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BirlaNu Invests ₹500 Cr for Growth
10 Sep
Summary
- BirlaNu plans to invest nearly ₹500 crore over two years.
- Company is rebalancing portfolio to high-growth, high-margin products.
- BirlaNu aims for significant revenue growth in chemicals and pipes business.
BirlaNu, a C.K. Birla Group company, is committing nearly ₹500 crore in investments over the next two years to bolster capacity and fuel its strategic growth initiatives. The company is actively rebalancing its business portfolio, intensifying its focus on construction chemicals and pipes while prioritizing higher-margin products. This strategic realignment is set to transform the business over the coming five years.
Under Akshat Seth, managing director and chief executive officer, BirlaNu aims to increase the contribution of its construction chemicals and pipes segments, projecting revenues of ₹1,200-1,500 crore each within five years. The company also targets its wall business to surpass ₹1,000 crore. These expansion plans are underway amidst global cost pressures.
To counteract rising raw material, fuel, and logistics expenses, BirlaNu is implementing price increases and efficiency measures. This includes optimizing product formulations, exploring new sourcing strategies, and adopting technology for reduced manpower needs. Investments in renewable energy, such as a stake in Fourth Partner, are also planned to cut power costs significantly.
The company is scaling its recently acquired construction chemicals business, Clean Coats, targeting a revenue of approximately ₹300 crore within three years. While its German subsidiary Parador continues to face challenges in weakened European markets, BirlaNu is strengthening its presence in the US, India, Southeast Asia, and West Asia, alongside expanding its commercial channels in Europe.
