UltraTech Cement, India’s leading cement producer, has announced plans to invest ₹18 billion (approximately $206 million) to establish a wires and cables manufacturing business. This strategic move aims to expand UltraTech’s footprint in the construction materials sector.
Key Details of the Investment:
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Business Expansion: The new wires and cables segment will be integrated into UltraTech’s existing building products division, which currently offers products such as waterproofing solutions, TMT steel bars, plywood, sanitary ware, hand tools, and electrical components.
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Investment Timeline: The ₹18 billion investment is planned over a two-year period, with the construction of a new manufacturing plant expected to be completed by December 2026.
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Market Potential: UltraTech aims to capitalize on the growing demand in the wires and cables sector, which experienced a compound annual growth rate (CAGR) of approximately 13% between fiscal years 2019 and 2024.
Market Context:
The Indian wires and cables market is currently dominated by companies like Polycab and Havells. The industry faces challenges such as volatile copper prices—a primary raw material—and intense competition from smaller local manufacturers. Additionally, the infrastructure and construction sectors, which are key consumers of wires and cables, are projected to experience a slowdown in 2025 due to a modest increase in capital spending as outlined in the recent annual budget.
This diversification aligns with UltraTech’s strategy to broaden its presence in the construction materials industry, building upon its established leadership in the cement sector.
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UltraTech Cement’s entry into the wires and cables industry positions it against several established competitors in the Indian market. As of February 2025, the leading companies in this sector, along with their approximate market capitalizations, are:
| Company | Market Capitalization (Approx.) |
|---|---|
| Polycab India Ltd | ₹87,796 crore |
| KEI Industries Ltd | ₹22,000 crore |
| Finolex Cables Ltd | ₹11,000 crore |
| Havells India Ltd | ₹75,000 crore |
| RR Kabel Ltd | ₹12,000 crore |
Note: Market capitalization figures are approximate and based on data available up to February 2025.
Key Competitors:
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Polycab India Ltd: As the largest wire and cable manufacturer in India, Polycab holds a market share of approximately 25-26% in the sector.
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KEI Industries Ltd: Specializing in high and low-tension cables, KEI Industries has a significant presence in both the domestic and international markets.
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Finolex Cables Ltd: Known for its diverse range of electrical and communication cables, Finolex serves various industries, including automotive, telecommunications, and construction.
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Havells India Ltd: A major player in the electrical equipment industry, Havells offers a wide array of products, including wires and cables, and has a strong distribution network across India.
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RR Kabel Ltd: Part of the RR Global group, RR Kabel provides extensive wire and cable solutions and has been expanding its footprint in both domestic and international arenas.
UltraTech’s diversification into this sector will require strategic positioning to compete with these well-established entities.
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