BRIEF ON TERM PAPER DURING SUMMER INTERNSHIP

CORPORATE STRATEGY
NAME: Arnab Kumar Das
ROLL: 169278083
ORGANISATION BACKGROUND:
About the Organisation:
The organisation where I completed my summer internship is ICA Pidilite. The organisation was
formed after the JV (Joint Venture) of Italian based wood finish manufacturer Industria Chimica
Adriatica (ICA) SpA with the largest manufacturer of adhesives in India, Pidilite Industries Limited.
The JV was completed in May, 2016, with each organisation having a stake of 50% in the JV.
Business:
ICA SpA is a leading wood finish manufacturer of Europe, known for its world-class products and
technology in manufacture of premium category wood and glass coatings. Found in 1971 by Mr
Claudio Paniccia, ICA SpA is head-quartered at Civitanova Marche, Macerata, Italy. The ICA Group
is directed by the CEO, Mr Sandro Paniccia.
Products:
The product line of ICA Pidilite can be categorically labelled under the following heads:
a) Polyester Coatings
b) Polyurethane Coatings
c) Water based Coatings for Exterior
d) Acrylic Coatings
e) Special Effects
f) UV Cured Coatings
g) Coatings for Parquets
h) Water and Solved Based Stains
i) Fire Retardant Coatings
j) Liquid Metals
k) Coatings for Glass
Global:
Besides the establishment land of Italy, ICA Group, over the course of time has established its
business presence in Spain, Portugal, Germany, China, Poland and India. In majority of these markets,
ICA SpA had a presence through the domestic sales/operational organizations to cater to the needs in
these markets.
India:
Prior to the JV of ICA Pidilite in 2016, ICA SpA continued its Indian business since 1993 through
India based distributor, Italcoats under the ownership of Mr Pratik Mehta.
50% of the ownership of ICA Pidilite lies with Mr Andrea Paniccia, General Manager of ICA Group
and Mr Pratik Mehta, owner of Italcoats. The rest 50% is owned by Pidilite Industries with Mr Bharat
Puri as the MD of PIL (Pidilite Industries Limited).
Pidilite Industries:
Since the year of inception in 1959 by Shri Balvant Parekh, PIL has emerged as a pioneer in consumer
and specialities chemicals in India. Presently, PIL is the market leader in adhesives and sealants,
construction chemicals, hobby colours and polymer emulsions in India. Mr MB Parekh, Chairman of

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PIL sees the strong domestic presence in India as Fevicol and FeviKwik emerge as some of the most
trusted brands in the market.
History of ICA SpA:
1970: Creation of first R&D lab in Macerata, Italy by ICA
1971: Foundation of ICA SpA by Mr Claudio Paniccia
1983: Starts production of eco-friendly water-based coatings
1993: Starts selling products in India through Indian distributor Italcoats
1995: ICAs water-based coatings receives European Communitys LIFE mark for sustainability
2004: ICA acquires wood coatings division of BASF coatings, renamed as Salchi Wood Coatings
2005: ICA starts selling products in Germany through a direct subsidiary
2012: Launch of Italian Coatings, formed by merger with Salchi Wood Coatings
2013: ICA group launches its Chinese business, ICA China
2014: ICA group expands business in Germany as ICA Deutschland
2016: ICA group establishes its corporate presence in Poland as ICA Polskia
2016: ICA group launches its Indian entity, ICA Pidilite following JV with Pidilite Industries
History of PIL:
1959: Fevicol is launched in a small working unit with focus on woodworkers
1963: First modern manufacturing unit for pigments and emulsions built at Kondivita, Mumbai
1990: Pidilite Industries Limited is incorporated, creating the future brand name
2000: Acquires M-seal, the leading brand of epoxy compounds from Mahindra
2001: Launch of Dr Fixit range of construction of chemicals
2002: Acquisition of SteelGrip, a leading brand of PVC insulation tape
2005: Launches subsidiary Pidilite International in Singapore, acquires Singapore-based brand,
Chemson Asia Pvt Ltd
2005: Acquires Jupiter Chemicals to launch international operations in Dubai
2006: Pidilite USA acquires maker of world-class art materials, Sargent Art Inc.
2006: Establishes R&D centre in Singapore for international business
2007: Pidilite Brazil acquires Pulvitec, an adhesives and sealants company in Brazil
2012: Pidilite forms a JV with Hybrid Coatings for manufacture of construction chemicals
2014: Acquires adhesive business of Blue Coat Limited
Growth of ICA SpA:
Since 2004, ICA SpA has expanded its global business by establishing its corporate presence in
Asian and European Markets of India, China, Poland, Germany, Portugal and Spain. The formation of
Italian Coatings division from Salchi Wood Coatings has boosted the research and development
capabilities of the organization
Growth of Pidilite Industries:

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Since 2005, PIL has expanded its international operations in USA, South Asia, Brazil and Middle East
with Singapore having a major R&D facility to cater to the international markets. Domestic
acquisition strategies in adhesives and coatings has bolstered the market share and helped thwart
competition from rival domestic players.
Performance of ICA SpA:
Revenue: 2015: 26m ~ 254.05 Cr 2016: 112m ~ 844.14 Cr CAGR: 232.27%
The contribution to revenue from entities outside Italy is approximately 54%. This could be the
culmination of the business expansion of ICA SpA in Poland and India
New Product Launches:
Launch of Antiche Armonie, a new shade of colors for wood that are inspired by old-time
charm of Italian rural life at the Delhiwood trade fair in Greater Noida in March 2017
Launch of Nero Profondo, an intense shade of deep black that are water-based coats
Performance of PIL:
Revenue: FY 2006-07: 1308.1 Cr FY 2014-15: 4724.2 Cr FY 2015-16: 5110.3 Cr
CAGR:16.35%
PBT: FY 2006-07: 154.0 Cr FY 2014-15: 668.5 Cr FY 2015-16: 1013.3 Cr CAGR:
23.28%
PAT: FY 2006-07: 119.9 Cr FY 2014-15: 501.8 Cr FY 2015-16: 703.0 Cr CAGR:
21.71%
Dividend: FY 2006-07: 44.3 Cr FY 2014-15: 178.9 Cr FY 2015-16: 256.0 Cr CAGR:
21.52%
EPS: FY 2011-12: 6.84 Cr FY 2014-15: 10.13 Cr FY 2015-16: 14.24 Cr CAGR:
15.79%
New Product Launches:
Fevikiwik Gel that enables controlled application to fix breakage of items
Fevicol Liquid Embroidery to create embroidery-like effect, convenient for pen-like usage
Fevistik + Highlighter that offers combo features of a highlighter for college students
Roff Tile Bonder is a low-priced easy-to-use fix for tiles on cement bed
Performance of ICA Pidilite:
The data available since the JV is limited and ICA Pidilite has achieved a top-line of 30 Cr in
Mumbai market and approx. 45 Cr in FY 2016-17 for the Indian market. The company has a target
of 10% increase in top-line for the Mumbai market for FY 2017-18.
Key People in ICA Group:
CEO: Mr Sandro Paniccia
- Presides the entire ICA Group from Macerata, Italy
General Manager: Mr Andrea Paniccia
- Education at LUISS, Italy
- Led the Salchi Wood Coatings Division with 16+ years in ICA
- Joint Director of ICA Pidilite
Human Resources Manager: Ms Vittoria Rita

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 - Education at I.T.C. Fillippo Corrodoni
- Leads the HR portfolio of ICA group since 1988 in Italy
Technical R&D Director: Mr Piero Paniccia
- Leads the technical team of ICA Group in Italy
Key People in Pidilite Industries:
Executive Chairman: Mr MB Parekh
- Bachelors of Science in Engineering from University of Mumbai
- Masters in Chemical Engineering from University of Wisconsin
- Worked in Abott Laboratories, US
- At the helm of Pidilite Industries since 1971
Managing Director: Mr Bharat Puri
- Alum of IIM Ahmedabad, batch of 1982
- Experience of 16 years with Asian Paints at the mid-management level
- Experience of 18 years with Mondelez (Kraft Foods / Cadbury) at the executive level
- MD of PIL since April 2015
Vice Chairman: Mr N K Parekh
- Joint Managing Director of PIL until April, 2015
Whole Time Directors:
Mr A B Parekh
Mr A N Parekh
Mr Sabyasachi Patnaik
Non-executive Directors:
Mr Ranjan Kapur
Mr Sanjeev Aga
Mr B S Mehta
Mr Uday Khanna
Ms Meera Shankar
Mr Vinod Ansari
Chief Financial Officer: Mr Pradeep Jain
- Experience of 18+ years with Pepsico
- Alum of SRCC, member of ICAI
- Presently Executive VP of Financial Planning at United Spirits
Divisional Heads:
Mr Sanjay Bahadur- President of Construction Chemicals (CC)
Mr Yogesh Anand- President of Consumer Products- Maintenance (CP-MNT)
Mr Vivek Subramanian- President of Fevicol (FV)

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Mr Rajesh Balakrishnan- President of Industrial Products (IP)
Mr Sanjay Panigrahi- President for Rurban & STI (Small Towns of India)
Mr Rajesh Joshi- President of ICA Pidilite
Mr Rahul Sinha- President of Consumer Products- Arts, Stationery & Fabric (CP-ASF)
Mr Nilanjan Bose- President of Pidilite Large User Business (PLUB)
Mr Salil Chinchore- President, HR & YTM (Young Talent Management)
Mr Laxmikant Chaudhari- President, Supply Chain Management & Distribution Operations
Mr Vivek Sharma- President, Corporate Marketing
Key people in ICA Pidilite:
CEO: Mr Rajesh Joshi
- Alum of SIBM, Pune, Batch of 1995
- Experience 0f 24+ years in Asian Paints, Pantaloon Retail India, Airtel and PIL
- Leads the ICA Pidilite division since July 2016
COO: Mr Amrit Ghorai
- Alum of IIT Kharagpur, batch of 1983; training in ISB
- Rich experience of 29+ years in firms as Hindustan Fertilizers, Development Consultants,
Orissa Synthetics, Hoechst Marion, Asian Paints, Cadila and PIL
- Leads the commissioning of the inaugural manufacturing unit for wood coatings in
Gujarat
CFO: Mr Arulraj Joseph
- Alum of Anna University
- Experience of 9+ years in Reliance Industries Limited and PIL
- Leads the financial department of ICA since Aug 2016
Marketing Head: Mr Veeresh Malhan
- Alum of PIMR Indore, Batch of 2005
- Experience of 8+ years in Pidilite Industries
- Leads the Marketing team of ICA Pidilite since July 2016
Regional Sales Head- Maharashtra/ Goa: Mr Swapnil Jain
- Experience of 17+ years with firms as Reliance Communications, Saint Gobain,
AkzoNobel India
Manager HR: Mr Aditya Krishna
- Alum of NMIMS, batch of 2014
- Experience of 5+ years with PIL
HR Strategy of ICA Pidilite:
ICA Pidililite as an organization is composed of the employees retained from Italcoats and the internal
changes from Pidilite Industries. The focus of HR strategy has been blending the corporate culture of
PIL into an organization which is less than a year old by adopting processes which are standardised
and can be scaled up in the coming years.
Manufacturing Strategy of ICA Pidilite:

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The distribution of ICA products in India has been sustained over the years through imports from
Italy. However, with the culmination of the JV, there is a paradigm shift with a local manufacturing
facility being set up at Gujarat to meet the domestic requirements.
Finance Strategy of ICA Pidilite:
One of the objectives behind the JV was to reduce the operational costs of business, which is achieved
by a steady transition of Italcoats to ICA Pidilite
Marketing Strategy of ICA Pidilite:
The product portfolio of ICA Pidilite comprises high end wood finish and glass coatings. The
marketing strategy has been to identify the key opinion leaders in the purchase process and target
these influencers categorically to increase the consumption at the end user level.
Corporate Strategy of ICA Pidilite:
Quality and innovation have been the two pillars of ICA Pidilite, with business process adopted to
accerelate the growth of ICA Pidilite in wood coatings market.

MISSION, VISION, PRESENT STRATEGY:

Pidilite Industries Limited:
Core Values:

The company has set the following core values as the guiding principles and foundation
A) High Ethical Standards
a. Be always on the right side of the law, in letter and spirit
b. No gifts to/from individuals or firms have official dealings
c. No tolerance policy on unethical dealings
d. Adherence to company rules & regulations, policies and procedures
e. Ensure safe and environment friendly practice
B) Fairness and Transparency
a. Communicate openly, tell it like it is
b. Share relevant information with all the concerned
c. Communicate clear measurable expectations to the team
d. Mutual trust and respect for people at all levels
e. Walk the talk
C) Empathy and Respect
a. Listen, understand, and be sensitive to all even if you do not agree
b. Learn from people at all levels
c. Respect the time of individuals at all levels
d. Praise in public; reprimand in private
e. Reprimand the action; not the person
f. Debate vociferously. Once decided, follow it in letter and spirit
D) Act like Owners
a. Support what is best for the company, it is our company
b. Opt for medium/long term interest of the company over your short-term goals
c. Spend companys resources as if it is your own
d. View the organization as a whole and do not have a narrow functional mindset
e. Strive to perform and contribute better to the organization

Present Strategy:

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 Lead the current businesses to the full potential growth by
o Increasing the pace of top-line growth
Product and brand penetration in existing domestic markets
Marketing schemes to increase the purchase of products by the consumers
Improve upon the existing market share and maintain market leadership in
regions where the brand leads the market
Identify specific clusters of international countries fit for business expansion
and focus on these cluster markets
o Innovation which is robust and sustainable
Following a phase-driven project implementation process with a go/no-go
decision making at each stage by the senior management
Focus on fewer opportunities which are scalable and have a high impact on
business
Leverage the business growth opportunities in rural and small towns
o Potential for market growth with only 1 Billion consumer base and an untapped
consumer base which is nearly 84% of Indias population
o Renovate the go-to-market strategy in small towns and rural as well as the customer
engagement process
Identify and prioritize the business opportunities as in
o Strategic investment in premium wood finish category by forming a JV with ICA
SpA
o Strategic alliance in waterproofing solutions with partner Nina Waterproofing
Systems
Ensure that the organization is aligned and energized to meet the objectives through
o Persistent innovation focused on continuous improvement
o Holistic brand management that builds strong emotional connect with users,
influencers and consumers
o Deep insight into each domain, leading to continuous identification of major
initiatives
o Passionate about pioneering segments and achieving significant leadership
o Team working together with passion

ICA Pidilite:
Currently, the development of vision and mission statements for ICA Pidilite is in process.
In my own terms, the vision and mission statements stand as:
Vision:
To be the category leader in premium quality wood coatings
Mission:
To inculcate the best practices for wood coatings, and translate the user base of Polyurethane based
coatings to Polyester based coatings
Present Strategy:
Create strong market presence in the category of premium wood finish
o Increasing penetration in existing markets
o Tapping business expansion opportunities in urban and semi-urban markets
o Growing a digital presence to engage with the influencer category of architects
o Engaging with the influencer category of contractors through holistic loyalty
schemes
Investment in technology and manufacturing-

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 o Commission the manufacturing unit for wood coatings in Gujarat to streamline
the demand fluctuations and pricing imperfections

STRATEGIC PLANNING PROCESS:

ICA Pidilite:
With due consideration of the fact that ICA Pidilite as an organization is relatively new, the strategy
planning process in the organisation includes
a) Environment Analysis
b) SWOT Analysis
c) Resource Allocation Process
d) Implementation Process

STRATEGY FORMULATION AND IMPLEMENTATION:

ICA Pidilite:
The people involved in strategy formulation and implementation process include:
1. Mr Pankaj Bassi- Country Head, ICA SpA
a. Master in Economics & Management, UNIMC, Italy
b. Experience of 3+ years in Cremica (P) Ltd & Cream Bell
c. Country Manager since May 2016
2. Mr Bharat Puri- Managing Director, PIL
a. Alum of IIM Ahmedabad, batch of 1982
b. Experience of 16 years with Asian Paints at the mid-management level
c. Experience of 18 years with Mondelez (Kraft Foods / Cadbury) at the executive level
d. MD of PIL since April 2015
3. Mr Rajesh Joshi- CEO, ICA Pidilite
a. Alum of SIBM, Pune, Batch of 1995
b. Experience 0f 24+ years in Asian Paints, Pantaloon Retail India, Airtel and PIL
c. Leads the ICA Pidilite division since July 2016
4. Mr Arulraj Joseph- CFO, ICA Pidilite
a. Alum of Anna University
b. Experience of 9+ years in Reliance Industries Limited and PIL
c. Leads the financial department of ICA since Aug 2016
5. Mr Amrit Ghorai- COO, ICA Pidilite
- Alum of IIT Kharagpur, batch of 1983; training in ISB
- Rich experience of 29+ years in firms as Hindustan Fertilizers, Development Consultants,
Orissa Synthetics, Hoechst Marion, Asian Paints, Cadila and PIL
- Leads the commissioning of the inaugural manufacturing unit for wood coatings in
Gujarat
6. Mr Veeresh Malhan- Head of Marketing, ICA Pidilite
a. Alum of PIMR Indore, Batch of 2005
b. Experience of 8+ years in Pidilite Industries
c. Leads the Marketing team of ICA Pidilite since July 2016
7. Mr Aditya Krishna- Manager, HR, ICA Pidilite
a. Alum of NMIMS, batch of 2014
b. Experience of 5+ years with PIL
8. Mr Mihir Shah- Senior Business Advisor, Colour Coats India
9. Mr Vidit Jain- Business Advisor, Colour Coats India
10. National Sales Head- Currently there is no National Sales Head due to existing NSO exiting
the organization

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CHANGE IN STRATEGY FORMULATION PRACTICE/ PROCESS
ICA Pidilite:
Since the organisation has been created after JV of ICA SpA with PIL, there are major changes in
terms of economic slow-down/ globalisation.
Prior to ICA Pidilite, the employees working for Italcoats have been retained as part of the employee
base of ICA Pidilite. The major paradigm shift in the decision-making process for ICA Pidilite where
internal shifts from the SBUs in PIL to ICA Pidilite has taken place for key roles as CEO, CFO, COO
along with lead roles in HR, Finance, Operations and Marketing.

STRATEGIC DECISIONS AND IMPACT

ICA Pidilite:
As of now, the key strategic decision for ICA Pidilite which are in implementation phase:
Commission of a manufacturing plant integrating Italian technology in Gujarat
The impact which the project is likely to have:
Meet the demand fluctuations for Indian markets with reduced delays compared to imported
items
Price reduction in some primary base coats to increase consumption in urban and semi-urban
markets

INTEREST AND INVESTMENT IN INNOVATION

ICA SpA:
ICA SpA is reputed for being a specialist in the formulation, manufacture and marketing of
special coatings for wood. One of ICA Groups main strategic assets is the fact that its
corporate culture is based on a commitment to achieving maximum quality through
innovation. The R&D department comprises a number of lab teams, in which chemists,
researchers and analysts co-operate and interact closely. The availability at the lab of all the
most important types of systems utilized by companies to coat wood and other materials
makes it possible not only to test the formulated products under a wide variety of conditions.
At the production plant in Civitanova Marche, the manufacturing cycle is highly automated. It
uses computerized systems that ensure perfect replicability of the production recipes,
precision weighing of the different substances involved in the production cycle and maximum
safety in the handling of dangerous substances. ICA Group has been able to guarantee high
standards in terms of its short lead times and on-time deliveries owing to its innovative
logistical infrastructure.
ICA Pidilite
Besides innovation on product, ICA Pidilite pursues innovation on field by engaging with the
key customers- the contractors through round the year programmes via the ICC (ICA Pidilite
Champions Club).
Pidilite Industries
The international business is supported by the investment in R&D with the R&D centre at
Singapore a testimony to the research and development capabilities pursued by PIL

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STRATEGIC ALLIANCES/ NEW MARKET ENTRY
Pidilite Industries:
Known for its products in adhesives and sealants, Pidilite has diversified its portfolio, with
key alliances in premium wood finish with ICA SpA (JV of ICA Pidilite) and in construction
chemicals category with Nina Waterproofing systems. Besides Pidilite has acquired
Woodlock, a division of Henkel.
ICA SpA:
ICA SpA has over the recent 3-4 years expanded its business in Asian markets- China, and
India which had been maintained by local subsidiaries in these regions
Logic of JV of ICA Pidilite:
ICA Pidilite has strong technical capabilities with over 40 labs in Italy
Pidilite Industries will have saturated its growth in the coming years in segments as
construction chemicals, adhesives and sealants.
Distribution and marketing capabilities of Pidilite Industries is unparalleled
The JV makes sense for both parties to expand their business with the objective of leading the
category of high end wood coatings in India

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