Polycab India expects the domestic wires and cables sector to reach ₹1.7 lakh crore by 2030, driven by infrastructure and electrification. The company is managing raw material risks through tighter manufacturing control as major industry players increase capital spending. Investors should track if these expansion efforts can help maintain profit margins amid commodity price volatility.
The domestic wires and cables industry is entering a phase of rapid growth, with projections suggesting the market size could reach ₹1.7 lakh crore by FY30. Polycab India has highlighted that this growth is not limited to traditional infrastructure projects but is being supported by a shift in how the economy functions. While grid modernization and renewable energy projects remain the primary demand drivers, new sectors like data centers, 5G network rollout, and electric vehicle charging infrastructure are creating a need for specialized and medium-voltage cables.
This shift presents both an opportunity and a challenge for manufacturers. The industry relies heavily on raw materials like copper and aluminum, which are known for price fluctuations. These price swings can directly impact profit margins. To manage this, major players are focusing on tightening their control over the manufacturing value chain. For instance, Polycab noted its ability to switch to aluminum-based products when viable as a strategy to reduce dependency on volatile copper prices. This type of flexibility is becoming a standard approach for companies aiming to protect their earnings during periods of commodity price instability.
To capture an estimated ₹67,700 crore in incremental domestic demand projected between FY26 and FY30, the industry is significantly increasing its capital spending. Major participants in this space, including Polycab, KEI Industries, RR Kabel, and Havells India, have collectively announced capital spending plans ranging between ₹12,500 crore and ₹14,900 crore. These investments are intended to expand capacity and move the business focus toward higher-value products that offer better margins than traditional commoditized goods.
For investors, the key area to monitor will be how effectively these companies execute their expansion projects. While the demand for power and communication infrastructure is expected to remain firm, the actual benefit to the bottom line will depend on managing raw material costs and maintaining operational efficiency. As the manufacturing ecosystem matures, the ability of these companies to maintain their profit margins while scaling up their capacity will be a critical factor for shareholders to watch in the coming quarters.