Adani Group’s entry into the cables and wires segment sent shockwaves through the market, causing shares of Polycab India, KEI Industries, Havells, Finolex Cables, and other peers to plummet. This move follows UltraTech Cement’s recent announcement of venturing into the segment, which had similarly caused a sharp correction in these stocks.
On Wednesday, Adani Enterprises revealed that its wholly-owned subsidiary Kutch Copper Ltd (KCL) had successfully established a joint venture named Praneetha Ecocables with Praneetha Ventures, with KCL holding a 50 per cent stake in the venture.
The news had a significant impact on the stock prices of key players in the industry. Polycab shares dropped by 8.45 per cent to ₹4,978.85, hitting an intraday low of ₹4,916.75. Meanwhile, KEI Industries saw a 12.65 per cent decline to ₹2,868 after hitting a low of ₹2,806.15.
Havells India also took a hit, with a 4.94 per cent decrease to ₹1,480.95, while Finolex Cables’ stock fell by 3.90 per cent to ₹834.55. R R Kabel traded 1.57 per cent lower at ₹902.65 on the NSE, after initially dropping to ₹878.30.
In contrast, Adani Enterprises stock experienced a slight uptick of 0.66 per cent to ₹2,334.05.
The market reaction to Adani Group’s entry into the wires and cables segment reflects the fierce competition and the potential impact on existing players in the industry.
