The wires and cables industry in India plays a crucial role in the country’s infrastructure development. Whether in construction, telecommunications, power distribution, or industrial automation, wires and cables serve as essential components in these sectors. With rapid urbanisation, increasing electrification, and government initiatives like ‘Make in India’ and the ‘Smart Cities Mission’, the industry has witnessed substantial growth in recent years. But will this growth continue? Let’s break it down.
Wires and Cables Market in India
According to the KEI Industries report, India’s wires and cables market has expanded significantly from Rs 859 billion in FY19 to Rs 1,702 billion in FY24, registering a CAGR of 14.7% during this period. Furthermore, the sector is projected to grow at a CAGR of 11-13% between FY24 and FY29E.
Power transmission cables and building wires collectively accounted for approximately 50% of the market in FY24.
The significant share of power transmission cables can be attributed to favourable government initiatives in the power sector, such as railway electrification projects and rural electrification schemes. Additionally, rising expenditures in the construction sector and the expansion of the fast-moving electrical goods (FMEG) industry are driving the demand for building wires.
Growth Drivers for Wires and Cables Industry in India
Power Demand: Rising urbanisation, supportive government initiatives, and increased investments in transmission and distribution have driven sector growth.
Renewable Energy Expansion: India’s target of 500 GW by 2030 and investments in solar, wind, and battery storage are boosting demand for power cables.
Digital Infrastructure Growth: The rollout of 5G, increasing data centres, and BharatNet expansion are driving demand for fibre optic and high-speed cables.
EV Adoption & Charging Infrastructure: The growing EV market and increased consumer adoption of electric vehicles in India are fuelling cable demand.
Urbanisation & Real Estate Boom: The Smart Cities Mission, metro projects, and real estate expansion are increasing demand for building wires.
‘China Plus One’ & Make in India: Supply chain diversification, PLI schemes, and higher tariffs on imports are driving domestic manufacturing growth.
Stocks to Add to Your Watchlist
The following companies operate in India’s wires and cables sector:
India’s wires and cables industry is highly fragmented, with no single company holding more than a 20% market share in either segment. Additionally, unorganised players account for 26% of the market, posing challenges for both listed and organised companies.
Large listed players in India’s wires and cables business collectively hold 45.6% of the market, while other organised players hold 28.4%.
Import and Export Statistics
India has consistently been a net exporter of wires and cables since FY20, registering an export surplus peak of Rs 59.5 billion during the April-October 2023 period, highlighting its ability to cater to growing global demand. Additionally, exports grew by 8% YoY during April-October 2024.
The wires and cables export market grew at a CAGR of approximately 19% from FY17 to FY24.
Saudi Arabia and Oman have become key markets, witnessing robust growth driven by India’s competitive pricing, adherence to international standards, and diverse product portfolio.
Key Challenges in the Wires & Cables Industry
L1 Concept: In India, price often takes precedence over quality, raising significant concerns about safety in high-voltage cables and creating challenges for manufacturers.
Raw Material Volatility: Fluctuating copper and aluminium prices impact production costs and profitability for companies in the segment.
Counterfeit Products: The prevalence of counterfeit and substandard wires and cables sold at lower prices in India poses significant challenges for organised players.
Lack of Skilled Workforce: A shortage of trained professionals affects both productivity and product quality.
Will the US Tariff Threat Impact Wires & Cables Exports?
There are concerns about potential tariffs by the US, which could affect global trade. However, India’s wires and cables exports are unlikely to face major risks. The US is a large market with a cable consumption worth USD 47 billion (excluding exports), and it relies heavily on imports, with around 64% of its total cable demand met through imports.
Moreover, India has strong export opportunities in other global markets. Many global companies are adopting the China Plus One strategy, reducing dependency on China and diversifying sourcing from countries like India. Given these factors, India’s exports to the US are unlikely to face significant disruptions.
Wrapping Up
India’s wires and cables industry has experienced significant growth and is projected to register a CAGR of 11-13% between FY24 and FY29. Factors such as rising power demand, digital infrastructure development, and increasing EV adoption will continue to drive the industry’s momentum.
India’s position as a net exporter, along with its competitive pricing, will help companies expand into global markets. Additionally, the China Plus One strategy is further strengthening India’s exports and mitigating risks from potential trade wars.
With government support in tackling counterfeiting and enforcing quality regulations, India’s wires and cables market is poised for a strong future.
*The companies mentioned in the article are for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
