COMPANY REVIEW SESSION ON

By,
Ganesh Behera
TPS - 22074
Pidilite Industries Limited has been a pioneer in consumer and
specialties chemicals in India.
Over two-third of the companys sales come from products and
segments it has pioneered in India.
Its product range includes Adhesives and Sealants, Construction
and Paint Chemicals, Automotive Chemicals, Art Materials,
Industrial Adhesives, Industrial and Textile Resins and Organic
Pigments and Preparations.
Pidilites main strength is their strong marketing/ advertising
skills.
Fevicol is now the largest selling adhesives brand in Asia

CORPORATE OFFICE
Ramkrishna Mandir Road
Off Sir Mathuradas Vasanji Road,
Andheri (East), Mumbai - 400059
Maharashtra. INDIA




REGISTERED OFFICE
Regent Chambers, 7th Floor
Jamnalal Bajaj Marg, 208,
Nariman Point, Mumbai - 400021
Maharashtra. INDIA
NATURE OF BUSINESS AND
BUSINESS SEGMENT
Sector: Chemical


Industry: Adhesives and Sealants
1959- Pidilite was established as a partnership firm
Parekh Dyechem Industries.

FOUNDERS:
Three brothers-
B K Parekh
S K Parekh
H K Parekh
HISTORY
HISTORY (CONT.)
1984- Name changed to PDI Industries after merger with
Kondivita Industries.
1989- Merged with Pidilite Industries Merged name
changed to Pidilite Industries.
1993- Went public.
1994- Apuraj Chemicals Ltd., was amalgamated with the
Company.
1996- Introduction of several new products in technical
collaboration with M/s. Crown Berger Ltd., U.K.
HISTORY (CONT.)
2000- Acquired from Mahindra Engineering & Chemical
Products Ltd (MECP), subsidiary of Mahindra & Mahindra Ltd,
their adhesives and sealants business consisting of the brand M-
Seal and Mr. Fixit.
2005- Acquired Dubai-based company UCC, manufacturer of
construction chemical brand.
2006- Acquisitions were made in USA to expand the companys
Automotive Chemical and Art Material segments.
2007 & 2008- Expanded through acquisition in Brazil, Egypt and
Bangladesh respectively.
FACTS ON PIDILITE
Pidilite has become the largest manufacturer of adhesive.
Pidilites mainstay of earnings is consumer and industrial
adhesives and sealants.
Fevicol is companys largest brand.
Company has in total 40 brands spanning 400 industrial and
consumer products.
20 manufacturing plants worldwide.
60000 dealers and distributors across India.
Its headquarter is in Mumbai and employs about 3,991
people.
VISION AND MISSION
VISION- To be the most Innovative Research and Technical
Competence Center for Sustaining Innovation-Driven Growths
for Pidilite Group of Companies globally.

MISSION-
Invite, invest, and embrace talented people and scientists
for great challenges ahead.
Support, serve, and satisfy all valuable customers with our
innovative products and excellent technical competency.
Innovate with our customers to provide total product
satisfactions and business growths.
KEY PEOPLE
Chairman & Managing Director
M B Parekh



Vice Chairman
S K Parekh
GLOBAL PRESENCE
India
Middle East
Australia
US
Brazil
Singapore
Indonesia
Thailand
Bangladesh
SUBSIDIARIES OF PIDILITE
Fevicol Company Ltd.
Bhimad Commercial Co Pvt Ltd.
Madhumala Traders Pvt Ltd.
Pagel Concrete Technologies Ltd.
Nitin Enterprises
Building Envelope Systems India Ltd.
Pidilite International Pte Ltd.
Pidilite Middle East Ltd.
Pulvitec do Brasil Industria e
Commercio de Colas e Adesivos Ltda.
Pidilite USA Inc.
PT Pidilite Indonesia
Pidilite Speciality Chemicals
Bangladesh Pvt Ltd.
Pidilite Innovation Centre Pte Ltd.
Pidilite Industries Egypt SAE
Pidilite Bamco Ltd.
Pidilite South East Asia Ltd
PIL Trading Egypt (LLC)
Pidilite Industries Trading
(Shanghai) Co. Ltd.
Bamco Supply Services Ltd.
Jupiter Chemicals (LLC)
BRANDS OF PIDILITE
1. Fevicol
2. Dr.Fixit
3. Fevikwik
4. MotoMax
5. M-Seal
6. Fevi Stick
MARKETING STRATEGY OF PIDILITE
Parent Company Pidilite Industries Ltd.
Category Consumer chemicals/ Specialty chemicals
Sector Industrial Products
Tagline/ Slogan Building Bonds
USP
Market leader in adhesives, sealants, polymer emulsions,
hobby colours and construction chemicals in India.
Segment
Customers looking for ease-of-use and value-for-money
products.
Target Group Carpenters, plumbers, housewives, constructors/masons ,etc.
Positioning
Pioneer and market leader in consumer adhesives and
specialty chemicals in India.
COMPETITORS
TATA CHEMICALS
BASF
LINDE INDIA
GUJ FLOUROCHEM
UPL
COMPETITORS (CONT.)
SOLAR IND
GUJ ALKALI
GULF OIL CORP
HIMADRI CHEM
PRODUCTS
First product of Pidilite:


Fevicol
PRODUCTS (CONT.)
FOR CONSUMERS & CRAFTSMEN :
Adhesives & Sealants
Art material and stationary
Automotive
Construction Chemicals
Fabric Care
Wood Finishes & Paints
PRODUCTS (CONT.)
FOR INDUSRIAL PURPOSE :
Industrial Adhesives
Leather Chemicals
Textile Chemicals
Pigment Powders
Industrial Resins
SHARE PRICE INFORMATION

BSE : 500331
286.40 (-0.10%)


NSE : PIDILITIND
286.35 (-0.24%)
SHARE HOLDING PATTERN
BUSINESS OF PIDILITE
FINANCIAL STATEMENTS
Current Assets and Liabilities :
FINANCIAL STATEMENTS (CONT.)
Earning per Share (EPS) :
FINANCIAL STATEMENTS (CONT.)
Total Sales and Net Profit :
HR POLICIES
Pidilite cares about the overall well-being of their employees and various
initiatives are taken to ensure it.
Employee welfare scheme comprises:
-Various festival celebrations in company campus
-Free health check-up program
-Hobby Workshops
-Annual employee Outings, Get-together and Picnics
Facilities include:
-Gymnasium
-Game zones
-Library
- Canteen
-Swimming Pool
Retirement and other employee benefits:
-Contribution to Provident, Superannuation and Family
Pension funds are funded as a percentage of salary/wages.
-Gratuity liability is funded as per group gratuity scheme
of Life Insurance Corporation of India.
-Gratuity, leave encashment, anniversary award,
premature death pension & total disability pension are
provided for on the basis of actuarial valuation as at the year
end.
NEW TECHNOLOGIES
SAP Implementation
The Company has implemented SAP across all its plants,
depots and Head Office effective May 2013. This will improve
productivity and provide accurate real time information for
improved analysis and decision support.
PIDILITE EXPANSION PLANS
Pidilite Industries Ltd plans to set up a manufacturing facility in Saudi
Arabia to shore up the contribution of its sales from overseas market to ten
per cent.
We want to set up a plant in Saudi Arabia as a part of our overseas
expansion plans. However, it is difficult to mention a timeline as it depends
on the economic conditions and demand in that country, said Mr Manab
Ghosh, President - Business Development, Fevicol Division, Pidilite
Industries.
Overseas operations now account for about six-to-seven per cent of its
total turnover so the company is concentrating in increasing its overseas
revenue
LATEST NEWS ON PIDILITE
Pidilite Industries Ltd has informed BSE that there is a change in shareholding
pattern of Percept Waterproofing Services Limited (PWSL) which was earlier a
wholly owned subsidiary of Pidilite Industries Limited and with this change in
shareholding, the holding of Pidilite Industries Limited in PWSL now stands at
80% of total paid up capital of PWSL. Source : BSE
Pidilite Industries has reported a consolidated sales turnover of Rs 1,068.79
crore and a net profit of Rs 97.24 crore for the quarter ended Dec '13. Other
income for the quarter was Rs 7.08 crore.
For the quarter ended Dec 2012 the consolidated sales turnover
was Rs 931.79 crore and net profit was Rs 118.99 crore, and other income Rs 18.97
crore.
Because of higher spend on advertising and sales promotion expenses in this
quarter our performance at an EBITDA level has been lower than expected,
said its CFO Sandeep Batra
SWOT ANALYSIS
STRENGTH
1. The advertising and marketing of Pidilite has been very strong, especially the
Fevicol ads have become a viral hit among the masses.
2. The name Fevicol has become synonymous with adhesives and has almost
become a generic for anything that sticks. This also has helped other brands of
Pidilite such as Fevistik, Fevikwik, etc. in their sales.
3. Fevicol and M-seal alone account for more than 50% of the total revenue of
Pidilite, which eases the pressure on the sales of other brands and businesses.
4. Brand recall and value are extremely strong for Pidilite and have become the
star attraction for many television commercials.
5. Fevicol ads have also won accolades and awards at major advertising award
festivals and shows.
6. Strong R&D center to cater to the growing need for innovative products and
services.
SWOT ANALYSIS (CONT.)
WEAKNESS
1.Acquisition of the Cyclo brand of car care products is a weak factor as India
exhibits a very fragmented market for the same with very little customer loyalty.
2. Revenue generation is over dependent on Fevicol and M-seal which results in
reduced investments on other brands and businesses.
OPPORTUNITY
1.Pidilite organizes many creative competitions for students and young scholars,
such as the 'International Creative Contest' where approx. 800,000 students from
3000 schools participate. It also helps in promoting the brand very well.
2. The chemical industry in the world in growing very strongly and focus on
emerging economies in other parts of the world such as Brazil, South Africa,
China, Singapore, Thailand and East Africa is a great opportunity to establish
stronghold in the international market.
SWOT ANALYSIS (CONT.)
1. The manufacturing cost of Pidilites products is largely
dependent on crude oil and petroleum prices which are
fluctuating by the minute.
2. Competitors are equally hard pressed on delivering
innovative products and services.
THREAT
Political Factors:
-Globalization has led to shrinking the boundaries of the world.
-Political unrest in many places in the world can be harmful for profit margins.
-Global & Local Terrorism.
-Introduction of new trading blocs.
Economic Factors:
-Challenging economic condition across the globe.
-Economic laws in various countries.
Social Factors:
-Employment rate in the country.
-Awareness in Public about the products & industry.
Technological Factors:
-Developments in construction, automobile industry.
-Due to improvements in communication, creating awareness has become very easy.
PEST ANALYSIS
AWARDS OF PIDILITE
At the Chemtech CEW Leadership and Excellence
Awards,2013, the Chemtech CEW honoured Mr. M B Parekh
(MD - Pidilite Industries Ltd.) the Business Leader of the
Year - Chemicals and Petrochemicals Industry.
Fevicol was awarded Gold Effie
for the Best On-Going Campaign
at Effie Awards 2012 organized
by the Advertising club.
Fevicol was ranked amongst the
Most Trusted Brands list for 5
consecutive years.
AWARDS OF PIDILITE(CONT.)
For the year 2012, Fevicol has been named Powerbrand - an initiative
by the Planman Group.
Fevicol was a recipient of the Zee
Business Brand Excellence Award.
A 40 feet raincoat was installed on
a building by Dr. Fixit Raincoat.
This won a Gold award for Madison
Media in the Exchange4media Outdoor
Awards.
Fevicol was also ranked 3rd Most
Trusted Brand in the Household
Care Category.
CORPORATE SOCIAL RESPONSIBILITY
300 night schools established
Over 225000 patients treated
Over 25000 cattle treated through
surgical procedures
Pension facilities for more than
400 elderly people
100000 trees planted
Over 100 small & medium-sized
projects have been undertaken in
relation to water conservation and
watershed development
CORPORATE SOCIAL
RESPONSIBILITY (CONT.)
Pidilite supports the Indira Awaas Yojana scheme in Mahuva district to
provide grant for construction of houses to members of scheduled
castes/scheduled tribes, bonded labourers and those surviving below the
poverty line
Arogya Fund with contributions from donors, well-heeled and well-
meaning people and other organizations, helps Hanumant hospital
extend medical assistance to
needy patients free of cost
Girls school at Kelsar village
Bhavnagar is made to ensure
that girls can persue their
education