The shares of Grasim Industries hit fresh highs in morning trade on Monday following the company’s foray into the paints business.
At 10:50 am, Grasim was trading at ₹1,049.75 on the BSE, up ₹45.35 or 4.52 per cent. It hit a 52-week high of ₹1,064.65. It opened at ₹1,029.40 as against the previous close of ₹1,004.40.
On the NSE, it was trading at ₹1,050.00, up ₹46.00 or 4.58 per cent. It hit a 52-week high of ₹1,065.00.
The Aditya Birla Group company has entered the paints business with an investment of ₹5,000 crore planned over the next three years.
Aditya Birla Group Chairman Kumar Mangalam Birla had said that paints are a strategic portfolio choice for Grasim, as it looks to identify new growth engines.
“Grasim’s strong balance-sheet will facilitate this entry, which will add size, scale and diversity to its existing portfolio of established standalone businesses. The company endeavours to invest in businesses that have the potential to be a leader in their addressable markets and the ability to achieve scale, and generate consistent and attractive returns in the long term. The paint industry presents a high-growth option for Grasim,” he said.
It plans to introduce paint products in line with global mega-trends.