Polycab India has acquired additional equity shares of Dowells Cable Accessories Private Limited, a subsidiary company of Polycab. The acquisition would increase the aggregate shareholding from 51% to 60% and strengthen the control of Polycab in Dowells. Dowells operate in wires and cables accessories including terminals, tools and cable glands segment.
Polycab is the industry leader in the cables and wires segment with a 20-22% market share in the organised market. Rising investments in the real estate sector, government-led infrastructure Capex, downsizing of the unorganised sector, entering into new product categories, and improving potential in exports provide healthy growth potential.
Hence, we continue to keep our stance on Polycab.