UltraTech Cement Ltd proposes to extend its presence in the construction value chain
UltraTech Cement Limited (the Company) proposes to extend its footprint in the construction value chain through wires and cables segment with a nominal capital expenditure of ~INR 1,800 crore over the next two years. The Company’s Board has approved the said plan at its meeting held last month. The plant will be set up near Bharuch in Gujarat and is expected to be commissioned by December, 2026.
The Company aims to meet the growing demand for wires and cables across various sectors, including residential, commercial, infrastructure and industrial applications. The wires and cables industry has witnessed revenue CAGR of around ~13 per cent between FY19 to FY24 and with the migration from the unorganized to the organized market, the outlook continues to remain robust which provides an attractive opportunity for a new trusted player in the sector.
The Company believes that this proposed entry in the sector is likely to be value accretive to its shareholders.
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