UltraTech Cement Limited (theCompany) proposes to extend its footprint in the construction value chain throughwires and cables segment with a nominal capital expenditure of ~INR 1,800 croreover the next two years. The Company’s Board has approved the said plan at itsmeeting held last month. The plant will be set up near Bharuch in Gujarat andis expected to be commissioned by December, 2026.

The Company aims to meet thegrowing demand for wires and cables across various sectors, includingresidential, commercial, infrastructure and industrial applications. The wiresand cables industry has witnessed revenue CAGR of around ~13 per cent betweenFY19 to FY24 and with the migration from the unorganized to the organizedmarket, the outlook continues to remain robust which provides an attractiveopportunity for a new trusted player in the sector.

The Company believes that thisproposed entry in the sector is likely to be value accretive to itsshareholders.