Ultratech’s Ultravolt Launch Triggers Sell‑off in Wire Stocks
· Business · Economic Times, LiveMint
Ultratech Cement’s new brand Ultravolt has triggered a sharp decline in shares of the wire and cable sector. The company invested ₹1,800 crore and has begun commercial production at its Bharuch plant with an initial capacity of 1.1 million kilometres, aiming for 4 million kilometres eventually. Ultravolt plans to supply house, flat submersible, solar and communication cables across 500 districts through more than 100,000 retailers, and will roll out low‑ and high‑voltage lines later. Polycab Industries, Havells India and KEI Industries have fallen 6.5%, 4% and 11% respectively since the launch, while mid‑to‑extra‑high‑voltage players such as Diamond Power Infrastructure are expected to be less affected. Investors view the move as a potential shift in market share in the domestic wire market currently led by incumbents.
Why it matters
The entry of a large, well‑funded player can alter competitive dynamics for existing wire manufacturers and may pressure margins, influencing investment decisions and shareholder value in the sector.
Read the original report — Economic Times
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