The platform will first target MSMEs in the construction materials sector, but it has the potential to expand into other categories.
Grasim Industries Ltd, the flagship firm of Aditya Birla Group, announced on Tuesday that its board of directors has authorized a proposal to enter the B2B e-commerce platform for the building materials market with an investment of roughly 2,000 crores over the next five years.
According to the statement, this investment “adds a new high-growth engine with obvious adjacencies inside Grasim’s independent operations as well as those of its subsidiaries and partner firms.”
“Our entry into B2B e-commerce is just another strategic portfolio option that underlines our intention to invest in the new-age, high-growth digital arena.” The construction materials industry offers a massively scalable business opportunity with a proven route to prosperity. “With this venture, Grasim will be able to harness the Aditya Birla Group’s enormous B2B ecosystem,” stated Kumar Mangalam Birla, chairman of Aditya Birla Group.
The platform will first target micro, small, and medium-sized firms (MSMEs) in the construction materials industry, with the potential to expand to other related categories.
According to the corporation, the core value proposition would be an integrated procurement solution that includes on-time delivery and a better product range at a competitive cost.
“Over the previous three years, the whole construction materials procurement industry in India has expanded at a compound annual growth rate of around 14 percent.” This sector is expected to be worth $100 billion, with current digital penetration of only 2%.
According to the corporation, “Grasim’s digital platform will address multiple difficulties inside the existing supply chain.”
A newly recruited leadership team from the digital ecosystem will run this platform. The company thinks that business-to-business e-commerce is a high-growth potential with attractive long-term returns that will provide significant value to its stakeholders.
