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Informist, Wednesday, May 20, 2026

 

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--Grasim Ind: Raised prices by 2-6% in Jan-Feb 
--CONTEXT: Grasim Ind mgmt's comments in post-earnings call with analysts 
--Grasim Ind: Took staggered price hikes Q4, Apr to offset high input costs 
--Grasim Ind: Apr sales performance remained like Mar after price hike on mo 
--Grasim Ind: Aim to become second largest paints co at the earliest 
--Grasim Ind: Expect paints industry to grow in double digits in FY27 
--Grasim Ind: Expect high double-digit growth for own paints business in FY27 
 

 

By Avishek Rakshit & Afra Abubacker 

 

KOLKATA/MUMBAI – Grasim Industries Ltd. is aggressively targeting the position of the country's second-largest decorative paints company at the earliest, up from the third spot currently, and aims to achieve revenue of INR 100 billion from the paints business by 2027-28 (Apr-Mar), a senior company official said Wednesday. 

 

"What I can confidently say is that Birla Opus remains committed to driving market share gains and focused on our ambition to become the number two player at the earliest," its Managing Director Himanshu Kapania told sector analysts at a post-earnings call. 

 

Kapania, who is also business head of the decorative paints division, said Birla Opus gained market share in the March quarter by 90 basis points on quarter and its total market share from the paints and putty business is nearing the second spot in the domestic decorative paints industry. 

 

Berger Paints India Ltd. is the second-largest paints company in the country, commanding nearly 22% market share in the decorative paints industry. Although Kapania did not disclose Birla Opus' market share, industry officials estimate it to be around 21% as of March-end. 

 

However, Kapania's target of generating INR 100 billion in revenue from the paints business accounts only for Birla Opus' revenue from the decorative paints and putty business. Berger Paints, on the other hand, already reported a revenue of INR 106 billion in the year ended March, which includes sales from the industrial coatings business. Although Grasim did not provide the top line from its paints business, it said that Birla Opus' revenue grew 19% on quarter and sales volumes grew 17% sequentially. 

 

Kapania said that the paints industry is likely to grow in double-digits in the current financial year and Birla Opus is eyeing a strong double-digit growth. However, it will be less than the growth the company achieved in FY26. "We remain very confident that we achieved a triple-digit growth last year and we remain confident of a high double-digit growth," he said. 

 

The company's targeted growth will come from expanding its distribution network and improving throughput. "We are currently present in 11,500 large and small towns and we are anticipating to cross this to beyond 15,000 by the end of this financial year," Kapania said. "But the largest component of growth is obviously going to come through throughput with the existing dealers who have tested success with our range and category of products."

 

At the same time, Birla Opus is also aiming to expand its product range. Currently, its products span emulsions, enamels, waterproofing, wood finishes, distemper, wallpapers, and other products. 

 

The official said that the company's priority is to become the second-largest decorative paints company at the earliest, followed by revenue generation of INR 100 billion, and thirdly, aim for profitability from the paints business. 

 

PRICE HIKES

Kapania said Birla Opus has increased prices in the first tranche by 2-6% in Jan-Feb. "This increase was to test the channel and consumer reaction by bridging the gap with industry leaders in this first phase of price change," he said. "I am happy to share that the initial response to the price gap reduction is encouraging, with primary and secondary sales continuing to be strong during this fourth quarter."

 

Then again, in April, the company raised prices twice to offset the higher input costs due to the war in West Asia. "The volatile geopolitical environment and steep depreciation of our currency against the dollar have resulted in a spiralling of the cost of goods to as high as 20% to 25%, and we are still counting the impact," Kapania said. "This level of increase is unprecedented and even now, the raw material prices are unstable and unpredictable."

 

However, the official said that despite the price increase, Birla Opus's sales performance in April remained broadly similar to March, and the company remains committed to aggressively capturing market share.

 

Wednesday, shares of Grasim closed 1.2% up at INR 2,971.10 on the National Stock Exchange. End 

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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