PremiumAditya Birla group’s flagship company Grasim Industries Tuesday said that its board had approved a foray into B2B e-commerce platform for the building materials segment with an investment of around Rs2,000 crore over the next five years
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Aditya Birla group’s flagship company Grasim Industries Ltd on Tuesday said that its board had approved a foray into B2B e-commerce platform for the building materials segment with an investment of around Rs2,000 crore over the next five years, the company said in a statement.
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, the statement 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," said Kumar Mangalam Birla, Chairman, Aditya Birla Group.
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, the company said.
“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 approximately $100 bn with current digital penetration of just 2%. Grasim’s digital platform will address various challenges within the existing supply chain," the company said.
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 closed at Rs1,442 apiece, up 0.89%, on the BSE on Tuesday. The announcement was made after market hours.