Wires and Cables Stocks Fall; Here’s Why
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The wires and cables sector came under pressure on Friday as Aditya Birla Group-backed Ultravolt entered commercial production, adding a new competitive threat to established players already facing higher copper costs and export challenges.
✨ Key Takeaways
Indian benchmark indices traded in the green on Friday, September 4, but wires and cables stocks came under heavy selling pressure. The weakness came as Aditya Birla Group’s entry into the sector started to take shape, adding to concerns over rising competition for established players.
Ultravolt Begins Commercial Production
Aditya Birla Group had announced in February 2025 that it would invest ₹1,800 crore to enter the wires and cables business and set up a manufacturing facility in Bharuch, Gujarat.
The plan has now moved into the commercial phase.
The Group’s wires and cables business, Ultravolt, started commercial production at its Gujarat facility on September 1. The entry puts the new player in direct competition with established companies such as KEI Industries, Polycab India and RR Kabel.
The development weighed on sentiment across the sector during Friday’s trading session.
Polycab India, Finolex Cables and RR Kabel witnessed selling pressure in early trade. KEI Industries was among the worst hit, with the stock falling more than 8 per cent.
Rising Copper Prices Add to Margin Concerns
Competition was not the only concern for the sector.
Copper prices have risen sharply, increasing input costs for wires and cables manufacturers and putting pressure on margins. Companies may look to pass on higher raw material costs through price hikes, but the timing and extent of such increases could affect demand and profitability.
Polycab India and Finolex Cables have already implemented price hikes. KEI Industries, however, has not announced a price increase so far.
This could create additional pressure on margins if copper prices remain elevated and the company is unable to fully pass on the higher costs to customers.
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Export Challenges
The sector is also facing challenges on the export front.
Geopolitical tensions in the Middle East have created uncertainty around exports and international demand. At the same time, customs duty-related issues in the US are creating additional challenges for Indian cable manufacturers with exposure to overseas markets.
Ultravolt Could Intensify Competition
The biggest long-term concern, however, could be the entry of a well-funded new player into an already competitive market.
Ultravolt plans to build a significant retail presence, targeting more than 1 lakh retailers. The company plans to expand through 5,000+ outlets across 500+ districts and 6,000 pin codes.
This could increase competition not only on pricing but also across distribution, retail reach and market share.
For established players such as KEI Industries, Polycab India, RR Kabel and Finolex Cables, the entry of Ultravolt means another major competitor with the backing of one of India’s largest business groups.
Disclaimer: The article is for informational purposes only and not investment advice.