Grasim unveils Birla Opus paints venture, eyes Rs 10,000 crore revenue in 3 years

Grasim Industries paints venture: Aditya Birla Group-owned Grasim Industries has announced the launch of its paints business under the brand 'Birla Opus' on Thursday, February 22. Grasim aims to position itself as a major contender in the paints industry, setting a bold target of achieving Rs 10,000 crore in gross revenue within the next three years.

To finance its foray into the paints sector, Grasim Industries had successfully raised capital twice during the calendar year 2023. The company's optimistic revenue projection suggests its anticipation of recovering its investments within the following four years, by 2027.

By diversifying into paints, Grasim adds another dimension to its existing flagship businesses in textiles and chemicals. Analysts predict that this bold move could potentially elevate Grasim Industries to become the second-largest paint manufacturer in India by capacity, trailing only behind the market leader, Asian Paints.

Currently, Asian Paints dominates nearly half of India's paints market, boasting a substantial revenue of Rs 9,075 crore in the quarter ended December 31. Other significant players in the industry include Kansai Nerolac, Berger Paints, Indigo Paints, and Akzo Nobel India, the maker of Dulux paint.

According to Antu Thomas, a research analyst at Geojit Financial Services, Grasim's Birla Opus venture has the potential to capture a market share of 1 per cent to 2 per cent from Asian Paints, indicating its promising prospects in the competitive landscape.

Jefferies, a global financial services company, noted that Grasim's new paints business would contribute substantially to the industry's anticipated 25 per cent capacity addition between fiscal years 2024 and 2027. Analysts at Jefferies emphasised the unprecedented scale of capacity expansion witnessed in the paint sector, a testament to Grasim's ambitious growth strategy.

(With Reuters inputs.)