Winding wires emerge as key beneficiaries of India's electrification and power infrastructure boom: PhillipCapital
New Delhi, July 26
India's winding wire industry is entering a structural growth phase, supported by rapid electrification, rising investments in power transmission and distribution, renewable energy adoption and accelerating industrialisation, according to a report by PhillipCapital.
The brokerage said winding wires, which are essential components in transformers, motors and generators, provide direct exposure to India's expanding power infrastructure and energy transition. Rising demand from electric vehicles, data centres, industrial automation and heating, ventilation and air-conditioning (HVAC) is expected to support sustained volume growth and create opportunities for margin expansion among organised players.
India plans to nearly double its installed power generation capacity from around 442 GW in FY24 to approximately 900 GW by FY32, supported by more than Rs 9 trillion of planned investments in transmission infrastructure. The expansion of substations, transmission lines and transformer capacity is expected to drive long-term demand for distribution, power and specialty transformers, thereby supporting winding wire manufacturers.
Renewable energy and grid modernisation are also emerging as important growth drivers. India's non-fossil power capacity target of 612.7 GW by 2032, from 194 GW in 2024, implies a 15.5 per cent CAGR, according to the report. The deployment of battery energy storage systems, smart grids and green hydrogen projects is expected to generate additional demand for specialised winding wires used in transformers, generators, inverters and other electrical equipment.
PhillipCapital said the industry is also moving towards higher-value products, including continuously transposed conductors, paper-insulated conductors, rectangular wires, corona-resistant wires and EV-grade winding wires. These products typically involve stringent qualification requirements and higher entry barriers, supporting improved profitability for organised manufacturers.
The brokerage expects industry formalisation and the China+1 strategy to create additional opportunities as global supply chains diversify and exports of Indian transformers, motors and electrical equipment increase.
Copper is expected to remain the preferred conductor for critical applications due to its superior electrical conductivity, thermal efficiency and durability. Demand is likely to remain strong from EV traction motors, renewable energy equipment, HVDC transformers, industrial automation and data centres.
The report also highlighted a structural opportunity in copper tubes, supported by India's expanding HVAC market, low room air-conditioner penetration and import substitution.
— ANI
Reader Comments
This is promising but we need to ensure the benefits reach workers—fair wages, skill development, and safety in factories. Also, the report mentions copper preference—what about aluminium's role in cost-sensitive segments? A balanced approach is needed.
Electrification and EV growth are real tailwinds. Companies like KEI and RR Kabel are well-positioned. But the key will be execution—timely expansion and managing raw material costs (copper prices). Exciting times for the sector! 📈
This is pure speculation to boost stock prices—easy to talk about "structural growth" but ground reality is different: land acquisition for transmission lines is a nightmare, discoms are bankrupt, and the tender process is bogged down. Let's see real execution before celebrating.
Interesting analysis. As someone following Indian industrial stocks, the China+1 angle is real. But the report glosses over challenges—copper price volatility and competition from cheap imports. Still, the demand from data centres and EVs is a secular trend. I'd be cautiously optimistic.
Finally, some focus on ancillaries! Winding wires aren't glamorous but they're the backbone of any electrical system. The move to higher-value products (like CTCs and EV-grade wires) shows innovation. Hope our MSMEs also benefit from this growth, not just big players.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.