Aditya Birla Group flagship Grasim on Tuesday introduced that it’s going to foray into B2B e-commerce platform for constructing supplies phase. On this course of, the corporate will make investments Rs 2,000 crore over the following 5 years.
“This funding provides a brand new high-growth engine with clear adjacencies inside Grasim’s standalone companies as additionally that of its subsidiaries and affiliate firms,” the textile firm mentioned in a press release.
By the brand new platform, the corporate will primarily concentrate on MSMEs within the constructing supplies phase for instance metal, cement, different uncooked supplies, with the potential to additional lengthen to different related classes. The important thing worth proposition can be an built-in procurement answer together with on-time supply and a superior product vary at aggressive pricing, it added.
Moreover, this platform can be operated by a newly recruited management group from the digital ecosystem.
“The corporate believes that B2B e-commerce is a excessive development alternative with engaging long-term returns and can be extremely worth accretive to its stakeholders,” it mentioned.
Elaborating on the procurement of this phase within the nation, Aditya Birla acknowledged that the phase has grown at a CAGR of round 14 per cent over the past 3 years. This trade is estimated at roughly $100 billion with present digital penetration of simply 2 per cent. “Grasim’s digital platform will handle numerous challenges inside the present provide chain,” it added.
Kumar Mangalam Birla, Chairman, Aditya Birla Group mentioned, “The foray into B2B e-commerce is yet one more strategic portfolio selection because it crystallizes our intent to spend money on the new-age, excessive development digital area. The Constructing Supplies phase presents an enormous scalable enterprise alternative with a confirmed path to profitability. With this foray, Grasim would be capable of leverage the massive B2B ecosystem inside the Aditya Birla Group. This transfer will even catalyse the expansion of the MSME universe in India and supply an impetus to the Authorities’s imaginative and prescient of ‘Digital India’.”
The entry of Grasim into the constructing supplies phase via this funding is probably going to offer competitors for the likes of different B2B platforms, comparable to InfraMarket and OfBusiness.