Grasim Industries to infuse upto Rs2,000 crore into new B2B e-commerce platform for building materials

20 Jul 2022 , 09:59 AM

Grasim Industries’ Board of Directors approved a Rs2,000 crore investment in a B2B e-commerce platform for the Building Materials segment over the next five years. This investment introduces a new high-growth engine with clear adjacencies within Grasim's standalone businesses, as well as those of its subsidiaries and associate companies.

Over the last three years, the overall building materials procurement segment in India has grown at a CAGR of 14%. This industry is valued at USD 100 billion, with a current digital penetration of only 2%. Grasim's digital platform will address a variety of issues within the current supply chain.

The platform will initially target MSMEs in the Building Materials segment, with the potential to expand to other relevant categories in the future. An integrated procurement solution that includes on-time delivery and a superior product range at competitive pricing would be the key value proposition.

A newly recruited leadership team from the digital ecosystem will run this platform.

The Company believes that B2B e-commerce is a high-growth opportunity with attractive long-term returns that will add significant value to its stakeholders.

At around 9.58 AM, Grasim Industries was trading at Rs1,452.60 per piece, up by 0.74% from its previous closing of Rs1,442 on the BSE. The scrip opened at Rs1,471.95 and hit intraday high and low of Rs1,471.95 and Rs1,445.15 respectively.