Grasim eyes a paint industry coup with Birla Opus, sets Rs 10,000 cr target for next 3 years

Grasim Industries on Thursday made its debut into paint business with Birla Opus. The firm aims to become the No. 2 player in the segment dominated by names such as Asian Paints and Berger. 

"Paints business venture showcases India’s booming construction sector," said Kumar Mangalam Birla, Chairman, Aditya Birla Group. "No paint company has ever launched in one shot, Aditya Birla group will be the first one," he said, adding that the group is beginning with 6 state of the art plants. 

"With this capacity, we have overtaken the present number 1 and 2," Birla said. The firm is eyeing a Rs 10,000 crore target in next three years.

Grasim doubled its planned investment to Rs 10,000 crore for establishing its presence in the paints industry in FY23. With manufacturing facilities already operational in Haryana, Grasim is eyeing a capacity of 1,332 million litres per annum. 

Birla Opus products will be available in Punjab, Haryana, and Tamil Nadu from mid-March 2024 and across all 1 lakh population towns in India by July 2024. The company aims to expeditiously expand its distribution to over 6,000 towns by the fiscal year end. 

It will offer the widest range in the industry, with 145+ products and 1200+ SKUs across water-based paints, enamel paints, wood finishes, waterproofing and wallpapers. The products offered will be across consumer segments – economy, premium, luxury, designer finishes and institutional clients. In addition, Birla Opus will present the largest range of 2,300+ tintable colour choices including 216 iconic Indian colours. 

Pidilite and JSW too have entered the segment. Grasim has allocated Rs 4,307 crore, including Rs 1,979 crore specifically for the paints business, marking its largest-ever capital expenditure. The company's annual report noted an improvement in margin prospects for the paints and coatings industry, citing a softening of raw material prices from previous highs.