Aditya Birla Group enters wires and cables business with ₹1,800 crore investment; targets No. 2 spot in 3–5 years

The diversified Aditya Birla Group on Thursday entered the wires and cables business with a ₹1,800 crore investment in the category.

Chairman Kumar Mangalam Birla said the new business, christened 'Ultravolt', is the third big business launch by the group in as many years after its ventures in paints, B2B e-commerce and jewellery retail. Entry into the wires and cables business is also driven by a conviction that it can be a leader in the category.

"Our core right to win is rooted in a deep understanding of the product and its underlying components. Our deep expertise in aluminum and copper is crucial to ensuring quality, performance and consistency," Birla said at an event to launch the new business in the financial capital on Thursday.

Ultratech, the largest Indian cement maker owned by the group, is used to construct a third of Indian homes, Birla said, adding that this gives it a nuanced insight into unmet needs and friction points.

Dilip Gaur, a director at the group, said copper and aluminium account for 80 per cent of the costs for wires and cables, and added that the presence in cement can help Ultravolt unlock a business opportunity 4-6 months ahead of competition.

He said Ultravolt aims to be the second biggest player in the wires and cables category in the next 3-5 years on the back of investments made by the group, which aggregate up to ₹1,800 crore.

It has built a plant in Gujarat's Bharuch, which is the second highest in capacity among the present-day manufacturing facilities, he said.

Birla said the three megatrends in the Indian economy, including urbanisation, electrification and digitisation, will act as a big tailwind for the new business which is starting with presence across 500 districts and 6,000 Pincodes in the country.

Modernisation of India's power grid, the rapid expansion of renewable energy, the build-out of metro rail networks, transition to electric vehicles, will lead to demand for specialised cables, while digitisation and data center buildout will also create massive direct and indirect opportunity, Birla said.

"We are seeking to create at launch what has taken many incumbents decades to build," Birla said, adding that it is starting with a dedicated network of over 700 distributors.

Pointing to past successes, Birla said its paints venture Birla Opus disrupted the industry and already commands a double-digit market share within two years of launching, while jewellery retail venture Indriya has been the fastest growing business in the sector with a presence in 54 cities in just two years, and B2B e-commerce business, Birla Pivot, has reached an annualised revenue run rate of ₹10,000 crore within three years of inception.

Drawing from the key attributes of power, on which the newly launched business depends, Birla outlined enabling progress, improving lives and connecting people as its key guiding principles.

He also acknowledged the consequences that it portends, pointing out that every decision, from manufacturing quality to safe installation, has consequences.

"Therefore, power must be wielded responsibly," the Chairman of the USD 70 billion conglomerate said.