UltraTech Cement, a part of the Aditya Birla Group, is set to diversify its portfolio by entering the wires and cables manufacturing sector. The company has earmarked an investment of Rs 1,800 crore over the next two years for this expansion, with its first production facility planned near Bharuch, Gujarat. The plant is scheduled to commence operations by the end of 2026.
This strategic move falls under the company’s building products division and aligns with its goal of becoming a comprehensive provider of construction solutions. Leveraging its expertise in large-scale manufacturing and direct customer engagement, UltraTech aims to deliver high-quality wires and cables to capture a greater share of consumer spending.
The growing demand for wires and cables across residential, commercial, infrastructure, and industrial segments presents a significant opportunity for new entrants. The industry has recorded a compound annual growth rate (CAGR) of around 13 per cent over the past five years, driven by a shift from unorganised to organised players. Market projections indicate continued strong growth in this segment, making it an attractive avenue for expansion.
In addition to its new venture, UltraTech has achieved a major milestone, surpassing 175 million tonnes per annum (MTPA) of cement production capacity in India. This development positions the company among the largest cement manufacturers globally, excluding China.
Further strengthening its market presence, UltraTech has also finalized a share swap arrangement to acquire a 10.75 MTPA cement capacity from Kesoram Industries, a BK Birla Group company. The all-share transaction, valued at Rs 7,600 crore, will be executed with a share exchange ratio of 1:52. According to the agreement, one UltraTech Cement share will be issued for every 52 shares held by Kesoram Industries’ equity shareholders. The merger is set to take effect in early March.