The wire and cable industry is set for a big competition as Adani Group has announced its entry into the sector. After Aditya Birla Group’s UltraTech, Gautam Adani has now decided to start a new business in this field. The company has formed a joint venture named Praneetha Ecocables Limited to manufacture and distribute wire and cable products.
Joint Venture with Kutch Copper
- Kutch Copper Limited has partnered with Praneetha Ventures Private Limited to create Praneetha Ecocables Limited.
- Both companies will have equal (50-50) ownership in the joint venture.
- According to a filing with the stock exchange, Adani Enterprises confirmed that this new company will be involved in manufacturing, marketing, and distribution of wire, cables, and metal products.
Stock Market Reaction
After Adani Group’s announcement, the wire and cable sector stocks saw a sharp decline:
- Polycab India, Havells India, RR Kabel, and Finolex Cables fell by up to 7%.
- KEI Industries dropped by over 5%.
- Earlier, when UltraTech Cement entered this business, these stocks had already fallen by 20%.
Adani Enterprises Stock Rises
While the competitors’ stocks declined, Adani Enterprises’ stock price increased. It opened at ₹2,348, up from its previous close of ₹2,318.
The entry of Adani Group is expected to increase competition in the wire and cable market, impacting existing companies in the sector.
