Wires and cables are essential components of our modern technological world, enabling the transmission of electrical signals and power from one point to another. They form the backbone of various industries, including telecommunications, power distribution, electronics, and many more. Power cables and flexible cables are essential components of electrical systems, each serving distinct purposes. Power cables are responsible for distributing electricity across different levels of voltage, while flexible cables provide the necessary mobility and flexibility for various applications. The serviceable addressable market (SAM) for wires & cables is expected to grow at a CAGR of ~15% to reach ~INR 36,525 crore by FY27.
OEM / brands, wholesalers/stockists, retailers & customers are the major stakeholders across the wires & cables value chain. The product journey starts from manufacturers with manufacturing plants across PAN India. Followed by wholesalers who buy directly from manufacturers & sell further to retailers. Retailers play a crucial part in supplying wires & cables to end customers. Governments, builders, & independent homeowners are the significant end users of wires & cables.
In the start of 1880’s the first insulated cable manufacturing started. Later with the introduction of Poly-Vinyl-Chloride’s (PVC) testing as insulated materials for cables it started replacing rubber cables in many areas. Things began to change further with the introduction of XLPE which offered higher operating temperatures, & better ageing than PVC cables while continuing to offer the same ease of use. The most recent & significant milestone to wires & cables evolution came with the emergence of modified PVC (FRLS-PVC) offering better fire resistance.
The serviceable addressable market (SAM) for wires & cables is expected to grow at a CAGR ~15% to reach ~INR 36,525 crore by FY27. The market is presently distributed among power & flexible wires & cables holding ~50% share each. ~65% of the demand arises from independent homeowners. The market is heavily reliant on retailers having 100% share in the overall sales distribution. EBITDA for wires & cables has been ranging from 12-15%.
Wires & cables market is growing rapidly owing to government projects, policy changes, & increased adoption of renewable energy. These drivers create a favourable market environment for the industry, enabling it to cater to the evolving needs of various sectors. IoT, electric vehicles, innovations in material science are going to be the major disruptors in wires & cables industry.