CK Birla Group’s flagship Birlanu, formerly known as HIL Ltd, will invest approximately $150 million ( ₹1.3 million million) to help it become a $1 billion target (approximately ₹By 2028, Rs 86 billion) and resumed growth.
The Delhi-based company will seek to expand its manufacturing capacity and pursue inorganic growth opportunities through acquisitions to drive growth. The company has 31 manufacturing plants in the country and two manufacturing plants in Germany and Austria.
“Investing across product lines such as pipelines, construction chemicals and flooring will be important,” Birlanu president Avanti Birla said in an interview. “Hopefully, the market will get better in terms of demand.”
Lossed revenue growth
The company’s revenue grew 3% between October and December ₹805 million, the loss expanded to ₹350 million ₹70 million in the same period last year. The company exists in building solutions spaces that include building chemicals, roofs, floors and plumbing.
The company’s revenue and profitability fell in two consecutive years in 2023 and 2024.
“By the time we close this year, our number in the pipeline sector will grow by 70%. Second, our floor brand parade has grown by about 8-10% in Europe, while the market fell by 25-30% at the time,” said Akshat Seth, managing director and CEO of Birlanu.
“There are early headwinds in different segments, so we are still hopeful for growth.”
The company acquired a German yacht in 2018 ₹US$68.72 billion entered the global flooring solutions market. About 40% of the company’s total revenue last quarter came from German brands, which is still a loss-making business. In the last quarter, its losses were from ₹160 million ₹190 million.
Future prospects
“With profitability, we will get better results in the last quarter of the fiscal year. In a market that is difficult to achieve growth, profitability is definitely a priority and the results of our work are now starting to become visible.”
The company is now looking to increase the development of receptions in the country and hopes to quickly expand the scale to make India one of Parador’s top 10 markets in a short time.
The efforts to resume growth as competition for construction solutions continues to grow. The company competes with companies such as Everest Industries Ltd and Ramco Industries Ltd.
As competition in the adjacent markets in the construction sector entered by the Aditya Birla Group has intensified, many players such as Asian Paints Ltd. have diversified in the construction solution space to protect growth.
“In fact, it’s a good thing for large players to enter the field because it shows the potential of the market. Since the market is a mixture of organized and unorganized players, the merger of organized players will help us.”
Stock performance, credit downgrade
Birlanu shares fell more than 26% in 2025, while Sensex fell 2%. Additionally, in the March 13 note, the Rating India Rating and Research lowered Birlanu’s bank loans due to “the ongoing weakness in HIL’s operating performance and credit profile”.
“Given the long-term weakness in Europe’s operations and weak domestic demand for roofing and construction solutions for FY25, the company’s performance may be significantly weaker than its early expectations for FY25, which has led to a decline in realization and profitability,” Sarthak Bhauwala and Sachita’s Indian ratings and Sachita in the study, however, wrote more.
