Polycab, Havells, KEI Shares Plunge Up to 13% on Adani’s Entry into Cables & Wires Market

The Indian stock market witnessed significant declines in the shares of Polycab, Havells, and KEI Industries as Adani Group announced its foray into the cables and wires sector. This move by Adani sent shockwaves across the industry, leading to a sharp sell-off, with stocks of these major cable manufacturers plunging up to 13% in intraday trading.

📉 Stock Market Reaction

On March 19, 2025, shares of Polycab India, Havells India, and KEI Industries—the three leading players in the electrical cables and wires segment—fell sharply after reports of Adani Group entering the segment.

🔻 Polycab India: Fell 12.6% intraday, closing at a 10% decline
🔻 Havells India: Dropped 9.2% amid heavy selling pressure
🔻 KEI Industries: Declined 13.1%, facing its worst session in months

The impact of Adani’s entry into the market has raised concerns over increased competition and pricing pressures, leading investors to react negatively to the news.

Why Did Adani’s Entry Shake the Market?

Adani Group, one of India’s largest conglomerates, has been aggressively expanding into new sectors, leveraging its financial strength and infrastructure. The latest move into the cables and wires business comes as a natural extension of its power and infrastructure ventures.

Here’s why Adani’s entry is a major disruption for existing players:

✅ Strong Financial Backing: Adani Group has deep financial resources, enabling it to compete aggressively on pricing.
✅ Integrated Business Model: The group already operates in power transmission, which can give it a competitive edge in the wires and cables segment.
✅ Brand Trust & Market Influence: Adani’s presence in the industry could lead to supply chain advantages, putting pressure on existing players.

This development has led investors to re-evaluate growth prospects for Polycab, Havells, and KEI, causing a sell-off in their stocks.

What’s Next for Polycab, Havells & KEI?

With Adani’s entry into the cables and wires market, existing companies are expected to take strategic actions to maintain their market share:

• Polycab & KEI Industries may focus on expanding exports to reduce domestic pressure.
• Havells might leverage its strong brand loyalty and premium segment offerings to differentiate itself.
• Companies could engage in price competition, potentially affecting profit margins.
• Increased focus on R&D and product innovation to maintain a competitive edge.

While the short-term impact on stock prices has been severe, long-term investors will be watching how these companies respond to Adani’s challenge.

Should Investors Worry?

While market sentiment is currently negative, industry experts suggest that:

📌 Existing players still hold a dominant market share, and Adani’s impact will be gradual.
📌 Long-term growth trends remain intact, as India’s power and infrastructure sector continues to expand.
📌 Stock corrections may provide buying opportunities for long-term investors.

However, the pricing war and market share battle that follows will define the industry’s future dynamics.

Final Thoughts

Adani Group’s entry into the cables and wires industry has sent shockwaves across the market, leading to double-digit declines in the stock prices of Polycab, Havells, and KEI Industries. Investors are now closely monitoring how these companies respond to this new competition.

With increasing competition and pricing pressures, the electrical cables and wires market is poised for a major shake-up in the coming months. While this is a short-term setback for existing players, long-term growth prospects in the sector remain strong.