Forging new paths one step at a time

India's MSMEs i.e. micro, small, and medium-sized enterprises are the backbone of the Indian economy. They account for a third of India's GDP, 50% of employment, and drive the nation’s growth and progress.

Building materials is a highly unorganised segment that is supported by MSMEs. It is estimated to be worth INR 9-10 trillion and on track to cross INR 28 trillion by 2030.

Grasim has a long history of seeding growth and spurring new businesses across sectors, and has several companies and subsidiaries associated with the building materials, infrastructure, and construction industry.

Recognising this as an opportune moment, Grasim announced a unique B2B e-commerce platform that will open a cornucopia of opportunities for India's small businesses in the building materials segment. The new platform has the potential to unlock up to INR 700 billion of value for the supply chain across various industries for Grasim.

The platform will empower MSMEs with greater bargaining power and leverage, and will open up a 'phygital' business model that offers technology as a solution to challenges and a bridge to new market opportunities.

It will do much more than offer a listing in a digital marketplace. The e-commerce platform will secure bulk discounts from suppliers by aggregating similar orders from thousands of other buyers in the network. It will also help improve transparency and traceability in the materials industry by enabling the tracking of materials from production to end-use. A move like this can help improve quality control and reduce the risk of counterfeiting. Accurate and timely information about product availability and delivery schedules would translate to a better experience for end-consumers.

Through its platform, Grasim will leverage clear contiguities within its standalone businesses, subsidiaries, and associate companies. As part of its long-term strategy, the company has outlaid an investment of INR 20 billion over the next five years to nurture this digitally agile and scalable business opportunity with a proven path to profitability.

The potential is immense. The new platform will offer a unique combination of scale and advanced technological capabilities, backed by decades of corporate goodwill, to support India’s small enterprises and enable them to realise their aspirations.