Shares of Grasim Industries saw marginal gains of 0.5 percent on the NSE after the textile manufacturer announced it decision to enter the paint business. On September 15, at 11:10 am, the shares gained further and were trading at Rs 1,931.60, 1.8 percent higher than yesterday's close. Other big players within the paint business include Asian Paints, Berger Paints and Dulux Paints.
Follow our market blog for more updates
Grasim Industries will be entering the paint business under the brand name of Birla Opus. The market launch is scheduled for Q4FY24. According to a release, Grasim already successfully piloted the first-of-its-kind painting services in key metros and introduced a range of imported wood finishes. A cutting-edge R&D facility has already been set up in Maharashtra. The textile manufacturer has committed an investment of Rs.10,000 crore towards setting up the paints business.
According to Kumar Mangalam Birla, Chairman, Aditya Birla Group, with the latest foray, the aim is to become a profitable No. 2 player in the coming years. "Announcing our brand name is the first of many steps that will follow in this direction,” he said.
Also read: Grasim to launch paints business tapping into India's booming decorative paints sector
According to a an August 2023 ICICI Securities report which has given Grasim Industries a buy rating, while the markets are yet to give a clear view on the foray into the paints business, if successful, the new business can drive up significant valuation rerating over the next 2-3 years.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
