Grasim Industries Ltd. plans set up a business-to-business e-commerce platform for building materials with an investment of Rs 2,000 crore over the next five years.
The platform will primarily focus on Medium, Small and Micro Enterprises in the building materials segment with the potential to further extend to other relevant categories, the Aditya Birla Group's flagship company said in its exchange filings.
The aims is to address challenges within the existing supply chain by providing an integrated procurement solution including on-time delivery and a superior product range at competitive pricing, the company said.
"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 Aditya Birla Group said. "With this foray, Grasim would be able to leverage the large B2B ecosystem within the Aditya Birla Group."
The platform will be operated by a newly recruited leadership team.
Overall the building materials procurement segment in India, estimated at about $100 billion, has grown at a CAGR of about 14% over the last three years. However, the digital penetration is just 2%, the company said.
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