KEI Industries, PolyCab, Havells India, RR Kabel Shares Fall Up To 15%: UltraTech Cement To Enter Cables, Wires Business

India's UltraTech Cement, to start up a wires and cables business, deepening its foothold in the construction materials business, the company said on Tuesday. This sector is dominated by companies such as Polycab, KEI Industries and Havells.

After this announcement, these shares fell by about 15% as soon as the market opened on Thursday, 27th Feb 2025.

The wires and cables business will be part of UltraTech's building products division, which includes waterproofing products, TMT steel bars, plywood, sanitary ware, hand tools as well as electrical components such as switchboards.

The investment, to be spread over two years, will involve UltraTech building a plant by December 2026 with the aim of capturing demand in a sector that, the Aditya Birla group company said.

The company proposed to extend its presence in the wires and cables segment with a capital expenditure of ₹1,800 crore over the next two years.

Additionally, the infrastructure and construction industries, key clients of the wires and cables makers, will likely see a slowdown in 2025 due to a "modest" hike in capital spending announced in the annual budget, earlier this month.