Ultravolt launch sparks sell-off in wire stocks; high-voltage players insulated
The wire and cable industry faced stock declines amidst rumors of Ultravolt’s impending market entry. The Aditya Birla Group's initiative aims for a robust nationwide distribution and retail network, stirring competition among established players. Leaders like Polycab and Havells have felt the pinch with falling stock prices, though those in the mid-to-extra high voltage sector might remain…
Shares of wire and cable companies have plummeted 3-11% over the last two trading days, driven by concerns over Aditya Birla Group's new venture, Ultravolt. The conglomerate's entry, backed by a ₹1,800 crore investment, is poised to heighten competition in the retail segment, currently led by Polycab Industries, Havells India, KEI Industries, and RR Kable.
Ultravolt, launched by Ultratech Cement last week, aims to establish a strong pan-India distribution network. The company plans to roll out products in 500 districts through more than a lakh retailers across the nation. Commercial production commenced in the first phase of its Bharuch, Gujarat facility, with an installed capacity of 1.1 million kilometers, ultimately reaching a potential of 4 million kilometers.
Initially, Ultravolt will produce house wires, flat submersible, solar, and communication cables. In the coming weeks, it will introduce low voltage (LV) cables followed by high voltage (HV) cables. The retail-focused approach is anticipated to intensify rivalry among established sector players. Havells and KEI stocks have slipped 4% and 11% since Ultravolt's launch, falling after three months of steady performance. Polycab and RR Kabel have also declined by 6.5% and 8.8% over the same period.
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