Polycab India, Havells, RR Kabel, KEI Industries were among major losers as UltraTech Cement announced its entry in the wires & cables (W&C) market with planned investment of Rs 1,800 crore. UltraTech can easily create trouble for some of the biggest names in the sector as the cement giant has strong reach across India. Polycab India declined 19 percent and was currently trading close to its 52-week lows. We could see the stock taking support from lows. R R Kabel was down by 20 percent and was currently at its yearly lows. KEI Industries was down by 21.2 percent and was close to its yearly lows. Havells India touched 52-week low and was trading 6 percent lower. Havells India has the least exposure to wires and cables segment among all the stocks that crashed today.

UltraTech Cement’s Entry into Wires & Cables Shakes Market, Shares of Industry Leaders Decline

Shares of leading electrical cable manufacturers Polycab India, KEI Industries, Havells India, and R R Kabel faced a sharp sell-off in Thursday’s intra-day trading on the BSE, plummeting by up to 15% amid heavy volumes. The decline followed UltraTech Cement’s announcement of its strategic entry into the wires and cables sector, a move that has sent ripples through the industry.

UltraTech Cement's Strategic Expansion into Wires & Cables

In a regulatory filing on February 25, 2025, UltraTech Cement announced its plans to venture into the wires and cables segment as part of its Building Products Division. This expansion aligns with the company's strategy to position itself as a comprehensive building solutions provider in the construction industry.

The company has chosen Bharuch, Gujarat, as the location for its first manufacturing plant, which is expected to commence operations by December 2026. This foray aims to cater to the rising demand for wires and cables across residential, commercial, infrastructure, and industrial applications.

Market Reaction and Industry Implications

UltraTech Cement’s announcement triggered significant volatility in the wires and cables sector, resulting in notable losses for major industry players. Given UltraTech’s strong brand recall and retail focus, analysts believe the company has a higher likelihood of gaining a foothold in the wires segment, where market entry is relatively faster compared to cables, which require multiple regulatory approvals and tender processes.

UltraTech’s strategic entry poses potential competition for existing market leaders, as it leverages its financial strength, distribution network, and construction industry presence to establish a foothold in the segment.

Growth Potential of the Wires & Cables Market in India

The Indian wires and cables market is valued at approximately Rs 80,000 crore ($9 billion). The segment is highly organized, with branded players controlling nearly 70% of the total capacity.

Cables Segment: Accounts for approximately two-thirds of the market and is largely driven by infrastructure projects, industrial applications, and public sector tenders.
Wires Segment: Represents one-third of the market, with 80% of demand originating from the housing sector. New home construction plays a crucial role in driving growth in this category.
Between FY19 and FY24, the wires and cables industry recorded a CAGR of ~13%, indicating steady expansion. Given its well-established brand equity and extensive retail reach, UltraTech Cement is well-positioned to capitalize on this growing sector.

Analysts’ Outlook on UltraTech’s Market Entry

Market analysts suggest that UltraTech’s entry into wires could be a formidable challenge for existing players in the segment. The company’s robust retail distribution, aggressive pricing strategies, and brand loyalty in the construction materials industry could enable it to capture market share at an accelerated pace.

While the cables segment presents higher entry barriers, including the need for multiple approvals and long-term contracts, the wires segment offers faster time-to-market advantages, making it an ideal starting point for UltraTech Cement.