Grasim Industries, the flagship company of the Aditya Birla Group, is investing INR20,000m (US$250m) in a B2B e-commerce platform for building materials. The platform will primarily focus on micro-, small- and medium-sized enterprises in the building materials segment with the potential to extend into other relevant categories, reports the Financial Express. The key value proposition would be an integrated procurement solution, including on-time delivery and a superior product range at ‘competitive’ pricing, according to the company. The overall building materials procurement sector in India has grown at an annual growth rate of 14 per cent over the last three years. This industry is estimated to be worth US$100bn with current digital penetration of just two per cent.
“The foray into B2B e-commerce is yet another strategic portfolio choice as it crystallises 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,” said Aditya Birla Group Chairman Kumar Mangalam Birla.
The news follows Grasim's announcement in May this year to invest INR100,000m in the paint sector with plans to set up production plants capable of producing 1332Ml of paint each year.
