Motilal Oswal Analyzes the Indian Cables and Wires Sector

The Indian cables and wires industry is looking strong, and Motilal Oswal Financial Services sees significant growth coming. They predict rising demand and higher prices for the materials used in cables will lead to increased sales for companies in this sector. This is particularly exciting for companies like Polycab India, KEI Industries, and RR Kabel.

Key Points

• Strong demand expected due to rising commodity prices.
• Revenue growth projected at 13-14% annually (FY25-30).
• Market will double to ₹1.9 trillion by FY30.
• Exports are booming, up 19% over the last 5 years.
• Data center expansion creates a major cable demand surge.
• Raw material prices are rising, boosting company revenue.

Motilal Oswal’s analysis shows the cables and wires industry is expected to grow significantly. Companies like Polycab India, KEI Industries, and RR Kabel are seen as good investments due to this strong outlook.

The industry is driven by several factors, including increasing demand for data centers – these facilities use a lot of cables – and rising prices for the key materials like copper and aluminum. Currently, exports are strong, with a growing share of the global market.

Specifically, the data center market in India is growing rapidly, fueled by increased digitalization and cloud computing. These data centers require a lot of cables, offering a steady stream of business for cable manufacturers. Moreover, rising commodity prices are helping companies maintain their profit margins.

Exports to countries like Germany, the US, and the UAE are increasing, showcasing the industry’s global reach. Even with new tariffs coming into effect in August 2025, some companies, like KEI Industries and RR Kabel, are seeing a significant boost in export revenues. The US is a major market, accounting for 25% of total exports.

Copper and aluminum prices have risen considerably, providing companies with the ability to pass on these costs to customers. This is a crucial factor in maintaining revenue and profit growth. Motilal Oswal’s research highlights that this industry is poised to become a key driver of economic growth in India.

“The cables and wires industry is expected to grow significantly. Companies like Polycab India, KEI Industries, and RR Kabel are seen as good investments due to this strong outlook.”