Aditya Birla Group's flagship company Grasim Industries January 22 announced its foray into the paints sector with an initial investment of Rs 5,000 crore.
"Grasim's Board has approved initial capital expenditure of - Rs 5,000 crore over the next 3 years," the company said in a release to the exchange.
Kumar Mangalam Birla, Chairman of Aditya Birla Group said, the foray into paints is a strategic portfolio choice for Grasim as it looks to identify new growth engines. "Grasim’s strong balance sheet will facilitate this entry, which will add size, scale and diversity to its existing portfolio of established standalone businesses," he noted.
Grasim Industries Q2 net profit up 3.30% at Rs 1,521.40 crore
The company highlighted that the paints sector revenues registered an 11 percent revenue CAGR from FY14 to FY19.
"The Company endeavors to invest in businesses that have the potential to be a leader in their addressable markets; have the ability to achieve scale, and generate consistent and attractive returns in the long term. The paints industry presents a high-growth option for Grasim," Birla said.
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