Grasim Industries on Tuesday said it has doubled the Capex for its foray into the paints business to Rs 10,000 crore and expects to start production from the fourth quarter of 2023-24.
In August last year, Grasim Industries’ board had approved a Rs 5,000 crore capital expenditure (CAPEX) plan to set up a paints business.
However, market dynamics of the decorative paints sector have changed with new capacities being announced backed by strong growth and outlook, it added.
“The project cost is likely to be Rs 10,000 crore by FY25,” Grasim Industries said in an earnings statement on Tuesday.
It has also accelerated the execution of its paint’s capacity of 1,332 MLPA with the commissioning of plants to start by Q4FY24, it added.
“The business is focused on the timely execution of its capacities,” it said.
The company is setting up five to six plants. The civil construction has already commenced at two of its plant sites — Panipat and Ludhiana — and is expected to start shortly at Chamarajanagar, in Karnataka.
“The remaining three plants are at different stages of government approval processes,” it said.
Grasim Industries is a leading global player in VSF and the largest chemicals player in India. It is also the largest cement producer and diversified financial services player in India through its subsidiaries UltraTech Cement and Aditya Birla Capital.
For FY22, its revenue from operations was at Rs 95,701.13 crore.