Post on 16-Jul-2015
BACKGROUND
Pidilite Industries Limited has been a pioneer in consumer and specialties chemicals in India.
Over two-third of the company’s sale come from products and segments it has pioneered in India.
Adhesives and Sealants, Construction and Paint Chemicals, Automotive Chemicals, Art Materials,
Industrial Adhesives, Industrial and Textile Resins and Organic Pigments
Pidilite is also growing its international presence through acquisitions and setting up manufacturing facilities and
sales offices in important regions around the world.
Fevicol is now the largest selling adhesives brand in Asia.
BACKGROUND
Largest adhesive manufacturer in india
Founded in 1959 by B.K Parekh
Primarily focused on the need for a good adhesive
for carpenters
1969 – incorporated as Private Limited Company
with name Parekh Dychem Industries
1986- The company name was changed to PDI
Chemicals private limited
1989- Got the name Pidilite Industries Ltd
CONT..
Diversified in various segments such as -
Adhesives and sealants
Construction and paint chemicals
Automotive chemicals
Art materials
Industrial Adhesives
Industrial and Textile resins
CONT..
Annual Sales - $196 Million
2900 employees
Strong-in-house R & D
Well-defined, Structured & focused quality product
assurance system
BACKGROUND…
The Company achieved 21.8% growth in net sale.
During the year, a provision of 250 million was
made for diminution in value of investments in
Pidilite Middle East Ltd
Jupiter Chemicals LLC , has been making losses
due to adverse economic conditions and during the
year PMEL impaired its investment in Jupiter.
Jupiter reviewed the carrying value of its
investments in PMEL and as a matter of prudence,
made a provision of 250 million towards diminution
in the value of investments.
No impact on the consolidated results
Branded Consumer and Bazaar Products Segment contributed 77% of the total net sales of the Company and grew by 21.8%.
Net sales of branded Adhesives and Sealants grew by 22.2% and contributed 49% of the total sales of the Company.
Construction and Paint Chemicals grew by 25.9% and Art Materials and other products grew by 13%.Consumer and Bazaar Product sales have grown at a CAGR of 17.85% over the last 5 years.
Exports of Consumer and Bazaar products grew by 15% to 1086 million and have grown at a CAGR of 20.84% over the last 5 years.
Profit before interest and tax for the Consumer and Bazaar segment increased by 20%.
Specialty Industrial Chemicals contributed 23% of the total sales of the Company and grew by 24 %. Exports of Specialty Industrial Chemicals grew by 58% to 1355 million. Profit before interest and tax for the Specialty Industrial Chemicals segment grew by 9.5%.
Others This segment largely consists of the Vinyl Acetate Monomer
(VAM) manufacturing unit.
The Company continues to import rather than operate the VAM plant, as import price of VAM
continues to be more favorable.
Consequently the revenue in this segment was only 21 million as compared to 157 million in the
previous year.
The Company is evaluating options to manufacture other products in the VAM plant.
Adhesives & Sealants,
49%
Construction / Paint
Chemicals, 19%
Art Materials & others, 9%
Industrial Resins, 8%
Organic Pigments &
Preparations, 7%
Industrial Adhesives ,
8%
ACQUISITION OF CYCLO
Acquisition in 2006
Cyclo car care products
Engine, glass and injector cleaning
material
COMPETITIVE ADVANTAGE
Marketing Feedback, introducing new product
Feviquick stick from feedback
75 to 100 SKUs this year compared to 30 to 40 last
year