India's Cables & Wires Industry: The Silent Backbone of a $5 Trillion Economy
- Priyanka
- 2 days ago
- 6 min read
Updated: 8 hours ago
Ever noticed how no one talks about wires—until something stops working? They’re everywhere, in everything, but rarely in the spotlight. India’s growth story is deeply tied to the cables & wires industry — a sector that quietly powers everything from power and real estate to railways, EVs, Telecommunication, Power Transmission & Distribution, Consumer Electronics and data centers. Almost every capex story in India runs through a cable. And now, with major infrastructure spending and exports picking up, the sector is entering a high-growth phase.
As India lays down lakhs of crores in infrastructure, energy, and digital connectivity, the demand for reliable, high-performance wiring systems is exploding. Behind the scenes, companies like Polycab, KEI Industries, RR Kabel, Finolex, Havells, and even new entrants like Adani and UltraTech Cement are racing to expand capacities, launch export lines, and ride the next wave of industrial capex.
One of the most exciting cable markets right now. India may be a fraction of global demand currently (roughly 8% of global cables market in FY24), but it’s growing faster than the world average. The India wires and cables market size was valued at USD 9.32 billion in 2024. The market is projected to grow from USD 10.01 billion in 2025 to USD 17.08 billion by 2032, exhibiting a CAGR of 7.94% during the forecast period. This expected growth is driven by a significant increase in infrastructure spending in India, the ongoing momentum of the China+1 export strategy, and the rapid pace of electrification across various sectors.
However, many in the industry believe this might be a conservative view. If you look at recent trends in India, the growth has been much sharper in the past few years. For instance, between FY20 and FY25, the Indian wires & cables market doubled from ₹859 billion to ₹1,702 billion (i.e., ₹85,900 crore to ₹1.70 lakh crore) – a CAGR of ~14.7%. Industry analysts project the sector to sustain a double-digit growth of around 11–13% annually from FY25 through FY30. The leading cable companies themselves are quite bullish. Polycab (India’s largest cable manufacturer) estimates the domestic W&C market grew from ~₹35,000 crore in FY15 to ~₹80,000 crore in FY25, and they project it to reach ₹1,15,000 crore by FY28. That implies roughly 13% CAGR in the mid-term – pretty robust growth. Jefferies, a global brokerage, similarly expects India’s cable & wire industry to grow ~12–13% annually (about 2× real GDP growth) and reach ₹1,30,000 crore by FY30.
India’s Growing Demand for Wires and Cables
Organized cable and wire manufacturers are projected to achieve a revenue growth of 15-16% in FY26, following a solid growth trajectory of 16% in FY25. This expected growth is driven by a significant increase in infrastructure spending in India, the ongoing momentum of the China+1 export strategy, and the rapid pace of electrification across various sectors.
The India wires and cables market was valued at USD 9.32 billion in 2024 and is projected to reach USD 17.08 billion by 2032, growing at a CAGR of 7.94%. Key growth drivers include:
Infrastructure Development: India’s government is investing heavily in infrastructure, with a plan to pump over ₹9 trillion into power, railways, and smart cities initiatives over the next few years. This increase in capital expenditure (capex) will be focused on the following areas:
45–55 GW of new power capacity addition
10,000 km of new interstate transmission lines
Metro rail expansions and real estate development
These projects are expected to generate an additional ₹20,000 crore worth of demand for wires and cables in FY26 and beyond, primarily for the installation of power cables, telecom cables, and specialty cables for various infrastructure developments.
Electric Vehicles (EVs) and Charging Infrastructure:
India’s EV adoption is rapidly gaining traction. The government has set a target of 30% of new cars to be electric by 2030, which directly correlates with the demand for EV charging cables.
EV Charging Infrastructure: India is expected to set up 2 million EV charging stations by 2030, which will require heavy-duty charging cables capable of carrying high currents.
Vehicle Manufacturing: As Indian automakers ramp up EV production, the cabling demand for in-vehicle wiring, battery charging systems, and charging stations will also rise.
China+1 Exports Opportunity:
India’s cables and wires industry is poised to increase its export share due to global demand diversification. Exports are expected to grow even faster, with an increase of 20–22% YoY, driven by the China+1 strategy being adopted by Western countries, including the United States and Europe. These regions together account for approximately 45–55% of India’s cable exports. Indian manufacturers are gaining preference over their Chinese counterparts due to their expanding product range and adherence to global quality standards.
Global Demand: Indian cable manufacturers are targeting markets like the Middle East, Africa, and Southeast Asia, where infrastructure growth is at an all-time high.
Product Diversification: Indian companies are not just exporting low-cost cables, but also specialized products like fire-resistant cables, solar cables, and telecom wires.
Capex Cycle at Full Throttle:
With capacity utilization expected to peak at 80-85% in FY24 and healthy growth prospects, the capital expenditure (capex) for the industry has surged by ~70% YoY in FY25 and is set to maintain its momentum into FY26. CRISIL estimates that organized players will boost installed capacities by ~40% by incurring ₹8,000–8,500 crore in capex over the FY25–FY26 period. This is a 70% increase over the capex incurred between FY22 and FY24.
While this increase in capex will result in a slight drop in capacity utilization (to 75-77% in FY26), it will remain healthy due to growing demand across key sectors.
With ₹8,500 crore planned in capex, the industry is set to handle a 20%+ volume growth in FY27–28, positioning the market for sustained expansion. Despite these investments, manufacturers are maintaining strong working capital discipline, with debt-to-equity (D/E) ratios under 0.8x and 20%+ return on capital employed (RoCE), ensuring that credit profiles remain healthy and stable.
Operating Margins and Stability:
Despite the substantial increase in capacity, operating margins are expected to remain stable at 10-11%, even on a significantly larger revenue base. This is due to the industry's low fixed cost structure, which allows players to pass on fluctuations in raw material costs (which account for around 70% of overall sales) to end consumers, albeit with a slight lag. CRISIL’s analysis highlights that, despite volatility in raw material prices (especially copper and aluminum), cables and wires manufacturers have demonstrated the ability to maintain stable margins through price pass-through mechanisms.
Potential Risks and Market Volatility
While the future looks promising for the cables and wires industry, there are potential risks to monitor:
Competitive Intensity: Competition is rising as new players from allied industries enter the market. Adani Enterprises, through Kutch Copper Ltd (KCL), recently formed a JV, Praneetha Ecocables, with Praneetha Ventures to produce cables and wires. Similarly, UltraTech Cement announced a ₹1,800 crore investment to expand into the wires and cables sector, with a greenfield plant in Bharuch, Gujarat, set to begin operations by December 2026.
Raw Material Price Volatility: Sharp fluctuations in the prices of copper and aluminum could impact profitability. Given that raw material costs form a large part of total expenses, companies must manage these fluctuations carefully to protect margins. 🔍 Let's Talk About the Companies
Polycab India Ltd
Revenue FY25: ₹22,408 Cr (+24% YoY)
EBITDA Margin: 13.2%
PAT FY25: ₹2,046 Cr (+13.47% YoY)
Capex FY26: ₹6,000 Cr
Exports: 6% of revenue (targeting 10% by FY30)
Domestic: 94% of revenue
R R Kabel Ltd
Revenue FY25: ₹7,618 Cr (+15.5% YoY)
EBITDA Margin: 6.4%
PAT FY25: ₹312 Cr (+4.69% YoY)
Capex FY26–28: ₹1,200 Cr
Exports: 26% of revenue
Domestic: 74% of revenue
Dynamic Cables Ltd
Revenue FY25: ₹1,025 Cr (+33.46% YoY)
EBITDA Margin: 10%
PAT FY25: ₹65 Cr (+71% YoY)
Capex FY26: ₹35 Cr
Exports: 9% of revenue
Domestic: 91% of revenue
KEI Industries Ltd
Revenue FY25: ₹9,736 Cr (+20% YoY)
EBITDA Margin: 10%
PAT FY25: ₹696 Cr (+20% YoY)
Capex FY26: ₹1,400 Cr
Exports: 13.7% of revenue
Domestic: 86.3% of revenue
Finolex Cables Ltd
Revenue FY25: ₹5,319 Cr (+6% YoY)
EBITDA Margin: 10%
PAT FY25: ₹701 Cr (+8% YoY)
Capex FY26: ₹104 Cr
Apar Industries Ltd
Revenue FY25: ₹18,581 Cr (+15% YoY)
EBITDA Margin: 8%
PAT FY25: ₹821 Cr (-0.48% YoY)
Capex FY26: ₹800 Cr
Exports: 44% of revenue
Domestic: 56% of revenue
From lighting up homes to powering data centers, from EVs to metro networks, cables and wires are the silent enablers of India's infrastructure boom. While they rarely make headlines, they lie at the heart of every capex story unfolding across the nation.
With India committing multi-trillion rupees towards infrastructure, energy, and digital connectivity, the demand for high-quality wiring systems is surging. And so is the confidence of industry leaders. From Polycab to KEI, from RR Kabel to emerging players like Dynamic Cables — companies are expanding capacity, entering new geographies, and launching advanced products to capture this once-in-a-generation growth cycle.
The Indian wires and cables market was valued at USD 9.32 billion in 2024 and is projected to reach USD 17.08 billion by 2032, growing at a CAGR of 7.94%. Despite holding just ~8% global market share, India is growing faster than any major economy in this space.
With strong order books, steady margins, and robust export momentum, the cables and wires sector is now firmly positioned as one of India’s most promising high-growth industries.
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