After disrupting the paints industry, Aditya Birla Group is making a bold entry into the wires and cables sector with a Rs 1,800 crore investment over two years. UltraTech Cement, the group’s flagship company and India's largest cement manufacturer, will establish a manufacturing plant near Bharuch in Gujarat, with production expected to commence by December 2026.
This move is in line with the group’s broader strategy to strengthen its presence across the construction value chain. Kumar Mangalam Birla, Chairman of Aditya Birla Group, emphasised this vision, “We intend to expand our presence in the construction value chain through our foray in the cables and wires segment, which aligns with our vision of providing comprehensive solutions to our end customers in the construction sector.”
The group’s diversified portfolio already encompasses UltraTech’s cement, Hindalco Industries’ aluminium and copper, and Grasim’s recent venture into the paints industry. This integrated approach provides a strategic advantage, especially considering that Hindalco’s metal production serves as a key raw material for wires and cables manufacturing.
The Aditya Birla Group has a history of strategic expansions that have disrupted existing markets. In 2024, Grasim Industries entered the decorative paints industry with the launch of the “Birla Opus” brand.
This ambitious venture involved an investment of Rs 10,000 crore, aiming to add a significant 40% to the industry’s capacity. The company has set a target to achieve Rs 10,000 crore in revenue within the first three years of full-scale operations.
This aggressive expansion, along with the entry of JSW Group into the segment, has intensified competition, impacting sales and profit margins of established companies like Asian Paints, Berger Paints, and Kansai Nerolac Paints. This is reflected in their stock performance also, with these companies delivering negative or negligible returns over the past five years.
Backed by the financial strength of the Aditya Birla Group, UltraTech Cement’s entry into the cables and wires (C&W) segment could have an even bigger impact. Former SBI Mutual Fund Head of Equity and research analyst Sandip Sabharwal, who had accurately predicted Grasim’s disruption of the paints industry, commented on X, “the impact on C&W players will be bigger as unlike paints where the brand plays a bigger role in C&W taking market share for Ultratech will be easier.”
This move is likely to intensify competition, forcing existing market players to brace for a more challenging landscape. According to Sandip Sabharwal, leading companies such as Polycab India, KEI Industries, and RR Kabel could face increasing pressure. For companies like V-Guard Industries, whose focus is more on the home wiring segment, the impact could be limited.