Archive · 2 Oct 2026
Ultravolt Entry Sends Cable Stocks Into Sharp Decline
Aditya Birla Group has started a new wires and cables business called Ultravolt.
The company invested Rs 1,800 crore at the beginning.
Ultravolt says it is already the second-largest player by production capacity.
It wants to become one of the two biggest companies in five years.
Existing cable companies saw their share prices fall after the announcement.
Analysts think these companies may need to spend more on discounts, advertising and promotions.
This could reduce their profits even if their sales do not fall much.
Ultravolt can use Hindalco for copper and UltraTech’s large dealer network.
However, making advanced cables requires technical approvals and experience, so success is not guaranteed.
Aditya Birla Group launched Ultravolt on September 3 with an initial investment of Rs 1,800 crore.
Ultravolt aims to become one of India’s top two wires players within five years.
Polycab, KEI Industries, Havells India and RR Kabel shares fell 14-22% in September.
Analysts expect margin pressure to affect incumbents before any major revenue disruption.
Hindalco’s copper access and UltraTech’s distribution network give Ultravolt significant potential advantages.
- Who
- Aditya Birla Group, through Ultravolt, and established cable companies including Polycab India, KEI Industries, Havells India and RR Kabel.
- What
- Aditya Birla Group entered the wires and cables business with Ultravolt, unsettling incumbent companies and their investors.
- When
- Ultravolt was launched on September 3; the affected cable stocks fell during September.
- Where
- India’s wires and cables market, with Ultravolt planning a pan-India rollout across 6,000 pin codes.
- Why
- The entry raised concerns about increased competition, margin pressure and potential market-share gains because of the group’s financial strength, copper access and distribution network.
Competitive threat concerns
Cautious market assessment
Impact on incumbent companies
Competitive threat concerns
Existing players may need to offer higher dealer incentives and spend more on advertising and promotions, squeezing margins.
Cautious market assessment
Analysts say near-term revenue disruption should remain manageable, with margin pressure likely to appear first.
Ultravolt’s cost advantage
Competitive threat concerns
Direct access to Hindalco’s copper and UltraTech’s distribution network could help Ultravolt scale quickly and compete aggressively.
Cautious market assessment
Hindalco access does not guarantee a structural price advantage because copper is globally traded.
Ability to repeat the paints strategy
Competitive threat concerns
Ultravolt could replicate Birla Opus Paints’ aggressive pricing and distribution-led expansion, potentially reaching 6-7% market share by FY30.
Cautious market assessment
Wires and cables are more technical than paints, especially in medium-voltage, high-tension and specialised products, requiring certifications, approvals, references and execution experience.
- Initial investment
- Rs 1,800 crore
- Industry market size
- Rs 1,24,085 crore
- Industry growth projection
- 14.50% annually up to 2035
- Polycab domestic market share
- Around 22% of the wires and cables market
- Ultravolt launch position
- Second-largest player by capacity in the wires segment
- Ultravolt five-year ambition
- Become one of the top two players in the segment
- Ultravolt electrician program
- More than 1,600 electricians onboarded before launch, with a target of training over 40,000 in the following year