Polycab, KEI Industries Shares up to 8% as Ultratech Enters Wires & Cables Business with Ultravolt

4 Sep 2026 , 11:13 AM

Shares of big wires and cables companies came under heavy selling pressure on Friday, September 4, after UltraTech Cement formally entered the wires and cables business with the launch of its new brand, Ultravolt.

Polycab India and KEI Industries shares were among the biggest losers in the segment, falling as much as 5% and 8%, respectively, during morning trade. The selloff extended to other cable and electrical companies, including RR Kabel, Finolex Cables and Havells India, as investors assessed the potential impact of a financially strong new entrant on the competitive landscape.

Polycab India share price fell 5.19% to ₹8,350 on the NSE around 11 am, compared with its previous close of ₹8,807.50. The stock opened at ₹8,500 and slipped to an intraday low of ₹8,300. KEI Industries shares witnessed a sharper decline, falling 7.85% to ₹4,909. The stock had closed at ₹5,327 in the previous session, opened at ₹5,000 and touched an intraday low of ₹4,848.50.

The weakness was not limited to two stocks. RR Kabel declined around 3.4%, Finolex Cables fell nearly 2% and Havells India dropped around 2.7%. Universal Cables and V-Marc India also traded lower.

However, UltraTech Cement shares gained around 0.6% in morning trade following the launch of Ultravolt.

Why are Polycab and KEI Industries shares falling?

The immediate trigger for the selloff is UltraTech Cement’s entry into the wires and cables industry. The Aditya Birla Group company has committed ₹1,800 crore towards the new business, signalling that it intends to build a meaningful presence rather than make a small-scale entry.

UltraTech’s entry has raised concerns about higher competitive intensity in an industry dominated by established companies such as Polycab India, KEI Industries, RR Kabel, Havells India and Finolex Cables.

For investors, the concern is less about an immediate loss of market share and more about the potential for a change in industry dynamics over the longer term.

A large plater with an established brand, extensive distribution network and presence across the building-materials ecosystem could potentially increase competition for retailers, distributors and customers. The impact could emerge through higher advertising and promotional spending, greater distribution costs, pricing pressure and, eventually, margin compression for incumbent players.

UltraTech enters wires and cables business with ₹1,800 crore investment

UltraTech has committed ₹1,800 crore for its wires and cables business and has launched the Ultravolt brand ahead of its earlier December-end timeline.

The early launch highlights the company’s pace of execution as it looks to diversify beyond cement and build a broader presence in the building-materials space.

Morgan Stanley noted that UltraTech had already spent around ₹890 crore as of June against the planned investment of ₹1,800 crore. The brokerage said the early launch and pace of capital expenditure point towards strong execution, while it awaits greater visibility on how the business scales.

UltraTech has also set an ambitious target for the new business. The company aims to become one of India’s top two wires and cables companies within five years.

• Ultravolt rollout to cover 500 districts and 6,000 pin codes
• One of the biggest competitive advantages for UltraTech could be its distribution reach.
• The company plans to roll out Ultravolt across more than 500 districts and 6,000 pin codes. It is targeting a distribution network of more than one lakh retailers.
• UltraTech also plans to leverage its existing ecosystem, including more than 5,000 UltraTech Building Solutions outlets and over 20 warehouses.
• This existing network could allow the company to accelerate market penetration compared with a new entrant starting from scratch.
• The company has also stated that Ultravolt will be the second-largest player in the wires segment by capacity at launch.
• What does UltraTech’s entry mean for Polycab, KEI and RR Kabel?

The entry of UltraTech creates a new competitive variable for established wires and cables manufacturers.

Polycab has built a strong position in the sector, while KEI Industries and RR Kabel have also expanded their presence across residential, commercial and industrial markets. The arrival of a large player with significant financial backing could force incumbents to step up investments in brand building, distribution and customer acquisition. A more competitive environment could also make pricing an important factor. If companies compete more aggressively for market share, industry-wide margins could come under pressure.

However, the actual impact on existing players is unlikely to be immediate. Building a strong consumer brand and establishing retailer relationships across thousands of locations takes time.

The key question will therefore be how quickly Ultravolt converts its manufacturing capacity and distribution reach into actual sales.

Jefferies remains bullish on UltraTech Cement

Despite the competitive concerns surrounding the new business, Jefferies has maintained its Buy rating on UltraTech Cement with a target price of ₹14,065.

The brokerage estimates that the wires and cables business could contribute around 3-7% of UltraTech’s FY30 revenue and EBITDA once the business reaches scale.

Importantly, Jefferies believes this potential contribution is currently not included in its estimates. If the business scales successfully, the new vertical could therefore provide an additional growth opportunity for UltraTech.

Jefferies also sees Ultravolt fitting into UltraTech’s broader building-solutions strategy. The move comes as the Aditya Birla Group expands into adjacent building-material categories, including paints through Grasim Industries.

Ultravolt initially focuses on wires and low-tension cables

At launch, Ultravolt will focus on wires and low-tension cables. Manufacturing for the new business will be based at UltraTech’s Jhagadia facility in Gujarat. The company is aiming to combine manufacturing capacity with its existing distribution infrastructure to establish the brand across the country. Its pan-India rollout, large retailer target and access to UltraTech’s existing Building Solutions network could give Ultravolt a significant starting advantage.

Polycab, KEI Industries shares: What should investors watch?

The sharp decline in cable stocks today, September 4 indicates that investors are already pricing in the possibility of a more competitive industry.

However, the long-term impact remains uncertain.

For Polycab, KEI Industries, RR Kabel, Havells India and Finolex Cables, investors will need to track whether UltraTech’s entry results in actual changes in market share, pricing or margins.

The most important indicators will include the pace of Ultravolt’s distribution expansion, retailer additions, capacity utilisation, pricing strategy and brand-building expenditure. The response from incumbent companies will also be important. Established players have their own brands, distribution networks and customer relationships, which could help them defend their market positions.

For UltraTech, the key challenge will be converting its financial strength and distribution reach into a profitable wires and cables business.

For existing cable manufacturers, the challenge will be protecting market share and margins as a major new competitor enters the industry.

The September 4 selloff therefore appears to reflect a reassessment of the sector’s competitive outlook rather than an immediate deterioration in the operating performance of Polycab or KEI Industries.

As Ultravolt expands over the coming quarters, investors will have a clearer picture of whether UltraTech’s entry becomes a meaningful threat to established players or simply creates another large participant in India’s growing wires and cables market.

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