UltraTech Cement has announced its plans to enter the wires and cables industry with a capex of around ₹1,800 crore over 2025-27. It is renowned as a flagship cement company of the Aditya Birla Group. Previously, it has forayed into the paints and coatings business in 2024.
During 2019-2024, the revenues of India’s wires and cables industry grew at a CAGR of 13%. Rapid formalisation of the industry has created new opportunities for Ultratech Cement to expand its operations. It is expected to compete with Sterlite Technologies, Finolex Cables, Polycab India, and other such companies.
UltraTech plans to commission a new cables and wires manufacturing plant in Gujarat by December 2026. By leveraging its large-scale manufacturing expertise and robust distribution network, it will deliver high-end wires and cables to end consumers.
Last year, the National Company Law Tribunal had approved UltraTech’s acquisition of Kesoram Industries Ltd for ₹7,600 crore. The implementation of this demerger scheme is ongoing from March 1, 2025. This initiative is expected to enhance UltraTech Cement’s presence in South India considerably.
Under the scheme, the company will issue 1 equity share of ₹10 each for Kesoram’s shareholders holding 52 equity shares of ₹10 each. The company had earlier set the record date as March 10, 2025.
Moreover, in exchange for 90,00,000 5% cumulative NCRP shares of ₹100 each, Kesoram’s preference shareholders will receive 54,86,608 fully paid-up 7.3% non-convertible redeemable preference (NCRP) shares of ₹100 each.
Additionally, in exchange 19,19,277 optionally convertible redeemable preference shares of ₹100 each, Kesoram’s shareholders will get 8,64,275 fully paid-up 7.3% NCRP shares of ₹100 each.
As of March 12, 2025, UltraTech Cement share price opened at ₹10,480 and reached an all-day high of ₹10,549.80. It also recorded an all-day low of 10,362.00.
Despite ongoing business expansion plans, Kumar Mangalam Birla has stated the company will continue to focus on its core business. In FY 2025-26, the company is expected to set a record of producing over 175 metric tons of cement. This can potentially make it the world’s largest cement company.
Overall, the company is poised to reap benefits from the demerger and enhance its scale in Gujarat. Backed by strong financial fundamentals, this will play a crucial role in enhancing India’s export potential and international competitiveness.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 12, 2025, 5:01 PM IST
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