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birla
After Paints, Kumar Mangalam Birla All Set To Disrupt Cable & Wire Sector
Disruption or disruptor are terms used in connection with the startup ecosystem. Take for example the way the cab business got disrupted by the ride hailing apps or the food delivery apps that disrupted the way you ordered food. These companies were well funded and they began their early part of the journey by burning loads of money and gaining relevance in the marketplace. Switching into time and the first time something different than a startup player becoming a disruptor happened was when Kumar Mangalam Birla through Grasim announced his entry into the decorative paints industry through Opus paints. With the start of its 4th factory in Karnataka, he is already the second largest in terms of capacity in the decorative paints industry. It is expected that this paints division would have a turnover of Rs 8000-10,000 crore in three years’ time. Asian Paints which reported a revenue of Rs 35,000 crore for the year ended March 2024 saw its market cap fall by more than 40% after Opus entered the fray and well before it has become a sizable player in terms of size and market share. Recently, Kumar Mangalam Birla did the same thing in the cement sector. One of his group companies, UltraTech Cement announced its plans to enter the cables industry with an investment of Rs 1,800 crore for setting up a cable plant. The two key raw materials for this are copper and aluminium, of which Hindalco Industries, a group company, is one of the top two producers. This mere announcement shook the incumbents and the top players cumulatively lost a market cap of over Rs 50,000 crore in a single day. 
Paints
Grasim Dons War Paint With Rs 5000 Crore Budget, As Asian Paints Looks Outside The Segment
For decades, Asian Paints has led the pack in the Rs 60,000-crore plus paint industry. But with Grasim Industries, part of the Aditya Birla Group setting its sights higher, the competition will intensify.  Grasim has chalked up a Rs 5000-crore investment plan in the decorative segment which is growing at 11% per annum. This announcement by Grasim which has heft and gravitas to disrupt the market made competitors like Asian Paints, Berger Paints, Kansai Nerolac and Akzo Nobel sit up and take notice. Grasim’s foray into the segment will be backed by their existing leadership in cement, white cement and putty business. Paint is a high growth market and the pie is large enough for everyone to share, industry observers say. There is no denying that leaders like Asian Paints will not find the going easy anymore. Sajjan Jindal group’s JSW has also entered the space, so cut-throat competition is bound to see ad spends growing with margins coming under pressure. In fact, Asian Paints read the writing on the wall and made public that it was looking beyond paints.  Recently, the company picked up 49% stake in White Teak Company selling lighting and fans and will increase its stake based on the response. Time will tell which company remains in the black and which moves into the red.

TRENDS & VIEWS

Editor’s Note: Short Post Is Here To Stay…

Time, they say, flies—and how true that is. Here we are celebrating our 5th Anniversary. Five years ago, when Covid-19 was wreaking havoc across the globe, I took a leap of faith and launched Short Post, India’s first website for Authentic Gossip. That was on January 31, 2021. I was convinced there was a clear gap in the market for gossip that was credible, sharp, and impactful—especially if told in just 250 words.

In this, I was fortunate. Scores of senior editors across diverse verticals bought into the idea and, in the process, gave wings to my dream. Quite honestly, Short Post could not have crossed these milestones without the unflinching support of its contributing editors. Like all start-ups, we have seen our share of ups and downs, but these editors have stood by us like a rock. I take this opportunity to doff my hat to them.

Thanks to their commitment, we have published close to 5,000 stories spanning politics, business, entertainment, and sports. I say this with pride: we made our mark as people who matter read us. “Small packs, big impact” truly captures the essence of Short Post.

We all know that Covid-19 has reset businesses worldwide, and the media sector is no exception. In the post-Covid era, investors have become more cautious and selective—and advertisers too. To compound matters, the entry of AI has disrupted the media landscape in equal measure. So far, we have managed to hold our ground, hopeful that some angel investors will take a shine to us.

What gives me confidence is this: AI cannot smell news—especially the gossipy kind. In other words, AI cannot churn out Short Post-type stories, no matter the prompt. That puts us in a safe zone. As someone rightly said, “AI is a co-pilot, not a pilot.”