(Reuters) – UltraTech Cement, India’s top cement maker by capacity, will spend 18 billion rupees ($206 million) to start up a wires and cables business, deepening its foothold in the construction materials business, the company said on Tuesday.
The wires and cables business will be part of UltraTech’s building products division, which includes waterproofing products, TMT steel bars, plywood, sanitary ware, hand tools as well as electrical components such as switchboards.
The investment, to be spread over two years, will involve UltraTech building a plant by December 2026 with the aim of capturing demand in a sector that, the Aditya Birla group company said, logged a compound annual growth rate of about 13% between fiscal 2019-2024.
This sector is dominated by companies such as Polycab and Havells and one that is plagued by volatile prices of copper – a key raw material – and intense competition from smaller, cheaper local players.
Additionally, the infrastructure and construction industries, key clients of the wires and cables makers, will likely see a slowdown in 2025 due to a “modest” hike in capital spending announced in the annual budget, earlier this month.
Meanwhile, the cement industry has recently seen a slew of deals by industry leaders including UltraTech and Adani Group companies as they snap up smaller firms to deepen their presence in the industry. ($1 = 87.1700 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Savio D’Souza)
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