Adani and Aditya Birla Clash in India's Booming Wires and Cables Sector

Billionaire Gautam Adani's group and Kumar Mangalam Birla's Aditya Birla Group are now competing in the high-growth wires and cables industry. Both have announced major investments to capture market share dominated by smaller and unorganized players, potentially transforming this sector into a more organized and branded market.

In a strategic move, Gautam Adani's group and Kumar Mangalam Birla's Aditya Birla Group have set their sights on the wires and cables industry. Both conglomerates recently announced initiatives to enter and invest in this high-growth sector, heating up competition in a market historically dominated by smaller, unorganized players.

The entry of these major industry players comes on the heels of intense competition between them in the cement sector. Market dynamics are rapidly shifting, as evident from the plummeting share prices of existing companies like Polycab India and KEI Industries in the wake of these announcements.

Global brokerage firms, such as Jefferies, are eyeing this transition as an attractive opportunity for growth, indicating that the sector could grow at double the rate of real GDP. Further, both groups are leveraging their existing capabilities in copper production to create synergies in this new venture.

(With inputs from agencies.)