Polycab, KEI Industries and Havells Shares Fall Up to 6% After UltraTech's Wires and Cables Entry
Key Takeaways
- •UltraTech Cement's entry into wires and cables commercial production triggered share declines of up to 6% in Polycab India, KEI Industries and Havells India.
- •UltraTech announced its wires and cables foray in early 2025 with an investment of about ₹1,800 crore and a manufacturing plant near Pali, Rajasthan.
- •The plant will produce power cables and house wiring, placing UltraTech in direct competition with Polycab, KEI Industries, Havells and RR Kabel.
- •Motilal Oswal estimates India's wires and cables industry will grow at around 13% CAGR between FY2025 and FY2030.
- •It remains uncertain how quickly UltraTech can scale distribution against incumbents holding established retail and institutional networks.
Shares of Polycab India, KEI Industries and Havells India fell as much as 6% after UltraTech Cement, India's largest cement producer, began commercial operations at its wires and cables unit, intensifying competition in the sector.
UltraTech's entry comes at a time when the domestic wires and cables industry is expected to grow at a Compounded Annual Growth Rate (CAGR) of around 13% between financial year 2025 and 2030, according to Motilal Oswal Financial Services estimates. The projected growth is tied to demand from housing construction, infrastructure buildout and electrification projects — the same demand drivers that underpin the broader construction materials industry in which UltraTech already operates through its cement business.
UltraTech, part of the Aditya Birla Group, is India's largest cement company and among the world's leading cement producers outside China. The company announced its foray into the wires and cables business in early 2025, with an investment of approximately ₹1,800 crore, setting up a manufacturing facility near Pali in Rajasthan. The plant is designed to produce a range of products including power cables and house wiring, putting the company in direct competition with established players such as Polycab, KEI Industries, Havells and RR Kabel.
Polycab India is one of the country's largest manufacturers of wires and cables as well as fast-moving electrical goods. KEI Industries is a leading producer of cables, including extra-high-voltage and stainless-steel wire products, while Havells India is a major player in consumer electricals and lighting alongside its cables business.
Investor concerns about heightened competition in a market that has so far been dominated by a handful of incumbents triggered the decline in shares of the listed wires and cables makers following UltraTech's commercial production announcement. What remains to be seen is how quickly UltraTech scales its distribution and product availability across categories where the incumbents hold established retail and institutional networks, and how the market's projected expansion absorbs the additional capacity.
Source: CNBC-TV18
