New Delhi: Grasim Industries announced that it will increase its anticipated capital investment over the next three years; the paints industry has attracted a lot of interest. The flagship firm of the Aditya Birla Group intends to invest Rs 10,000 crore in this division.
Prior to the financial year 2024 (FY24), Grasim had initially announced a cumulative capital expenditure of around Rs 5,000 crores. However, it declared in the final quarter of FY22 that it will invest a total of Rs 10,000 crores in the paints business through FY25. Grasim intends to enter the consumer-focused decorative paints market, as opposed to another new entry, JSW Paints, which entered the industrial paints sector.
According to a Crisil analysis, the sector’s sales increased by 18% in FY23 and now forecast to increase by 10-12% in FY24 as a result of strong demand from the real estate, automotive, and construction industries. The decorative category, which controls 80% of the market, is also included in the domestic paints sector.
In Maharashtra, a research and development (R&D) centre has already been established. The business added that it has also tested its painting services in significant metro areas.
Manufacturing facilities for Grasim have been constructed in Haryana, Punjab, Tamil Nadu, Karnataka, Maharashtra, and West Bengal. They will supply demand centres all around the nation and have a combined capacity of 1,332 MLPA.
According to Kumar Mangalam Birla, chairman of the Aditya Birla Group, their move into decorative paints is a strategic portfolio decision that allows them to enter a market that is seeing rapid expansion.
The decorative paints market in India is now projected to be around Rs 70,000 crore, and it is expanding by double digits year over year due to growing consumer demands and the government’s campaign for “Housing for All.”
Grasim is One of the top publicly traded corporations in India and a diversified Aditya Birla Group enterprise.
Grasim Industries’ consolidated operating revenues for the fiscal year that ended on March 31, 2023, increased by 23% to an all-time high of Rs 1.17 lakh crore.