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Business News/ Companies / Company Results/  Grasim to focus on paint and building material business: Kumar Mangalam Birla
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Grasim to focus on paint and building material business: Kumar Mangalam Birla

The company recorded year-on-year growth of 23% in consolidated revenues from operations in FY23, reaching an all-time high of ₹1,17,627 crore

The chairman said the company had already invested ₹1,979 crore as capital expenditure in the paint business in FY2023Premium
The chairman said the company had already invested 1,979 crore as capital expenditure in the paint business in FY2023

New Delhi: Grasim Industries Limited announced that the company will be shifting focus towards growing two new businesses of paint and building materials going forward, while already investing 1,979 crore as capital expenditure (capex) in the paint business in fiscal year 2023, said Kumar Mangalam Birla, Chairman Grasim Industries Limited at its 76th Annual General Meeting (AGM).

“Your company has embarked on a transformational growth phase with the incubation of two new high-potential growth engines—paints and B2B e-commerce for building materials. In FY23, your company executed its largest ever capital expenditure investing 4,307 crore including 1,979 crore toward the paints business," he added.

Birla added that the company is progressing well in the paint business. “The project work is progressing as per plans at all the six sites, and commissioning of plants will start in phases from Q4FY24. The state-of-the-art R&D facility is fully operational.," he said.

The other business the company is hoping to grow in is the B2B e-commerce business for building materials, Birla added. “Birla Pivot is now operational and catering to customers in Madhya Pradesh, Maharashtra, and Delhi. This initiative aligns seamlessly with the government’s goals for Digital India and the empowerment of MSMEs," he added.

Birla believes that the company’s established businesses will be in the consolidation phase, while the newly identified growth engines will create a powerful impact for it.

The company recorded year-on-year growth of 23% in consolidated revenues from operations, reaching an all-time high of 1,17,627 crore. Consolidated EBITDA increased to 20,478 crore. “FY23 was a milestone year for your company as consolidated revenues for the first time surpassed the 1 trillion mark," Birla added.

Grasim’s VSF business recorded its highest-ever sales volume of 711KT (kiloton) for FY23, up 18% YoY. The chemicals business also reported revenue and EBITDA (earnings before interest, tax, depreciation, and amortisation) at 10,422 crore and 2,271 crore, respectively. Overall chlorine integration improved to 60% compared to 58% in the previous year, he added.

The company, he said, is looking to maintain its domination in the Chlor-Alkali business, projecting a capacity of 1.5 million TPA (tonnes per annum) by the first quarter of FY25.

The textile business of Grasim delivered its annual financial results, recording revenue and EBITDA at 2,293 crore and 240 crore, respectively.

The total cumulative installed capacity of Aditya Birla Renewables stood at 744MW in FY23, which is estimated to rise to 2GW by FY24, Birla added.

 

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Published: 25 Aug 2023, 07:26 PM IST
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