Brand name and trust matters, even for wires and cables industry. Go to local store and ask for wire, he will ask “saadha wala chahiye ya polycab?”, interior designers and contractors mention Polycab wire in their quotations,
If anyone wants to purchase a wire for their home or other project, they will prefer tried and tested product over something new, even if it means paying slightly higher price.
even though there is no rocket science in making cables and wires, polycab has managed to build a name for itself
Actual consumers do not care about about stock price or competition or margings,
Consumer will have to chose between Polycab wire or Saadha wire (ACC, Adani ka wire won’t be polycab ka wire)
Existing supply chain, local and overseas dealer network etc for Polycab will still be there. And till new entrants reach the stage where actual production of wires begins, Polycab would be expanded further.
Cement and Oil consumers go to different outlets, and if wire is available at those outlets they might not make the purchase, for wire they will go to local hardware store, where Polycab will dominate.