Grasim Industries, the leading company of the Aditya Birla Group, has entered the paint industry by introducing their much-awaited brand, Birla Opus.
This step increases competition in the decorative paints market, where Asian Paints and Berger are major players. Grasim, based in Mumbai, seeks to secure the second position and turn profitable in the near future.
Its goal is to secure the second position in India’s Rs 80,000 crore decorative paints market, presently led by Asian Paints, with a hefty investment of Rs 10,000 crore.
“At the launch event, Chairman Kumar Mangalam Birla expressed our enthusiasm for innovation through our entry into the paints business. The flourishing construction sector serves as a key driver for this new venture. Birla emphasized that our ambitious goals align with India’s industrial growth, highlighting the strategic nature of our expansion into the paints industry. He underscored the significant growth potential in this sector.”
At the company’s AGM, Birla outlined the goal of attaining a lucrative second spot in the paints market in the near future.
As part of its marketing approach, the company is incorporating QR codes on its paint cans. This initiative not only provides valuable data on sales locations but also offers customers a 10% discount incentive for scanning the code.
In fiscal year 2023, Grasim increased its planned investment to Rs 10,000 crore for expanding into the paints sector. Manufacturing facilities are now up and running in Haryana, with Grasim targeting a total capacity of 1,332 million litres per annum (MLPA). Furthermore, the company has set up a research and development centre in Maharashtra.
Paint companies are optimistic about the future, with an executive estimating that the Indian paints and coatings industry will expand to Rs 1 lakh crore in the next five years from its current size of Rs 62,000 crore. The rapid surge in real estate demand in India, partly due to government initiatives, is contributing to the industry’s growth potential.
Grasim, alongside Pidilite and JSW, has recently ventured into the segment, challenging established players like Asian Paints, Berger Paints, Kansai Nerolac, and Akzo Nobel India, which collectively hold about 75% of the market share.
Recognizing the paint sector’s growth potential, Grasim earmarked Rs 4,307 crore for capital expenditure, with Rs 1,979 crore specifically allocated for the paints business, marking its largest-ever investment.
The company’s annual report highlighted improved margin prospects for the paints and coatings industry, attributing it to a decline in raw material prices from previous highs.
Grasim Industries witnessed a remarkable 23% increase in consolidated revenues from operations in the last fiscal year, reaching an all-time high of Rs 1.17 lakh crore.
Information Regarding Grasim Industries Limited
Grasim Industries Limited, a flagship of the Aditya Birla Group, has a prominent position among India’s top publicly listed companies. With a history spanning 76 years since its establishment in 1947 as a textiles manufacturer, Grasim has grown into a diversified leader across various sectors.
Today, it stands as a global leader in Viscose production, Diversified Chemicals, and Linen Yarn and Fabrics in India. Recently, the company ventured into the paints business, establishing six plants across India. Utilizing group synergies, Grasim launched “Birla Pivot,” an online B2B marketplace for building materials.
Through its subsidiaries, UltraTech Cement and Aditya Birla Capital, it is a major player in cement production and diversified financial services. Grasim is committed to creating sustainable value for its 43,000+ employees, 247,000+ shareholders, society, and customers. In FY 2023, the company reported consolidated net revenue of ₹1,17,627 Cr. and EBITDA of ₹20,478 Cr.
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