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Informist, Friday, Aug. 8, 2025

By Shakshi Jain

NEW DELHI – Despite the intense competition in a segment of the paint industry, Grasim Industries Ltd. is confident of clocking a quarter-on-quarter growth in its paints business on the back of a festive upswing, which the company expects would begin towards the end of this month. The value and economy segment of the paint industry in India experienced a sequential rise in competitive intensity, the company said.

"As far as we are concerned, we will play the market as it should be. We have a very exciting luxury premium portfolio also. We will focus on that. We are quite confident that we will be able to reap good benefits and continue our quarter-to-quarter growth," a top company executive said in a post-earnings conference call Friday. 

Grasim Industries' decorative paints business – Birla Opus – recorded a double-digit sequential growth in revenue in the June quarter, led by increased category penetration and expansion of distribution network, the company said. Within this, premium paint products made up for 65% of the cumulative revenue of premium and luxury products, the company's management said. With the brand's sixth plant in West Bengal's Kharagpur, which is on track for a commercial launch at the end of the current quarter, the company estimates its installed capacity to reach 1,332 million litres per annum, taking its share in the organised paint industry to 24%. According to the company, utilisation levels are steadily rising at the five operating plants with a capacity of 1,096 million litres per annum. 

The management said the paint business is growing and consolidating simultaneously across all markets. "... when we say that our throughput per dealer is going up as a function of deeper penetration, more products and more range, that obviously means consolidation, but the fact that we are still adding some more dealers and increasing our range in each dealer means that we are also growing." The company said a majority of its dealers are multi-brand players. In the June quarter, the company expanded its portfolio to include 179 products with a reach to 8,000-plus towns pan-India.

On other businesses of the company, the management said realisations of cellulosic fashion yarn remained impacted in the June quarter due to weak demand from the textile value chain, coupled with low-priced imports from China. Overall, the management said tariff and trade policy shifts were one of the most notable changes globally in the past year, with the expansion of trade protection reinforcing the trend of fragmentation of global trade into regional blocs, the management said.

Friday, shares of the company ended at INR 2,691.60 on the National Stock Exchange, down almost 2%. End

Edited by Saji George Titus

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