Grasim to launch paints business tapping into India's booming decorative paints sector

Grasim to launch paints business tapping into India's booming decorative paints sector.

Grasim Industries Limited, part of the prominent Aditya Birla Group, has announced the name of its upcoming paints venture as 'Birla Opus'. Birla Opus is slated for a market debut in Q4FY24, promises to deliver a comprehensive range of premium products in the decorative paints category.

Before its official launch, Grasim has effectively trialed unique painting services in major metropolitan areas and unveiled a selection of imported wood coatings. The company has also established a state-of-the-art R&D center in Maharashtra, the company said in an exchange filing.

“Our foray into decorative paints is a strategic portfolio choice that enables us to tap into a high-growth market and expand our presence in the vibrant Indian consumer landscape. We endeavour to become a profitable No. 2 player in the coming years and announcing our brand name is the first of many steps that will follow in this direction.” said Mr Kumar Mangalam Birla, Chairman, Aditya Birla Group.

Grasim had earlier pledged an investment of Rs.10, 000 crore for the development of its paints segment. The firm's advanced manufacturing units, spread across Haryana, Punjab, Tamil Nadu, Karnataka, Maharashtra, and West Bengal, boast a cumulative capacity of 1,332 million litres annually. These facilities are positioned to cater to the needs of customers throughout India.

In reaction to the announcement, Asian Paints Ltd. is trading 1.37 percent lower at Rs 3,232.80 on NSE at 12:35 pm.

In January 2021, the Aditya Birla Group ventured into the paints industry with an initial investment of Rs 5,000 crore. This amount was increased to Rs 10,000 crore by May of the same year. India's decorative paints sector is presently valued at Rs 70,000 Crore. The industry is experiencing consistent double-digit annual growth, spurred by growing consumer expectations and the government's 'Housing for All' initiative.