Birla Opus, the paints business of Aditya Birla Group’s Grasim Industries, is ramping up its utilisation levels as it eyes $1 billion in revenue in the next three years.
The paints company, which launched its fourth plant at Chamarajnagar in Mysuru on Tuesday, is aiming for a high single-digit market share (around 7-8%) by the end of the current financial year (FY25). It has utilised 85% of its overall investment of Rs 10,000 crore so far, taking its total manufacturing capacity across four plants to 866 million litre per annum.
“The momentum of our retail business is good. Retailer acceptance is high. We are getting counter share wherever we are present,” Rakshit Hargrave, CEO, Birla Opus Paints, said during the company’s September quarter earnings call.
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Hargrave said that Birla Opus products are now available in over 4,300 towns across the country, with a goal of touching 50,000 dealers in 6,000 towns by the end of the current financial year.
“We are engaging with the top dealers of India. Some of the larger dealers might be slightly slower to give us higher counter share, but that was only to be expected. But otherwise, we have a fair representation of our ability to place tinting machines and our ability to start billing across dealers of various classes and sizes,” he said.
The country’s top paints company, Asian Paints, is estimated to have a share of about 45-50% within the Rs 70,000-crore decorative paints market in India, remaining the leader in the category by a wide margin.
Brokerage Kotak Institutional Equities had recently said that Birla Opus had a 3-4% market share, which it could potentially double by the end of this fiscal. It was doing this through an aggressive manufacturing, distribution and trade push, offering higher retail margins and placing more tinting machines at outlets.
To counter this,
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