Active Stocks
Tue Apr 23 2024 10:27:15
  1. Tata Steel share price
  2. 162.45 0.37%
  1. NTPC share price
  2. 345.85 0.82%
  1. Tata Motors share price
  2. 983.10 0.98%
  1. HDFC Bank share price
  2. 1,513.60 0.09%
  1. State Bank Of India share price
  2. 773.20 0.96%
Business News/ Companies / News/  0 to 10,000 in 3 years: Birla sets ambitious target for new paints business
BackBack

0 to 10,000 in 3 years: Birla sets ambitious target for new paints business

Chairman Kumar Mangalam Birla expects the group’s paints business to become profitable with ₹10,000 crore in annual revenue in three years of full-scale operations
  • Birla also said the group remained committed to Vodafone Idea and efforts were on to get investors for the debt-ridden telecom company
  • Aditya Birla Group chairman Kumar Mangalam Birla at the launch of Birla Opus on Thursday.Premium
    Aditya Birla Group chairman Kumar Mangalam Birla at the launch of Birla Opus on Thursday.

    Panipat: Aditya Birla Group expects its new paints business to turn profitable in three years, chairman Kumar Mangalam Birla said, as the conglomerate marked its entry into the rapidly expanding 80,000-crore Indian decorative paints market.

    “Our vision is ambitious and our initial goal is clear—to clock revenues of 10,000 crore and become profitable not later than the third year of full-scale operations," Birla said on Thursday at an event to launch the group’s paints brand, Birla Opus.

    Birla Opus products will be available in Punjab, Haryana and Tamil Nadu from mid-March and in towns with populations of at least 100,000 by July 2024. The company aims to expand distribution of its paints business to over 6,000 towns by the end of FY25.

    The paints business, launched under the group’s flagship business Grasim Industries, has commenced operations of three plants—in Haryana’s Panipat, Ludhiana in Punjab, and Cheyyar in Tamil Nadu.

    Grasim Industries has committed investments of 10,000 crore for its decorative paints business, with plans to establish a total of six manufacturing plants across India by 2025. 

    It has so far invested 5,000 crore. The rest of the investments will be made in three more plants that will come up in Chamarajanagar in Karnataka, Mahad in Maharashtra, and Kharagpur in West Bengal, which will commence production over the course of FY25.

    With the six plants, the company will have a total capacity of 1,332 million litres per annum. 

    “No paint company globally has ever launched in one shot—factories, operations, products, and services—at the scale that we are about to undertake," Birla said. 

    Good progress on Vodafone Idea

    As for Vodafone Idea Ltd, in which the Aditya Birla Group is a joint venture partner, Birla said the telecom company was making progress in roping in an investor.

    “We are making good progress but can’t put in a timeline. We remain very committed to Vodafone Idea and like we have said in public domain, efforts are on to get outside investors," Birla said.

    The board of Vodafone Idea will meet on 27 February to consider fundraising proposals, the company said in an exchange filing today. 

    Proposals for fundraising could be considered via a rights issue, a further public offer, private placement of shares including a preferential allotment, a qualified institutional placement, or any other permissible mode, the company said.

    It added that options to raise funds via global or American depository receipts or bonds, including foreign currency convertible bonds, convertible debentures, and warrants, are also being considered.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    ABOUT THE AUTHOR
    Mihir Mishra
    A senior editor at Mint, Mihir writes on the corporate sector. Mihir has an experience of 15 years in the field of journalism. His previous stints include Business Standard, The Indian Express and The Economic Times.
    Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 22 Feb 2024, 06:56 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App