Grasim Industries Limited has announced a strategic shift towards two new growth areas: the paint and building materials businesses. Kumar Mangalam Birla, Chairman of Grasim Industries, shared this plan during the company’s 76th Annual General Meeting. The company has already invested a substantial amount of ₹1,979 crore in the paint business during the fiscal year 2023.
Birla emphasized the significance of this transformational growth phase, stating, “Your company has embarked on a transformational growth phase with the incubation of two new high-potential growth engines—paints and B2B e-commerce for building materials.” He added that the paint business received a capital expenditure of ₹1,979 crore out of the company’s total capital expenditure of ₹4,307 crore for the fiscal year.
Progressing well in the paint business, Birla shared that the project work is on track across all six sites, with plant commissioning planned in phases starting from the fourth quarter of fiscal year 2024. Additionally, he highlighted the fully operational state-of-the-art R&D facility for the paint business.
The company is also focusing on B2B e-commerce for building materials through its initiative called “Birla Pivot.” This initiative is already operational and serving customers in Madhya Pradesh, Maharashtra, and Delhi. Birla noted that this effort aligns seamlessly with the government’s Digital India goals and aims to empower MSMEs.
Birla’s vision for Grasim Industries involves a consolidation phase for its established businesses while leveraging the newly identified growth engines for impactful growth. The company achieved impressive financial results, including a 23% year-on-year growth in consolidated revenues from operations, reaching a record high of ₹1,17,627 crore. Consolidated EBITDA also increased to ₹20,478 crore.
In specific business segments, the VSF business achieved its highest-ever sales volume of 711KT for FY23, marking an 18% YoY growth. The chemicals business reported revenue and EBITDA at ₹10,422 crore and ₹2,271 crore, respectively. Grasim Industries aims to maintain its dominance in the Chlor-Alkali business and projects a capacity of 1.5 million TPA by the first quarter of FY25.
The textile business delivered annual financial results with revenue and EBITDA at ₹2,293 crore and ₹240 crore, respectively. Additionally, the Aditya Birla Renewables business is poised for significant growth, with a cumulative installed capacity of 744MW in FY23 projected to rise to 2GW by FY24.
With a strategic shift towards new growth areas and significant investments in expansion, Grasim Industries aims to secure its position as a dynamic and forward-looking company in the years ahead.