Large cable manufacturers gain as consolidation gathers momentum

Healthy demand uptick and pricing power also improve growth prospects, say analysts

For larger manufacturers in the highly fragmented cable industry, the gathering pace of consolidation is a key positive. This adds to their improving growth prospects and profitability.

Channel checks by analysts show that the pandemic has left smaller and regional companies starving for cash. Their stretched working capital needs amid recovering demand have resulted in market share gains for peers with larger capacities, stronger balance sheets, and diverse portfolios. Analysts estimate the share of unorganised players in this sector to decline to 26 per cent by 2024, from around 35 per cent as of 2018.

Even as the cables and wires segment