UltraTech Ultravolt launch wipes out Rs 21,500 crore in market value
Newspaper analysis and analyst reports detail a massive selloff affecting listed cable manufacturers after UltraTech's entry into the wires business.
Listed players in the Indian cables industry lost approximately Rs 21,500 crore in market capitalization over two trading sessions following UltraTech's entry into the wires and cables sector. Polycab India faced the largest decline, dropping Rs 8,766 crore in value. KEI Industries followed with a reduction of Rs 5,158 crore. Havells India, RR Kabel, APAR Industries, and Finolex Cables combined for a loss of Rs 7,501 crore. JM Financial noted that competition is intensifying in the Indian cables and wires market. The concern centers on UltraTech's Rs 1,800 crore Ultravolt bet potentially forcing established competitors to increase spending on distribution, advertising, and sales engagement. UltraTech began commercial production at its Jhagadia facility in Gujarat ahead of schedule under the Aditya Birla Group. The company launched an installed capacity of 1.1 million kilometers focused on house wires and light-duty cables. The portfolio includes home wires, flexible cables, submersible cables, solar cables, communication cables, and select power and industrial cables. UltraTech plans to distribute products across more than 500 districts and 6,000 PIN codes while targeting over 100,000 retailers. Some sources suggest the possibility of sector-wide derating cannot be ruled out.
