Pidilite .......

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PIDILITE.. PRERNA SANOTRA

Transcript of Pidilite .......

PIDILITE..PRERNA SANOTRA

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

PRODUCTS

OTHER BRANDS

MANAGEMENT DETAILS

B.K Parekh M B Parekh

CURRENT STATUS

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

SWOT ANALYSIS ……

CURRENT STATUS AS ON 30 NOVENBER

2014

THANKS