New Delhi, Feb. 28 -- Shares of Polycab India, the country's largest manufacturer of cables and wires, tumbled 17.6% on 27 February. This sharp decline followed UltraTech Cement's unexpected announcement of its foray into the cables and wires (C&W) segment, which sent shockwaves across the industry. While UltraTech's move is being positioned as a long-term play, the knee-jerk reaction from investors underscores the industry's anxiety surrounding increased competition and potential margin pressures for incumbents.

UltraTech's entry and its ramifications

UltraTech, part of the Aditya Birla Group, unveiled plans to invest Rs.1,800 crore in setting up a cables and wires manufacturing facility in Bharuch, Gujarat, which is expected to be ope...