Havells, Polycab and KEI Industries Shares Fell Upto 10%: Check Why?

On Thursday, February 27, 2025, shares of wires and cable companies such as Polycab Ltd., Havells India Ltd., KEI Industries Ltd., RR Kabel Ltd., and Finolex Cables Ltd. witnessed a fall of up to 10% The significant fall follows the announcement by UltraTech Cement about entry into wires and cable sector.

Shares of KEI Industries and Havells are both trading at the maximum 10% lower circuit limit. At the start of trading, Havells India shares dropped by 8%, while RR Kabel and Finolex Cables saw declines of over 5% and 4%, respectively.

UltraTech’s New Business Plan 

On Tuesday, UltraTech Cement revealed plans to expand its presence in the construction value chain by entering the wires and cables market, with a capital expenditure of ₹1,800 crore over two years.

The wires and cables sector in India has been experiencing compound annual revenue growth of nearly 13% from FY 2019 to 2024. UltraTech may also have an advantage in sourcing raw materials like copper and aluminum through its group companies, such as Hindalco.

Ultra Tech Increased Cement Capacity

UltraTech Cement has recently announced the commissioning of an additional 0.6 MTPA slag-based grinding capacity at its existing facility in Karur, Tamil Nadu. This follows the earlier commissioning of a 2.7 MTPA greenfield grinding capacity at the same location on April 2, 2024. With this expansion, the total capacity of the plant reaches 3.30 MTPA. The increased capacity will strengthen the Company’s ability to meet the growing demand for composite cement in the Southern region, thereby improving its blended cement ratio.

UltraTech’s ongoing efforts to enhance the clinker conversion ratio align with its long-term growth objectives, and these strategic investments are key to driving operational efficiency and sustainability. As a result, the Company’s total domestic grey cement manufacturing capacity now stands at 166.91 MTPA. Including its overseas capacity of 5.4 MTPA, UltraTech’s total global capacity is 172.31 MTPA.

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