The significant decline in Polycab’s share prices can be attributed to allegations of tax evasion against the company. The Income Tax Department of India reported finding undisclosed income of approximately ₹200 crore (or around $24.1 million) linked to Polycab. This revelation led to a substantial drop in the company’s stock value, with shares crashing by over 7% on January 9, 2024. This was the lowest the shares had fallen in over two months, reaching around 4,996.2 rupees.
Further details emerged indicating major tax irregularities within Polycab India. It was reported that the company’s promoter had shown sales in his personal account rather than in the company’s account, with annual sales of about ₹250-300 crore being recorded in his personal account instead
About Polycab:
Polycab India Ltd is a prominent company in the Indian electrical industry, specializing in the manufacture and sale of wires, cables, and fast-moving electrical goods (FMEG). The company’s product range includes not only cables and wires but also switches, switchgear, LED lights, fans, solar inverters, and pumps. These products are well-recognized under the Polycab brand.
Founded in 1996, Polycab has established a substantial operational footprint in India, with approximately 25 manufacturing facilities spread across states like Gujarat, Maharashtra, Uttarakhand, and the union territory of Daman. The company’s revenue and net income reflect its significant position in the market, with reported revenues of 161.46 billion INR and a net income of 16.07 billion INR. Polycab employs about 4,490 people and is headquartered in Mumbai, Maharashtra.
The company’s business activities are primarily divided into three segments: Wires and Cables, Fast Moving Electrical Goods (FMEG), and Others. Among these, the Wires and Cables segment is the major revenue generator for Polycab. This segment includes a wide array of products catering to various needs in the electrical industry.
Overall, Polycab’s diverse product range, extensive manufacturing capabilities, and strong market presence in India highlight its role as a key player in the electrical goods and manufacturing sector
