2. 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.
3. 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
4. Cont..
Diversified in various segments such as -
• Adhesives and sealants
• Construction and paint chemicals
• Automotive chemicals
• Art materials
• Industrial Adhesives
• Industrial and Textile resins
5. Cont..
• Annual Sales - $196 Million
• 2900 employees
• Strong-in-house R & D
• Well-defined, Structured & focused quality
product assurance system
12. • 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
13. • 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%.
14. • 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.
18. Acquisition of Cyclo
• Acquisition in 2006
• Cyclo car care products
• Engine, glass and injector cleaning
material
19.
20. Competitive Advantage
• Marketing Feedback, introducing new product
• Feviquick stick from feedback
• 75 to 100 SKUs this year compared to 30 to 40 last year