Wired For Growth: Copper scrap imports rise in Jan-June on cable sector demand

Incumbent players are rapidly scaling up wire and cable capacities

Imports of copper scrap grew by around 37 percent in the first half of the ongoing calendar year, data from metal market analytics firm BigMint shows, amid increased demand and aggressive capacity expansion plans of players in the cable and wire industry.

Analysts say that as large conglomerates like the Aditya Birla group and Adani group prepare to enter the segment, incumbents such as KEI Industries, Havells, Polycab, and others have announced aggressive expansion plans and increased product offerings to retain market share.

BigMint data showed that Indian firms imported 1,85,543 tonnes of copper in January-June 2025, compared to 1,34,957 tonnes in the same period last year. BigMint's report also said that removal of the 2.5 percent duty on copper scrap may have contributed to the rise in imports. Much of the copper scrap was imported from the United States and Saudi Arabia.

As the Adani group (through Adani Enterprises), and the Aditya Birla group (via UltraTech Cement) prepare to enter the highly competitive cable and wire segment, the sector is seen to be undergoing large-scale consolidation around branded players.

UltraTech has announced its plans to invest around Rs 1,800 crore to set up a wire and cable facility at Bharuch in Gujarat. The firm is counting on group synergies with Hindalco Industries for aluminium and copper supplies.

Adani group's entry into the sector, through a joint venture, is expected to be supported by its Kutch Copper facility in Gujarat's Mundra district. Adani Enterprises is expected to incur a capex of around $1.2 billion on this.

According to a Motilal Oswal Financial Services report, the market share of branded cable and wire players has increased significantly over the past decade, touching 80 percent in FY25.

A report by CRISIL Ratings noted that strong focus on railways, real estate, and power generation and transmission helped cable and wire manufacturers post a revenue growth of around 16 percent in FY25.

Among the incumbents, KEI Industries expects to invest around Rs 1,700 to Rs 1,800 crore for a greenfield cable plant in Sanand, Gujarat. The first phase of this is already operational.

Havells, the second largest player in the cable and wire industry, plans to spend around Rs 715 crore to expand its facility at Alwar in Rajasthan, to add 0.25 lakh kilometres (km) (or tonnes, which is the metric we've used above) of capacity. Further, it is planning a greenfield facility at Tumakuru in Karnataka, and is also counting on company-wide synergies with regard to its consumer electronics and EMS businesses, including an EMS unit at Neemrana, Rajasthan, that's under development.

Polycab, the largest incumbent, also plans to increase its market share across product verticals. It has projected a capex of Rs 6,000-8,000 crore over a five year-period to build capacity, including in the "extra high voltage" cables segment.

Copper shortage 

The elevated imports come at a time when India continues to be a net copper importer amid a significant shortage in India's copper smelting facilities. Against a consumption of around 8,44,000 tonnes in FY25, Indian smelters only produced around 5,73,000 tonnes of refined copper.

The closure of Vedanta's Sterlite Copper facilities in Tuticorin, Tamil Nadu, in 2018 has contributed to India being a net copper importer. Vedanta aims to produce more copper substrate through its facilities in Silvassa, as well as a proposed new facility in Saudi Arabia that entails an investment of $2 billion.

Analysts said that the copper substrate shortage is also expected to be somewhat mitigated through the commissioning of Adani's Kutch Copper facility. This is expected to have a capacity of 5,00,000 tonnes per annum in the first phase, and 1 million tonnes per annum in phase two.