UltraTech Cement has forayed into wires and cables business, further expanding its presence in the construction value chain. The Aditya Birla Group company will invest Rs 180 billion to set up a greenfield manufacturing facility near Bharuch, Gujarat which is expected to start operations by December 2026. An initial investment of Rs 10 billion has already been made. The UltraTech board of directors approved the strategic expansion reiterating the company’s commitment to be a total building solutions provider. This is the company’s second major foray after entering decorative paints business last year with launch of Birla Opus. Market Entry and Growth Potential UltraTech Cement will tap into the growing demand for wires and cables in residential, commercial, infrastructure and industrial segments. The wires and cables industry in India has grown at a CAGR of 13% between FY2019 and FY2024 driven by urbanisation, infrastructure development and growing adoption of branded products over unorganised players. UltraTech believes this will be a value accretive for its shareholders and a great opportunity to create a large presence in the organised market. Cement Business Remains Core Despite this diversification UltraTech Cement remains committed to its core cement business. The company has recently crossed 175 million tonne per annum (mtpa) cement capacity in India. It will continue to strengthen its leadership position through strategic acquisitions and capacity expansion especially in the face of intense competition from Ambuja Cements, an Adani Group company. Industry Outlook: A Diversified Future for Construction Materials The construction materials industry in India is evolving rapidly with companies diversifying their portfolio to cater to a growing and changing market. With infrastructure development and urbanisation on the rise, demand for complementary building materials like wires, cables and paints will grow. UltraTech’s expansion strategy is in line with this trend, to capitalize on emerging opportunities while strengthening its position in cement business.