APO-7

Abhi Agarwal-220102001
Ankit Kumar-220102009
Ayush Kumar Singh-220101156
Gaurav Bisht-220101173
Suraj Singamsetti-220101127
Anindya Sahoo- 220102008
ABOUT COMPANY
Based in Andheri (East), Mumbai, Pidilite
Industries Limited is a manufacturer of
adhesives in India. Pidilite produces goods for a
variety of industries, including those that involve
the production of art supplies and stationery,
food and fabric care, automotive products,
adhesives and sealants, and specialty industrial
goods like adhesives, pigments, textile resins,
leather chemicals, and construction chemicals.
PRODUCT
PORTFOLIO
IS THE COMPANY BIG, OLD AND
ESTABLISHED? YES/ NO

Yes, the company is Big, Old & Established as it was

founded in the year 1959 and it is a publicly listed
company.
 1969 Pidilite was incorporated

Pidilite started as a small-scale

Early manufacturer of pigments and dyes
WHEN WAS IT Years

INCORPORATED & In the 1980s, the company launched Fevicol and it

VARIOUS BUSINESS Brand Building became a household name and positioned pidilite as a

SEASONS/ CYCLES / market leader

PHASES. In the 1990s, Pidilite diversified its business by

entering into new segments such as construction
Diversification
chemicals, art materials, and automotive chemicals.

In 2000s Pidilite adopted Inorganic growth startegy for

International
expanding internationally. Currently they are operating
Expansion
in over 90 countries
ARE THEY IN TOP 3 IN Industry Influence
The company is certainly a key player in the industry
THE INDIAN INDUSTRY? and has a strong market position in India and abroad.

IN A POSITION TO
INFLUENCE POLICY AT Political Influence

ALL LEVELS. At the local level, Pidilite work with municipal or

state-level governments on issues related to the
environment, health and safety, and other regulatory
matters

In addition, Pidilite is a member of various industry

associations, such as the Confederation of Indian Industry
(CII), the Federation of Indian Chambers of Commerce and
Industry (FICCI), and the Indian Chemical Council (ICC).
WHAT IS THIS COMPANY’S
LATEST MARKET SHARE?
(SOURCE?)

Pidilite’s current market share is around

70%.

Source: https://sawdust.online/industry-
trends/competition-may-intensify-in-
adhesivemarket/#:~:text=Pidilite%20is
%20market%20leader%20in,strong
%20distribution%20in%20kirana%20shops.
WHAT IS THE INDUSTRY’S GROWTH
PROJECTION?
• The adhesives industry in India is expected to see strong growth over the coming years; according to a report by Mordor

Intelligence, the Indian adhesives market was valued at around USD 1.3 billion in 2020 and is projected to grow at a CAGR
of around 6.5% from 2021 to 2026.
• The construction industry is a key driver of demand for adhesives in India. The government's focus on infrastructure

development and affordable housing is expected to drive demand for adhesives used in construction.
• The packaging industry is another key end-use market for adhesives in India and is expected to grow due to increasing e-

commerce and demand for packaged foods and beverages.

• The woodworking industry is also expected to drive demand for adhesives, particularly for products used in furniture

manufacturing.
• Overall, India's adhesives industry is expected to grow strongly in the coming years.
REVENUES
Total Revenue in 2020-21 was
recorded as Rs 73,721 Million.
Pidilite's adhesives and sealants segment
contributed around 54% of the company's
total revenue in FY2020-2021. The segment
includes products like Fevicol, Fevikwik, and
M-Seal, among others. (Rs 39,809 Million)
Construction chemicals: Pidilite's construction
chemicals segment contributed around 26% of
the company's total revenue in FY2020-2021.
(Rs. 19,167 Million)
Art materials: Pidilite's segment
contributed around 8% of the
company's total revenue in
FY2020-2021. (Rs 5,897 Million)
Others: The remaining revenue was
generated by other products like
industrial resins, textile chemicals, and
polymer emulsions, among others. (Rs
8,846 Million)
COST
Raw materials are the primary cost
for Pidilite. FY2020-2021 was INR
2,935.81 crores, accounting for
around 45% of the total expenses.
In FY2020-2021, the employee benefits
expense for Pidilite was INR 680.53 crores,
accounting for around 10% of the total
expenses.
In FY2020-2021, the manufacturing and other
expenses for Pidilite were INR 1,528.60
crores, accounting for around 23% of the total
expenses.
In FY2020-2021, the advertising
and sales promotion expenses for
Pidilite were INR 429.61 crores,
accounting for around 6% of the
total expenses.
In FY2020-2021, the other expenses for
Pidilite were INR 521.16 crores,
accounting for around 8% of the total
expenses.
RISK
Raw material price volatility: Pidilite Intense competition: Pidilite operates in Regulatory risks: Pidilite's
is dependent on a wide range of raw highly competitive markets and faces business operations are subject to
materials and inputs for its products, competition from both domestic and various regulations and
and the prices of these raw materials international players compliance requirements.

are subject to fluctuations in the

commodity markets

Technology and innovation risks:

Pidilite's success depends on its
ability to innovate and develop
new products that meet the
changing needs of the market
PROMOTERS & STAKEHOLDERS

No.
Promoters of shares held %
Name (As Of holding
on 31st march 2022)

Narendra
5,42,73,688 10.68%
Kumar Kalyanji Parekh

Madhukar
5,15,51,286 10.14%
Balvantray Parekh

Ajay
4,74,33,489 9.33%
Balvantray Parekh

Mrudula
4,05,25,693 7.97%
Sushilkumar Parekh

Kalpana
65,77,079 1.29%
Apurva Parekh

Mala
64,98,618 1.28%
Madhukar Parekh

Darshana
57,41,535 1.09%
Bimal Mody
PROMOTERS AND TOP MANAGEMENT RATING

• Pidilite has a strong brand image, with a significant market share in the industry.

• The company has a diverse management team with extensive knowledge and skills in their respective fields. Some of the skills
which the board of the directors possess are Sales and Marketing, Business & Senior Management, Leadership & Governance,
Legal & Regulatory Matters, Finance, Accounts & Risk Management, and Relevant Technologies.

• The company has a robust governance framework that includes a code of conduct, policies on whistleblowing, and regular audits to
ensure compliance. Pidilite has also been proactive in adopting sustainable practices, which has helped build trust with
stakeholders.

• Overall, based on these factors, we would rate Pidilite's management highly on both talent and integrity, giving them a score of 9
out of 10.
MAJOR NEWS ABOUT PIDILITE
INDUSTRY IN LAST 5 YEARS

ACQUISITION
• Pidilite acquired a 100% stake in Huntsman Advanced Materials Solutions Private Ltd. (HAMSPL) in November 2020.

HAMSPL manufactures and sells Adhesives, Sealants, and other products under well-known brands such as Araldite,
Araldite Karpenter, and Araseal in India. This acquisition complements the already strong retail portfolio of Pidilite’s
adhesive and sealants brands.
• Pidilite and Fevicol Company Ltd. (wholly owned subsidiary of the Company) 2018 jointly acquired 70% Stake in equity

shares of CIPY Poly Urethanes Pvt. Ltd (‘CIPY’) is engaged in the business of manufacturing and selling of floor coatings
using polyurethanes, epoxies, polyurea, and polyaspartic polymers. This acquisition will help to participate in the growth of
the resin flooring and floor coatings market.
TOP MANAGEMENT NEWS
• Sudhanshu Vats joins Pidilite as Deputy Managing Director Mumbai, effective September 2021.
• Sushilkumar Parekh, one of the promoters (2021), draws his wealth from a minority stake in Pidilite Industries,

India's leading maker of adhesives and sealants.

• Sandeep Batra was appointed as the new Chief Financial Officer at Pidilite Industry (June 2022)
• Kashyap Gala has joined Pidilite Industries as its new senior vice president for consumer products.
LIST OF INSTITUTIONAL INVESTORS IN PIDILITE INDUSTRY

No. of
Name % holding
Shares

Mutual
4.08% 20,747,443
funds

Axis
mutual fund trustee limited A/C, Axis mutual fund A/C, Axis long term equity 3.07% 15,630,201
fund

Foreign
11.08% 56,321,314
Portfolio Investor Category

New World
1.06% 5,378,500
Fund Inc

Financial
0.06% 290,794
Institutions / Banks

Insurance
3.75% 19,072,926
Companies

Lici Asm
3.23% 16,430,086
Non Par
 LONG TERM COMPETITIVE
ADVANTAGE OF PIDILITE
INDUSTRY
• One of the most significant competitive advantages of Pidilite is its strong brand portfolio. The company's

iconic brands such as Fevicol, FeviKwik, and M-Seal enjoy high market acceptance and are widely recognized
by consumers in India and other parts of the world.
• The company invests heavily in research and development to develop new and improved products that meet the

changing needs of consumers.

• Pidilite's robust distribution network and strong relationships with dealers and distributors have helped the

company maintain its leadership position.

 KEY POINTS IN THE LAST 2
YEARS MDA

• The Company has put in place number of measures to mitigate the impact of uncertain macro environment (high inflation
mainly due to continuing global supply chains disruptions amid the pandemic, and geo-political tensions including the Ukraine
war) through appropriate pricing and cost control measures without disrupting market share.
• One of the primary focus areas for Pidilite's management has been innovation and product development. Pidilite's MDA has
highlighted the launch of several new products in the adhesives and construction chemicals space, which have helped the
company expand its product portfolio and increase market share.
• Another area of focus for Pidilite's management has been expansion into new markets. The company has been exploring
opportunities to expand its presence in international markets, with a particular focus on Southeast Asia and the Middle East.