Adani, UltraTech Rewire Cables

Adani And UltraTech’s Entry Raises Stakes for India’s Cable Makers

By Amritha Pillay

What?

India’s cable and wire makers are entering a period of change. More than a year after two large conglomerates announced plans to enter the business, it is now show time for new entrants UltraTech Cement and Kutch Copper.

The timing is notable. The industry is coming off several years of strong growth, driven by power, railways and real estate, and is expected to become a Rs 1.2 trillion market by the end of the current financial year. 

Demand remains robust, and companies continue to invest aggressively in capacity. But as new entrants prepare to enter the market, industry executives and analysts expect competition to increase.

The impact on profitability, according to them, is likely to remain limited for now. What may gradually come under pressure, however, is the pricing power that incumbents have enjoyed.

Why So? 

Industry analysts are estimating a near 20% increase in capacity by the end of FY27, including both incumbent expansions and additions from new entrants. That exceeds the expected 10% growth in volumes during the same period.

The mismatch does not immediately point to a profitability shock. New businesses require time to stabilise and build distribution channels. 

Industry executives and analysts point out that the competitive impact may be narrower than market reactions initially suggested.

One reason is the distinction between wires and cables.

Mohit Makhija, senior director at Crisil, said that the wires business contributes only around a quarter of the broader cables and wires industry.

He added, “Although the capacities are expected to be commissioned during fiscal 2027, players will require time to establish distribution channels and brand presence limiting the impact this fiscal.”

Building distribution networks and creating brand presence can take time, limiting the speed at which new entrants gain market share.

Executives at Apar Industries expressed a similar view in discussions with analysts.

They expect UltraTech and Kutch Copper to initially focus on wires and light-duty cable products.

“To some extent, you may lose a percentage or so in EBITDA here or there. But the overall size of the pie will continue to grow,” the executive added.

What Next? 

Competition, however, is not the only challenge confronting manufacturers.

The cable and wire industry is also navigating cost pressures arising from the West Asia conflict.

According to a Crisil report, copper and aluminium prices rose 22-27%, while prices of polyvinyl chloride (PVC), another important raw material, increased by around 12% over the previous fiscal year.

These increases led to expectations of price hikes as manufacturers attempted to pass on higher costs to customers.

Some of these pressures have eased after the announcement of a peace deal, although supply-side concerns could continue.

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34,467 units

That is how many electric vehicles (EVs) Tata Motors sold in the first quarter of fiscal year 2026-27, more than double the 16,231 units sold in the same quarter last year. The figure includes both domestic and export volumes.

Shailesh Chandra, MD and CEO at Tata Motors Passenger Vehicles (PVs), said the company's "leadership in electric mobility further strengthened during the quarter, with EV volumes more than doubling to record 112% growth YoY."

By The Numbers: In total domestic PV sales, Tata took the second spot with 1.80 lakh units during the quarter, while Mahindra & Mahindra ranked third with 1.74 lakh units. Market leader Maruti Suzuki clocked sales of 5.25 lakh units.

Setting: Maruti's Senior Executive Officer (Marketing & Sales) Partho Banerjee attributed the company's outperformance to strong rural and urban demand, record CNG sales, improving SUV volumes and a recovery in the entry-level car segment, alongside lower dealer inventory.

Going forward, price increases owing to the West Asia conflict and evolving monsoon conditions are being seen as potential headwinds.

IndiGo Rolls Out 'Lite' Fare

Amid rising jet fuel prices, airlines' biggest expense, pushed up by the Iran war, alongside airspace closures and intensifying competition, Indian carriers are looking for ways to cut ticket prices. One such strategy is unbundling services, and IndiGo has now joined rival Air India in adopting this approach.

The Lead: IndiGo announced on Wednesday the launch of ‘IndiGo Lite,’ an entry-level fare for economy passengers travelling with only cabin baggage. This follows Air India's introduction last month of a basic economy fare excluding complimentary meals, aimed at ‘price-conscious travellers.’

Overview: The new fare offers a lower base price, a free auto-assigned seat, and a 7-kilogram cabin bag allowance. It applies across IndiGo's domestic and international routes, bookable via direct channels from July 1, with travel eligible from July 15.

Squeezed on costs, carriers are increasingly stripping fares to essentials, letting passengers pay only for what they use.

India-Russia Gasoline Trade

Russia has reportedly begun seaborne imports of gasoline from India to address fuel shortages caused by Ukrainian drone strikes on its energy infrastructure, according to a Reuters report.

Context: About 28% of Russia's refining capacity was offline as of June 20, after Ukrainian drones struck refineries across the country, including Moscow's main refinery on June 18. Russia, once a major petroleum products exporter, has banned gasoline and jet fuel exports for months.

Kremlin spokesman Dmitry Peskov confirmed Russia is negotiating fuel imports with several countries, with Indian refiners among the few capable of filling the gap, though shipments would take weeks to arrive by sea.

Fast Facts: At least 60,000 metric tons of gasoline have been dispatched from India to Russia, with two tankers carrying parcels of 30,000 to 40,000 tons each. Russia plans to import 4 lakh tons of gasoline monthly from various countries.

India's crude oil imports from Russia hit a record high in June, with Russian oil accounting for more than half of India's overall imports, up from 36.5% in May, Kpler data showed. India received about 2.70 million barrels per day of Russian oil in June, preliminary data from Kpler and LSEG showed.

India Manufacturing PMI Slows

India's private sector manufacturing activity expanded at its slowest pace in three months in June, as growth in international sales, purchasing activity, employment and output moderated, a private survey showed on Wednesday.

By The Numbers: HSBC's India Manufacturing PMI, compiled by S&P Global, fell to 54.2 in June from 55 in May, also coming in below the flash estimate of 54.5 released last month. The index stayed above the 50-mark separating expansion from contraction, extending the sector's growth streak to 56 consecutive months.

Except for March, rates of increase in both output and new orders were the weakest in four years, with some firms citing subdued client appetite and fierce market competition. Growth in international demand slowed to its weakest level in 39 months as European sales softened. Input cost pressures eased, recording the slowest rise since February, though prices of chemicals, electronic items, gas, metals, petroleum products, plastics, rubber and wood remained elevated.

Forecast: HSBC's chief India economist, Pranjul Bhandari, said the moderation suggests demand cooled slightly after an earlier surge linked to the Middle East conflict, with international sales recording their weakest increase since March 2023.

RBI Sounds Cyber Alarm

The Reserve Bank of India (RBI) has flagged AI-driven cyberattacks as the most significant near-term threat facing banks and non-banking financial companies (NBFCs). In its latest Financial Stability Report, the central bank said that rapid advances in artificial intelligence have enabled cybercriminals to launch more sophisticated and large-scale attacks.

Catch Up Quick: The RBI noted that attackers are increasingly using AI to create convincing phishing emails, deepfakes and voice clones, making fraud harder to detect. Financial institutions also face growing risks from their dependence on third-party technology providers and cloud infrastructure, which could amplify disruptions across the financial system if compromised.

Outcome: While banks have strengthened cybersecurity measures, the RBI said institutions must further improve cyber resilience, incident response and employee awareness. The report highlighted the need for stronger governance frameworks as financial firms adopt AI tools more widely, warning that emerging technologies could create fresh vulnerabilities alongside operational efficiencies.

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Are FPIs Getting Ready To Return To Indian Markets?

On Episode 916 of The Core Report, financial journalist Govindraj Ethiraj talks to Anindya Banerjee, Senior VP and Head of Research for Currency and Commodities at Kotak Securities as well as Sohrab Bararia, Partner, Indirect Tax at Grant Thornton Bharat.

• Are FPIs Getting Ready To Return To Indian Markets?

• Where And How Could The INR Land In Coming Months?

• Nine Years Of GST, The Unfinished Agenda

• Oil Flows Could Go Into Oversupply Soon, Says Goldman Sachs

• Tiktok’s $39 Billion Data Centre Is Coming Up In Brazil