Grasim Industries said that the company's chairman Kumar Mangalam Birla will launch 'Birla Opus Paints' business and inaugurate three Birla Opus Paints plants today.
The Birla Groups paint manufacturing plants are located at Panipat (Haryana), Ludhiana (Punjab) and Cheyyar (Tamil Nadu).
As per reports, Grasims entry could potentially alter the market share and profitability dynamics in a sector that has hitherto expanded with far fewer gyrations.
Grasim had reportedly announced its foray in the paints business a little over 3 years ago with an initial investment of Rs 5,000 crore, which it then doubled to Rs 10,000 crore.
Media reports stated that the overall profit pool of the paint sector may see a marginal dip, as players are forced to up their ad spends to protect market share.
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The impact of higher spending on advertising will be felt more by tier-2 and tier-3 players, from whom Grasim is expected to take a market share, the reports added.
Grasim Industries, a flagship company of the Aditya Birla Group, is a leading diversified player with leadership presence across many sectors. It is a leading global producer of viscose staple fibre and viscose filament yarn, the largest chlor-alkali, advanced material, linen yarn and fabrics producer in India. The company recently has entered paints business and setting up six plants across pan India locations.
The Aditya Birla Group companys consolidated net profit declined 39.8% to Rs 1,514.44 crore in Q3 FY24 as against Rs 2,515.78 crore Q3 FY23. However, revenue from operations rose 11.62% year on year (YoY) to Rs 31,965.48 crore in the quarter ended 31 December 2023.
The scrip shed 0.25% to currently trade at Rs 2187 on the BSE.
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