InvestorQ : Why is Grasim planning to invest Rs2,000 crore in digital ideas in the building materials industry?
Tisha Malhotra made post

Why is Grasim planning to invest Rs2,000 crore in digital ideas in the building materials industry?

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Aashna Tripathi answered.
4 weeks ago
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Grasim, the holding company of the Aditya Birla group, has now come up with a grand digital plan. It is looking at an agnostic B2B ecommerce marketplace for building materials. Now that sounds ambitious but Grasim sees this as a huge scalable business opportunity. This business-to-business (B2B) ecommerce platform for building materials, will entails an investment of Rs2,000 crore to begin with over 5 years. Kumar Birla has also decided to keep this venture distinct and man it with newly recruited leadership.

Here is the calculation. Grasim estimates that overall building materials procurement segment in India has not even scratched 2% of the digital conversion potential. The segment has a business potential of around $100 billion, but for that digital penetration has to improve. The B2B platform can address the plethora of problems that companies face in procuring building materials. For example, Grasim will sell cement and aluminium products from UltraTech Cement and Hindalco Industries adding genuine value to the end users.

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