UltraTech Cement Limited (the Company) proposes to extend its footprint inthe construction value chain through wires and cables segment with a nominalcapital expenditure of ~INR 1,800 crore over the next two years. The Company’sBoard has approved the said plan at its meeting held last month. The plant willbe set up near Bharuch in Gujarat and is expected to be commissioned byDecember, 2026.

The Company aims to meet the growing demand for wires and cables acrossvarious sectors, including residential, commercial, infrastructure andindustrial applications. The wires and cables industry has witnessed revenueCAGR of around ~13 per cent between FY19 to FY24 and with the migration fromthe unorganized to the organized market, the outlook continues to remain robustwhich provides an attractive opportunity for a new trusted player in thesector.

The Company believes that this proposed entry in the sector is likely tobe value accretive to its shareholders.

Read our analysis on UltraTech’s entry into the Wires and Cables segmentin the Trends and Analysis section.