UltraTech, India’s largest cement producer, introduced its entry into the wires and cables phase, aiming to fee a plant in Gujarat by December 2026. HSBC mentioned UltraTech’s established relationships within the building sector and provide chain benefits—significantly by means of its sister firm Hindalco’s aluminium and copper enterprise—may make it a formidable competitor.
In Thursday’s buying and selling, issues over rising competitors weighed on different wires and cables firms, with Havells India and PolyCab India tumbling 6.3% and 18.8%, respectively. KEI Industries and R R Kabel noticed steeper declines, plunging 21% and 20%, respectively. UltraTech itself slumped 5% to its lowest degree since June, as buyers questioned the corporate’s capital allocation technique.HSBC mentioned it expects UltraTech to seize round 5% market share by FY32, producing Rs 10,000 crore in income, with the most important affect seen in low-voltage constructing wires. It now forecasts working revenue CAGR for pure-play wires and cables firms to say no by 1.6-2.0% past FY27, whereas Havells might even see a 1% hit.
UltraTech’s entry comes at a time when the {industry} is close to the height of its capability growth cycle, elevating issues about pricing strain and margin compression. HSBC’s revisions replicate the view that incumbent gamers might battle to defend market share with out sacrificing profitability.
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