UltraTech Cement, an Aditya Birla Group company, is planning to enter manufacturing of wires and cables with an investment of ₹1,800 crore over next two years.
The company will set up its first plant near Bharuch in Gujarat and it is expected to be commissioned by December, 2026.
The proposed entry into the new business segment will be through the building products division and is in line with the company’s strategy to strengthen its position as a comprehensive building solutions provider.
The company’s board approved the plan at its meeting held on Tuesday, it said.
UltraTech proposes to leverage its manufacturing expertise coupled with end-customer connect to deliver high-quality wires and cables thereby targeting a higher share of the customers wallet, said the company.
The company aims to meet the growing demand for wires and cables across various sectors, including residential, commercial, infrastructure and industrial applications.
The wires and cables industry has witnessed revenue CAGR of around 13 per cent between FY19 to FY24 powered by shift in market share from unorganised to the organised players. The outlook for the segment remains robust and provides an attractive opportunity for a new player in the sector, said UltraTech.
Kumar Mangalam Birla, Chairman, Aditya Birla Group said the company intends to expand its presence in the construction value chain through the foray in cables and wires segment, which aligns with Group’s vision to provide comprehensive solutions to end customers in the construction sector.
A new milestone
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), he added.
Meanwhile, UltraTech Cement has fixed a share swap ratio of 1:52 for completing the deal to acquire 10.75 MTPA capacity of BK Birla Group company Kesoram Industries. The all share deal was worth ₹7,600 crore.
As per scheme of arrangement, one share of UltraTech Cement will be issued for every 52 shares held by equity shareholders of Kesoram Industries. The scheme will be effective March 1.
UltraTech Cement, a $8.4 billion Building Solutions company, UltraTech is the third largest cement producer in the world, outside of China, with a consolidated grey cement capacity of 183 MTPA.