Grasim forays into B2B ecommerce with building materials platform
Aditya Birla Group’s flagship company
Grasim
NSE 0.97 % has announced its foray into business-to-business ( B2B ) ecommerce with a platform for the building materials segment. The company plans to invest Rs 2,000 crore in the new business over the next five years, it said in an exchange filing.
The B2B platform will focus on micro, small and medium businesses in the building materials segment and may be extended to other relevant categories.
It will be operated by a newly recruited leadership team from the digital ecosystem.
Chairman of the Aditya Birla Group Kumar Mangalam Birla said, “The foray into B2B ecommerce is yet another strategic portfolio choice as it crystallises our intent to invest in the new-age, high-growth digital space.”
He added that the building materials segment presents a 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 catalyse the growth of MSMEs in India and provide an impetus to the government’s vision of ‘Digital India’,” he said.
The building materials procurement segment in India has grown at a compound annual growth rate (CAGR) of 14% over the past three years. The size of the industry is estimated at $100 billion with digital penetration of just 2%.Earlier this year, Grasim entered the paints business with an investment of up to Rs 5,000 crore over the next three years, primarily towards capital expenditure. The company reported a strong result in previous quarter. Consolidated profit rose 62% from the same period a year ago, while standalone profit rose 122%….more
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