UltraTech Cement enters wires & cables market, announces $200 million investment

The Mumbai-headquartered Indian multinational cement company UltraTech Cement has announced its foray into the wires and cables segment with a planned investment of around USD $200 million (₹1,800 crore) to establish a manufacturing facility in Gujarat.

On February 25, 2025, the Aditya Birla Group's board approved a proposal to expand its presence in the construction value chain through its Building Products Division.

The plant, set to be located near Bharuch, is part of the company's broader strategy to expand its presence in the construction value chain. According to UltraTech Cement, the facility is expected to be commissioned by December 2026.

UltraTech stated that this aligns with its strategy to solidify its position as a leading provider of comprehensive building solutions.

In fiscal year (FY) 2023, the Indian wire and cable market was valued at approximately US$8.9 billion (INR 74,800 crore) and is anticipated to reach US$14.3 billion by 2027. Within this market, aluminium conductors play a crucial role, particularly in overhead transmission systems. With a steady shift from the unorganised to the organised market, the sector's growth outlook remains promising, presenting a lucrative opportunity for a new, reliable player. 

Ultratech stated, "The Company believes that this proposed entry in the sector is likely to be value-accretive to its shareholders."

According to Kumar Mangalam Birla, Chairman of Aditya Birla Group, "We intend to expand our presence in the construction value chain through our foray in the cables and wires segment, which aligns with our vision of providing comprehensive solutions to our end customers in the construction sector."

The plant will manufacture a diverse range of wires and cables, including Low-Tension (LT) Cables, Control Cables, Instrumentation Cables, Flexible Cables, and Rubber-Insulated Cable variants. The cables and wires segment is expected to grow at a robust 13 per cent over the next five years.

Aluminium is widely used in electrical wires and cables due to its excellent conductivity, lightweight properties, and cost-effectiveness compared to copper. Here’s where aluminium is typically used in the types of cables you mentioned:

• Low-Tension (LT) Cables—Aluminium conductors are commonly used in LT power cables, which distribute electricity in industrial, commercial, and residential applications.
• Control Cables – Aluminium is less commonly used in control cables, but it can be used in cost-sensitive applications where lightweight wiring is needed for automation and signal transmission.
• Instrumentation Cables—Aluminium shielding (foil) is often used in instrumentation cables to protect against electromagnetic interference (EMI), though copper remains the preferred conductor.
• Flexible Cables—Aluminium is used in some flexible cables, especially in high-voltage applications. A key advantage of aluminium over copper is its superior flexibility. Aluminium is significantly more pliable, making it easier to wind during production. 
• Rubber-Insulated Cables – Aluminium can be used as a conductor in rubber-insulated power cables, particularly in industrial and mining applications where weight reduction is beneficial.

The demand for cables and conductors is closely tied to the growth of the manufacturing industry and infrastructure, particularly in the power, telecommunications, residential, and commercial sectors. Consequently, government initiatives across various domains, such as power, housing, infrastructure, and digitalisation, are expected to create significant opportunities for the cable and conductor segment in the foreseeable future. Moreover, the government’s emphasis on promoting renewable energy is driving the industry to supply cables for solar and wind power applications and serve sectors such as oil and gas, railways, and other segments.