More Stories

Informist, Friday, Nov. 15, 2024

 

--Grasim: Expect high single-digit market share in India paints market FY25

--Grasim: Trial run started at Maharashtra, Karnataka new paints plants

--Grasim: Not looking at inorganic growth in paints business as of now

--CONTEXT: Grasim Industries mgmt's comments in Jul-Sept analyst concall

--Grasim: Rural consumption beat urban, led by better rains, farm output

--Grasim: Jul-Sept textiles busines profitability hit by high input costs

--Grasim: Renewable energy capacity to touch 2 GW in FY25

--Grasim: Co ramping up B2B e-commerce ops covering 375 cities

--Grasim: To spend around INR 30 bln of FY25 capex on new businesses

--Grasim: Co's FY25 capex seen at INR 47 bln

 

By Narayana Krishna

 

HYDERABAD - Grasim Industries Ltd expects its paints business to have a high single-digit market share in 2024-25 (Apr-Mar) despite the industry facing headwinds like pricing pressure and slowdown in sales, the company's management said on Friday in a post-earnings conference call. "...geographic reach and dealer onboarding activities are as per plan, and we are on track to exit this year with high single-digit market share in the Indian decorative paints market," the company management said.

 

While there are some headwinds in the industry and slowdown in overall sales, continuous marketing efforts and expanding dealer network will likely help the company to expand its market share and report growth, Grasim Industries said.

 

The Aditya Birla group company launched its paints business in February under the Birla Opus brand. The company has introduced 129 products so far against the target of launching 145 products in FY25. The company targets to sell paints via 50,000 retail outlets across the country by the end of the financial year, the management said.

 

The company said utilisation at its newly commissioned plants at Singhna, Panipat and Cheyyar is improving month-on-month. The company also started trial production at Chamrajanagar in Karnataka and Mahad in Maharashtra. Its sixth plant at Kadakpur is expected to go live in Jan-Mar, the management said.

 

The management said reports of the company looking for inorganic growth in paints business is speculative and Grasim is not looking for any buyouts in paints business as of now.

 

GROWTH PLANS

The company expects to deliver consistent growth, the management said. Despite short-term challenges in some business segments, overall it is confident of delivering growth, led by the country's economic growth prospects.

 

"Rural consumption momentum appears to have convincingly taken over urban consumption on the basis of better farm activity led by the normal monsoon," the management said.

 

Grasim Industries reported a net profit of INR 7.21 billion for Jul-Sept, down 9% on year, and missing Street's expectations due to higher expenses and tax costs. Analysts had projected the net profit at INR 8.83 billion.

 

Revenue from operations for the September quarter stood at INR 76.23 billion, marking an 18.3% rise from INR 64.42 billion in the same period last year. The revenue slightly surpassed analysts' forecast of INR 75.40 billion.

 

The management said higher inputs costs have impacted the profitability of textile business. In renewable energy operations, the company's total capacity is expected to touch 2 GW by the end of FY25, and majority of the power generated through this segment is being used by Aditya Birla group companies. In business-to-business e-commerce segment, the company is now present in 375 cities, expanding its reach.

 

The company said the management has revised its capital expenditure for the current year to INR 47 billion, of which INR 30 billion will be invested on growth and new business opportunities.

 

On Thursday, shares of Grasim Industries ended 0.8% higher at INR 2,523.95 on the National Stock Exchange.  End

 

Edited by Vandana Hingorani

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.