Grasim Industries, the flagship company of Aditya Birla group will be spending Rs 5,000 crore in capex in its proposed decorative paints business over next three years. The company is presently looking out for sites close to consumption hubs for the project.
“Keeping in mind the long-term strategic intent of creating value for all shareholders, your Company has identified paints as a new engine of growth. Decorative paints as an industry witnessed double-digit growth rate for the last many years, and it has achieved significant scale,” said Kumar Mangalam Birla, Chairman, Grasim Industries in his communication to the shareholders of the company. On 22nd January 2021, the Board of Directors had approved entering into Paints as new line of business. “The Board of your Company has approved an initial capex of Rs 5,000 Crore for the Paints business. This amount will be invested over the next three years,” said Birla.
“Historically, the Indian paints industry has been growing at a healthy rate. The organised segment constitutes approximately 70% by value of the total paints market and has historically grown faster than the unorganised segment and therefore gained market share from the unorganised segment,” says Grasim.
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.