INTRODUCTION

The chemical industry comprises the companies that produce

industrial chemicals. Central to the modern world economy, it
converts raw materials (oil, natural gas, air, water, metals, and minerals)
into more than 70,000 different products.
Although the pharmaceutical industry is often considered a chemical
industry, it has many different characteristics that put it in a separate
category. Other closely related industries
include petroleum, glass, paint, ink, sealant, adhesive, and food
processing manufacturers.
Chemical processes such as chemical reactions operate in chemical
plants to form new substances in various types of reaction vessels. In
many cases the reactions take place in special corrosion-resistant
equipment at elevated temperatures and pressures with the use of
catalysts. The products of these reactions are separated using a variety of
techniques including distillation especially fractional distillation,
precipitation, crystallization, adsorption, filtration, sublimation,
and drying.
 GDP % Contribution to the Indian Economy

Chemical industry, one of the earliest of all Indian industries contributes

considerably to Indian economy and has been doing so since the times of
independence. It manufactures 70,000 types of products ranging from
toiletries and plastics, to cosmetics, petrochemicals, pharmaceuticals,
fertilizers and many more. The large chemical industry contributes around 7
% annually to the GDP of India.

SOURCE-LISTDOSE.COM

GDP CONTRIBUTION

6% Agriculture
15%
Real estate
22%
Banking
13%
IT Industry
Transportation
8% 9%
Chemical
4%
7% 8% Textile
8%
Machinery
Retail
Tourism
 Promoters of the Company and company snapshot

Shareholding belonging to the category: "Promoter and Promoter Group"

Shares pledged or otherwise
Total Shares held
encumbered

No. Name of the Shareholder As a % of

As a % of
grand total % of Total
Number Number grand total
(A) + (B) + shares held
(A) + (B) + (C)
(C)

1 Abha Ajay Parekh 1,968,000 0.38 - - -

2 Ajay Balvantray Parekh 49,148,844 9.58 - - -

3 Ami Ajay Parekh 4,372,166 0.85 - - -

4 Amrita Ajay Parekh 1,968,000 0.38 - - -

5 Anuja Ankur Shah 187,600 0.03 - - -

6 Apurva Narendrakumar Parekh 3,584,910 0.7 - - -

7 Bharati Narendrakumar Parekh 8,906,086 1.74 - - -

8 Darshana Bimal Mody 6,500,000 1.27 - - -

9 Gulabben Himatlal Parekh 261,716 0.05 - - -

10 Harish Himatlal Parekh 2,076,592 0.41 - - -

11 Harshada Harvadan Vakil 51,900 0.01 - - -

12 Harvadan 42,300 0.01 - - -

13 Himatlal Kalyanji Parekh 4,811,630 0.94 - - -

14 Indumati Chimanlal Parekh 40,368 0 - - -

15 Ishita Rajiv Amersey 2,901,606 0.57 - - -

16 Jasna Raoul Thackersey 3,615,126 0.71 - - -

17 Jimeet D Sanghavi 91,900 0.02 - - -

18 Kalpana Apurva Parekh 6,664,334 1.31 - - -

19 Kamalini Rashmikant Parekh 821,934 0.16 - - -

20 Kanta Balvantray Parekh 3,385,410 0.66 - - -

21 Madhukar Balvantrayparekh 56,977,568 11.11 - - -

22 Mala Madhukar Parekh 9,360,992 1.83 - - -

23 Malay Rashmikant Parekh 161,600 0.03 - - -

24 Monisha Harish Parekh 200,000 0.04 - - -

25 Mrudula Sushilkumar Parekh 3,512,120 0.69 - - -

26 Narendrakumar Kalyanji Parekh 54,332,178 10.59 - - -

27 Panna Deepak Sanghavi 80,166 0.02 - - -

28 Pareet D Sanghavi 95,600 0.02 - - -

29 Parul Harish Parekh 1,039,208 0.2 - - -

30 Purvee Apurva Parekh 800,000 0.16 - - -

31 Rashmikant Himatlal Parekh 2,357,378 0.46 - - -

32 Sushil Kumar Kalyanji Parekh 42,608,636 8.31 - - -

33 Urvi Malay Parekh 40,000 0.01 - - -

34 Devkalyan Sales Private Ltd 26,074,280 5.09 - - -

35 Harton Private Limited 12,207,634 2.38 - - -

36 Ishijas Chemical Pvt Ltd 24,630,038 4.8 - - -

37 Kalva Marketing And Services Ltd 1,382,628 0.27 - - -

38 Parekh Marketing Ltd 796,700 0.16 - - -

39 Parkem Dyes & Chemicals Pvt Ltd 1,276,510 0.25 - - -

40 Pidichem Pvt Ltd 7,614,916 1.49 - - -

The Vacuum Forming Company Pvt

41 11,462,186 2.24 - - -
Ltd

42 Trivenikalyan Trading Pvt Ltd 463,040 0.09 - - -

Total 358,873,800 70 - - -

Source-MONEY CONTROL.COM
SNAPSHOT

Pidilite Industries Limited (BSE: 500331, NYSE: MMM) is the

largest adhesive manufacturer in India.[3] It also has worldwide
presence in adhesives, art material, construction chemicals and
other industrial chemicals.
Pidilite's most famous product is the Fevicol range of adhesives.
Its other famous brands are “Fevikwik", Dr.fixit, Cyclo, Ranipal,
Hobby ideal M-seal and Acron.

The Fevicol brand, Pidilite's most recognized adhesive brand

Pidilite's corporate office is located in Andheri (East), Mumbai.

The company has manufacturing facilities at various locations in
India,
including Mahad (Maharastra), Vapi (Gujarat) Baddi (Himachal
Pradesh) and Kala Amb (Himachal Pradesh). It also makes Fevi
Kwik India's first ever One Drop Instant Adhesive. This brand is
the most popular Instant Adhesive in South Asian Countries. The
Company was founded in 1959.
 Product Profile & Target Market

Pidilite Products
The product range of Pidilite includes Adhesives and Sealants,
Construction and Paint Chemicals, Art Materials, Industrial and Textile
resins and Organic Pigments, Synthetic Organic Pigments and Industrial
Organic Pigments and Preparations.
Pidilite Adhesive Products

The product range of Pidilite includes Adhesives and Sealants,

Construction and Paint Chemicals, Art Materials, Industrial and Textile
resins and Organic Pigments, Synthetic Organic Pigments and Industrial
Organic Pigments and Preparations. Pidilite products conform to global
quality standards and are exported to developing and
developed countries all over the world.
Wood grip Adhesive

It has in store for our customers, optimum quality wood grip that are
procured from the certified vendors of the industry. These wood grip
adhesive is used for bonding wood, plywood, laminates and veneers,
particle board, block board, hardboard, mdf to each of the substrates.
To meet the specific requirements of our customers, we are offering
these adhesives in the package size of 20 kg and 50 kg. Our valued
customers can buy these adhesives from us at market leading prices.

Features:
 high adhesion
 excellent stiffness
 temperature resistant
 excellent bond strength
Textile Adhesives

It offers complete range of adhesives which are used for different

purposes in various types of industries.

Fevitite Adhesives

It offers fevitite in bulk as well as small packaging which is widely used

as industrial adhesives.
Fevicol Adhesive

It offers entire range of fevicol I. E. Fecicolsh, fevicol 998 and others as

per the needs of our customers.
Market Share of the company

As a flagship product of the Rs.137.72 billion Pidilite Industries, Fevicol

commands a 70% market share in the white glue segment. Today over
40% of Pidilite’s turnover comes from Fevicol while the rest comes
from its other brands such as Ranipal, M-Seal and others.
Competitor Analysis

, 0, 0%

CASTROL INDIA

CASTROL INDIA,
PIDILITE, 21325, GODREJ INDS
14868.95, 29%
42%
BASF INDIA

LINDE INDIA
GODREJ INDS,
9169.84, 18%
PIDILITE

LINDE INDIA,
2644.96, 5% 2750.21, 6%
Historical Growth

The Indian chemicals industry, which earned revenues in the range of $

155-160 billion in 2013, is likely to grow at a rate of 11-12 percent in
the next two to three years, according to Frost & Sullivan, a business
consulting firm. Owing to reduced industrial output, commodity and
bulk chemicals are likely to experience slow growth, while the specialty
chemicals segment is expected to show considerable growth.

“Personal care ingredients and additives, knowledge chemicals like

Active Pharmaceutical Ingredients (APIs), paints and coatings, and
construction and water chemicals are some of the segments that are
likely to perform well. Even in 2013, these sectors showed good growth
and companies in this segment have been investing and expanding,”
said Chaitra Narayan, Associate Director, Chemicals, Materials & Foods
Practice, and Frost & Sullivan.

Reasons for the Growth

 High-value products
 Product driven market
 Requirement of raw material
 SWOT Analysis

SWOT Analysis

1. The advertising and marketing of Pidilite has been very strong, especially the
Fevicol ads have become a viral hit among the masses.
2. The name Fevicol has become synonymous with adhesives and has almost
become a generic for anything that sticks. This also has helped other brands of
Pidilite such as Fevistik, Fevikwik, etc. in their sales.
3. Fevicol and M-seal alone account for more than 50% of the total revenue of
Pidilite, which eases the pressure on the sales of other brands and businesses.
4. Brand recall and value are extremely strong for Pidilite and have become the star
attraction for many television commercials.
5. Fevicol ads have also won accolades and awards at major advertising award
festivals and shows.
6. Strong R&D center to cater to the growing need for innovative products and
Strength services.

1. Acquisition of the Cyclo brand of car care products is a weak factor as India
exhibits a very fragmented market for the same with very little customer loyalty.
2. Revenue generation is over dependent on Fevicol and M-seal which results in
Weakness reduced investments on other brands and businesses.

1. Pidilite organizes many creative competitions for students and young scholars,
such as the 'International Creative Contest' where approx. 800,000 students from
3000 schools participate. It also helps in promoting the brand very well.
2. The chemical industry in the world in growing very strongly and focus on
emerging economies in other parts of the world such as Brazil, South Africa, China,
Singapore, Thailand and East Africa is a great opportunity to establish stronghold in
Opportunity the international market.

1. The manufacturing cost of Pidilite’s products is largely dependent on crude oil

and petroleum prices which are fluctuating by the minute.
2. Competitors are equally hard pressed on delivering innovative products and
Threats services.
 STP

STP

Segment Customers looking for ease-of-use and value-for-money products.

Target Group Carpenters, plumbers, housewives, constructors/masons ,etc.

Positioning Pioneer and market leader in consumer adhesives and specialty chemicals in India.

MARKET PLANNING
1) Market strategy for other brands become centric to successful
brands.

2) Customer loyalty is towards the brand.

3) Benefits the customer in the long run.

4) Brand image often become than the company image.

 5) Ads are catchy and they help in gaining the market share

Comparison of sales of company for past 3 years

3878.24

3331.69
3194.03

2012 2013 2014

1 2 3

YEAR SALES IN RS. CRORE

Marketing and promotional strategy of the company

ACETECH

Dr. Fixit and Roff participated in ACETECH, a

Construction and building material trade event, in 5 cities

Fevicol Science Project Challenge

The third year of the Fevicol Science Project Challenge

Continued to inspire young minds to challenge their own
Creativity and convert classroom learning into workable
 Concepts and models.

Rangeela Tempera

Rangeela Tempera Colors launched an on-pack promotion & TV campaign with popular cartoon
character ‘Chhota
Bheem’. The winners of the slogan contest got an opportunity to meet & interact with ChhotaBheem at
live events in 6 cities.

Organization Structure

Training needs of the company

 Recruitment & Selection
Recruitment of all positions up to Regional Sales Manager & equivalent level at Head Office.
Ensure quality intake of talent in a Cost effective way within the specified time frame (cycle
time) / ensure proper compliance of the recruitment process.

 Induction & Training

Ensure proper & timely induction for all new employees.
Co-ordinate with Central L&D team for training needs / ensuring that employees are released
for training as per the training calendar provided by the Corporate L&D group.

 Performance & System

o Ensure the entire process of Performance & Potential Management is completed in a timely
manner as per the laid down process

 Traveling
o Undertake regular travel to all branches to understand employee issues and escalate
unresolved issues.

 Assist CEOs/Presidents in:

o Manpower Planning & Budgeting for the Division / Function.
o Ensuring that each employee in the Division is given a proper R & R/ KRA / KPI
o Driving Corporate initiatives (employee engagement initiatives ) in the Div / Function

 Exit Analysis on Exit analysis for all employees’ up to Regional Sales Manager & equivalent
level at Head Office.

 Regularly co-ordinate for all HR related activities of the Division with Corporate HR
Analysis of JDs and Job Specifications posted by the
company on online-job portals
 Organization culture

Top Reasons to work in PIDILITE

 Brand Name78%
 Learning & Development57%
 Career Growth Opportunities48%

Top Skills to Succeed

 Relationship Management54%
 Initiative42%
 Leadership42%
 Porter’s Five Forces Model

Threat of New Entrants Bargaining Power of Suppliers

Low and Will Remain Low
 Government regulations and patents
 Significant capital requirements
 Incumbents have superior efficiency and
quality in production that may be difficult
to imitate
 Intense R&D and human capital
requirements
Moderate and Will Remain Moderate
 Chemical industry relies on supplies
from a few large corporations (such as
those in petrochemicals industry)
 Chemical producers have limited
substitutes for inputs
 Most suppliers are not dependent on
their sales to chemical manufacturers

Industry Rivalry
High and Increasing
 Large number of competitors all
competing for market share
 All are global competitors little room
for expansion
 All benefiting from economies of scale,
so competing on price
 Little differentiation among current
players
 High fixed costs, and high exit costs

Bargaining Power of Buyers Threat of Substitutes

Moderate and Will Remain Moderate Weak and Will Remain Weak
 Chemicals are important inputs to  Buyers tend to need specific chemicals
many industries as inputs
 Those in chemical industry have many  There really are no similar substitutes
end-customers; don’t rely on one for chemicals
customer  Even if another chemical can be used, it
 The products (chemicals) are not is most likely produced by the same
greatly differentiated Industry Players.
 Usually purchased through long-term
contracts, so switching costs are high
GWP CONTRIBUTION

Chart Title
CHEMICAL INDUSTRIES TEXTILE INDUSTRIES OTHERS

3% 8%

89%
 CONCLUSION

After overall research and preparation of the project I found that the Pidilite
has strong brands, a wide distribution network and an excellent reputation
amongst users of its products. Apart from the household segment, the product
enjoys a loyal following among service provider like carpenters, plumbers and
mechanics. Pidilite has a history of acquiring brands at reasonable valuations
and growing them steadily.Pedilite has shown steady growth in last 5 years
with sales and profits growing at a CAGR of 12%and 19% respectively. This
performance has been spearheaded by the company’s sharp focus on the
consumer segment where it enjoys strong pricing power
 BIBLIOGRAPHY

WEB SITES
 ACE ANALYZER
 MONEY CONTROL
 TIMES OF INDIA
 IBEF.ORG
 MBASKOOL.COM
 NAUKRI.COM
 FUNDOODATA.COM
 LISTDOSE.COM
 PIDILITE.COM
 QUOTES.WSJ.COM

BOOKS

 FINACIAL MANAGEMENT : I M PANDAY

 MARKETING MANAGEMENT : PHILLIP KOTLAR
 HUMAN RESOURCE MANAGEMENT: P SUBARAO

ANNUAL REPORT PIDILITE 2013-14

BCG MATRIX

PIDILITE INDUSTRY is in STAR situation because

as it one company which have the maximum
market share of 42% as compare to its
competitors and on the other hand pidilite
belong to chemical industry and which is
growing on at at a very fast pase thus in future it
will have a bright future
 PLC

PIDILITE is in its maturity stage as company is coming up with

various product line such as favi quick, Dr. fixit, favi tweet, ect. And
pidilite have its present in the market since 1959 and since then it is
growing and earning profit.
 ABOUT PEDILITE

Pidilite Industries

Parent Company Pidilite Industries Ltd.

Category Consumer chemicals/ Specialty chemicals

Sector Industrial Products

Tagline/ Slogan Building Bonds

Market leader in adhesives, sealants, polymer emulsions, hobby colors and construction
USP chemicals in India.

DESCRIPTION Pidilite Industries Ltd.

Pidilite Industries Ltd. manufactures and sells adhesives and sealants, construction
chemicals, hobby colors and polymer emulsions. It operates through two business
segments: Branded Consumer & Bazaar Products and Industrial Chemicals. The
Branded Consumer & Bazaar Products business segment products include adhesives,
sealants, art materials, and construction and paint chemicals. The Industrial Chemicals
business segment covers products, such as industrial adhesives, synthetic resins,
organic pigments, pigment preparations and surfactants. Pidilite Industries was founded
in 1959 and is headquartered in Mumbai, India.
KEY PEOPLE Pidilite Industries Ltd.
Board of Directors
Name/Title
Madhukar Balvantray Parekh, 70Executive
Chairman & Managing Director
Narendrakumar Kalyan Parekh, 76Joint
Managing Director & Executive Director
Sanjeev Aga, 62Independent Non-Executive
Director
Bansidhar Sunderlal Mehta, 79Independent
Non-Executive Director
Current Board Membership
Pidilite Industries Ltd., Vinyl Chemicals
(India) Ltd., Kalva Marketing & Services Ltd.,
Fevicol Co. Ltd., Excel Industries Ltd.
Vinyl Chemicals (India) Ltd., Pidilite
Industries Ltd., Kalpaj Sales & Agencies Pvt
Ltd., Ishijas Chemicals Pvt Ltd., The Vaccum
Forming Co. Pvt Ltd., Pargro Investments Pvt
Ltd., Dr. Fixit Institute of Structural
Protection & Rehabilitation, Fevicol Co. Ltd.,
Parkem Dyes & Chemicals Pvt Ltd.
Idea Cellular Towers Infrastructure Ltd.,
Swinder Singh Satara & Co. Ltd., Idea Cellular
Towers Infrastructure Services Ltd., Idea
Cellular Services Ltd., Idea Cellular Ltd.,
Ocean Dial Investment Funds Plc, Aditya Birla
Retail Ltd., Aditya Birla Management Corp.
Pvt Ltd., Pidilite Industries Ltd., Mahindra
Holidays & Resorts India Ltd., Subex Ltd., ING
Vysya Bank Ltd.
CEAT Ltd., JB Chemicals & Pharmaceuticals
Ltd., Sasken Communication Technologies
Ltd., Procter & Gamble Hygiene & Health
Care Ltd., Gillette India Ltd., Pidilite
Industries Ltd., NSDL e-Governance
Infrastructure Ltd., SBI Capital Markets Ltd.,
Atul Ltd., Sudarshan Chemical Industries Ltd.,
IL&FS Investment Managers Ltd., Century
Enka Ltd., Jumbo World Holdings (BVI) Ltd.,
Housing Development Finance Corp. Ltd.

Ranjan Mohanlal Kapur, 72Independent
Non-Executive Director
Apurva Narendrakumar Parekh, 43Executive
Director
Yash Paul Mahajan, 77Independent Non-
Executive Director
Ajay Balvantray Parekh, 47Executive
Director
Bharat Tilakraj Puri, 53Independent Non-
Executive Director
Narendra Jamnadas Jhaveri, 79Independent
Non-Executive Director
Abbott India Ltd., EBS Worldwide Services
Pvt Ltd., Ray + Keshavan Design Associates
Pvt Ltd., Annik Technology Services Pvt Ltd.,
Elucido Media Networks Pvt Ltd., Bates India
Pvt Ltd., Tagit India Pvt Ltd., Sercon India Pvt
Ltd., Quasar Media Pvt Ltd., MIRC Electronics
Ltd., Nimbus Communications Ltd. (India),
Pidilite Industries Ltd., Rediffusion Dentsu
Young & Rubicam Pvt Ltd., Groupm Media
India Pvt Ltd., Eon Premedia Pvt Ltd.
Jupiter Chemicals LLC, Synapse Technologies,
Inc. (Virginia), Pidilite USA, Inc., Parkem Dyes
& Chemicals Pvt Ltd., Kalpaj Sales & Agencies
Pvt Ltd., Sarla Technologies Middle East LLC,
Pidilite Bamco Ltd., Pidilite Speciality
Chemicals Bangladesh (Pvt) Ltd., Pidilite
Industries Egypt SAE, Jess Trading India Pvt
Ltd., Pidilite Industries Ltd.
Pidilite Industries Ltd., Punjab Tractors Ltd.,
Swaraj Automotive Ltd.
Pidilite Industries Ltd., Ishijas Chemicals Pvt
Ltd., Vacuum Forming Co. Pvt Ltd., Vapkon
Finance & Investment Pvt Ltd., Abhajay
Trade & Commerce Pvt Ltd., Pargro
Investments Pvt Ltd., Pidilite USA, Inc., Pagel
Concrete Technologies Pvt Ltd., Pidilite
Innovation Centre Pte Ltd., Modern
Laboratories Pvt Ltd., Pidilite Industries
Trading (Shanghai) Co. Ltd.
Pidilite Industries Ltd.
Siemens Healthcare Diagnostics Ltd., ICICI
Securities & Finance, Phoenix ARC Pvt Ltd.,
Cadila Pharmaceuticals Ltd., TAIB Capital
 Corp. Ltd., Indian Merchants' Chamber,
National Securities Depository Ltd., Juniper
Hotels Pvt Ltd., Afcons Infrastructure Ltd.,
Indian Aluminium Co. Ltd., Siemens Ltd.,
Pidilite Industries Ltd., Hindalco Industries
Ltd., Edelweiss Financial Services Ltd.,
Samruddhi Cement Ltd., GVFL Ltd.

Pfizer India Ltd., Thomas Cook (India) Ltd.,

Bata India Ltd., Coromandel International
Uday Chander Khanna, 64Director
Ltd., Lafarge India Pvt Ltd., Castrol India Ltd.,
Pidilite Industries Ltd., NRB Bearings Ltd.

All Executives
 Madhukar Balvantray ParekhExecutive Chairman & Managing Director
 Narendrakumar Kalyan ParekhJoint Managing Director & Executive Director

 Sanjeev AgaIndependent Non-Executive Director
 Bansidhar Sunderlal MehtaIndependent Non-Executive Director

 Ranjan Mohanlal KapurIndependent Non-Executive Director
 Apurva Narendrakumar ParekhExecutive Director

 Yash Paul MahajanIndependent Non-Executive Director
 Ajay Balvantray ParekhExecutive Director

 Bharat Tilakraj PuriIndependent Non-Executive Director
 Narendra Jamnadas JhaveriIndependent Non-Executive Director

 Uday Chander KhannaDirector
 Savithri ParekhSecretary & Chief Compliance Officer
AVERAGE GROWTH RATES Pidilite Industries Ltd.

Past Five Years Ending 03/31/2014 (Fiscal Year)

Revenue+18.88% Net Income+12.48% Earnings Per Share+12.96%

Capital Spending+23.83% Gross Margin+31.66% Cash Flow-6.09%

Working capital
required
CURRENT ASEET-CURRENT LIABILITY

2014 2013

14371.28 12789.85
7792.04 7834.82

6579.28 4955.03

DEBT EQUITY
RATIO
LONG TERM DEBT/SHARE HOLDER FUND

2014 2013

77/20395.15=0.003:1 602/17325=0.034:1
 FINAL REPORT ON PIDILITE INDUSTRIES
LTD

NAME-VIVEK KUMAR
PGDM 11
ROLL No.DM14B54

Introduction
This is the stage in which a new product is first made available in the market. In the
introduction stage, customers are few, competition is less, sales are low, risk is high and
profits are low or nil. There are heavy distribution and promotion expenses. This stage
is full of risks and uncertainties. Prices are also high because(1) costs are high due to
low level of output.(2) technological problems in production may not have been solved,
and(3) high profit margins are required to support the heavy promotion expenditure. the
product at the introduction stage requires high activity in promotion.

Growth
If the product is popular with consumers, then sales will start to rise. It may be a rapid growth or a
slower one. Rapid growths that fall away just as quick are called 'Fads'. That process is known as
Growth.

Advertising is often still heavy at this point.

Maturity
Once the product is well established and consumers are satisfied, then the product is widely
accepted and growth slows down. Before long, however, a successful product in this phase will
come under pressure from competitors. The producer will have to start spending again in order to
defend the product's market position or introduce extension strategies.

It may only be in the Maturity stage where companies will receive a return on their original
expenditure and investment due to potentially high start up and development costs.

Decline
Sooner or later sales fall due to changes in consumer tastes or new choices available from
competitor's products.

Again, extension strategies may be open to the company to keep the product alive. The product can
be declined if there is no proper growth and the later stage which has been discussed above.

Use in Marketing
The product life cycle is an important concept in marketing. It includes stages that a product goes
through from when it was first thought of until it is eliminated from the industry, at the end of its life.
Not all products reach this final stage. Some continue to grow and others rise and fall.