Overview: UltraTech Cement, a flagship company of the Aditya Birla Group and India’s leading cement producer, has announced its strategic entry into the wires and cables sector. The company plans to invest ₹1,800 crore over the next two years to establish a manufacturing facility near Bharuch, Gujarat, with commissioning expected by December 2026.
Strategic Expansion: This move aligns with UltraTech’s vision to broaden its footprint in the construction value chain. The new venture will operate under the company’s Building Products Division, which currently offers a range of products including waterproofing solutions, TMT steel bars, plywood, sanitary ware, hand tools, and electrical components.
Market Potential: The wires and cables market in India has demonstrated robust growth, recording a compound annual growth rate (CAGR) of approximately 13% between fiscal years 2019 and 2024. This surge is driven by increasing demand across residential, commercial, infrastructure, and industrial sectors. UltraTech aims to capitalize on this trend, especially as the market witnesses a shift from unorganized to organized players, presenting a significant opportunity for established brands.
Leadership Insight: Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized the strategic importance of this expansion, stating, “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.” He also highlighted UltraTech’s recent milestone of surpassing 175 million tonnes per annum (mtpa) of cement capacity in India, positioning it as a potential global leader in cement production by sales volume, excluding China.
Industry Context: The wires and cables sector in India is currently dominated by established companies such as Polycab and Havells. The industry faces challenges, including volatile copper prices—a key raw material—and intense competition from smaller local players. Additionally, the infrastructure and construction industries, which are primary consumers of wires and cables, are projected to experience a slowdown in 2025 due to a modest increase in capital spending as outlined in the recent annual budget.
UltraTech Cement’s diversification into the wires and cables market represents a strategic effort to enhance its offerings within the construction materials sector. By leveraging its established brand reputation and industry expertise, UltraTech aims to meet the evolving needs of the construction industry and contribute to the sustainable development of a “Viksit Bharat” (Developed India).
