Aditya Birla Group to Launch 'Birla Opus' Paint Business in Ambitious Move

In a significant strategic move, Grasim Industries, a prominent member of the esteemed Aditya Birla Group, is poised to introduce its paint business in the final quarter of the current fiscal year. This ambitious venture will be branded as 'Birla Opus.'

Diverse and High-Quality Paint Products

Grasim has announced its commitment to providing a comprehensive range of high-quality products within the decorative paints segment. The conglomerate had previously earmarked a substantial investment of ₹10,000 crore towards establishing its presence in the paints industry.

Aiming for Excellence

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed their determination to emerge as a profitable "number two" player in the market in the upcoming years. The present landscape includes established players like Asian Paints, Berger, Kansai Nerolac Paints, and more.

Birla stated, "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."

Robust Growth Prospects

The paints sector has exhibited impressive growth, with revenues surging by 18% in FY23. This growth momentum is expected to continue, with a projected growth rate of 10-12% in FY24. It is primarily driven by robust demand from the construction, real estate, and automotive sectors, as indicated in a report by Crisil.

Notably, the domestic paints sector encompasses the decorative segment, commanding a significant 80% share of the market.

Grasim highlighted, "The current estimated value of India’s decorative paints industry is ₹70,000 crore. The paints industry is witnessing double-digit growth year-on-year driven by rising consumer aspirations and the government’s push towards Housing for All."

Solid Foundation Building

Over the past two years, Grasim has been diligently laying the groundwork for this significant business launch. The company has established manufacturing facilities in key locations, including Haryana, Punjab, Tamil Nadu, Karnataka, Maharashtra, and West Bengal.

These facilities boast a collective capacity of 1,332 million litres per annum (MLPA) and are strategically positioned to cater to demand centers nationwide.

Birla noted, "The company has over the last couple of years built a strong foundation to enable a successful business launch." Grasim's innovative spirit was showcased through the introduction of pioneering painting services in major metropolitan areas and the rollout of a range of imported wood finishes. Furthermore, the company invested in a state-of-the-art Research and Development (R&D) facility located in Maharashtra.