“The fizz is back”

“The fizz is back” – that was how Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, described the buoyancy in the Group’s growth plans in January 2021. The positive sentiment echoed the market revival experienced by the industry after facing months of constraints and challenges during the lockdown.

Aditya Birla Group’s companies have reported stellar Q3 FY21 results. Signalling economic turnaround, no less than four companies – Grasim Industries Ltd, Hindalco Industries Ltd, UltraTech Cement Ltd and Aditya Birla Fashion and Retail Ltd – have announced new projects, acquisitions, and launches in the quarter ended December 31, 2020.

Flagship company Grasim announced its foray into the paints business, a new business sector for the Group, with a capex investment of Rs.5,000 crore over the next three years. Grasim plans to enter the market with customer offerings in line with global trends. The paints venture provides unique synergies for Grasim. The over $10 billion company already has a strong presence and manufacturing base in allied sectors, namely chemicals and cement. Grasim subsidiary UltraTech Cement is India’s market leader in grey and white cement, and ready-mix concrete.

The paints business announcement follows another prestigious project announced a few months ago in partnership with Lubrizol Advanced Materials, a global specialty chemical leader. This project aims to set up the world’s largest facility for the manufacture of CPVC resin. The ~100,000 metric-ton state-of-the-art CPVC plant will come up at Grasim’s site in Vilayat, Gujarat.

UltraTech has also declared its intent to add another 12.8 million tonnes capacity to its manufacturing base, with brownfield and greenfield projects spread out over east, central, and north India. The investment of over Rs.5,400 crore will take the cement giant to 136 million tonnes capacity, cementing its position as the world’s third-largest cement manufacturer, excluding China.

The Group’s metals major, the $16.7 billion Hindalco Industries, flagged off a new Rs.730 crore aluminium plant coming up at Silvassa, near Gujarat. The state-of-the-art fully automated aluminium extrusion plant indicates the revival of demand in several market segments – automotive, electrical, building and construction, and industrial goods.

The Silvassa greenfield project is just a step in the aluminium major’s Rs.7,000 crore investment strategy for building its downstream capacity. It adds one more flag to Hindalco’s globe-straddling network of 49 facilities. This network will grow further. Over the next few years, Hindalco intends to double its downstream capacity from 300,000 tonnes to 600,000 tonnes.

While these three examples indicate a turnaround in industrial sectors, the acquisition announcement by Aditya Birla Fashion and Retail (ABFRL) turned heads as well. ABFRL, India’s first billion-dollar pure-play fashion powerhouse, bought a 51% stake in India’s hottest luxury fashion brand Sabyasachi.

The couture brand adds a layer of sheen to ABFRL’s portfolio, which has been raising its stake in premium ethnic wear. In 2020, ABFRL partnered with Shantanu & Nikhil, a well-known bridal couture house. And a year before, ABFRL added Jaypore, the online ethnic wear brand, to its stable of womenswear brands.

The Group’s forward-looking growth strategy brings about new hope, signalling a fresh and vibrant start after the lockdown lows.