NewzVille Business Desk
Aditya Birla Group Company’s UltraTech Cement Limited proposed to extend its footprint in the construction value chain, through wires and cables segment with a nominal capital expenditure of Rs 1,800 crore over the next 2 years.
The Board of Aditya Birla Group has approved the said plan at its meeting held on 25 February 2025. The proposed entry into this segment of the construction value chain, through its Building Products Division, is in line with the Company’s strategy to strengthen its position as a comprehensive Building Solutions provider.
UltraTech proposes to leverage its extensive manufacturing expertise coupled with its connection with the end-customers to deliver high-quality wires and cables thereby targeting a higher share of the customers wallet. The plant will be set up near Bharuch in Gujarat and is expected to be commissioned by December, 2026.
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% between FY 19-24 and with the migration from the unorganized to the organized market, the outlook continues to remain robust which provides an attractive opportunity for a new trusted player in the sector.
The Company believes that this proposed entry in the sector is likely to be value accretive to its shareholders.
Kumar Mangalam Birla, Chairman, Aditya Birla Group, in a statement said, “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. Obviously, we will continue to focus and grow our core Cement business. This year 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). UltraTech remains committed to delivering superior quality building materials and solutions that contribute to the sustainable development of a Viksit Bharat.”
