UltraTech Cement a flagship company of the Aditya Birla Group has announced its foray into the wires and cables manufacturing segment with an investment of ₹1,800 crore over the next two years. This strategic move aligns with the company’s vision to strengthen its position as a comprehensive building solutions provider.
Key Highlights of the Expansion
- New Manufacturing Plant: UltraTech will set up its first wires and cables manufacturing plant near Bharuch, Gujarat, which is expected to be commissioned by December 2026.
- Building Products Division: The new venture will be part of UltraTech’s building products division, leveraging its manufacturing expertise and customer connect to deliver high-quality products.
- Market Opportunity: The wires and cables industry has witnessed a 13% CAGR between FY19 and FY24, driven by a shift from unorganized to organized players. UltraTech aims to capitalize on this growth by targeting sectors such as residential, commercial, infrastructure, and industrial applications.
Strategic Vision
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized that this expansion aligns with the group’s vision to provide comprehensive solutions to end customers in the construction sector.
“The foray into the cables and wires segment is a strategic step to expand our presence in the construction value chain. It reflects our commitment to delivering high-quality building solutions and enhancing customer value,” said Birla.
UltraTech’s Cement Milestone
UltraTech Cement has achieved a significant milestone by crossing 175 MTPA (million tonnes per annum) of cement capacity in India. The company is on track to become the largest cement producer globally (by sales volume, excluding China), further solidifying its leadership in the building materials sector.
Kesoram Industries Acquisition
In a related development, UltraTech Cement has finalized a share swap ratio of 1:52 for the acquisition of Kesoram Industries, a BK Birla Group company with a cement capacity of 10.75 MTPA. The all-share deal is valued at ₹7,600 crore.
- Share Swap Details: Under the scheme of arrangement, one share of UltraTech Cement will be issued for every 52 shares held by equity shareholders of Kesoram Industries.
- Effective Date: The scheme will be effective from March 1.
UltraTech’s Global Position
UltraTech Cement, with a consolidated grey cement capacity of 183 MTPA, is the third-largest cement producer in the world (excluding China). The company’s revenue stands at $8.4 billion making it a key player in the global building materials industry.
Looking Ahead
UltraTech’s entry into the wires and cables segment marks a significant step in its journey to becoming a one-stop solution provider for the construction industry. By leveraging its manufacturing expertise, customer relationships, and robust distribution network, UltraTech is well-positioned to capture a significant share of the growing wires and cables market.
This strategic expansion, coupled with the acquisition of Kesoram Industries reinforces UltraTech’s commitment to innovation, sustainability, and customer-centric growth.
