Pivoting the building industry

The building materials industry is currently estimated at a staggering USD 100 billion and is expected to undergo rapid growth in the coming years. Despite this, and a flourishing e-commerce industry in the country, digital penetration in the buildings materials segment barely scratches the surface — at less than 2%. Birla Pivot, Aditya Birla Group’s new B2B e-commerce platform, aims to change this.

Launched by the Group’s flagship entity, Grasim, the platform envisions itself as a comprehensive hub for all building material requirements and is poised to transform the way building materials are procured in India.

The challenges and the solution

Birla Pivot promises a seamless and integrated procurement solution by addressing the pain points of the industry. Delays in construction projects are primarily driven by material shortages. Moreover, challenges such as poor quality of materials, lack of specialised materials, equipment-related issues, and project complexities significantly impact small- and medium-sized businesses in the construction sector. For many such businesses, establishing a robust supply chain, ensuring that their materials are vetted for quality, and navigating logistics issues, pose immediate challenges. Birla Pivot aims to overcome these hurdles through its seamless and integrated procurement platform, contributing to timely project deliveries. In addition to an extensive product catalogue, the platform boasts consumer-friendly features, including integrated financing options and a complete track-and-trace system for every order.

Digitalising a growing sector

Over the last three years, the building materials procurement segment in India has experienced a remarkable growth rate of approximately 14% CAGR. Recognising the potential for digital transformation in this booming sector, Birla Pivot aims to elevate the MSME experience by creating a robust B2B e-commerce platform.

Aligning with the national vision

Birla Pivot's mission goes beyond business — it aligns with the Indian government's vision of a ‘Digital India’ and the empowerment of MSMEs. By introducing a digital platform to a traditionally offline industry, Birla Pivot not only embraces innovation but also actively contributes to the nation's ambitious economic goals.

Diverse categories, one comprehensive solution

Covering a spectrum of building materials, Birla Pivot aims to become a one-stop destination for all procurement needs. Categories include steel, cement, tiles & surfaces, ply & laminates, doors, windows, sanitary & bath fitting, among others. The platform is rapidly launching across North, West & South India.

Solving the credit challenge

Another big challenge faced by the building industry – especially MSMEs — is that of credit availability. Investment banking company Avendus Capital released a report on MSME lending in April 2023 estimating the credit gap to be over USD 500 billion, more than USD 100 billion of which exists in the small ticket loan segment. Historically, conventional lenders have stayed away from this opportunity due to difficulty in addressing the market.

Birla Pivot has already onboarded over 120 brands and 5500+ SKUs (stock keeping units), providing its customers with a diverse range of categories & products. Additionally, the platform is exploring the launch of its own range of branded products in tiles, ply and doors categories that will strengthen its offerings.

Through partnerships with financing solution providers and logistics services, all made available on a single platform, MSMEs in India’s building and construction sector now have access to an industry-first comprehensive ecosystem!