Market Reaction and Stock Impact Shares of key wires and cables players fell sharply on September 1 following UltraTech Cement’s announcement of commercial production at its Jhagadia plant. KEI Industries saw a 7% drop to Rs 5,335, while Polycab India declined nearly 6% to Rs 8,895. Havells India also slipped 1.5% to Rs 1,225, reflecting investor concern over heightened competition.
The move comes as UltraTech’s new unit is poised to tap a sector that grew at a 12‑13% CAGR in recent years. By entering this space, the company is expected to leverage its existing construction footprint to secure a larger share of the organised market.
UltraTech's Capex and Growth Strategy UltraTech’s Jhagadia facility boasts an installed capacity of 10.98 lakh kilometres for house wires and light‑duty cables. The company has earmarked a total capex of Rs 1,800 crore, of which Rs 888 crore has already been committed as of June 2026. Management targets an asset turnover of 5‑7 times, an internal rate of return of about 25%, and a return on capital employed exceeding 20%.
The launch is earlier than the December timeline initially hinted, with the business expected to go live in Q3 FY27. UltraTech plans to use its manufacturing expertise and end‑customer network to deliver high‑quality products, thereby creating a competitive edge in pricing and service.
Industry Outlook and Competitive Implications The wires and cables market, which grew from FY19 to FY24 at roughly 13% CAGR, is witnessing a shift from unorganised to organised players. UltraTech’s entry is likely to intensify price competition, especially for established firms like KEI and Polycab, who now face a new player with deep supply chain integration.
Kumar Mangalam Birla, Chairman of Aditya Birla Group, noted that the move aligns with a broader vision of offering end‑to‑end construction solutions. Investors will watch how swiftly UltraTech can capture market share and whether the projected financial returns materialise in the coming quarters.