The post-pandemic recovery in construction and infrastructure has boosted volumes in the domestic cable and wire business. With the general elections fewer than 7 months away, government infrastructure expenditure will boost demand. However, commodity price volatility may limit future volumes. The 5G expenditure has also boosted the communication cables industry.

Demand for renewable energy and industry expenditures in distribution and transmission are likely to boost growth.

Homegrown Godha Cabcon & Insulation filed a filing stating that Ducab, a leading cable provider, may buy a large interest.

Ducab leads modern energy and infrastructure projects across the Middle East, Asia, Australia, the Americas, and Europe. It has grown in the conductors and wires industry.

The domestic cable and conductor maker serves power transmission. The development comes as India’s wire and cable market soars.

Ducab is negotiating a 22.5% stake, according to the document. “Ducab wants a big stake in Godha Cabcon. The NSE filing states that a preferential issuance will complete the transaction.

A research says the Indian wire and cable business is increasing 15% CAGR. This shows rapid power and infrastructural growth in the country.

PLI schemes from the central government have also helped businesses expand production. The wires and cable industry makes up 40% of the electrical industry.

Conclusion

The domestic cable and wire business is growing due to post-pandemic development and infrastructure recovery. Government spending on infrastructure projects will boost demand with the general elections less than 7 months away. However, commodity price volatility may limit volumes. Due to 5G expenditure, the communication cables business is also growing. Demand for renewable energy and industry expenditures in distribution and transmission are likely to boost growth. Leading cable supplier Ducab is in talks to buy a large share in India’s Godha Cabcon & Insulation. The Indian wire and cable market accounts for 40% of the electrical industry and is increasing 15% CAGR.

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