Birla Group company – Grasim Industries has forayed into B2B ecommerce platform for building materials. The regulatory filing mentions that over the coming five years the company will invest Rs 2,000 crore.
per the Chairman of Aditya Birla Group Kumar Mangalam Birla, the building material segment holds a huge business opportunity with a proven path to profitability.
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 company said.
The Chairman of the Aditya Birla Group further 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.”
“With this foray, Grasim would be able to leverage the large B2B ecosystem within the Aditya Birla Group. This move will also catalyze the growth of the MSME universe in India and provide an impetus to the Government’s vision of ‘Digital India’,” Birla added.
India over the last three years the overall building materials procurement segment has grown at a CAGR of 14%. This industry is estimated at $100 billion with current digital penetration of just 2%, the company said in a press release.
The digital platform will solve various challenges within the existing supply chain.
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.
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