UltraTech Cement Limited, a flagship company of the Aditya Birla Group, has announced its expansion into the wires and cables segment as part of its strategy to strengthen its position as a comprehensive building solutions provider. The board has approved a capital expenditure of ₹1,800 crore for this new venture, which will be executed over the next two years.
The company is setting up a plant near Bharuch, Gujarat, expected to be commissioned by December 2026. CLSA, in its latest report, highlighted that UltraTech Cement is likely to prioritize wires over cables due to their faster market turnaround and stronger demand in retail and housing segments.
According to CLSA, UltraTech’s move into this sector is aligned with its broader vision of providing comprehensive building solutions to end consumers. Given the high growth potential of 13% CAGR between FY19-24 and the increasing shift towards organized players, UltraTech sees this as an attractive market opportunity.
CLSA pointed out that the wires and cables industry in India is valued at ₹800 billion (US$9 billion), with nearly two-thirds dominated by cables. The sector is currently in an expansion phase, with incumbents already in the middle of spending ₹100 billion in capacity expansion over the next 2-4 years.
With UltraTech’s additional ₹1,800 crore capex and expected further expansions by competitors, CLSA noted that the industry will need to grow at a 11-13% CAGR over the next 4-5 years to accommodate the increased competition and new capacities. Any slowdown in growth could impact profitability across the sector.
CLSA believes UltraTech is focusing more on wires rather than cables because of the lower regulatory barriers and quicker market turnaround. While cables require multiple approvals and tender processes, wires have a relatively shorter sales cycle, making them a faster-moving product in the market.
The report also highlighted that UltraTech’s existing dealer network of around 4,500 UBS stores, which already distributes other building materials, will provide a strong foundation for its wires business. However, leading competitors such as Polycab have over 2,200 distributors and 200,000+ retail touchpoints, indicating intense competition in the sector.
Despite the new venture, UltraTech Cement remains committed to its core cement business, having recently surpassed the 175 MTPA capacity milestone in India. CLSA emphasized that while this diversification move aligns with the company’s broader vision, the overall profitability of the wires and cables sector will depend on sustained growth and market demand over the medium term.
The investment will be directed through UltraTech’s Building Products Division, leveraging the company’s manufacturing expertise and market presence. The plant will be established near Bharuch, Gujarat, and is expected to be commissioned by December 2026.
Speaking on the development, 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.”
