Consumer Durables – Sector Update – UltraTech W&C expansion barely cements an impact
Published on 01 Sep 2026
UTCEM informed the exchanges that its wires & cables (W&C) plant in Bharuch, Gujarat, has commenced commercial production from 1st Sep’26. The facility has an installed capacity of 1.1mn km for wires and light-duty cables, with total estimated Phase I investment of INR8.9bn as of Jun’26.
We believe that UltraTech’s entry will not have a significant near-term impact on the financials of existing market leaders. However, it will be sentimentally negative for wire heavy companies in the long term. We are positive on cable heavy companies, and thus, continue to value cable heavy companies under our coverage at 40x P/E for KEII/POLYCAB, with TP of INR6,001/10,764, and at 35x P/E for RRKABEL with TP of INR2,596, which has wires accounting for 70% of its W&C business and higher export contribution (29% W&C Segment) compared with peers.
