Polycab, KEI, Havells shares short-circuited. Is this Birla’s next paint-style disruption?
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Aditya Birla Group company UltraTech Cement’s surprise foray into the Rs 80,000 crore wires and cables (W&C) segment has sent shockwaves through the industry, mirroring the disruption its parent company, Grasim Industries, has already triggered in the paints sector with Birla Opus. Shares of wires and cables manufacturers Polycab, KEI Industries and Havells fell up to 20% on Thursday as investors fear that UltraTech’s Rs 1,800 crore capex can lead to de-rating and margin pressure for existing players. Polycab shares nosedived 16%, while KEI Industries plunged 20%, Havells India dropped 9%, and RR Kabel followed suit with a 13% slide. UltraTech’s move has raised pressing questions: Will the Aditya Birla Group replicate its aggressive playbook and force a sector-wide de-rating, much like it did with Asian Paints and Berger Paints? And how vulnerable are existing incumbents like Polycab, KEI Industries, and Havells? UltraTech’s Big Bet o...