UltraTech's Aggressive Entry Jolts India's Wires and Cables Market
The Indian wires and cables market is facing pressure due to rising copper prices, which have reached a record $14,533 per metric ton. This increase in input costs is affecting demand and margins for established manufacturers such as Polycab India and RR Kabel.
Polycab India has implemented cumulative price increases of approximately 18% to 19% between January and March, while RR Kabel has announced increases of between 2% and 3.5%, although their implementation has been kept on hold.
The industry is also preparing for a new competitive phase with the entry of UltraTech through its Ultravolt brand. UltraTech has started commercial production at its Jhagadia facility in Gujarat, which has an installed capacity of about 1.1 million kilometres, and plans to reach more than 500 districts and 6,000 pin codes.
UltraTech's ambition is to become one of the two largest wires and cables players within five years, with eventual capacity potentially rising to 3.5 million to 4 million kilometres. This could challenge market shares and pricing discipline for established manufacturers.