KEI Industries, R R Kabel, Polycab crash amid Ultratech's entry in wires, cables segment

New Delhi: Shares of firms related to cables sector, including KEI Industries, R R Kabel, and Polycab India tumbled on Thursday, amid concerns over the announcement of Ultratech Cement's entry into the wires and cables segment.

The stock of KEI Industries plummeted 21.03 per cent, R R Kabel dived 19.92 per cent, Polycab India tanked 18.84 per cent, Universal Cables dropped 6.69 per cent, Finolex Cables plunged 6.42 per cent, Havells India slumped 6.33 per cent and Paramount Communications declined 5.74 per cent on the BSE.

Together these firms suffered an erosion of Rs 2,49,840.99 crore from their market valuation.

"A notable development affecting specific sectors was the sharp decline in wires and cables stocks including Polycab, KEI Industries, and Havells India.

This sell-off followed news that Ultratech, part of the Aditya Birla Group, plans to enter the wires and cables market with a substantial Rs 1,800 crore capital expenditure commitment, with operations set to commence in December 2026," Devarsh Vakil, Head of Prime Research, HDFC Securities, said.

Ultratech Cement on Tuesday announced its entry into the wires and cables segment and will invest Rs 1,800 crore to set up a plant in Gujarat over the next two years as part of plans to expand its footprint in the construction value chain.

The plant will be set up near Bharuch in Gujarat and is expected to be commissioned by December 2026, according to a statement from UltraTech Cement.

The board of the Aditya Birla Group firm on Tuesday approved the proposal to extend its footprint in the construction value chain, through its Building Products Division.

This is under the "company’s strategy to strengthen its position as a comprehensive Building Solutions provider," said UltraTech.

Last year, Aditya Birla Group entered into the decorative paints segment by launching the brand Birla Opus.

"The Company aims to meet the growing demand for wires and cables across various sectors, including residential, commercial, infrastructure and industrial applications," it said.