As UltraTech Cement announced its entry into the wires and cables segment, leading stocks in this space tumbled up to 15% on Thursday, February 27.

KEI Industries and Polycab India shares declined 15%, while RR Kabel stock was down 13% on the National Stock Exchange (NSE) at 10:00 am.

UltraTech Cement, an Aditya Birla Group company, proposed to extend its presence in the wires and cables segment with a capital expenditure of ₹1,800 crore over the next two years.

The company said it aims to leverage its extensive manufacturing expertise and connection with the end customer to deliver high-quality wires and cables. The plant will be established near Bharuch in Gujarat and will likely be commissioned by December 2026.

The company aims to meet the growing demand for wires and cables (W&C) in various sectors, such as residential, commercial, industrial, and infrastructure applications.

The W&C industry has witnessed a revenue compound annual growth rate of around 13% between the financial year 2018-19 (FY19) and FY24. With the migration from the unorganised to the organised market, the outlook remains robust.

Kumar Mangalam Birla, Chairman of Aditya Birla Group, 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 in the construction sector. Obviously, we will continue to focus and grow our core Cement business.”

“This year, UltraTech reached a new milestone of crossing 175 mtpa of cement capacity in India and is likely to emerge as the largest cement company globally (by sales volume ex-China). UltraTech remains committed to delivering superior quality building materials and solutions that contribute to the sustainable development of a Viksit Bharat,” he added.