UltraTech Cement Share Price: Business Update on Market Performance and Strategic Developments

Market Performance

Over the past year, UltraTech Cement shares have increased by approximately 3.5% in trade. On March 3, 2025, the stock observed a 2% rise on the NSE, reaching approximately ₹10,336 per share during the morning session. Despite broader market sentiment, UltraTech Cement emerged as one of the top performers within the Nifty 50 index on the day.

Main News

During a recent investor call, UltraTech Cement presented its strategic direction regarding expansion into the Cables and Wires (C&W) segment. The company identified this sector as complementary to its existing position in the construction value chain.

The primary objectives behind this development include:

• Extending consumer reach within adjacent markets.
• Integrating C&W into its operations to enhance long-term growth.
• Strengthening leadership in the cement industry through continuous organic and inorganic expansions, with goals extending beyond FY27.

Company Details

As part of its business strategy, UltraTech Cement shared key insights related to its Cables and Wires (C&W) segment:

• The company does not foresee the need for additional capital expenditure (capex) in the C&W vertical in the near term, anticipating that existing capacity will be adequate until FY31.
• By FY31, the company targets an asset turnover ratio between 5–7 times for the C&W segment.
• At maturity, the product mix is expected to comprise approximately 60% wires and 40% cables.

Additionally, UltraTech Cement plans to utilize its existing market relationships to support this venture. This includes leveraging:

• Its strong presence among contractors is supported by a 28% market share in cement.
• The network of UltraTech Building Solutions (UBS).
• Existing B2B relationships and direct access to end users and influencers within the industry.

Summary

In the latest business update, UltraTech Cement detailed its strategic focus on entering the Cables and Wires sector as part of a long-term growth initiative. The company's plans involve maximizing current capacities, establishing a balanced product mix, and utilizing its established market connections to support the new business vertical. Meanwhile, UltraTech continues prioritising its core cement operations through various expansion approaches to sustain its industry leadership position.