Business Standard

Grasim aims to be 2nd largest player in decorative paints segment: Birla

In FY23, Grasim executed its largest ever capital expenditure investing Rs 4,307 crore including Rs 1,979 crore toward the paints business, he said

Kumar Mangalam Birla

Kumar Mangalam Birla

Press Trust of India New Delhi

Listen to This Article

Aditya Birla group firm Grasim Industries aims to become the second largest player in the paints sector which it considers a "high-potential" growth engine along with its new B2B e-commerce business for construction materials, its Chairman Kumar Mangalam Birla said at the company's AGM on Friday.
The Aditya Birla group flagship firm is now shifting focus to the new businesses and has embarked on a transformational growth phase with the incubation of two new high-potential growth enginesPaints and B2B e-commerce for building materials, he said.
Grasim last year doubled its planned investment to Rs 10,000 crore in setting up the paints business, where it has plans to compete with the existing makers including Asian Paints, Berger Paints, Kansai Nerolac Paints, and Akzo Nobel India, among others.
In the Paints business, the project work is progressing as per plans at all the six sites, and commissioning of plants will start in phases from Q4FY24. The state-of-the-art R&D facility is fully operational. Your Company aims to be a strong Number 2 player in the decorative paints industry, said Birla.
In FY23, Grasim executed its largest ever capital expenditure investing Rs 4,307 crore including Rs 1,979 crore toward the paints business, he said.
According to some reports, the Indian paint paints & coatings industry is estimated to grow to Rs 1 lakh crore in the next five years from the present Rs 62,000 crore.
In the last few years, several companies such as Grasim Industries, Pidilite, and JSW have entered into the segment and are competing with established makers such as Asian Paints, Berger Paints, Kansai Nerolac and Akzo Nobel India, which collectively control nearly 3/4th of the market.
Over its B2B e-commerce business for building materials "Birla Pivot", Birla said it is now operational and catering to customers in Madhya Pradesh, Maharashtra, and Delhi.
"This initiative aligns seamlessly with the government's goals for Digital India and the empowerment of MSME's. Moving on to the Capital Expenditure. While our established businesses are set to consolidate their leadership positions, our newly identified growth engines are poised to create a powerful impact, he added.
Besides, on renewables business, Birla said it would grow almost three-fold this fiscal year.
"The total cumulative installed capacity of Aditya Birla Renewables stood at 744MW in FY23, which is estimated to rise to 2GW by FY24," he said.
Grasim Industries also aims to maintain its leadership in the Chemicals business.
"We aim to retain our market leadership in the Chlor-Alkali business, projecting a capacity of 1.5 Million TPA by Q1 FY25," he said.
Its subsidiary and the leading cement maker, UltraTech Cement recorded net revenues of Rs 63,240 crore in FY23 and achieved the unique distinction of registering 100 million tons of production.
"The current total cement production capacity of 137.85 MTPA is targeted to reach 160+ MTPA upon completion of expansion projects underway, he said.
Over the Indian economy, Birla said its sound macroeconomic fundamentals provide comfort amidst global risks, with moderating inflation, easing current account deficit, and improved foreign exchange reserves.
"Today, India holds a prominent place among the world's largest economies. While the major global economies are still weighed down by stagflation, India has shown resilience in its continued growth momentum, he said.
For the financial year ended on March 31, 2023, Grasim Industries had a growth of 23 per cent in consolidated revenues from operations, reaching an all-time high of Rs 1.17 lakh crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 25 2023 | 9:09 PM IST

Explore News