After Paints, Kumar Mangalam Birla All Set To Disrupt Cable & Wire Sector

Disruption or disruptor are terms used in connection with the startup ecosystem. Take for example the way the cab business got disrupted by the ride hailing apps or the food delivery apps that disrupted the way you ordered food. These companies were well funded and they began their early part of the journey by burning loads of money and gaining relevance in the marketplace. Switching into time and the first time something different than a startup player becoming a disruptor happened was when Kumar Mangalam Birla through Grasim announced his entry into the decorative paints industry through Opus paints. With the start of its 4th factory in Karnataka, he is already the second largest in terms of capacity in the decorative paints industry. It is expected that this paints division would have a turnover of Rs 8000-10,000 crore in three years’ time. Asian Paints which reported a revenue of Rs 35,000 crore for the year ended March 2024 saw its market cap fall by more than 40% after Opus entered the fray and well before it has become a sizable player in terms of size and market share. Recently, Kumar Mangalam Birla did the same thing in the cement sector. One of his group companies, UltraTech Cement announced its plans to enter the cables industry with an investment of Rs 1,800 crore for setting up a cable plant. The two key raw materials for this are copper and aluminium, of which Hindalco Industries, a group company, is one of the top two producers. This mere announcement shook the incumbents and the top players cumulatively lost a market cap of over Rs 50,000 crore in a single day.