At last, Grasim Industries, the flagship company of Aditya Birla Group, has zeroed in on Panipat in Haryana as location for its first paint manufacturing unit. Haryana Chief Minister Manohar Lal Khattar last week handed over a regular letter of allotment to the Aditya Birla Group for setting up a paint manufacturing facility in Panipat with an outlay of Rs 1,140 crore.
An allotment of 70 acres of land to the company has been made, a government statement said. The allotment has been made under the Mega Project category by inviting online applications. The unit will provide direct employment to 550 people and help boost industrial growth of the area through proliferation of ancillary units, said the statement.
In January this year, Grasim Industries had announced its foray into decorative paints manufacturing business setting aside Rs 5,000 crore capex in next three years. According to the company, its entry into this consumer-oriented business will further diversify its portfolio, provide scale and growth and will also offer a wide choice to Indian consumers as the Company plans to introduce the latest as well as a wide range of paint products. The Company also feels its entry into this high growth sector is expected to help painters/applicators and all traditional and emerging channel partners across India to expand their existing business and grow.
Indian paints industry is consistently registering double digit growth rate for the last 15 years. At the same time, per litre realisation is one of the lowest in India. Per litre realization in India is only $1.4 as against the global average of $3.6. On the other hand, there is substantial unorganised market who find the going tougher and has been conceding space to the players in the organised sector in recent years. All these factors make paints business a lucrative business proposition.