Grasim Industries, part of Aditya Birla Group, plans to enter the paints business with ‘Birla Opus’ brand named in Q4 FY24. The company will offer products in the decorative paints segment.
Kumar Mangalam Birla, chairman, Aditya Birla Group said, “Our foray into decorative paints is a strategic portfolio choice that enables us to tap into a high-growth market. We endeavour to become a profitable No. 2 player in the coming years.”
The company has piloted painting services in metro cities and has introduced a range of imported wood finishes. A research and development (R&D) facility has already been set up in Maharashtra.
Grasim had previously committed an investment of Rs 10,000 crore towards setting up the paints business. The company’s manufacturing plants situated in Haryana, Punjab, Tamil Nadu, Karnataka, Maharashtra, and West Bengal, will have a total capacity of 1,332 million litres per annum (MLPA).
“The paints business will commence its commercial offering from Q4 FY24. Of these six plants, at least two or more plants will be commissioned this year. Our long-term goal is to be second largest player in the Indian decorative paints market, which is growing at a healthy double-digit pace,” Pavan Jain, chief financial officer (CFO) had said during the company’s earnings call.
The board had approved capital expenditure of Rs 5,791 crore in FY24 including Rs 4,283 crore for paints business. In FY23, the company invested Rs 4,307 crore in capital expenditure including Rs 1,979 crore toward the paints business.
The current estimated value of India’s decorative paints industry is Rs 70,000 crore and it is witnessing double digit growth year-on-year.