Grasim Ltd. has announced its foray into paints business with an initial investment plan of ₹5,000 crore.
The company’s board had approved the investment. “The foray into paints is a strategic portfolio choice for Grasim as it looks to identify new growth engines,” said Kumar Mangalam Birla, Chairman, Aditya Birla Group.
“Grasim’s strong balance sheet will facilitate this entry, which will add size, scale and diversity to its existing portfolio of established standalone businesses,” he said.
Mr Birla added, “The company endeavors to invest in businesses that have the potential to be a leader in their addressable markets; have the ability to achieve scale, and generate consistent and attractive returns in the long term. The paints industry presents a high-growth option for Grasim.”
The company plans to introduce latest range of paint products in line with global mega-trends.
The paints sector has registered a revenue CAGR of around 11% during FY14 to FY19, and given the value migration from the unorganized to the organized market, the outlook remains robust, providing the space for a quality new player, the company added.
