Grasim’s big-ticket paints entry adds new colour to the stock

livemint.com:

₹6,000 crore in the paints division, intent on making its mark in the market. The company has set up three major production facilities in Panipat (Haryana), Ludhiana (Punjab), and Cheyyar (Tamil Nadu), expected to be operational by March 2024. Plans include three additional plants in Chamarajanagar (Karnataka), Mahad (Maharashtra), and Kharagpur (West Bengal), aiming for all six to be functional by fiscal year 2025 (FY25).

Grasim has also stitched together a large dealer network, and completed the branding exercise. Starting Q4FY24, it will produce, brand and market decorative paints across an entire range of price-points. This expansion is part of Grasim's strategy to establish a nationwide presence, initially focusing on selected regions in the northern and southern markets, and eventually reaching every town with a population over 100,000 by the end of Q1FY25.

The goal is to have Birla Opus available in 6,000 towns by the end of FY25. At full capacity, its six facilities will produce around 1332 million litres per annum. For perspective, Grasim would single-handedly add over 40% to the aggregated capacity of the paints industry.

At full capacity, Grasim would produce more paint than the current top three in the industry combined. In addition to manufacturing, Grasim is looking to build a robust dealer network of over 50,000 by the end of FY25, supported by more than 150 depots. The company is committed to assisting dealers with financing, providing advanced compact tinting machines at no cost, with over 2,300 colour selections, and promising a rapid four-hour delivery time from depots to dealers.