Grasim Industries, an Aditya Birla Group, targets to become the second-largest in the decorative paint business, with the commissioning of six plants in phased manner starting March quarter.
Last fiscal, Grasim made its largest-ever capital expenditure of ₹4,307 crore, including ₹1,979 crore in the paints business.
Kumar Mangalam Birla, Chairman, Grasim Industries, told shareholders that the 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.
In the paints business, the project work is progressing as per plans at all the six sites, and commissioning of plants will start in phases from Q4 FY24, he said at the company’s 76th annual general meeting on Friday.
The modern R&D facility for paints is fully operational, and the company aims to be a strong No 2 player in the decorative paints industry, he added.
The B2B e-commerce business — Birla Pivot — is now operational and caters to customers in Madhya Pradesh, Maharashtra and Delhi. This initiative aligns seamlessly with the government’s goals for Digital India and the empowerment of MSME’s, said Birla.
VSF business aims to grow circular products in this fiscal using pre- and post-consumer waste and alternative feedstock. Liva Reviva made from 30 per cent textile waste, and the commissioning of a mechanical recycling facility at TRADC (Textile Research And Development Centre, Gujarat) establishes Grasim as the front-runner in textile recycling, he added.
On Chemicals business, he said the company aims to retain market leadership position in the Chlor-Alkali business, projecting a capacity of 1.5 million TPA by June quarter of FY25.
Aditya Birla Renewables has achieved a cumulative installed capacity of 744 MW last fiscal and this is estimated to rise to 2GW by FY’24.
scope for recovery
Despite weaker global growth in the current year, Birla said there is room for cautious optimism about a subsequent recovery, as global financial markets have held up reasonably well. The Indian economy presents a robust picture with strong domestic impulses outweighing negative global slowdown effects.
Fiscal consolidation is on track despite substantial increases in government capital expenditure. Public investments, particularly in critical infrastructure, are making the economy future-ready, while pragmatic industrial policies and production-linked incentive schemes will stimulate private capex, he added.
These initiatives, combined with improved balance sheets both of banks and corporates and the dynamism of the technology-based ‘new economy,’ create promising medium-term growth prospects for the Indian economy, said Birla.