India’s five major wires and cables manufacturers, Polycab India, Havells India, KEI Industries, Finolex Cables, and RR Kabel, witnessed a sharp decline in their stock values, collectively losing over Rs 33,000 crore ($3.8 billion) in market capitalization on Thursday, 27 February. 

The sell-off came after UltraTech Cement, India’s largest cement producer, announced its entry into the cables and wires business.

Among the hardest hit were Polycab and RR Kabel, both plunging 19%, while KEI Industries tumbled 21%. Havells India and Finolex Cables closed 6% lower.

Market Capitalization Loss Breakdown

• Polycab: Rs 16,334.5 crore
• KEI Industries: Rs 7,632.7 crore
• Havells India: Rs 6,059.3 crore
• RR Kabel: Rs 2,487 crore
• Finolex Cables: Rs 858 crore

UltraTech Cement plans to invest Rs 1,800 crore ($200 million) in a new cables and wires manufacturing facility in Bharuch, Gujarat. However, the announcement not only rattled competitors but also led to a 5% drop in UltraTech’s own stock, erasing nearly $2 billion from its market cap.

Shares of leading wires and cables firms have now fallen 30% to 50% from their recent peaks, although many stocks still trade above their five-year average price-to-earnings (P/E) ratio.

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