Archive · 4 Sep 2026
UltraTech Entry Triggers Cable-Wire Stock Selloff as UltraVolt Launches
Several companies that make wires and cables saw their share prices fall on September 4.
KEI Industries had the biggest drop among the major companies mentioned.
Investors were worried because UltraTech Cement launched a large new wires business called UltraVolt.
UltraTech plans to invest ₹1,800 crore in the business.
UltraVolt will first make wires and low-tension cables at a factory in Gujarat.
It plans to sell products across more than 500 districts and 6,000 pin codes.
The company wants to become one of India’s two biggest wires and cables companies within five years.
UltraVolt is expected to have the second-largest production capacity when it launches.
Some financial firms viewed UltraTech’s expansion positively.
KEI Industries fell 8.25% to ₹4,855, while Polycab India and RR Kabel declined 6.22% and 4.8%, respectively, during morning trade on September 4.
Finolex Cables, Havells India and Universal Cables also traded lower amid concerns about increased competition.
UltraTech Cement launched its UltraVolt wires business earlier than previously planned, backed by a ₹1,800-crore investment.
UltraVolt will initially produce wires and low-tension cables at a Jhagadia, Gujarat facility and aims to become one of India’s top two players within five years.
Morgan Stanley and Jefferies retained positive ratings on UltraTech, citing strong execution and a more aggressive-than-expected expansion.
- Who
- UltraTech Cement and its UltraVolt business, existing manufacturers including KEI Industries, Polycab India, RR Kabel and Finolex Cables, and brokerages Morgan Stanley and Jefferies.
- What
- UltraTech launched UltraVolt, prompting declines in several cable-wire stocks as investors assessed the competitive threat.
- When
- September 4, during morning trade; the year is not specified in the articles.
- Where
- The affected stocks traded on the BSE, while UltraVolt’s initial manufacturing will be at Jhagadia in Gujarat, India.
- Why
- Investors were concerned that UltraVolt’s large planned investment and expected capacity could increase competition in the wires and cables market.
Existing cable-wire manufacturers and concerned investors
UltraTech, UltraVolt and supportive brokerages
Competitive pressure
Existing cable-wire manufacturers and concerned investors
Declines in KEI Industries, Polycab India, RR Kabel, Finolex Cables and other stocks reflected concerns that UltraVolt could intensify competition in the wires and cables sector.
UltraTech, UltraVolt and supportive brokerages
UltraTech committed ₹1,800 crore to UltraVolt and launched the business earlier than previously planned, signaling an aggressive expansion.
Market position
Existing cable-wire manufacturers and concerned investors
Established companies faced investor concerns about a new entrant expected to have the sector’s second-largest capacity at launch.
UltraTech, UltraVolt and supportive brokerages
UltraVolt aims to become one of India’s top two wires and cables companies within five years.
Assessment of the expansion
Existing cable-wire manufacturers and concerned investors
The stock-market reaction indicated concern about the potential effect of UltraVolt’s entry on existing companies.
UltraTech, UltraVolt and supportive brokerages
Morgan Stanley retained its Overweight rating and Jefferies retained its Buy rating, citing strong execution, early completion and a more aggressive-than-expected expansion.
- Planned investment
- ₹1,800 crore
- KEI Industries move
- Down 8.25% to ₹4,855 during morning trade
- Other major declines
- Polycab India fell 6.22% and RR Kabel fell 4.8%
- Initial products
- Wires and low-tension cables
- Initial facility
- Jhagadia, Gujarat
- Capacity position
- Expected to be the second-largest wires player by capacity at launch
- Investment spent
- Around ₹890 crore by June, according to Morgan Stanley
- Distribution plan
- More than 500 districts, 6,000 pin codes, over one lakh retailers, 5,000 UltraTech Building Solutions outlets and more than 20 warehouses
