Grasim is all set to enter in Paint industry.
Grasim’s core business strategy revolves around achieving market leadership in every industry segment it enters. With this strategic vision in mind, Grasim has expanded its operations into the Indian paint industry. The company aims to capitalize on its existing network, scale, and the capabilities of the Grasim Group, along with the substantial expertise gained from its subsidiary UltraTech Cement’s decades of experience in the building materials sector.
Grasim Paint Plant Locations: Grasim has set its sights on becoming a prominent player in the rapidly expanding decorative paints industry. As part of its strategy, the company intends to establish six manufacturing plants across different states in India, namely Haryana, Punjab, Karnataka, Tamil Nadu, Maharashtra, and West Bengal. These plants are projected to have a combined production capacity of 1,332 million liters per annum (MLPA) and require an investment of ₹10,000 Crore.
Progress for paint
-Environmental clearance and consent to establish received for five sites out of six
-Civil work in progress at five sites
-Key functional staffing has been substantially completed
-Global standard R&D centre established and fully functional
-Pilot Plant expected to be commissioned in the near term
Impact on Asian Paint
Global brokerage firm Jefferies sees heightened competition for Asian Paints from Grasim’s entry into paint business. Asian Paints is India’s leading paint and decor company by market share. Jefferies said that in the paint industry in India, brand and distribution are the two key success factors. Given its presence in white cement and putty, Grasim plans to leverage the brand recall and distribution network of Birla White (brand under UltraTech).
As per management, Birla White has a dealer count of 54,000, of which 70 per cent also sell paints; these 38,000 retail touchpoints makes Birla White’s distribution the third-largest in the Indian paint industry, just behind Asian Paints and Berger. This distribution network stretches across 6,000 cities in the country, including rural markets.
What is launch date Grasim paint?
Grasim Industries Limited, a flagship company of the global conglomerate Aditya Birla Group, is on track to launch its paint business by 4QFY24.
On the weekly chart of Grasim, an interesting pattern known as a symmetrical broadening wedge is currently taking shape. This pattern occurs after a breakout from a 42-week descending broadening wedge pattern. The symmetrical broadening wedge is characterized by the formation of two diverging trend lines, with the upper line sloping upward and the lower line sloping downward. This pattern suggests a period of increased volatility and uncertainty in the stock’s price movement. Traders and investors may closely monitor this pattern for potential trading opportunities and to assess the stock’s future direction.
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