Monday, July 22, 2024

“Aditya Birla Group Set to Venture into Paints Business in Q4 FY24”

“Aditya Birla Group’s Grasim Industries to Enter Decorative Paints Market with ‘Birla Opus’ Brand in Q4 FY24”

Grasim Industries, a part of the Aditya Birla Group, has announced its plans to venture into the decorative paints business under the ‘Birla Opus’ brand name, with a targeted launch in the fourth quarter of FY24. This strategic move will see the company entering the high-growth decorative paints segment.

Kumar Mangalam Birla, the Chairman of the Aditya Birla Group, stated, “Our entry into the decorative paints sector is a deliberate portfolio choice that positions us to tap into a rapidly growing market. We aspire to become a profitable second player in the industry in the coming years.”

To prepare for this new venture, the company has already introduced painting services in metropolitan cities and launched a range of imported wood finishes. Additionally, a state-of-the-art research and development (R&D) facility has been established in Maharashtra.

Grasim had previously committed a substantial investment of Rs 10,000 crore towards establishing its presence in the paints business. The company’s manufacturing facilities, located in Haryana, Punjab, Tamil Nadu, Karnataka, Maharashtra, and West Bengal, will collectively have a production capacity of 1,332 million litres per annum (MLPA).

Pavan Jain, Chief Financial Officer (CFO) of Grasim Industries, mentioned, “The commercial launch of our paints business is set to begin in the fourth quarter of FY24. We plan to commission at least two or more of these manufacturing plants within the current year. Our long-term objective is to secure the position of the second-largest player in India’s rapidly expanding decorative paints market, which has been consistently posting healthy double-digit growth.”

The company’s board has approved a capital expenditure of Rs 5,791 crore for FY24, with a significant allocation of Rs 4,283 crore dedicated to the paints business. In FY23, Grasim Industries invested Rs 4,307 crore in capital expenditure, including Rs 1,979 crore specifically allocated to the paints business.

India’s decorative paints industry is currently valued at approximately Rs 70,000 crore and is experiencing consistent double-digit growth year after year.

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