KM Birla aims to shake up India's paints sector with Grasim's Opus Paints

He further stated that India's per capita paints consumption is much lower than the global average of 10 kg.

Aditya Birla Group chairperson Kumar Mangalam Birla has launched the paints business Birla Opus, marking a significant milestone for Grasim Industries.

Birla reiterated his positive outlook for the Indian economy. He also highlighted the pivotal role that the group's businesses will play in driving economic growth, particularly in the construction sector, which is poised to command 9 percent of GDP.

Birla noted the immense potential for growth in paint consumption, driven by factors such as a rising population, booming real estate, and increasing per capita income. He announced plans to increase the company's capacity by an additional 500 million litres per annum in the next phase, with incremental investment.

Also read: Birla Opus' revenue to cross Rs 10,000 cr in 3 years; have higher capacity than market leaders: Grasim's KM Birla

Birla expressed confidence in the paint business's portfolio, stating that it is at par or ahead of the market leader across segments. He also emphasized the opportunity for innovation in the paint sector, citing India's per capita paint consumption of 3.5 kg compared to the global average of 10 kg.

Birla highlighted the group's plans to have 145 products across six categories and supply through a formidable network of 6,000 towns.

"By end of year, we will distribute to channel partners across 6000 towns. We are partnering with dealers with a free tinting business. We will link all dealers' tinting machines digitally to a central hub to revolutionize the manual tinting process," said Birla.

The group will start its fourth plant by Q1FY25, followed by the fifth in Q2 and the sixth in Q4FY25. The total capacity will be 1,332 mlpa, higher than the second, third, and fourth companies combined. The group aims to increase its capacity by 500 mlpa over the next five years.

"30,000 painters and contractors enrolled before brand launch... We are setting up Birla opus paint galleries across 300 towns," noted Birla.

The launch event saw the inauguration of dedicated plants in Panipat, Ludhiana, and Cheyyar, with plans to open six state-of-the-art plants across the country. Birla reiterated the group's commitment to the paint sector, driven by the opportunity in the infrastructure space and India's zest for innovation.

Grasim faces challenges in the paints market, with smaller players likely to be affected. However, Asian Paints, the current market leader, is expected to remain unaffected. Jefferies, an international brokerage, observed that Grasim aims for the second spot in the market, but competitors like JSW Paints and Astral are aggressively marketing to strengthen their positions.