Grasim Industries Announces A  Bold Entry Into Paints: Motilal Oswal 
Colour samples sit on metal plates in the design department inside a store (Photographer Krisztian Bocsi/Bloomberg)

Grasim Industries Announces A  Bold Entry Into Paints: Motilal Oswal 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

We view Grasim Industries Ltd.’s announced foray into the Indian decorative paints industry as a bold step.

While it would be challenging to gain market share in an oligopolistic industry, if it can execute well, supported by the existing brand strength and distribution network of Ultratech’s white cement and putty businesses, the company could significantly improve its return on capital employed profile (currently only approximately 5-6%).

While the company is still formalizing the blueprint for this venture, planned capex of Rs 50 billion over the next three years would make it the second largest company in the sector in terms of capital employed (after Asian Paints Ltd.).

Click on the attachment to read the full report:

Motilal Oswal Grasim Industries Company Update.pdf


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