UltraTech Launches Ultravolt Wires Business, Aiming for Top Two Spot in Five Years
UltraTech Cement has entered the wires and cables sector with the launch of its new brand, Ultravolt, announced after market hours on Thursday. The move follows its February 2025 decision to diversify into the segment, backed by an investment of ₹1,800 crore. Ultravolt is positioned to become the second-largest player in the wires business by capacity and aims to rank among the top two within five years, according to company statements.
Analysts from Motilal Oswal Financial Services noted in a September 3 report that this ambition suggests an aggressive strategy involving rapid capacity expansion, wider distribution, and brand building, mirroring the approach taken during the early years of the Aditya Birla Group’s paint business.
The rollout plan includes coverage across over 500 districts and 6,000 pin codes initially, targeting more than 100,000 retailers. Availability will also be expanded through 5,000-plus UltraTech Building Solutions outlets. Despite the scale of the launch, near-term earnings impact is expected to be limited.
Jefferies India estimates that assuming 4-5x asset turnover (around ₹10,000 crore revenue by FY30/FY31) and EBITDA margins of 10-12%, the wires business could contribute 3-7% to UltraTech’s projected revenue and EBITDA by FY30.
The announcement triggered a negative reaction in the stocks of existing players. Shares of KEI Industries, RR Kabel, and Polycab India fell between 5% and 8% in Friday’s early trading session, while UltraTech’s share price rose marginally by 0.5%.
Market observers cite near-term headwinds for traditional wires and cables firms, including the likelihood of weakening volume growth after an initial boost from elevated copper prices. JM Financial Institutional Securities, in a September 1 report, warned that with high copper prices forming the base from late Q3/Q4 FY27, revenue growth could appear weak over the next year.
UltraTech may benefit from improved demand in Q2 FY27, although the September quarter is typically weak for cement and prices have remained subdued. However, rising operating costs due to the West Asia conflict could pressure margins, a factor investors are advised to monitor ahead of Q2 results.
In Q1, UltraTech’s EBITDA per tonne increased 1.4% year-on-year to ₹1,214 but declined 3% sequentially. The company’s foray into wires and cables marks a significant step in its diversification strategy beyond cement.
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