Pidilite Ltd 7445

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COMPANY REVIEW SESSION O

By,

Ganesh

TPS - 2


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Pidilite Industries Limited has been a pioneer in consu

specialties chemicals in India.

Over two-third of the companys sales come from pro

segments it has pioneered in India.

Its product range includes Adhesives and Sealants, Co

and Paint Chemicals, Automotive Chemicals, Art MatIndustrial Adhesives, Industrial and Textile Resins an

Pigments and Preparations.

Pidilites main strength is their strong marketing/ adve

skills.

Fevicol is now the lar est sellin adhesives brand in A


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CORPORATE OFFICE

Ramkrishna Mandir Road

Off Sir Mathuradas Vasanji Road,Andheri (East), Mumbai - 400059

Maharashtra. INDIA

REGISTERED OFFIC

Regent Chambers, 7th F

Jamnalal Bajaj Marg, 20

Nariman Point, Mumba

Maharashtra. INDIA


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NATURE OF BUSINESS AND

BUSINESS SEGMENT Sector: Chemical

Industry: Adhesives and Sealants


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1959- Pidilite was established as a partnership

Parekh Dyechem Industries.

FOUNDERS:

Three brothers-

B K ParekhS K Parekh

H K Parekh

HISTORY


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HISTORY (CONT.) 1984-Name changed to PDI Industriesafter merge

Kondivita Industries. 1989- Merged with Pidilite IndustriesMerged nam

changed to Pidilite Industries.

1993- Went public.

1994- Apuraj Chemicals Ltd., was amalgamated withCompany.

1996- Introduction of several new products in techni

collaboration with M/s. Crown Berger Ltd., U.K.


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HISTORY (CONT.) 2000- Acquired from Mahindra Engineering & Chemi

Products Ltd (MECP), subsidiary of Mahindra & Mahtheir adhesives and sealants business consisting of the

Seal and Mr. Fixit.

2005- Acquired Dubai-based company UCC, manufac

construction chemical brand.

2006-Acquisitions were made in USA to expand the c

Automotive Chemical and Art Material segments.

2007 & 2008-Expanded through acquisition in Brazil

Bangladesh respectively.


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FACTS ON PIDILITE Pidilite has become the largest manufacturer of adh

Pidilitesmainstay of earnings is consumer and induadhesives and sealants.

Fevicol is companys largest brand.

Company has in total 40 brands spanning 400 indus

consumer products.

20 manufacturing plants worldwide.

60000 dealers and distributors across India.

Its headquarter is in Mumbai and employs about 3,

people.


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VISION AND MISSIONVISION-To be the most Innovative Research and TecCompetence Center for Sustaining Innovation-Driven

for Pidilite Group of Companies globally.

MISSION- Invite, invest, and embrace talented people and scienti

for great challenges ahead.

Support, serve, and satisfy all valuable customers wit

innovative products and excellent technical competen

Innovate with our customers to provide total product

satisfactions and business growths.


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KEY PEOPLEChairman & Managing Director

M B Parekh

Vice Chairman

S K Parekh


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GLOBAL PRESENCE India

Middle East Australia

US

Brazil

Singapore Indonesia

Thailand

Bangladesh


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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 Che

Bangladesh Pvt Ltd.

Pidilite Innovation Cen

Pidilite Industries Egy

Pidilite Bamco Ltd.

Pidilite South East Asi

PIL Trading Egypt (LL Pidilite Industries Trad

(Shanghai) Co. Ltd.

Bamco Supply Service

Jupiter Chemicals (LL


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BRANDS OF PIDILITE

1. Fevicol

2. Dr.Fixit

3. Fevikwik

4. MotoMax

5. M-Seal

6. Fevi Stick


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MARKETING STRATEGY OF PIDILI

Parent Company Pidilite Industries Ltd.

Category Consumer chemicals/ Specialty chemicals

Sector Industrial Products

Tagline/ Slogan Building Bonds

USP

Market leader in adhesives, sealants, polymer e

hobby colours and construction chemicals in In

Segment Customers looking for ease-of-use and value-foproducts.

Target Group Carpenters, plumbers, housewives, constructor

Positioning

Pioneer and market leader in consumer adhesiv

specialty chemicals in India.


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COMPETITORS

TATA CHEMICALS

BASF

LINDE

GUJ FLO

UPL


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COMPETITORS (CONT.)

SOLAR IND

GUJ ALKALI

GULF OIL CORP

HIMADRI C


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PRODUCTS

First product of Pidilite:

Fevicol


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PRODUCTS (CONT.)FOR CONSUMERS & CRAFTSMENAdhesives & Sealants

Art material and stationary

Automotive

Construction ChemicalsFabric Care

Wood Finishes & Paints


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PRODUCTS (CONT.)FOR INDUSRIAL PURPOSE :

Industrial Adhesives

Leather Chemicals

Textile Chemicals

Pigment Powders

Industrial Resins


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SHARE PRICE INFORMATION

BSE : 500331

286.40 (-0.10%)

NSE : PIDILITIND

286.35 (-0.24%)


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SHARE HOLDING PATTERN


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BUSINESS OF PIDILITE


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FINANCIAL STATEMENTS Current Assets and Liabilities :


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FINANCIAL STATEMENTS (CON

Earning per Share (EPS):


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FINANCIAL STATEMENTS (CON

Total Sales and Net Profit :


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HR POLICIES


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HR POLICIESPidilite cares about the overall well-being of their employees and

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

Facilitiesinclude:-Gymnasium

-Game zones

-Library

- Canteen

-Swimming Pool


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Retirement and other employee benefits:-Contribution to Provident, Superannuation and F

Pension funds are funded as a percentage of salary/wa-Gratuity liability is funded as per group gratuity

of Life Insurance Corporation of India.

-Gratuity, leave encashment, anniversary award,

premature death pension & total disability pension areprovided for on the basis of actuarial valuation as at th

end.


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NEW TECHNOLOGIES

SAP ImplementationThe Company has implemented SAP across all itdepots and Head Office effective May 2013. This will

productivity and provide accurate real time informatio

improved analysis and decision support.


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PIDILITE EXPANSION PLANSPidilite Industries Ltdplans to set up a manufacturing facility i

Arabia to shore up the contribution of its sales from overseas mark

per cent.

We want to set up a plant in Saudi Arabiaas a part of our overse

expansion plans. However, it is difficult to mention a timeline as i

on the economic conditions and demand in that country, said Mr

Ghosh, President - Business Development, Fevicol Division, Pidil

Industries.

Overseas operations now account for about six-to-seven per cen

total turnover so the company is concentrating in increasing its o

revenue

LATEST NEWS ON PIDILITE


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LATEST NEWS ON PIDILITE Pidilite Industries Ltd has informed BSE that there is a change in

pattern of Percept Waterproofing Services Limited (PWSL) whic

wholly owned subsidiary of Pidilite Industries Limited and with

shareholding, the holding of Pidilite Industries Limited in PWSL80% of total paid up capital of PWSL. Source :BSE

Pidilite Industries has reported a consolidated sales turnover of R

crore and a net profit of Rs 97.24 crore for the quarter ended Dec

income for the quarter was Rs 7.08 crore.

For the quarter ended Dec 2012 the consolidatedwas Rs 931.79 crore and net profit was Rs 118.99 crore, and other in

crore.

Because of higher spend on advertising and sales promotion exp

quarter our performance at an EBITDA level has been lower than

said its CFO Sandeep Batra


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SWOT ANALYSISSTRENGTH1. The advertising and marketing of Pidilite has been very strong, especia

Fevicol ads have become a viral hit among the masses.2. The name Fevicol has become synonymous with adhesives and has alm

become a generic for anything that sticks. This also has helped other bran

Pidilite such as Fevistik, Fevikwik, etc. in their sales.

3. Fevicol and M-seal alone account for more than 50% of the total reven

Pidilite, which eases the pressure on the sales of other brands and busines

4. Brand recall and value are extremely strong for Pidilite and have becomstar attraction for many television commercials.

5. Fevicol ads have also won accolades and awards at major advertising a

festivals and shows.

6. Strong R&D center to cater to the growing need for innovative produc

services.


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SWOT ANALYSIS (CONT.)WEAKNESS

1.Acquisition of the Cyclo brand of car care products is a weak factor as

exhibits a very fragmented market for the same with very little customer2. Revenue generation is over dependent on Fevicol and M-seal which re

reduced investments on other brands and businesses.

OPPORTUNITY1.Pidilite organizes many creative competitions for students and young s

such as the 'International Creative Contest' where approx. 800,000 stude

3000 schools participate. It also helps in promoting the brand very well.

2. The chemical industry in the world in growing very strongly and focu

emerging economies in other parts of the world such as Brazil, South Af

China, Singapore, Thailand and East Africa is a great opportunity to esta

stronghold in the international market.


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SWOT ANALYSIS (CONT.)

1. The manufacturing cost of Pidilitesproducts is la

dependent on crude oil and petroleum prices which a

fluctuating by the minute.

2. Competitors are equally hard pressed on deliverin

innovative products and services.

THREAT

PEST ANALYSIS


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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 m

-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 becom

PEST ANALYSIS

AWARDS OF PIDILITE


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AWARDS OF PIDILITE At the Chemtech CEW Leadership and Excellence

Awards,2013, the Chemtech CEW honoured Mr. M B

(MD - Pidilite Industries Ltd.) the Business Leader oYear - 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.


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AWARDS OF PIDILITE(CONT.)

For the year 2012, Fevicol has been named Powerbrand - an in

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 OutdoorAwards.

Fevicol was also ranked 3rd Most

Trusted Brand in the Household

Care Category.


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CORPORATE SOCIAL RESPONSIB

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-sizedprojects have been undertaken in

relation to water conservation and

watershed development

CORPORATE SOCIAL


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CORPORATE SOCIAL

RESPONSIBILITY (CONT.) Pidilite supports the Indira Awaas Yojana scheme in Mahuva di

provide grant for construction of houses to members of schedul

castes/scheduled tribes, bonded labourers and those surviving b

poverty line

Arogya Fund with contributions from donors, well-heeled and w

meaning people and other organizations, helps Hanumant hospi

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


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Pidilite Ltd 7445