Diamond Power Infrastructure Ltd (Dicabs), once a bankrupt Vadodara-based cable manufacturer, has staged one of India’s most striking corporate comebacks. Backed by the Adani family’s extended circle, the company is now setting its sights on a ₹10,000 crore revenue milestone by 2030—a nearly ninefold leap from the ₹1,115 crore projected for FY25.
A Turnaround Story
Dicabs’s revival began in 2022 when Gujarat-based air-cargo company GSEC Ltd, led by Rakesh Ramanlal Shah, acquired it for ₹500 crore from bankruptcy proceedings. Shah, married to Gautam Adani’s sister Priti, has since reshaped Dicabs into a vital cog within the Adani ecosystem.
The transformation was rapid. New ownership brought financial discipline, fresh investments, and strategic alignment with Adani Group’s sprawling power and energy ventures. Within three years, the firm’s stock price soared over 500%, reflecting investor confidence in its growth trajectory.
The Adani Connection
Dicabs’s resurgence is inseparable from its proximity to the Adani Group. Nearly 82% of its orders since April 2023—amounting to ₹3,900 crore—have originated from Adani companies, up from 75% the previous year.
Adani’s vast presence in coal power, renewables, and transmission has provided Dicabs with a ready-made market for its cables and conductors. Beyond that, Shah and Adani also co-own Smart Meters Technologies Pvt. Ltd., a joint venture between Adani Total Gas Ltd and GSEC.
Despite these links, regulatory rules ensure Dicabs’s dealings are not classified as related-party transactions since a brother-in-law does not fall within Sebi’s definitions.
Vision 2030: Scaling New Heights
In its 2024-25 annual report, Dicabs laid out its “Vision 2030”:
- Achieve ₹10,000 crore topline through volume expansion, technology leadership, and global exports.
- Expand aggressively into West Asia, Africa, and South America.
- Build consumer-facing cable brands to diversify beyond B2B power conductors.
- Strengthen backward integration—two aluminium rod mills are already operational, with plans for consumer cable manufacturing.
The strategy positions Dicabs not only as an Adani supplier but also as a global player in the rapidly growing $200 billion wire and cable industry.
Market Valuation and Challenges
The markets have rewarded Dicabs’s transformation. Trading at a price-to-earnings multiple of 211.62 on the BSE, its valuation reflects optimism, though concerns remain about high promoter shareholding—currently at over 84%. Sebi mandates a reduction to 75% within three years of acquisition, a compliance task Shah must navigate.
Industry Tailwinds
The timing is fortuitous. India’s wire and cable sector, worth ₹85,000-90,000 crore, is forecast to grow 12–15% annually over the next five years, driven by infrastructure, EV adoption, and renewable energy. Globally, demand will surge with investments in energy storage, transmission, data centres, and EV charging networks.
From Collapse to Growth Engine
Founded in 1979 by Suresh Narain Bhatnagar, Dicabs collapsed under debt in 2018, leading to a CBI probe and the arrest of its former promoters. Its acquisition by Shah in 2022 marked a reset. With 90% control and a market cap of around ₹1,000 crore at the time, the company was a distressed asset with latent potential.
Two years later, Dicabs has become a textbook case of how strategic alliances and strong industrial linkages can engineer corporate revival. Its journey from bankruptcy to billion-dollar ambition underscores both the risks and rewards of India’s infrastructure-led growth story.
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This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.