Birla group plans to rejig cement brand to increase market share

The Aditya Birla Group, India’s second largest cement maker, is learnt to be realigning its brands portfolio to increaes its market share.

Grasim Industries, the group’s cement company, is in the process of identifying brands that can be strengthened while some brands can be phased out, said sources.

Grasim and its subsidiaries Ultra Tech and Shree Digvijay Cement have a combined production capacity of 31Mta, marginally lower than the Holcim-ACC-Gujarat Ambuja combine, the largest cement maker.

Birla White, Birla Plus and Birla Super of Grasim are the national cement brands of the group while Kamal of Shree Digvijay Cement is a regional brand. UltraTech Cements’ national brand is UltraTech.

"The strengthening of brands will help the group push up its bulk sales especially in the urban markets, " said an analyst.

When contacted, O P Puranmalka, group executive president told Business Standard: "As of now, there is no plan of phasing out any brands."

The group is adding about 14Mt of capacity in 4-5 years in Andhra Pradesh, Rajasthan, Himachal Pradesh and Orissa.

The group is the largest producer of white cement in the country with an annual capacity of 4,75,000t, sold under the brand Birla White. The other four brands cater to the grey cement segment among which UltraTech has emerged as the strongest brand.