Thu Feb 27 07:20:00 UTC 2025: ## UltraTech’s Entry into Cables and Wires Market Sends Shockwaves Through Indian Stock Market

**Mumbai, February 27** – Shares of leading Indian cable and wire manufacturers plummeted today following the announcement that UltraTech Cement, part of the Aditya Birla Group, is entering the ₹845 billion market. The move sparked concerns about increased competition and potential price wars, leading to significant losses for major players.

Polycab India, the market leader, saw its shares tumble 17.6%, reaching ₹4,751 apiece. KEI Industries experienced an even steeper 20% drop, closing at ₹3,038. Havells India and R R Kabel also suffered significant losses, falling 9% and 14% respectively, with R R Kabel hitting an all-time low. Even UltraTech Cement shares dipped 5% to ₹10,415, likely due to investor disappointment over the relatively small ₹18 billion capital expenditure allocated to the new venture.

While UltraTech’s entry represents a significant development, analysts remain cautiously optimistic. Nuvama Institutional Equities, a domestic brokerage firm, projects a balanced demand-supply scenario for the cable and wire industry over the next three to four years, estimating UltraTech’s market share at less than 5% within three years of commissioning (expected December 2026). The brokerage believes UltraTech’s move will primarily accelerate the shift from the unorganized to the organized sector, ultimately benefiting established players.

The report highlighted the industry’s sensitivity to margin fluctuations and the potential for export growth to mitigate the impact of new entrants. Despite today’s market reaction, Nuvama maintains a bullish outlook on KEI Industries, Polycab, and Havells, anticipating minimal impact on their earnings until FY28. The firm will, however, continue to monitor UltraTech’s investment strategy for any long-term effects.

The cable and wire industry’s recent growth has been driven by infrastructure development, increasing urbanization, and government policies promoting domestic manufacturing. Experts believe these trends, coupled with the shift towards organized players, will continue to benefit larger companies in the long run. However, investors are advised to consult with financial professionals before making any investment decisions based on this news.

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