Grasim Industries Launches Birla Opus Paints, Rattles Paint Stocks

26 Feb 2024 , 02:44 PM

Grasim Industries entered the paint market with the launch of Birla Opus in February. Three paint manufacturing plants were inaugurated simultaneously in Panipat, Ludhiana, and Cheyyar on the launch day.

Group Chairman Kumar Mangalam Birla expressed the ambition to secure a profitable second position in the paints market in the coming years.

Asian Paints and Berger Paints initially faced over 2% intraday losses but later recovered. Asian Paints gained 0.7%, trading at ₹3,022.05, while Berger Paints remained flat on the NSE.

Kansai Nerolac shares fluctuated between red and green, closing at ₹307.35 per share, down 0.15%. Indigo Paints experienced a 2.5% decline to ₹1,455.25.

The main concern for existing paint manufacturers is the substantial ₹6,000-Crore capital expenditure introduced by Birla Opus.

Grasim Industries plans to utilize major advertising firms and its existing distribution network for products like Birla White and UltraTech Cement to market Birla Opus.

Birla Opus targets a revenue of ₹10,000 Crore within three years of full-scale operations. The company plans to establish 120 depots covering all cities and one lakh people by July, expanding to an additional 50,000 people by the end of 2024. Kumar Mangalam Birla aims to replicate the successful distribution model of UltraTech in the paints business.

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