KEI Industries, Polycab Shares Drop Up To 14% As Adani Group Enters Cables & Wires Business – News18
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Adani Group’s decision to enter this space has triggered a sharp sell-off in shares of the incumbent cables and wires companies
Havells India, RR Kabel, and Finolex Cables Shares Fall
Competition in India’s cables and wires sector is expected to heat up following a new announcement from the Adani Group. Shares of leading industry players such as KEI Industries, Polycab India, Havells India, RR Kabel, and Finolex Cables plunged by as much as 14% on Thursday, March 20, after Adani Enterprises revealed its entry into the space.
KEI Industries saw its shares drop 14%, while Polycab’s shares fell by 9%. Havells India and Finolex Cables also experienced declines of over 4% each.
In an exchange filing on Wednesday, Adani Enterprises disclosed that its subsidiary, Kutch Copper Ltd., had formed a joint venture (JV) called Praneetha Ecocables Ltd., in which Kutch Copper holds a 50% stake. The JV will focus on manufacturing, marketing, and distributing cables, wires, and metal products, making Adani Group the latest conglomerate to enter the sector after the Birla Group, which launched UltraTech’s foray into cables and wires last month.
This move follows the significant sell-off in the shares of incumbent companies when UltraTech announced its entry, though many firms in the industry had downplayed the immediate impact, citing the long gestation period required for growth in this sector.
The newly formed company, Praneetha Ecocables Limited (PEL), will have a total authorized and paid-up capital of Rs 10 lakh, divided into 100,000 equity shares of Rs 10 each, with Kutch Copper owning half the stake and Praneetha Ventures holding the remainder.
The news signals the intensifying competition in a sector currently led by players like Polycab, Havells, Finolex Cables, and KEI Industries, potentially reshaping the landscape as Adani joins the fray.
