BirlaNu plans ₹500 crore capex push for construction chemicals and pipes

BirlaNu is stepping up investment in its domestic building materials businesses, with nearly ₹500 crore earmarked over the next two years for capacity expansion in construction chemicals and pipes.

The planned capital expenditure comes as the company looks to shift its product mix towards segments with stronger growth and margins. The move also follows a turnaround in its financial performance during the quarter ended June 30, 2026, when BirlaNu returned to consolidated profitability.

The company reported total income of ₹1,181.11 crore for the quarter and a consolidated net profit of ₹9.40 crore. This compares with a consolidated net loss of ₹1.32 crore in the corresponding quarter of the previous year.

Construction chemicals and pipes currently contribute just under a quarter of BirlaNu’s overall revenue. The company is seeking to increase their contribution by adding capacity and strengthening its presence in these businesses.

A key part of the strategy is its construction chemicals portfolio. BirlaNu’s acquisition of Clean Coats has helped establish a stronger B2B presence in the segment, with the company targeting growth in revenue from around ₹50 crore to ₹300 crore over the next three years.

The company is also pursuing measures to reduce manufacturing costs. A captive solar power initiative is expected to lower energy expenses by around 30%, helping protect margins from fluctuations in conventional energy and raw material costs.

The latest investment plans come against a backdrop of continued demand for pipes and building materials from residential construction and infrastructure projects. Organised manufacturers are increasingly expanding capacity as they seek to gain market share and benefit from the shift away from fragmented, unorganised suppliers.

BirlaNu is simultaneously reducing its dependence on legacy businesses that have faced weaker market conditions. Its German flooring subsidiary, Parador, continues to be affected by challenging construction-sector conditions in Europe.

In another recent move, BirlaNu’s board approved the acquisition of a 26% stake in FPEL HR5 Energy Private Limited for a captive solar project supplying its Faridabad and Jhajjar facilities.

The company has also approved ₹167 crore for a greenfield Fibre Cement Board plant in Hyderabad, Telangana. The facility is expected to add annual production capacity of 72,000 metric tonnes over the next 24 months.

With the ₹500 crore expansion programme, BirlaNu is positioning its pipes and construction chemicals businesses as important drivers of its next phase of growth. The success of the strategy will depend on timely capacity commissioning, demand growth and the company’s ability to improve margins while managing input costs.