Thu Feb 27 05:10:00 UTC 2025: **UltraTech Cement’s ₹1,800 Crore Foray into Wires and Cables Shakes Up Market**
**Mumbai, February 27, 2025** – UltraTech Cement, a subsidiary of the Aditya Birla Group, sent shockwaves through the Indian wires and cables industry today, announcing a significant investment of ₹1,800 crore over the next two years to enter the sector. The news caused a market downturn, with leading wires and cables stocks plummeting by as much as 15%.
UltraTech plans to leverage its established manufacturing capabilities and strong customer relationships to produce high-quality wires and cables. A new plant near Bharuch, Gujarat, is expected to be operational by December 2026. The company cited the robust growth of the wires and cables market, with a compound annual growth rate of approximately 13% between FY19 and FY24, as a key driver for its expansion.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, stated that this move is part of a broader strategy to expand the group’s presence within the construction value chain, offering comprehensive solutions to customers. He emphasized that the core cement business will remain a priority, noting UltraTech’s recent achievement of exceeding 175 mtpa cement capacity in India.
The unexpected entry of a cement giant into the wires and cables sector has created considerable uncertainty among existing players, leading to the significant drop in share prices observed today. Analysts are now assessing the long-term impact of UltraTech’s investment on market competition and pricing.
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