BirlaNu Lines Up Rs 1,300-Cr Investment To Double Sales, Eyes Acquisitions

New Delhi: CK Birla Group home and building material solutions firm BirlaNu Ltd plans to invest up to Rs1,300 crore in the next three years as part of its strategy to double sales in 3-4 years time, according to top company officials.

The company, which had recently renamed itself as BirlaNu Ltd from erstwhile HIL Ltd and undertaken a rebranding exercise, is also scouting for acquisition opportunities to fuel its growth, BirlaNu Ltd President Avanti Birla told media. "We are widening our positioning and going further, in a two-fold manner -- in our own products and we're also looking externally at diversifying, other products (and) potential acquisitions," she said when asked about the future roadmap.

Asked if any acquisitions are being considered at the moment and how much war chest has been prepared, she said, "It is just part of our expansion...when it comes to the external market, there is no particular number as such right now but we are always looking for opportunities that come to us at the right price." Elaborating further, BirlaNu Ltd Managing Director & CEO Akshat Seth said the company has set on a journey to doubling sales in the next three to four years and do it profitably, identifying pipes and construction chemicals to be the real growth engines, besides expecting its global interiors brand Parador to also double during the time period. "In order to do this, organic growth is one big lever, but we are evaluating inorganic opportunities...we continue to look for good assets overall to fuel this growth," Seth added.

Last year, the company acquired Patna-based Crestia Polytech, maker of the Topline brand of pipes and fittings, along with its four other subsidiaries at an enterprise value of Rs265 crore. When asked about the investment required to fulfil the growth ambition of the company, he said, "We believe we will need an investment to the tune of about Rs1,200 crore to Rs1,300 crore over the next three years and to achieve the revenue goals." In FY24, the company posted a consolidated revenue of Rs3,375 crore. On the expansion plans, Birla said the company, which has 40 per cent of its revenue from outside India, is entering the domestic market in a strong way with the Parador brand and is also entering the US market.

Seth said, "As far as Parador in India is concerned, we believe the time is right for a product of that quality and that design aesthetic to play a major role in India, and actually building that segment of flooring."