Birla group launches building material e-platform for MSMEs

Mumbai, July 20 (KNN) Aditya Birla Group’s flagship company Grasim Industries will be launching an e-commerce platform focusing on MSMEs in the building materials segment.

For its new B2B venture it aims to invest Rs 2,000 crore in the next five years.

Announcing its foray in the e-commerce market the company said that 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.

A newly recruited leadership team from the digital ecosystem will operate the new platform.

Speaking on the development, Kumar Mangalam Birla, chairman, Aditya Birla Group said, “Our entry 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 and with this foray, Grasim would be able to leverage the large B2B ecosystem within the Aditya Birla Group,” he added.

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.

The overall building materials procurement Industry in India has grown at a compound annual growth rate (CAGR) of 14 per cent over the last three years.

This industry is estimated at USD 100 billion with current digital penetration of just 2 per cent.  (KNN Bureau)