Grasim Industries has enhanced planned investment in its paint business venture to Rs 10,000 crore by FY25 against the earlier plans to invest Rs 5,000 crore by FY24 on the back of a strong growth outlook. It plans to commission a paint production capacity of 1,332 MLPA by the fourth quarter of FY24.
The company has acquired six land parcels and taken possession of five after completing the registration. It has also received environmental clearance for setting up a paint plant at Panipat (Haryana), Ludhiana (Punjab), and Chamarajanagar (Karnataka) and has been awarded a detailed engineering contract for all six plant sites. Civil work has commenced at Panipat and Ludhiana sites, it said.
Grasim has managed to mitigate inflationary pressure by changing the plant configuration. It has so far spent Rs 579 crore in the paints business from the overall CAPEX of Rs 2,537 crore incurred in FY22.
With the economy pulling out of Covid’s impact, Grasim sees a big opportunity in the high return on capital employed business which will provide new avenues for growth and importantly, steady earnings. The strategy for the entry into the high-end paints business is backed by a strong balance sheet which is expected to further strengthen after the sale of its fertiliser business, said the company.