Grasim Industries Ltd. has commissioned paint production in three of its manufacturing units, gearing up for launch by March.
The trial run is being done in Ludhiana, Cheyyar and Panipat facilities, while sales and distribution networks are being put in place to support the launch of the paints business — Birla Opus — in the fourth quarter, the flagship company of the Aditya Birla Group said in an investor’s presentation.
Sharing an update on the progress of the launch, the company said:
Sub-brand portfolios, package artwork and consumer communication plans are completed.
Advertisement concepts were finalised with agencies to reach maximum consumer awareness.
Painting Services brand ‘PaintCraft’ has been launched, with more than 150 sites completed by December 2023.
Italian Wood Finish brand ‘Allwood’ launched in more than 59 cities.
The implementation of integrated IT infrastructure and applications to provide a seamless order-to-delivery experience is on track.
As of Dec. 31, Grasim had spent 59% of the total planned capital expenditure. In 2021, the company announced its plans to invest Rs 10,000 crore towards setting up six greenfield paint plants with a total capacity of 1.3 billion litres per year—the second largest in the Indian decorative paints industry.
Analysts see a parallel between Grasim’s aggressive foray into paints and Reliance Jio Infocomm Ltd.’s pricing-driven disruption in the telecom industry. Still, it won’t be easy to challenge incumbents like Asian Paints.
The management of Grasim expects strong housing demand on account of the government’s focus on ‘Housing for All’ and rising aspirations, which are key drivers for growth in decorative paints. Increasing premiumisation and shortened repayment cycles will further aid the growth momentum, it said.
The decorative paints industry is expected to be worth Rs 73,000 crore by March 2024, of which 72–75% is organised, the presentation showed. In the last five years, the decorative paint industry has grown at a 12–13% CAGR.
“Aditya Birla Group brand equity, pan-India distribution reach and differentiated products give us “Right to Win”, the management said.