1. Home
  2. Building Material
  3. Paint
  4. Grasim's paint entry sparks rivals' fading hues
Grasim's paint entry sparks rivals' fading hues
Paint

Grasim's paint entry sparks rivals' fading hues

23 Feb 2024 2 Min Read CW Team
India's paints industry might transform into a challenging environment for several established companies, as the Aditya Birla Group's flagship, Grasim, creates a significant impact with the introduction of the 'Birla Opus' brand. This move has the potential to reshape market share and profitability dynamics in a sector that, until now, experienced fewer fluctuations compared to one of its primary revenue generators, real estate.

As Grasim enters the scene, casting a shadow over most of the existing players, it is anticipated that their stocks could also see a decline in value. Grasim declared its venture into the paints business slightly over three years ago, initiating an initial investment of Rs 50 billion, later doubled to Rs 100 billion.

Since then, the majority of players have seen their stocks underperforming broader market benchmarks. With the exception of Asian Paints, the market leader, the shares of various other paint manufacturers are lower compared to their position three years ago. During the same period, the Nifty 50 has witnessed a surge of over 48%.

George P Thomas, a fund manager at Quantum Asset Management Company, expressed the opinion that it is reasonable to assume a marginal dip in the overall profit pool. This is expected as players may feel compelled to increase their advertising expenditures to safeguard their market share. The impact of heightened advertising spending will likely be more pronounced for tier-2 and tier-3 players, from whom Grasim is poised to capture market share, Thomas added.

Grasim Industries is set to launch its paints business under the 'Birla Opus' brand, equipped with six manufacturing facilities and a production capacity of 1.3 million liters of paint annually. The conglomerate plans to unveil the business today, accompanied by an aggressive pricing strategy and a value proposition for the dealer network.

India's paints industry might transform into a challenging environment for several established companies, as the Aditya Birla Group's flagship, Grasim, creates a significant impact with the introduction of the 'Birla Opus' brand. This move has the potential to reshape market share and profitability dynamics in a sector that, until now, experienced fewer fluctuations compared to one of its primary revenue generators, real estate. As Grasim enters the scene, casting a shadow over most of the existing players, it is anticipated that their stocks could also see a decline in value. Grasim declared its venture into the paints business slightly over three years ago, initiating an initial investment of Rs 50 billion, later doubled to Rs 100 billion. Since then, the majority of players have seen their stocks underperforming broader market benchmarks. With the exception of Asian Paints, the market leader, the shares of various other paint manufacturers are lower compared to their position three years ago. During the same period, the Nifty 50 has witnessed a surge of over 48%. George P Thomas, a fund manager at Quantum Asset Management Company, expressed the opinion that it is reasonable to assume a marginal dip in the overall profit pool. This is expected as players may feel compelled to increase their advertising expenditures to safeguard their market share. The impact of heightened advertising spending will likely be more pronounced for tier-2 and tier-3 players, from whom Grasim is poised to capture market share, Thomas added. Grasim Industries is set to launch its paints business under the 'Birla Opus' brand, equipped with six manufacturing facilities and a production capacity of 1.3 million liters of paint annually. The conglomerate plans to unveil the business today, accompanied by an aggressive pricing strategy and a value proposition for the dealer network.

Next Story
Resources
23 Jan 2025

Master Builders Solutions Forges Path into India Market with MBT-Construction Chemicals

Master Builders Solutions, a global leader in innovative concrete admixtures and solutions for the construction industry, announces its strategic expansion into the dynamic Indian market. Leveraging its expertise and advanced solutions, Master Builders Solutions aims to address the growing demand for sustainable, high-performance construction materials across various sectors in India. The move into India represents a significant milestone for Master Builders Solutions, aligning with its commitment to delivering cutting-edge solutions worldwide. With a rapidly evolving construction landscape in..

Read More
Next Story
Resources
23 Jan 2025

TrucksUp collaborates with AU Small Finance Bank to empower aspiring buyers and small fleet owners

TrucksUp has announced a strategic partnership with AU Small Finance Bank Ltd to offer economic, easy and hassle-free financing solutions for used trucks focusing on driver and transport business community. This partnership tactically aims to support small fleet owners in India by providing low EMI loans at competitive interest rates. Their target audience can also benefit from refinancing options on existing trucks and avail of top-up loans to meet their financial needs. This is making the access to capital needs for truck drivers’ community easy to grow and scale their business. This colla..

Read More
Next Story
Resources
23 Jan 2025

Build Capital to Invest Rs 1.5 billion in Navi Mumbai’s RE Market in 2025

Build Capital, an innovative early-stage real estate fund, has completed its maiden investment in the Navi Mumbai market. This investment in Satyam Group’s project is part of Build’s strategy to become a preferred partner in early – stage real estate financing in Mumbai Metropolitan Region (MMR).Build Capital has further announced that it plans to invest close to Rs 1.5 billion (bn) in the Navi Mumbai market out of its total target investments of Rs. 4 bn for the year 2025. Kuldeep Jain, CEO and Co-Founder, Build Capital said, “We are plugging the existing gaps of early-stage financing..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

Tata Projects Sees Order Intake Doubling To Over Rs 200 Bn In FY25
ECONOMY & POLICY
23 Jan 2025

Tata Projects Sees Order Intake Doubling To Over Rs 200 Bn In FY25

Blue Energy Motors Signs Rs 35 Bn Mou with Maharashtra
POWER & RENEWABLE ENERGY
23 Jan 2025

Blue Energy Motors Signs Rs 35 Bn Mou with Maharashtra

Global Solar Sector Funding Falls 24% to $26.3 Billion: Report
POWER & RENEWABLE ENERGY
23 Jan 2025

Global Solar Sector Funding Falls 24% to $26.3 Billion: Report

Avaada Group Receives Financial Commitments worth For 9 Projects
ECONOMY & POLICY
23 Jan 2025

Avaada Group Receives Financial Commitments worth For 9 Projects

Hyundai Localises Over 1.2k Parts & EV Battery Packs
ECONOMY & POLICY
23 Jan 2025

Hyundai Localises Over 1.2k Parts & EV Battery Packs

Tata Elxsi Joins Hands with Minespider for Battery Platform
POWER & RENEWABLE ENERGY
23 Jan 2025

Tata Elxsi Joins Hands with Minespider for Battery Platform

HMDA Plans to Raise Rs 200 Bn For Infrastructure Projects In Hyderabad
ECONOMY & POLICY
23 Jan 2025

HMDA Plans to Raise Rs 200 Bn For Infrastructure Projects In Hyderabad

Maharashtra Government to Revise Ready Reckoner Rates in Next Fiscal
Real Estate
23 Jan 2025

Maharashtra Government to Revise Ready Reckoner Rates in Next Fiscal

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000