Grasim Has Started 'Beta-Testing' It’s Painting Service ‘Sparkle’
Brokerage Jefferies said the magnitude of Aditya Birla group company Grasim's investments in the paints sector could impact the industry's profitability as its aggressive growth strategy could entail steps like channel push, higher discounts, and promotions for dealers and even painters. The firm said many investors believe it's an uphill task for Grasim and that smaller players may be impacted, while Asian Paints will stay unscathed. Grasim has started 'beta-testing' its painting service Sparkle in Mumbai, Pune, and Banglore that is open only to employees of Aditya Birla group and their friends and family, said the brokerage. It said Grasim is eyeing to be the second-largest paint player in India, while JSW is eyeing around 10% market share by FY26. Meanwhile, Asian Paints, the largest player in the paints sector, has plans to invest '10,000 crore to add 0.9 million kilolitres capacity, including greenfield and brownfield facilities, the report said. Separately, Crisil Ratings said in April that while the paints industry's operating margin would improve due to a 30% fall in crude oil prices (a key raw material), it will be largely offset by higher selling expenses due to aggressive sales push and increase in ad spend by players to counter competition from new entrants.
Tags : Brokerage Jefferies magnitude Aditya Birla group company Grasim investments paints sector impact industry profitability growth strategy discounts promotions dealers painters Asian Paints Mumbai Pune Bangalore Crisil Ratings