3 Min Read
Birla Opus reaffirms ₹10,000 crore revenue target for paints in three years
The company aims to close the year on a strong note and plans to expand its reach to 6,000 towns.
Rakshit Hargave, CEO of Birla Opus, the decorative paints division of Grasim Industries, reiterated the company’s goal of achieving ₹10,000 crore in revenue within the next three years.
The company aims to close the year on a strong note and plans to expand its reach to 6,000 towns, Hargave told CNBC-TV18.
As part of its growth strategy, Birla Opus has recently commenced operations at its fourth plant in Chamarajanagar, Karnataka.
This is the transcript of the interview.
Q: How do you define happiness? I just wanted to understand that because you did a little over ₹400 crore in the July-September 2024 (Q2FY25) quarter.
A: I am not going to discuss any numbers. Whatever number you are throwing at me is a number that will remain here. When I say that we are happy, our execution is good. We are in line to meet the benchmarks, which we set for ourselves in the first year. And to reiterate, we said that we would want to exit the year in a high single-digit mode. And we should be there in terms of 6,000 towns.
So in terms of the markers, we are there. And the brand has found a lot of footing. So the acceptance from contractors, dealers - they are the first ports of call - so when they say, you realise that things are happening well. We are also now getting consumers coming and asking about Birla Opus. The team is happy, motivated and focused on execution. So putting all that mixture together makes a happy picture.
Q: You said that you will end this year with a high single-digit growth. Doing some back-of-the-envelope calculations puts your January-March 2025 (Q4FY25) run rate at around ₹1,200-1,500 crore revenue mark.
A: I don't want to comment on that, but the high could be 7, could be eight, could be 6.5-7. So let's see how it moves. The market is dynamic.
Q: What does that do to your long-term target? The three-year target that you have of ₹10,000 crore revenue, with EBITDA profitability, with all the markers that you are seeing right now. Are there chances that that can be postponed, or could there be a quarter or two of delay?
A: No, no, that's a long way off. Three full years of full-scale operation - what we have told ₹10,000 crore remains at ₹10,000 crore, and at the moment, it is only the first quartile of the journey, but we have started on a good note. Well begun is half done.
Q: Have you faced any sort of incremental pressure from distributors, dealers, and when it comes to competition as well, anything that tells you that maybe it could be a little more difficult or a lot easier than what you thought about because paints are such a top-heavy market?
A: It's a bit of a mixed bag. So while we were confident of many things that you do, there are some places in which the dealers or competition has acted more strongly, where we have also reverted by tactically changing a bit of our course. But no big bloomers in the sense that this is something that we have not envisaged. It's a mixed bag. But at the end of the day, we are pretty confident of how we are doing.
For more details, watch the accompanying video
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The company aims to close the year on a strong note and plans to expand its reach to 6,000 towns, Hargave told CNBC-TV18.
As part of its growth strategy, Birla Opus has recently commenced operations at its fourth plant in Chamarajanagar, Karnataka.
This is the transcript of the interview.
Q: How do you define happiness? I just wanted to understand that because you did a little over ₹400 crore in the July-September 2024 (Q2FY25) quarter.
A: I am not going to discuss any numbers. Whatever number you are throwing at me is a number that will remain here. When I say that we are happy, our execution is good. We are in line to meet the benchmarks, which we set for ourselves in the first year. And to reiterate, we said that we would want to exit the year in a high single-digit mode. And we should be there in terms of 6,000 towns.
So in terms of the markers, we are there. And the brand has found a lot of footing. So the acceptance from contractors, dealers - they are the first ports of call - so when they say, you realise that things are happening well. We are also now getting consumers coming and asking about Birla Opus. The team is happy, motivated and focused on execution. So putting all that mixture together makes a happy picture.
Q: You said that you will end this year with a high single-digit growth. Doing some back-of-the-envelope calculations puts your January-March 2025 (Q4FY25) run rate at around ₹1,200-1,500 crore revenue mark.
A: I don't want to comment on that, but the high could be 7, could be eight, could be 6.5-7. So let's see how it moves. The market is dynamic.
Q: What does that do to your long-term target? The three-year target that you have of ₹10,000 crore revenue, with EBITDA profitability, with all the markers that you are seeing right now. Are there chances that that can be postponed, or could there be a quarter or two of delay?
A: No, no, that's a long way off. Three full years of full-scale operation - what we have told ₹10,000 crore remains at ₹10,000 crore, and at the moment, it is only the first quartile of the journey, but we have started on a good note. Well begun is half done.
Q: Have you faced any sort of incremental pressure from distributors, dealers, and when it comes to competition as well, anything that tells you that maybe it could be a little more difficult or a lot easier than what you thought about because paints are such a top-heavy market?
A: It's a bit of a mixed bag. So while we were confident of many things that you do, there are some places in which the dealers or competition has acted more strongly, where we have also reverted by tactically changing a bit of our course. But no big bloomers in the sense that this is something that we have not envisaged. It's a mixed bag. But at the end of the day, we are pretty confident of how we are doing.
For more details, watch the accompanying video
Catch all the latest updates from the stock market here
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