Daijiworld Media Network- New Delhi

New Delhi, Feb 27: The Indian cable and wire (C&W) industry is set for significant growth in exports, supported by a balanced demand-supply scenario in the domestic market, according to a report by Nuvama Research.

The report indicates that some companies may allocate additional capacities to cater to export demand, further driving industry growth.

A key trend observed in the industry is the gradual shift from unorganised to organised players. The organised market share in the C&W industry has increased from 68% in FY19 to approximately 73% in FY24, and this trend is expected to continue.

The report attributes this shift to the competitive environment among major market players, pushing the industry towards greater formalisation and efficiency.

The domestic C&W sector is expected to maintain a balanced demand-supply equation over the next three to four years.

This projection is based on:

• Publicly announced capital expenditures (capex) by leading industry players.

• An estimated 13% CAGR in industry revenue, similar to the trend seen between FY19 and FY24.

The report highlights that the expected capacity utilisation (CU) in the third year will be around 60-70%, driven by:

• Expansion of distribution networks for wires.

• Approvals for various cable stock-keeping units (SKUs).

Despite the new capacity additions, their impact will be less than 5% of the total market size, ensuring that the industry’s overall volume and profit margins remain stable in the medium term.

The Indian C&W industry is set for steady expansion, supported by:

• Rising export opportunities.

• Increasing competition among organised players.

• A structural transition towards a more regulated and organised market.

With these factors in play, the sector is poised for sustained growth, ensuring a strong future for domestic and international market players.