India: Investment in Paints Industry Grasim Announces Foray into Indian Paints Business
The Board of Directors of Grasim has approved a foray into the paints business. The company plans an initial capital expenditure of approximately $ 684 million over the next three years.
Mumbai/India — The foray into paints is a strategic portfolio choice for Grasim as it looks to identify new growth engines. The entry is to add size, scale and diversity to the existing portfolio of standalone businesses. The company announced that it plans to invest in businesses that have the potential to be a leader in their addressable markets; have the ability to achieve scale, and generate consistent and attractive returns in the long term. The paints industry has registered a revenue CAGR of around 11 % during FY2014 to 2019, and given the value migration from the unorganized to the organized market, the outlook remains robust, providing the space for a quality new player. The entry of Grasim in the paints sector is to offer a wide choice to Indian consumers as the company plans to introduce the latest range of paint products in line with global mega-trends.