UltraTech Cement Limited, the flagship company of the Aditya Birla Group, has announced its foray into the wires and cables segment, marking a significant expansion beyond its core cement business. The company’s Board has approved a capital expenditure of ₹1,800 crore for the new venture, which is expected to be completed over the next two years.
This development could have implications for existing market leaders such as Havells India, Polycab India, and KEI Industries, which dominate the organized wires and cables sector. The competition in this space is intensifying as new players with strong financial backing and brand equity enter the segment.
UltraTech Cement’s Entry Into Wires and Cables Segment
UltraTech Cement will execute this investment through its Building Products Division, leveraging its manufacturing expertise and market presence in the infrastructure and real estate sector. The new plant will be set up in Bharuch, Gujarat, and is projected to be operational by December 2026.
The company aims to capitalize on the growing demand for wires and cables across multiple sectors, including residential, commercial, infrastructure, and industrial applications. The Indian wires and cables industry has witnessed a revenue CAGR of approximately 13% between FY19 and FY24, primarily driven by increased electrification, urbanization, and a shift from unorganized to organized players.
Speaking on the move, Aditya Birla Group Chairman Kumar Mangalam Birla stated,
“We intend to expand our presence in the construction value chain through our foray into the cables and wires segment, which aligns with our vision of providing comprehensive solutions to our end customers. However, our core cement business remains our priority. UltraTech recently crossed the 175 MTPA cement capacity milestone in India and is on track to become the largest cement company globally (excluding China) by sales volume.”
While UltraTech Cement has not yet disclosed the product range, pricing strategy, or distribution plans, its entry is expected to intensify competition for established players such as Polycab India, Havells India, and KEI Industries.
Q3 FY25 Performance of Havells, Polycab, and KEI Industries
Havells India Q3 FY25 Financial Performance
- Net Profit: ₹278 crore (-3% YoY)
- Revenue: ₹4,889 crore (+10.8% YoY)
- EBITDA: ₹426.4 crore (-1.5% YoY)
Despite growth in revenue, Havells saw a dip in profit and EBITDA, indicating some pressure on margins. The company’s strong foothold in the premium segment could help it maintain its position, but UltraTech’s entry could intensify competition in price-sensitive categories.
Polycab India Q3 FY25 Financial Performance
- Net Profit: ₹463.3 crore (+11% YoY)
- Revenue: ₹5,226.1 crore (+20% YoY)
- EBITDA: ₹719.9 crore (+26% YoY)
Polycab India reported strong revenue and profit growth, reinforcing its leadership position in the segment. However, the company may need to strengthen its innovation and pricing strategies to counter UltraTech’s competitive pricing and brand trust factor.
KEI Industries Q3 FY25 Financial Performance
- Net Profit: ₹164.8 crore (+9.4% YoY)
- Revenue: ₹2,467.2 crore (+19.8% YoY)
- EBITDA: ₹240.7 crore (+12.3% YoY)
KEI Industries continues to benefit from infrastructure and power transmission demand, but UltraTech’s expansion into the sector may create pricing and market share challenges in large-scale B2B orders and government contracts.
Disclaimer:
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
