Grasim Industries, part of the Aditya Birla Group, enters the paint business with the launch of Birla Opus, intensifying competition in the decorative paints sector. Grasim aims to become a profitable No. 2 player, doubling its planned investment to Rs 10,000 crore for paints in FY23. The Indian paints and coatings industry is expected to grow to Rs 1 lakh crore in the next five years.
Kaustubh Pawaskar of Sharekhan says "Grasim Paints poses a threat to smaller players in the paint industry, while Asian Paints market share remains stable. Pricing competition and distribution expansion is going to impact margins. ITC s potential acquisition of Prataap Snacks aligns with its FMCG growth strategy, leveraging distribution and manufacturing capabilities."
Grasim Industries net consolidated total income stood at Rs 30,505.27 crore in Q2 FY24, a growth of 9.98 per cent from Rs 27,737.58 crore it recorded in the similar quarter last year.