UltraTech Cement enters wires and cables market; Polycab, KEI, Havells shares fall
Add Preferred News Source
UltraTech's entry comes as India's wires and cables market is expected to grow strongly, raising competition for established players such as Polycab, KEI and Havells.
Shares of major wires and cables companies fell on Tuesday, September 1, after UltraTech Cement started commercial production of wires and cables at its Jhagadia plant in Gujarat.
KEI Industries was among the biggest losers, falling 6% to ₹5,398.50. Polycab India declined 4.7% to ₹9,000, while Havells India was down 1.8% at ₹1,221.30.
The move marks UltraTech's entry into a market dominated by established players such as Polycab, KEI Industries, Havells and RR Kabel. The entry is expected to increase competition in a segment that is already seeing strong growth.
UltraTech's Jhagadia facility has an installed capacity of 10.98 lakh kilometres for house wires and light-duty cables. Commercial production has started ahead of the company's earlier December 2026 commissioning target.
The Gujarat location also gives the company access to key raw materials, including copper.
UltraTech's wires and cables business
UltraTech first announced plans to enter the wires and cables business in February 2025, with an investment of around ₹1,800 crore over two years.
The company had committed around ₹888 crore of this planned capital expenditure as of June 2026. UltraTech had said it was targeting an asset turnover of 5-7 times, an internal rate of return of around 25% and return on capital employed of more than 20% from the business.
The launch also comes earlier than the December timeline the company had initially indicated. During its Q1FY27 earnings call, UltraTech had said that the wires and cables business would start in Q3FY27.
The domestic wires and cables industry is estimated to grow at around 13% annually between FY25 and FY30, according to estimates from Motilal Oswal Financial Services.
With UltraTech now entering the segment, the pace at which it can gain market share will be closely watched. Its ability to build a distributor and dealer network, maintain pricing and achieve the margins it has targeted will also be important.
For existing players, the entry of a large building-materials company could increase competition for market share and put pressure on pricing, particularly given UltraTech's existing presence across the construction ecosystem.
KEI, Polycab shares remain higher in 2026
Despite Tuesday's fall, KEI Industries shares are still up around 20% so far this year. Polycab has gained around 17% in 2026, while Havells India has declined 14% during the same period.
UltraTech Cement shares, meanwhile, were trading 0.4% higher at ₹11,500 on Tuesday. The stock is down around 3.5% so far this year.
Also Read - Nifty August review: Defence, metals outperform as FMCG and media stocks lag
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
Right Tools, Rich Insights
