The entry of the country’s largest cement maker into the wires and cables segment is expected to intensify competition for established players such as Polycab, KEI Industries, Havells India and RR Kabel.
UltraTech’s Jhagadia facility has an installed capacity of 10.98 lakh kilometres for house wires and light-duty cables. The plant has commenced operations ahead of its earlier targeted commissioning timeline of December 2026.
The facility’s location in Gujarat also provides proximity to key raw materials, particularly copper, according to the company.
Read more: These two wires and cables stocks can gain up to 21% on BofA’s bullish structural growth bets
UltraTech’s wires and cables foray
UltraTech had announced its entry into the wires and cables business in February 2025, with a planned investment of around ₹1,800 crore over two years.
As of June 2026, the company had committed around ₹888 crore of this planned capex.
The company had earlier indicated that it was targeting an asset turnover of 5-7 times, an internal rate of return (IRR) of around 25% on the capex and return on capital employed (ROCE) of over 20% from the business.
The commercial production launch comes after UltraTech indicated during its Q1FY27 earnings call that the wires and cables business would be launched in Q3FY27.
Competition to intensify
UltraTech’s entry comes at a time when the domestic wires and cables industry is expected to grow at a Compounded Annual Growth Rate (CAGR) of around 13% between financial year 2025 and 2030, according to Motilal Oswal Financial Services estimates.The key monitorables for the new entrant include the pace of market-share gains, acceptance among distributors and dealers, pricing discipline and its ability to achieve the targeted margins and return ratios.
For incumbent players, increased competition could put pressure on pricing and market-share growth, particularly as UltraTech leverages its established presence across the building-materials ecosystem.
Cables & Wires stocks slip
Shares of KEI Industries are trading 6% lower on Tuesday at ₹5,398.5. The stock is still up 20% so far this year.
Shares of Polycab are trading 4.7% lower on Tuesday at ₹9,000. The stock is still up 17% so far in 2026.
Shares of Havells India are trading 1.8% lower on Tuesday at ₹1,221.3. The stock has underperformed its peers, declining 14% so far year-to-date.
On the flip side, shares of UltraTech cement are trading 0.4% higher on Tuesday at ₹11,500. The stock is down 3.5% so far this year.
