Grasim's paint entry sparks rivals' fading hues
Paint

Grasim's paint entry sparks rivals' fading hues

India's paints industry might transform into a challenging environment for several established companies, as the Aditya Birla Group's flagship, Grasim, creates a significant impact with the introduction of the 'Birla Opus' brand. This move has the potential to reshape market share and profitability dynamics in a sector that, until now, experienced fewer fluctuations compared to one of its primary revenue generators, real estate.

As Grasim enters the scene, casting a shadow over most of the existing players, it is anticipated that their stocks could also see a decline in value. Grasim declared its venture into the paints business slightly over three years ago, initiating an initial investment of Rs 50 billion, later doubled to Rs 100 billion.

Since then, the majority of players have seen their stocks underperforming broader market benchmarks. With the exception of Asian Paints, the market leader, the shares of various other paint manufacturers are lower compared to their position three years ago. During the same period, the Nifty 50 has witnessed a surge of over 48%.

George P Thomas, a fund manager at Quantum Asset Management Company, expressed the opinion that it is reasonable to assume a marginal dip in the overall profit pool. This is expected as players may feel compelled to increase their advertising expenditures to safeguard their market share. The impact of heightened advertising spending will likely be more pronounced for tier-2 and tier-3 players, from whom Grasim is poised to capture market share, Thomas added.

Grasim Industries is set to launch its paints business under the 'Birla Opus' brand, equipped with six manufacturing facilities and a production capacity of 1.3 million liters of paint annually. The conglomerate plans to unveil the business today, accompanied by an aggressive pricing strategy and a value proposition for the dealer network.

India's paints industry might transform into a challenging environment for several established companies, as the Aditya Birla Group's flagship, Grasim, creates a significant impact with the introduction of the 'Birla Opus' brand. This move has the potential to reshape market share and profitability dynamics in a sector that, until now, experienced fewer fluctuations compared to one of its primary revenue generators, real estate. As Grasim enters the scene, casting a shadow over most of the existing players, it is anticipated that their stocks could also see a decline in value. Grasim declared its venture into the paints business slightly over three years ago, initiating an initial investment of Rs 50 billion, later doubled to Rs 100 billion. Since then, the majority of players have seen their stocks underperforming broader market benchmarks. With the exception of Asian Paints, the market leader, the shares of various other paint manufacturers are lower compared to their position three years ago. During the same period, the Nifty 50 has witnessed a surge of over 48%. George P Thomas, a fund manager at Quantum Asset Management Company, expressed the opinion that it is reasonable to assume a marginal dip in the overall profit pool. This is expected as players may feel compelled to increase their advertising expenditures to safeguard their market share. The impact of heightened advertising spending will likely be more pronounced for tier-2 and tier-3 players, from whom Grasim is poised to capture market share, Thomas added. Grasim Industries is set to launch its paints business under the 'Birla Opus' brand, equipped with six manufacturing facilities and a production capacity of 1.3 million liters of paint annually. The conglomerate plans to unveil the business today, accompanied by an aggressive pricing strategy and a value proposition for the dealer network.

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Next Story
Infrastructure Urban

India Spent Rs 1.5 Tn on Smart Cities in Past 10 Years

The Indian government launched the Smart Cities Mission on June 15, 2015, with the goal of transforming urban infrastructure across the country. As of April 11, 2025, ten years since its inception, over Rs 1.5 trillion has been spent on 7,504 completed projects, representing 94 per cent of the total planned projects valued at more than Rs 1.64 trillion. An additional Rs 131.42 billion worth of projects are currently under implementation. According to data from SBI Research, 92 per cent of the funds were utilised across 21 major states, with Uttar Pradesh, Tamil Nadu, and Maharashtra together ..

Next Story
Infrastructure Energy

Hyundai’s EcoGram Converts Gurugram’s Waste to Clean Energy

Hyundai’s EcoGram, a biogas plant and material recovery facility located in Gurugram, Haryana, has been established to support circular economy initiatives. The facility collects both wet and dry waste from 20 bulk waste generators, including residential welfare associations (RWAs), corporate offices, and commercial complexes, with assistance from the Municipal Corporation of Gurugram (MCG). At the facility, the collected waste undergoes processing—wet waste is converted into biogas, which is then used to generate electricity, while dry waste is sorted for recycling. Since its inception,..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?