Stocks of leading wires and cables firms such as dropped sharply by as much as . The decline came after Adani Enterprises announced it was entering the wires and cables (W&C) business in a joint venture (JV) with Praneetha Ventures.

Adani’s wholly owned subsidiary, Kutch Copper Ltd, has partnered with Praneetha Ventures to form Praneetha Ecocables Ltd. The JV, structured as a 50:50 partnership, will focus on the manufacturing, marketing, and distribution of metal products, cables, and wires. The development has raised concerns about heightened competition, leading to sell-offs in existing cable stocks.

The largest loser in the cable stocks was , which fell 14.3 per cent to Rs 2,809.85, taking its market capitalization below Rs 28,000 crore.

Polycab, a key player in the wires and cables sector,also fell sharply by 9.6 per cent to Rs 4,920, with its valuation falling below Rs 75,000 crore on March 20. This drop follows a strong 5 per cent rally on March 19, where it closed at Rs 5,438.40. Over the past year, the stock has declined more than 32 per cent. 

Havells India dipped by more than 5.3 per cent, trading at Rs 1,473.65, bringing its overall market capitalization to less than Rs 95,000 crore. RR Kabel also dipped, going down 4.75 per cent to Rs 872.80.

The smaller players in the wires and cables industry also witnessed selling pressure. Finolex Cables fell more than 4.75 per cent to Rs 827, while Dynamic Cables fell 4.3 per cent to Rs 551.30. Plaza Wires also fell more than 2.25 per cent, trading at Rs 55.11.

The wires and cables industry has been grappling with competition concerns since February when Aditya Birla Group’s UltraTech Cement announced its plans to enter the sector. With Adani now making a move, existing players are bracing for intensified market pressure. Analysts believe that while established companies hold strong market positions, Adani’s aggressive expansion strategy could disrupt pricing and market share dynamics.

Investors will closely monitor the sector as Adani’s expansion unfolds. In the short term, existing players may see volatility, but long-term prospects will depend on how these firms adjust their strategies to counter new entrants.