Polycab’s ₹8,000 Cr Bet to Defend Leadership

Aditya Birla Group has launched UltraVolt with a ₹1,800 crore investment, entering India’s ₹1‑trillion wires and cables market. The move triggered a sharp decline in incumbents’ share prices, with

down 7% and rivals like Havells, RR Kabel, and KEI losing 5–20%. Polycab’s defensive stance: Shashi Amin, Polycab’s CEO of B2B channel & corporate communication, vowed to go “all out” to defend its 30% market share. He emphasized that building scale in cables is far harder than in wires, requiring government approvals and long‑term relationships. Market dynamics: India’s wires and cables market is projected to grow to ₹1.5 trillion by 2030, driven by power grid expansion and real estate demand. Amin believes this growth will accommodate new entrants, though near‑term oversupply could pressure margins. Competitive landscape: UltraVolt aims to become a top‑two player within five years, leveraging Hindalco’s copper and aluminium production. Analysts warn of potential price wars, citing Birla’s earlier aggressive entry into paints with Birla Opus. Other challengers include Diamond Power (backed by Adani), Bajaj Electricals, and Crompton. Polycab’s expansion plan: The company has committed ₹8,000 crore in capex over four years, far exceeding Birla’s initial spend. It targets doubling its 2025 base by 2030, with growth opportunities in data centres, where each megawatt requires about ₹3.5 crore worth of wires and cables. Margin pressure concerns: Analysts caution that UltraVolt’s brand strength and pricing strategy could erode incumbents’ pricing power. Polycab, however, remains confident in its ability to sustain leadership through scale, execution, and diversified demand drivers.