Aditya Birla Group flagship Grasim announces foray into B2B e-commerce platform for Building Materials

The Board of Directors of Grasim today approved a foray into B2B e-commerce platform for the Building Materials segment with an investment of ~ INR 2,000 Crore over the next 5 years. This investment adds a new high-growth engine with clear adjacencies within Grasim's standalone businesses as also that of its subsidiaries and associate companies.

Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group said, "The foray into B2B e-commerce is yet another strategic portfolio choice as it crystallizes our intent to invest in the new-age, high growth digital space. The Building Materials segment presents a huge scalable business opportunity with a proven path to profitability. With this foray, Grasim would be able to leverage the large B2B ecosystem within the Aditya Birla Group. This move will also catalyze the growth of the MSME universe in India and provide an impetus to the Government's vision of 'Digital India'."

The overall building materials procurement segment in India has grown at a CAGR of ~ 14% over the last 3 years. This industry is estimated at ~ USD 100 bn with current digital penetration of just 2%. Grasim's digital platform will address various challenges within the existing supply chain.

The platform will primarily focus on MSMEs in the Building Materials segment with the potential to further extend to other relevant categories. The key value proposition would be an integrated procurement solution including on-time delivery and a superior product range at competitive pricing.

This platform will be operated by a newly recruited leadership team from the digital ecosystem.

The Company believes that B2B e-commerce is a high growth opportunity with attractive long-term returns and will be highly value accretive to its stakeholders.

Shares of Grasim Industries Limited was last trading in BSE at Rs. 1442.00 as compared to the previous close of Rs. 1429.25. The total number of shares traded during the day was 23077 in over 2296 trades.

The stock hit an intraday high of Rs. 1445.65 and intraday low of 1424.55. The net turnover during the day was Rs. 33116864.00.

Source : Equity Bulls

Keywords

GrasimIndustries INE047A01021 B2B eCommercePlatform BuildingMaterialsSegment