Cementing a New Path: UltraTech's Endearing Leap into Cables and Wires

UltraTech Cement's foray into the cables and wires (C&W) industry with an investment of Rs 1,800 crore is likely to have a modest impact on the industry. Analysts are estimating less than 5% market share for UltraTech by FY28, attributing this to the fragmented nature of the industry and distribution issues. The C&W sector is expected to grow at a 13% CAGR, potentially taking in fresh capacity. Although UltraTech's action is consistent with its ambition to be an integrated building solutions provider, it has also stirred concerns regarding the allocation of capital. The announcement led to a sell-off of C&W stocks, with heavyweights such as Polycab and KEI Industries seeing major declines in stock prices.

 

Source: Reuters, February 27, 2025