Resin to the Occasion: Grasim’s Mahad Plant Begins Full Throttle Production

Image Source: Free Press Journal

Grasim Industries Ltd. (NSE: GRAS.NS), Aditya Birla Group flagship company, has officially commissioned commercial production in its new resin production block at its Mahad facility in the Maharashtra state. The facility has an installed capacity of 22 million litres per annum (MLPA) and is a part of the group's larger growth in the paints and chemicals division under its brand name Birla Opus.

Production Milestone

Resin block forms part of Grasim's integrated paint and coatings manufacturing facility at Mahad.
The facility will meet the company's captive resin requirements for its decorative paints business to ensure supply chain efficiency and cost control.
Mahad is among five greenfield paint manufacturing facilities currently in operation, contributing to an aggregate installed capacity of 1,096 MLPA in India.

Strategic Significance

The resin block complements Grasim's backward integration plan, reducing reliance on third-party suppliers.
It is one of the company's visions to become a force to be reckoned with in India's ₹80,000 crore paints market, competing directly with entrenched giants.
The Mahad unit alone has production facilities for water-based paints, distemper, and solvent-based coatings, and hence is a multi-specialty plant.

Market Outlook

Grasim's entry into the paints business will jolt market dynamics, with aggressive pricing and widespread distribution.
The stock of the company has demonstrated strength even in recent earnings stress, with investors remaining hopeful for long-term growth from its paints and chemicals segments.

Sources: Angel One, Chemical Weekly, Grasim Industries