Aditya Birla Group’s Grasim Industries recently announced the company’s plan to foray into the building materials segment. The company will invest Rs.2000 crore during the span of 5 years. The announcement comes after the recent investment plan in the paint foray. With this foray Grasim, would be able to leverage the large B2B ecosystem within the group. This move will also be helpful in the growth of MSME universe India and will provide a force to the government’s vision of digital India.
The building materials procurement segment in India is estimated to be $100 billion and it is growing at the rate of 14% over the last some years. The move will penetrate the supply chain of the segment with its digital solutions.
“The building materials segment presents a huge scalable business opportunity with a proven path to profitability. With this foray, Grasim would be able to leverage the large B2B ecosystem within the Aditya Birla Group,” – Kumar Mangalam Birla, Aditya Birla Group chairman.
This investment is said to add heights to the Grasim businesses and associates as the company is spending Rs.10,000 crores in the new paints business and will bring out its products in 2025. The group owns India’s largest cement company which is one hundred and twenty million tonnes per annum. So it is said that Grasim’s new step will be proved beneficial.
Kumar Mangalam Birla, Chairman of Aditya Birla Group added, “The foray into B2B e-commerce is yet another strategic portfolio choice as “it crystallizes our intent to invest in the new-age, high-growth digital space”.
