Birla Opus, the paints business of Grasim Industries, is rapidly gaining market share in the decorative paints segment across regions, the Aditya Birla group company said during an analyst call on Q3FY25 earnings.
The total capex for the paints business stands at Rs 9,015 crore, as of December 2024, completing nearly 90% of the planned outlay.
"Initially, we had a very strong takeoff in the mid-tier and upper mid-tier towns. However, in the last quarter, we have also made significant inroads into metro markets," said Grasim Industries. Nearly eight months after launch, Birla Opus products are now available in over 5,500 towns, and sales trend indicates strong movement across segments. Birla Opus was launched in June 2024.
"While long-term trends may highlight stronger performance in specific geographies, our team is focusing equally on all regions," the management said.
The company said it is focused on achieving a robust performance in February and March, targeting high single-digit market share by end of FY25. "While the mid-market segment has been slow, we have gained market share despite a broader industry slowdown," Grasim Industries said.
Looking ahead, the company aims to continue its growth trajectory in the paints business by aiming to consistently increase market share quarter after quarter.
"With the commencement of commercial production at Chamraj Nagar in November 2024 and Mahad expected to go live in Q4FY25, Birla Opus will be the second-largest player by installed capacity in India’s decorative paints market," the company said.
Additionally, the company’s sixth plant in Kharagpur, West Bengal, is scheduled to commence operations in the first quarter of FY26, although construction activities have been impacted by Cyclone Dana.
On the cement business, the management noted that Ultratech Cement remains on track to achieve domestic grade cement capacity of over 200 million tonnes per annum by FY27.
"Demand across all sectors, that is individual house builders, infrastructure and urban housing growth has been improving. Domestic and grey cement volume grew by 11% YoY in the quarter going by," Pavan K Jha, CFO, Grasim Industries said. The company said realization was lower by 10% on year, though there was sequential improvement of 1.4%.
Grasim Industries is the flagship company of the Aditya Birla Group. For Q3FY25, the consolidated revenue stood at Rs 34,793 crore, up 9% YoY while consolidated EBITDA was down 9% YoY to Rs 4,668 crore. The company said this was mainly due to lower realisations in the cement business and initial investment requirement for Birla Opus.
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!
