India’s largest cement manufacturer, UltraTech Cement, has unveiled plans to enter the wires and cables industry with an investment of ₹1,800 crore over the next two years. The company aims to start production by December 2026, with a new manufacturing facility to be set up in Bharuch, Gujarat.
This strategic move marks UltraTech’s expansion into the construction value chain. Chairman Kumar Mangalam Birla sees this as an opportunity to provide more comprehensive solutions to customers in the construction sector. While venturing into this new segment, the company will continue to focus on growing its core cement business.
The company’s board has approved the plan to enter the wires and cables market through its building products division. This decision reflects UltraTech’s goal to diversify its portfolio and strengthen its position as a leading provider of building solutions. The company plans to use its manufacturing expertise and strong customer relationships to deliver high-quality products.
This expansion aligns with the Aditya Birla Group’s broader strategy. The group is already active in various segments of the construction value chain, including cement, metals (through Hindalco Industries), and paints (via Grasim’s recent market entry). Hindalco’s metal products, which are essential for wire and cable production, further support the group’s integrated approach to this new business.
UltraTech aims to serve multiple sectors, including residential, commercial, infrastructure, and industrial applications. The wires and cables industry has shown strong growth, with a compound annual growth rate (CAGR) of around 13% from FY19 to FY24. This growth provides a solid foundation for UltraTech’s entry into the market.
While the company has not set a specific target for market leadership, it has a history of aiming for top positions in the sectors it enters. With the industry shifting from unorganized to organized players, UltraTech sees an opportunity to capture market share as a trusted new entrant.
In the cement sector, UltraTech remains the dominant player with a production capacity of over 175 million tonnes per annum. Its entry into the wires and cables business could intensify competition, particularly with established players like Polycab India, the current market leader.
This move underscores UltraTech’s commitment to innovation and diversification, as it seeks to strengthen its presence across the construction ecosystem.
