Grasim digital B2B foray

Aditya Birla Group has announced an entry into the business-to-business (B2B) digital marketplace for building materials, outlining an investment of Rs 2,000 crore over the next five years. Grasim, which is a holding company of India’s largest cement maker UltraTech Cement and the flagship of the group, will take up the B2B venture for the group.

The digital push will also coincide with Grasim’s own foray into the paints business. Commenting on the development, Kumar Mangalam Birla, chairman of Aditya Birla Group, said: “The foray into B2B e-commerce is yet another strategic portfolio choice as it crystallises our intent to invest in the new-age, high-growth digital space.” The overall building materials procurement segment in India has grown at a compounded annual growth rate (CAGR) of 14 per cent over the last three years. This industry is estimated at $100 billion with a current digital penetration of just 2 per cent.

Grasim’s digital platform will address various challenges within the existing supply chain, a company statement said. The platform will primarily focus on MSMEs in the building materials segment with the potential to further extend to other relevant categories.