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UltraTech Cement: Launches wires & cables business with an aim to tap significant market share

ICICIdirect Research 04 Sep 2026 DISCLAIMER

UltraTech Cement has launched its wires and cables business under the brand ‘Ultravolt’ and plans a pan-India rollout across 500+ districts with 5,000 outlets. The company recently commissioned its first phase of capacity of 10.98 Lakh km and targets total capacity of 35-40 lakh km in the coming years
Out of total capex Rs 1,800 crore, the company has already incurred ~Rs 900 crore as of Q1FY27
With the healthy industry growth at 12-13%, the company targets to tap significant market share and aims to become one of the top two players in this segment within 5 years by expanding its portfolio across wires, cables, and electrical accessories
Considering the industry's high asset turnover of 5–7x, the company has the potential to scale this business to ~Rs 9,000 crore on full utilization of total capacity. By FY28E, we believe this new business could generate revenue of ~Rs 3,000 crore with EBITDA margins in the range of 8-10%


Impact on C&W industry likely to be sentimentally negative

Indian cables & wires industry is expected to grow at ~13-14% CAGR over FY26-FY31 from ~ Rs. 1.6 lakh crore in FY26 to ~ Rs. 3 lakh crore by FY31. Considering Ultratech’s ₹ 9000 crore revenue potential by FY31, it would still form ~3% market share of India’s C&W market in FY31.
Ultratech’s capacity mix is expected to be in the ratio of 60:40 in Wires: Cables, which is likely to impact companies having higher exposure in Wires. Further, to cater to the broader real estate (residential, commercial) demand, lower tension (LT) wires & cables are likely to form larger part of the portfolio. Penetration in specialized cables & high voltage cables (MV & EHV) may take longer time due to high gestation period (>4 years) for end-user industry’s approval.
Ultratech’s plan to scale to pan India level rather than region by region through one lakh retailers is likely to impact C&W players, particularly having higher B2C (retail-led) business model.
Among larger players, RR Kabel (largely B2C), Finolex cables (~67%), KEI Industries (~54% B2C share) and Polycab (~29%) are likely to be impacted negatively sentimentally in the near term. Specialized cable players like Universal cables, KSH International and Diamond Power Infrastructure are unlikely to be affected and expected to gain in near term.

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