NEW DELHI: UltraTech Cement, the flagship cement company of Aditya Birla Group, is expanding its presence in the construction value chain by entering the wires and cables business with a nominal capital expenditure of Rs 1,800 crore over the next 2 years. The Aditya Birla Group had forayed into the paint business in 2024.
UltraTech will set up a cables and wires plant near Bharuch in Gujarat and is expected to be commissioned by December 2026. UltraTech said that it proposes to leverage its extensive manufacturing expertise coupled with its connection with the end customers to deliver high-quality wires and cables.
The wires and cables industry has witnessed a revenue CAGR of around 13% between FY19 to FY24 and with the migration from the unorganised to the organised market, the outlook continues to remain robust which provides an attractive opportunity for a new trusted player in the sector.
Polycab India, Sterlite Technologies and Finolex Cables are some of the major players in the cables and wires market.
Kumar Mangalam Birla, Chairman of Aditya Birla Group, stated that their entry into this business aligns with the company’s vision of providing comprehensive solutions to end customers in the construction sector.
He added that their focus will remain on growing their core Cement business. “This year UltraTech reached a new milestone of crossing 175 mtpa of cement capacity in India and is likely to emerge as the largest cement company globally (by sales volume ex-China),” said Birla.
UltraTech also informed that its board has approved the implementation of the demerger scheme involving Kesoram Industries, effective March 1, 2025.
Under the scheme, UltraTech will issue one equity share of Rs 10 each for every 52 equity shares of Rs 10 each held by Kesoram’s shareholders as of the record date. The company has set March 10, 2025, as the record date.
UltraTech had last year received approval from the National Company Law Tribunal (NCLT) to acquire Kesoram Industries Ltd worth Rs 7,600 crore. The deal will boost UltraTech’s presence in the southern markets where much of Kesoram assets are located.