under control of small and unorganized businesses, will now be affected by the entry of these large groups. Currently, there are about 400 companies working in this industry, whose annual income is between 500 million to 4 billion rupees.
Hindalco’s big investment
Meanwhile, Aditya Birla Group Chairman Kumaramangalam Birla has announced that Hindalco Industries will invest Rs 45,000 crore in future aluminum, copper and special alumina businesses. This investment will be made keeping in mind solar modules, battery storage, electronics and semiconductor areas.
Heavy demand in cable and wire sector
According to analysts, rapid electrification, infrastructure development, power transmission and distribution, real estate and transport sector growth has created a tremendous demand in the cable and wire industry. It is estimated that from FY 2024 to 2027, it will grow at the rate of Sector 11-13% CAGR.
With the entry of Adani and Birla Group, the industry is ready for new competition and investment opportunities.
