Grasim to invest Rs 2,000 crore Over 5 Years

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Grasim to invest Rs 2,000 crore Over 5 Years
20 Jul 2022
6 min read

News Synopsis

The Aditya Birla Group's flagship company, Grasim Industries, is investing Rs 2,000 crore in a business-to-business (B2B) e-commerce platform for building materials over the next five years. The move comes on the heels of Grasim's recent announcement to invest Rs 10,000 crore in its paint venture by fiscal year 2025.

“The foray into B2B e-commerce is yet another strategic portfolio choice as it crystallises our intent to invest in the new-age, high-growth digital space. 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,” Aditya Birla Group chairman Kumar Mangalam Birla said in a statement.

Birla further stated, “This move will also catalyse the growth of the micro, small and medium enterprises (MSME) universe in India and provide an impetus to the government’s vision of ‘Digital India.'

A newly recruited leadership team from the digital ecosystem will run the platform. This investment introduces a new high-growth engine with clear adjacencies within Grasim's standalone businesses, as well as those of its subsidiaries and associate companies. The platform will initially target MSMEs in the building materials sector, with the potential to expand to other relevant categories. According to the statement, the key value proposition would be an integrated procurement solution with on-time delivery and a superior product range at 'competitive' pricing.

The B2B e-commerce segment, according to Grasim, is a "high-growth opportunity with attractive long-term returns and will be highly valued accretive to its stakeholders."