Aditya Birla Group has once again challenged the status quo, and this time, the battleground is the ₹80,000+ crore wires & cables industry.

Having disrupted the paints market, where they forced a deep-rooted MNC to exit, they have now set their sights on a highly fragmented, family-run industry. As a former Chief Marketing Officer in this space, I believe they have the right to win.

🏆 An Industry Ripe for Disruption
With over 400 players, the market is dominated by a few key names:

✅ Cables Market Leaders: Polycab (20%), KEI (12%), Havells (8%), KEC (6%)
✅ Wires Market Leaders: Finolex (15%), RR Kabel (12%), Polycab (10%), V-Guard (8%), Anchor (7%), Havells (6%). Yet, no single player has more than a 15% market share in wires or 20% in cables.

This leaves a massive gap for a strong, well-capitalized entrant like UltraTech to seize market share.

The industry comprises nearly 400 players, ranging from small to large enterprises. The long tail consists of small and medium enterprises (SMEs) with revenues between ₹50 crore and ₹400 crore. Additionally, there are at least 20 publicly listed companies operating in this space.

Furthermore, 40% of all electrical spending is attributed to wires & cables, while the remaining 60% is spent on lighting, fans, switches, MCBs, and other electrical components. This highlights the crucial role of wires & cables in the electrical ecosystem, making UltraTech’s entry even more strategic.

Why UltraTech is Poised to Win

1️⃣ Backward Integration Advantage
Raw materials (copper, aluminum, XLPE, etc.) account for 70-76% of total costs in this industry.
UltraTech has direct access to Hindalco and Birla Copper, unlike competitors who rely on external procurement at market prices.
This cost advantage will allow UltraTech to price competitively while maintaining healthy margins.

2️⃣ Strong Financial Strength & Hedging Expertise
Many players have gone into liquidation or faced NCLT proceedings due to fluctuating raw material prices and poor working capital management.
UltraTech’s deep financial reserves and expertise in commodity hedging will protect it from these market risks, ensuring long-term sustainability.

3️⃣ The Family-Owned Business Disadvantage – A Gap UltraTech Can Fill
Most existing players (Polycab, Finolex, RR Kabel) started as first-generation family businesses and still operate with a traditional, family-run approach.
UltraTech brings corporate governance, structured processes, and aggressive expansion capabilities, helping it scale faster.

4️⃣ Why No MNC Has Succeeded – And Why UltraTech Can
LS Cables and Nexans (global giants) tried and failed due to the complex Indian market dynamics.
UltraTech, being an Indian conglomerate with local market expertise, understands the intricacies of B2B, B2G, and channel-driven sales, giving it an edge.

5️⃣ Winning the Distribution & Influencer Game
Consumers don’t buy wires & cables directly; electricians, contractors, and distributors influence the decision.
If UltraTech builds a strong channel network and electrician loyalty within 24 months, it can capture significant market share.

6️⃣ Raising Quality Standards & Ending the “Non-Virgin Copper” Issue
Many smaller players use commercial-grade, non-virgin copper, which leads to higher electricity losses and inflated consumer bills.
UltraTech’s entry will force a shift towards higher-purity copper, benefiting consumers and improving industry standards.

Looking Ahead: The Next 48 Months

📌 By 2030, UltraTech will be among the top three players in both wires & cables.
📌 The industry will undergo massive consolidation, with weaker players folding.
📌 Consumers will benefit from better quality, lower electricity losses, and greater transparency.

The wires & cables industry is on the brink of a major transformation, and UltraTech’s entry signals the beginning of a new era of competition and efficiency.

💬 What’s your take? Will UltraTech disrupt this industry the same way it did paints? Let’s discuss it!