Aditya Birla Group is investing in Birla Opus, its paints venture, with the aim to disrupt the industry and become the number two player. They plan to achieve a revenue of Rs 10,000 crore and cover the entire country by FY25.
But as Grasim s entry takes the sheen off most of the incumbents, their stocks, too, could lose colour. Grasim had announced its foray in the paints business a little over 3 years ago with an initial investment of ₹5,000 crore, which it then doubled to ₹10,000 crore.
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.
Grasim Industries launched its paints business under the Birla Opus brand on Thursday, and said it expects the unit to generate 100 billion rupees in gross revenue in three years..
With the launch, Grasim aims to take on the second spot after Asian Paints, the current market leader. Jefferies observed that competitors like JSW Paints and Astral are aggressively marketing to strengthen their positions.