2 hrs ago
Aditya Birla Group Bets on Ultravolt to Drive Growth
The Aditya Birla Group is starting a new company called Ultravolt.
It will make wires, cables and conduits used in buildings, electricity networks and technology projects.
Chairman Kumar Mangalam Birla said creating new businesses is now an important part of the group’s plan.
The group is investing Rs 1,800 crore in Ultravolt.
It wants Ultravolt to become one of the two biggest businesses in this market within five years.
The company will use factories with German and Korean machinery and a research laboratory.
It will sell products through many dealers and stores across India.
The group expects demand to grow as cities expand, electricity systems improve and more electric vehicles and data centres are built.
Aditya Birla Group Chairman Kumar Mangalam Birla said new businesses are central to the group’s growth strategy.
Ultravolt is the group’s fourth new venture in three years, following entries into paints, jewellery retail and B2B e-commerce.
The wires and cables business is backed by an investment of Rs 1,800 crore and will launch as the second-largest player by capacity.
Ultravolt aims to become one of the category’s top two players within five years, competing in a market led by Polycab, KEI Industries, Finolex and RR Kabel.
The business will sell wires, cables and conduits through a network covering more than 500 districts and 6,000 pin codes.
- Who
- The Aditya Birla Group, led by Chairman Kumar Mangalam Birla, and its new Ultravolt business, headed by CEO Sriram Rangarajan.
- What
- The group launched Ultravolt, a wires, cables and conduits business, as part of its strategy to build new businesses.
- Where
- Ultravolt’s facility is in Bharuch, Gujarat, India.
- When
- Ultravolt was launched on Thursday; the group set a five-year ambition for it to become a top-two player.
- Why
- The group sees growth opportunities from urbanisation, electrification, digitisation, grid modernisation, renewable energy, metro rail, electric vehicles and data centres.
Key facts
- Investment
- Rs 1,800 crore has been committed to Ultravolt.
- Ownership structure
- Ultravolt is housed under UltraTech Cement.
- Market ambition
- The business aims to become one of the top two players in wires and cables within five years.
- Distribution reach
- Its network is planned to cover more than 500 districts and 6,000 pin codes.
- Existing network
- Ultravolt will also use UltraTech Building Solutions’ network of 5,000 outlets.
- Recent group ventures
- Ultravolt follows the group’s entries into paints, jewellery retail and B2B e-commerce in the past three years.
- Reported performance
- Birla Opus reached double-digit market share in two years, Indriya built 90 stores across 54 cities, and Birla Pivot reached a Rs 10,000-crore annualised revenue run rate.
Quotes
Kumar Mangalam Birla
Chairman of the Aditya Birla Group
“I increasingly see the Aditya Birla Group as being a platform and engine for new bets. We make strategic bets, and back them with the intent of winning the category.”
financialexpress.com
“Our core right to win is rooted in a deep understanding of the product and its underlying components.”
financialexpress.com
Sources
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