Utratech Cement Expansion: As part of its plan to expand its footprint in the construction value chain, Ultratech Cement on Tuesday announced its entry into the wires and cables segment by setting up a plant in Gujarat in the next two years. It has invested Rs 100 crore for this. It will invest Rs 1,800 crore.

Ultratech Cement said in a statement that the plant will be set up near Bharuch in Gujarat and will be operational by December 2026. On Tuesday, the board of directors of the Aditya Birla Group approved a plan to expand its footprint in the construction value chain through its building materials division.

Ultratech said this is in line with the company's "strategy to strengthen its position as a comprehensive building solutions provider". Last year, the Aditya Birla Group entered the decorative paints segment with the launch of the brand Birla Opus.

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

The wires and cables sector witnessed a revenue growth rate of around 13 percent from FY2019 to FY2024. Furthermore, it is said that future growth will continue to be strong due to increasing migration from the unorganized sector to the organized market, which presents an attractive opportunity for a new credible company in this sector.

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

Commenting on the development Aditya Birla Group Chairman Kumar Mangalam Birla said: "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."

However, he clarified that UltraTech will continue to focus on its core cement business and improve it.

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

In the cement business, the Aditya Birla Group is expanding its capabilities through acquisitions and capacity additions as it faces competition from the second largest, Ambuja Cements of the Adani Group led by billionaire Gautam Adani. It is also increasing its capacity.

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(With Inputs From PTI)