Indian manufacturing company Grasim Industries says it will spend 2,000 crore ($25 million) over the next five years to build a B2B eCommerce platform for the building materials industry.
“The foray into B2B e-commerce is yet another strategic portfolio choice as it crystallizes our intent to invest in the new-age, high growth digital space,” Kumar Mangalam Birla, chairman of Grasim parent Aditya Birla Group, said in a Wednesday (July 20) news release.
“The Building Materials segment presents a huge scalable business opportunity with a proven path to profitability. With this foray, Grasim would be able to leverage the large B2B ecosystem within the Aditya Birla Group.”
Birla added that the move will also catalyze the growth of the micro, small and medium-size enterprise (MSME) universe in India and help with the government’s goal of a “Digital India.”
The company says it will primarily focus on MSMEs in the building material space, with the possibility of expanding to other categories. Grasim, founded in 1947 as a textile manufacturer, also works in the chemical, insulator and fiber spaces.
However, the company notes that the building materials procurement segment in India has grown at a compound annual growth of around 14% over the last three years, valued at about $100 billion with a digital penetration of just 2%.
Read more: Indian B2B Startup Groyyo Raises $40M to Expand Its Manufacturing Teams
“The key value proposition would be an integrated procurement solution including on-time delivery and a superior product range at competitive pricing,” the release said.
Earlier this month, Indian B2B manufacturing and automation startup Groyyo announced it had raised $40 million in a combination of debt and equity through a Series A funding round that it will use to expand its manufacturing teams and pay for as for product and tech development.
The Mumbai-based company said it aims to increase its employee count in the manufacturing segment of the business in India, Bangladesh, the United States and European Union.
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