Polycab India vs. KEI Industries – India’s Electrical and Cable Sector

The rivalry between Polycab India and KEI Industries in the electrical and wire manufacturing sector presents a fascinating comparison of their business models, market positions, and strategies for future growth. This analysis dives deep into the key facets of each company, examining their segments, financial health, and future outlook to provide insights into their competitive dynamics.

Business Overview and Market Position

Polycab India Limited, established in 1996, has emerged as a leading manufacturer in the Fast-Moving Electrical Goods (FMEG), wires, and cables industry. With a 22-24% market share in the organized sector and a 15-16% share overall, Polycab has built a substantial presence with 25 manufacturing facilities across India. It boasts a wide distribution network of over 4,300 dealers & distributors and more than 205,000 retail outlets nationwide. The company’s products serve diverse sectors, including Oil & Gas, Metal, Infrastructure, Chemicals, Cement, and Power, leveraging a vast product range of 12,000+ SKUs with global certifications​​​​.

KEI Industries Limited, on the other hand, was founded in 1968 and has grown into a global entity offering a comprehensive suite of wire & cable solutions. With over 30,000 channel partners and a presence in over 55 countries, KEI caters to a diverse clientele. The company prides itself on its wide array of products, including Extra-High Voltage (EHV), Medium Voltage (MV), and Low Voltage (LV) power cables, and has ventured into the Engineering, Procurement, and Construction (EPC) services industry. KEI has shown a devotion to expanding its manufacturing capabilities, targeting opportunities across various sectors​​.

Financial Health and Performance

Polycab India has exhibited robust financial performance with a 5-year CAGR of 15.29% in operating revenue, growing from ₹7,985 Crores in FY19 to ₹14,107 Crores in FY23. Its net profit has also seen a significant rise, achieving a CAGR of 26.54% during the same period. The company has managed to maintain its operating profit margins between 9% and 13%, and its net profit margins have improved from 6.3% to 9.1% in FY23. Noteworthy is Polycab’s ambitious target of achieving ₹20,000 crores in sales by 2026 through strategic initiatives under Project Leap​​.

KEI Industries has demonstrated consistent revenue growth with a 5-year CAGR of 13.06% and a notable net profit CAGR of 27.59%. KEI’s operating revenue increased from Rs 4230 crore in FY19 to 6912 crore in FY23, indicating strong demand and brand power. The company has worked towards reducing its debt, lowering its debt-to-equity ratio to 0.05 in FY23, which has contributed to an impressive interest coverage ratio of 19.5 times. KEI’s future plans include investing ₹1,000 Crore in a new manufacturing facility in Gujarat and aiming to increase its revenue contribution from the retail business to 50% within two-three years​​.

Future Strategies and Market Outlook

Both companies are poised for growth, with Polycab focusing on expanding its FMEG business and enhancing its digital and distribution capabilities under Project Leap. KEI, on the other hand, is set to expand its manufacturing capacity and aims to increase its footprint in the retail and US export markets. The Indian wire and cable industry, valued at Rs 60,000-65,000 crore, is expected to grow at a CAGR of 12% over FY 2021-26, offering substantial growth opportunities for both companies​​.


Polycab India and KEI Industries are both well-positioned to capitalize on the growth prospects of the Indian electrical goods market, backed by their strong manufacturing capabilities, extensive distribution networks, and strategic growth initiatives. While Polycab holds a larger market share and a broad product range, KEI’s aggressive growth strategy and focus on exports and retail expansion present a compelling growth trajectory. Investors and stakeholders in the electrical goods sector will undoubtedly watch these companies closely as they continue to expand and compete in this dynamic market.

Date Updated:

March 17, 2024

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