Polycab, KEI, Havells Shares Fall By Up To 20% After Ultratech Announces Entry In Cables Business

Shares of major players in the cables and wires industries, such as KEI Industries, Havells India and Polycab India declined by up to 20 per cent on the NSE on February 27, 2025. The stocks declined following UltraTech Cement’s announcement in which the Aditya Birla Group company proposed to enter the wires and cables business.

KEI Cables stock declined nearly 20 per cent to trade at an intraday low of Rs 3,038.30 apiece on the NSE. Shares of Havells India fell over 9 per cent to hit an intraday low of Rs 1,402.20, while those of Polycab India fell 17.59 per cent to trade at an intraday low of Rs 4,751.15 apiece.

The market’s response to the development indicates concerns around increased competition within the wire and cable sector. The Aditya Birla Group company’s resources and established brand presence can also potentially impact existing market dynamics.

Earlier on February 25, Ultratech Cement informed the exchanges that it plans to extend its footprint in the construction value chain through wires and cables. The company added that it will make a nominal capital expenditure of Rs 1,800 crore over the next two years and set up a plant near Bharuch in Gujarat, which is expected to be commissioned by December 2026. The company said that its entry into the cables and wires segment is in line with its strategy to strengthen its position as a comprehensive building solutions provider.

Ultratech added that the wires and cables industry has generated a revenue with a compounded annual growth rate (CAGR) of nearly 13 per cent between FY19 and FY24. Additionally, with the migration from the unorganised to the organised market, the outlook continues to remain robust, which in turn can provide a new trusted player with an attractive opportunity in the sector.

At the time of writing, the shares of Polycab India were trading at Rs 4,923.90 apiece, down by 14.60 per cent on the NSE. Shares of Havells India were trading at Rs 1,471.30 apiece, down by 4.95 per cent on the NSE, while shares of KEI Industries were trading at Rs 3,141.40 apiece, down by 17.28 per cent.

Notably, shares of Ultratech Cement slipped 6.38 per cent to hit an intraday low of Rs 10,264.40 apiece on the NSE. However at the time of writing, the stock made a slight recovery and was trading at Rs 10,348.80 apiece, down by 5.61 per cent.