'Want Birla Opus to be a Rs 10,000 cr company after first 3 years of operation'
On February 22, when Aditya Birla Group Chairman Kumar Mangalam Birla, launched Birla Opus, he called it a "defining moment" for the Group that embodies "the spirit of aspirational India." Marking the group's entry into the Rs 80,000 crore Indian decorative paints market, Birla Opus has been established by the Conglomerate’s flagship firm Grasim Industries with an upfront investment of Rs. 10,000 crore. The Group’s foray into India's Paints and Coatings industry has come at an opportune time. The industry has registered upper single or double-digit growth over the past decade barring the pandemic year. The market size is believed to be $9.4 billion in 2024. It is expected to reach $15 billion by 2029, growing at a CAGR of 9.38% between 2024 and 2029. The firm has entered the growing market fully prepared. It boasts the widest range in the industry, offering over 145 products including water-based paints, enamel paints, wood finishes, waterproofing, and wallpapers. Catering to various consumer segments—economy, premium, luxury, designer finishes, and institutional clients. It also presents the largest range of 2,300+ tintable color choices, including 216 iconic Indian colours. Brand’s first big campaign film, 'Make Life Beautiful', released during the T20 Cricket World Cup, received appreciation due to its impressive packaging in the animation format. The company, which aims to compete with industry giants, has chalked out a massive expansion plan and marketing strategy. Chief Executive Officer Rakshit Hargave and Chief Marketing Officer Inderpreet Singh explain. On ad film “It's been about three months since we entered the market, and we've established a basic distribution. We decided to launch our media campaign timed with the Cricket World Cup to maximize visibility. I'm pleased to report that we've achieved excellent brand visibility during the World Cup. We're also present across all major general entertainment channels as part of our first campaign, centered around the theme 'Make Life Beautiful’,” says Hargave. He adds, “Our research showed that most paint brands fell into a certain quadrant, and we aimed to position ourselves as creators and leaders. Given the industry's issue with brand misattribution, we needed a distinct and memorable campaign. Our theme encourages consumers to create their own world, aligning with our brand's unique positioning.” The company debated various creative approaches, including using a celebrity or a traditional film. Ultimately, it decided to launch with high-quality animation, which is rare in India, especially for paint brands. “We collaborated with a top-tier animation house in Brazil, ensuring Pixar-quality production. This decision, although costlier than using a celebrity, has yielded impressive results in terms of awareness and likability. In just 14 days, we've seen significant traction, with more dealers joining us and consumer inquiries increasing,” Hargave tells with pride. Marketing plan The brand’s launch campaign started around two weeks ago with a comprehensive integrated marketing plan. The campaign spans TV channels, both national and regional, with significant integrations within TV content, says Singh. He adds, “Digital is a major component, covering mobile and connected TV formats, and includes platforms across the Meta and Google ecosystems. Outdoor advertising is also running in over 100 cities, with print and radio soon to follow. It's a full-scale 360-degree campaign, covering both above-the-line and below-the-line activities, with strong visibility on the ground and in shops. From statics to videos to OTTs, we are present in the entire digital ecosystem.” “Paints are a blend of FMCG and durable goods, with consumers engaging with the category every 5-6 years. Maintaining relevance and awareness during these off-periods is vital,” says Hargave. He explains further, “Digital and direct marketing allow us to target consumers likely to paint in the next 6-12 months. One-to-one marketing and database capture through our website and digital channels are essential. We're also exploring ways to keep consumers engaged during the off-periods to maintain interest in the category. New marketing strategies to achieve this will be introduced soon." From a paint marketing perspective, it's crucial to remain relevant to consumers, even during the 5-6 years when they're less engaged with the category. The challenge lies in effectively targeting those likely to paint within the next 6 months to a year through digital and direct marketing channels. “One-to-one marketing, utilizing databases gathered from websites and other digital platforms, becomes essential as many consumers are active on digital and mobile platforms”, says Hargave, elaborating on challenges and opportunities in the paint sector. He underscores, “Maintaining relevance during extended periods of consumer disengagement is key. How can we strategically activate consumer interest during these phases? Additionally, in our paint marketing strategy, we're focused on keeping consumers engaged during non-active painting periods. We're developing marketing approaches to sustain consumer interest and involvement in the category.” Notably, the growth of the paint industry largely depends on the growth of real estate in the country. The major players in the industry are Asian Paints, Berger Paints, Kansai Nerolac Paints, AkzoNobel NV, and Nippon Paint. Asian Paints commands nearly 50% market share in the domestic paint market, and slightly over 60% market share in the decorative paints business segment (mainstay business) in the country, according to a 2022 report of Groww. Media mix "Birla Opus’ media mix includes all channels, though we can't disclose exact spend percentages. Our focus is on achieving sufficient reach to build brand awareness and foster brand love among consumers. As more consumers move to digital, we've ensured a strong presence across the entire digital ecosystem, including Google and Meta platforms," Singh noted. On emerging trends in marketing, he shared, “It is leaning towards authentic content, personalization, and two-way communication. While the paint industry is gradually adopting these trends, the adoption rate varies across categories. I think, in some, perhaps the trend and adoption of tender marketers is a bit faster." The company is still to complete its original expansion. The Birla Group has committed Rs 10,000 crore of Capex to set up the first six factories. So far, only three factories—Panipat, Ludhiana, and Chennai—are running at full speed. “Trial manufacturing in the factory near Mysore is kind of on, and our last two factories, Mahat near Pune and Kharagpur in West Bengal, as announced to the stock market, will start in the third quarter and fourth quarter of this financial year. Once we have all six manufacturing plants running with full capacity, we will be able to distribute the mix of products and SKUs more systematically." Hargave said the company had committed that by July it will reach all the towns in India which have a population of one lakh plus but that has already done that in June itself. Over the next one year, the company’s focus is to keep consolidating our distribution. By March 2025, it aims to become the second largest distributed paint company in India. On targets in terms of market share, Hargave says, “I would not want to comment on our market share in the next 5 years, but we have declared that we want to be a Rs 10,000 crore company after the first full three years of operation and also be EBITDA positive by that time. So I think you can use that as a benchmark. By law of nature, we will gain relative market share from all market players,” he noted. On festive plans "When we are starting literally from zero and gaining share, I think every month is a month of activity. And in the first year for us, every day is like a hundred-meter sprint. So we're trying to gain as much. The activations are planned but we are not going to bank too much on the festival season. We want to grow aggressively in July, in August and September. But yes, what will happen is that by the time the festival season kicks in, I will have a more solid pan-India presence. I will have a more solid portfolio which will help me garner more same store dealer sales, etc.," said Hargave. For more updates, be socially connected with us on
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Tags : Birla Opus Rakshit Hargave Kumar Mangalam Birla Paints Inderpreet Singh