Birla Group enters construction chemicals' market

Aditya Birla Group
Sensing huge future business opportunities in the segment, the MP Birla Group flagship, Birla Corporation, in a newest move has decided to enter the construction chemicals and additives' market and is all set to start test-marketing of its offerings very shortly. The demand for construction additives, such as wall putty and waterproofing material, is growing exponentially. According to sources, Birla Corp will initially source the products and market them under the MP Birla franchise, said official sources, elaborating that the company believes that since construction additives are sold through the same channels as cement, there’s a synergy between the two businesses. Since the company is going for contract manufacturing, the investment towards manufacturing is nil. However, it will incur only operational expenses as the company may consider manufacturing the products if the volumes pick up.

They said adding that the second phase capacity expansion at the Kundanganj unit of the company, which currently commands capacity of 2 million tons, in Uttar Pradesh will be carried out. A third production line, with an annual capacity of 1.2 million tons, will be installed at an estimated investment of ₹250 crore. For the quarter ended September 30, 2018, Birla Corp reported a near 55% dip in standalone net profit to ₹2 crore, against ₹4.40 crore in the year-ago-period. Total income during the period stood at ₹999 crore. Among cement makers, Ultratech has already introduced such products and others like JK Cement, have entered select areas such as wall putty.
Published on 01 November 2018
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