Extension of Utratech Cement: Ultratech Cement stated on Tuesday that it would be entering the wires and cables market by establishing a factory in Gujarat over the next two years, as part of its strategy to increase its presence in the building value chain. For this, it has spent Rs 100 crore. It will spend 1,800 crore rupees.

According to a release by Ultratech Cement, the project would be constructed in Gujarat close to Bharuch and be operational by December 2026. A strategy to increase the Aditya Birla Group’s presence in the construction value chain via its building materials business was approved by the board of directors on Tuesday.

The “strategy to strengthen its position as a comprehensive building solutions provider” is in accordance with this, according to Ultratech. With the introduction of the Birla Opus brand last year, the Aditya Birla Group made its debut in the decorative paints market.

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

From FY2019 to FY2024, the wires and cables industry had a revenue growth rate of around 13%. Additionally, it is predicted that future development will be robust due to the growing number of people moving from the unorganized sector to the organized market, which offers a compelling potential for a new, reliable business in this industry.

“The Company believes that this proposed entry in the sector is likely to be value accretive to its shareholders,” said Ultratech.

Providing commentary on the development Kumar Mangalam Birla, chairman of the Aditya Birla “We intend to expand our presence in the construction value chain through our foray in the cables and wires segment, which aligns with our vision of providing comprehensive solutions to our end customers in the construction sector.”

He did, however, clarify that UltraTech would keep concentrating on and enhancing its core cement business.

“This year UltraTech reached a new milestone of crossing 175 mtpa of cement capacity in India,” he said, adding that it is “committed to delivering superior quality building materials and solutions.”

The second-largest cement company in the market, Ambuja Cements of the Adani Group, which is run by billionaire Gautam Adani, is putting pressure on the Aditya Birla Group to increase its capabilities via acquisitions and capacity increases. Its capacity is also growing.