The Aditya Birla Group company had raised money twice in calendar 2023 to fund the paints venture. The forecast implies it expects to recoup its investment in the form of revenue by 2027.

The paints business, which adds to Grasim's flagship businesses of textiles and chemicals, could make the company the second-largest Indian paintmaker by capacity behind market leader Asian Paints, according to analysts.

Asian Paints currently controls nearly half of India's paints market. It recorded a revenue of 90.75 billion rupees in the quarter ended Dec. 31.

Kansai Nerolac, Berger Paints, Indigo Paints and Dulux paint-maker Akzo Nobel India are the other major players.

Antu Thomas, research analyst at Geojit Financial Services, said Birla Opus could take as much as 1%-2% in market share from Asian Paints.

Jefferies added that the business would account for nearly half of the 25% capacity addition expected in the industry over fiscal 2024-2027.

"The paint sector has never seen such massive capacity build-out in such a short span even from incumbents," Jefferies analysts said in a note.

Products and services from the business, announced three years ago, will be available in three Indian states from mid-March, Grasim said.

($1 = 82.8670 Indian rupees)

(Reporting by Varun Vyas in Bengaluru; Editing by Janane Venkatraman)