Shares of Polycab India, KEI Industries and Havells India came under pressure on Tuesday after UltraTech Cement started commercial production of wires and cables at its Gujarat facility. 

Polycab shares fell around 2.3% to Rs 8,985, while KEI Industries declined nearly 4% to Rs 5,369.45. Havells India also traded lower as investors assessed the impact of a new large player entering the organised wires and cables market.

The immediate trigger was UltraTech’s commencement of commercial production at its Gujarat facility, which has an installed capacity of around 11 lakh kilometres. The Aditya Birla Group company is entering the wires and cables segment as part of its strategy to expand its building-materials portfolio and benefit from rising demand from construction, infrastructure and power projects.

UltraTech has committed around Rs 1,800 crore towards its wires and cables business over the next two years. The company had already spent about Rs 888 crore by June 2026 and had received the required regulatory certifications. Trial production of light-duty cables had also begun earlier.

The entry has raised concerns about higher competition, pricing pressure and potential margin impact for established players such as Polycab, KEI Industries, Havells, Finolex Cables and RR Kabel. UltraTech’s strong brand, distribution network and financial resources could allow it to compete aggressively as it scales the new business.

However, the long-term demand outlook for the sector remains strong. Growth in power transmission, renewable energy, infrastructure, data centres, telecom and residential construction is expected to support demand for wires and cables. 

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