With their impending entry into the cables and wires segment, the Adani Group and the Aditya Birla Group (ABG) are strengthening their presence in the building and construction sector, where both already hold leading positions in the cement business. According to analysts, this move will allow both conglomerates to leverage their existing distribution networks and supply chain efficiencies to gain a larger share of the construction materials market.
For ABG, the foray into cables and wires complements its broader building solutions business, which includes cement, adhesives, waterproofing solutions, and paints. Adani, on the other hand, is expected to integrate the new venture with its real estate, power, and infrastructure businesses, creating a seamless supply chain for its projects.According to analysts, both groups see this as an opportunity to expand their market reach and capitalise on existing customer relationships.
“Both have an extensive distribution network through their cement business, which can be leveraged to push cables and wires,” said an analyst from a leading brokerage firm. Jefferies, in a report, noted that ABG’s expansion is a strategic diversification aimed at capturing a larger share of customer spending while utilising synergies in branding, distribution, and customer base.JP Morgan also highlighted that ABG’s building solutions business, with over 2,500 retail outlets across
the country, provides a natural adjacency to the cables and wires segment.
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UltraTech Cement already markets a range of construction-related products, including dry mix, mortars, industrial grouts, and
adhesives. The group’s entry into cables and wires ensures a more comprehensive offering to the construction sector, strengthening its control over a larger portion of the value chain.
Both the groups did not respond to FE’s queries on the subject. However, UltraTech has said in a statement that it has earmarked a capex of Rs 1,800 crore over the next two years for a manufacturing facility in Bharuch, Gujarat.
Meanwhile, Adani Enterprises announced a venture under Praneetha Ecocables (PEL), a joint venture between its subsidiary Kutch Copper (KCL) and Praneetha Ventures. However, it did not disclose its capex plans.
People familiar with the developments said that Adani’s manufacturing unit may take three to four years to become operational. Given Adani’s strong presence in energy,
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