Moneycontrol
HomeNewsBusinessMarketsAs Grasim gears up to launch Birla Opus, Jefferies turns bearish on Asian Paints
Trending Topics

As Grasim gears up to launch Birla Opus, Jefferies turns bearish on Asian Paints

Grasim Industries announced that it plans on targeting the larger cities first, following which, it will enter the lower tier markets.

February 22, 2024 / 11:52 IST
Story continues below Advertisement

Jefferies retained its underperform rating on Asian Paints, with a target price of Rs 2,500 apiece.

Grasim Industries is all set to break the status quo in the paints industry with its Birla Opus range of products. Kumar Mangalam Birla will launch the business and inaugurate three facilities at Panipat, Ludhiana and Cheyyar.

The entry of Grasim Industries into the paints segment is expected to further intensify competition in the sector. In the first half of the current fiscal year, 49 percent of Grasim Industries capex outlay of Rs 4,900 crore was allocated to the paints business.

Story continues below Advertisement

Grasim announced that it plans on targeting the larger cities first, following which, it will enter the lower-tier markets. The firm in on-boarding deals, finalising ads, signing leases on depots.

“Grasim is likely to be a bigger threat, in terms of a new entrant, than players who have announced entry into the paint sector earlier, given the group’s strong distribution reach in cement and putty, because of which Birla Opus, in our view, will be able to garner a strong distribution reaches in the shortest time,” InCred Equities said in a December 2023 report.