UltraTech, India’s largest cement producer, announced its entry into the wires and cables segment, aiming to commission a plant in Gujarat by December 2026. HSBC said UltraTech’s established relationships in the construction sector and supply chain advantages—particularly through its sister company Hindalco’s aluminium and copper business—could make it a formidable competitor.
In Thursday’s trading, concerns over rising competition weighed on other wires and cables companies, with Havells India and PolyCab India tumbling 6.3% and 18.8%, respectively. KEI Industries and R R Kabel saw steeper declines, plunging 21% and 20%, respectively. UltraTech itself slumped 5% to its lowest level since June, as investors questioned the company’s capital allocation strategy.HSBC said it expects UltraTech to capture around 5% market share by FY32, generating Rs 10,000 crore in revenue, with the biggest impact seen in low-voltage building wires. It now forecasts operating profit CAGR for pure-play wires and cables companies to decline by 1.6-2.0% beyond FY27, while Havells may see a 1% hit.
UltraTech’s entry comes at a time when the industry is near the peak of its capacity expansion cycle, raising concerns about pricing pressure and margin compression. HSBC’s revisions reflect the view that incumbent players may struggle to defend market share without sacrificing profitability.
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