Corporate

Finance
RUAECO606
N A M E – R I YA G AWA N D E -
3332

S H R AVA N I M H A I S A L E - 3 3 3 9
INTRODUCTION
COMPARING TWO MAJOR ADHESIVE INDUSTRIES
1. PIDILITE
2. MOHAWK
 ABOUT PIDILITE
Pidilite Industries Limited (PIL) was incorporated on 28th July 1969 as a consumer and specialities chemical company. The
Company is the market leader in adhesives and sealants construction chemicals hobby colours and polymer emulsions in India.
Its brand name Fevicol has become synonymous with adhesives to millions in India and is ranked amongst the most trusted
brands in India. The company's product range includes Adhesives and Sealants construction chemicals craftsmen products
polymer emulsions paint chemicals automotive chemicals art materials and stationery fabric care maintenance chemicals
industrial adhesives industrial textile resins and organic pigments and preparations.

Pidilite was the first Company in India which started production of violet pigment in the year 1973. In 1984 the company's
consumer product division was born and in 1989 the company entered fevicryl acrylic colours and transform fabric and multi-
surface painting market. The Company made its maiden public offering of equity shares in the year 1993. During the year 1995
plants of the company in Mumbai and Vapi acquired an ISO 9001 certification.

The Company had launched Dr. Fixit range of Construction Chemicals in the year 2001 and had acquired 'Steelgrip' leading brand
of PVC insulation tape in India during the year 2002. Pidilite had again acquired the `Roff' brand of Construction Chemicals in the
year of 2004.
ABOUT MOHAWK
American flooring company Mohawk Industries is headquartered in Calhoun, Georgia. In North
America, Mohawk makes floor coverings for both commercial and residential uses, as well as for
residential use in Europe. In addition to hard flooring products like ceramic and porcelain tile, natural
stone, and hardwood flooring, laminate flooring, sheet vinyl, and luxury vinyl tile, as well as ceramic
and porcelain floor wall tiles and porcelain, natural stone, and quartz countertops, the company also
manufactures soft flooring products like broadloom carpet, carpet tiles, carpet cushions, and rugs. The
business also manufactures and distributes panels, mezzanine flooring, and insulation in Europe. The
corporation has operations in Australia, Brazil, Canada, Europe, Malaysia, Mexico, New Zealand,
Russia, and the United States, where it employs 43,000 people.
FOUNDERS OF THE COMPANY

MR. MADHUKAR PAREKH

MR. JEFFREY
LOBERBAUM
CHAIRMAN OF PIDILITE
CHAIRMAN OF MOHAWK
Profit and loss account - Pidilite
Profit and loss account - Mohawk
SUMMARY P&L
Pidilite has shown significant increase in it’s net sales and dividends in 2021-22 as compared to 2020-
21. Net sales increase by 34.1% and Profit after tax by 17.6%

Total transactions (profit +loss) increased by two folds in 2021, indicating it’s recovery beyond the
pandemic and increased sales

Whereas we see increase by 17.26% growth rate in case of Mohawk industries in the year 2021 as
compared to 2020. Both are in competition with each other in this regards.

Total transactions ( profit+ loss ) has increased for both the companies.

On a broader scale, Pidilite has shown healthy business and positive trend in all the sectors and has
shown growth in terms of profit.
Balancesheet Of Pidilite
Balancesheet Of Mohawk
Comparison Of Total Current Liabilities
Year Pidilite Mohawk (US Rupee Rate taken as
1$ = 80 ₹

2021 2,434.71 238,578.86

2020 1,614.73 192,013.06

2019 1,300.71 219,709.59

• Both the Companies are showing increase in their current Liabilities in 2021
because of slowdown due to Pandemic
• Mohawk having share capital more than Pidilite also has more Liabilites
Comparison Of Total Current Assets
Year Pidilite Mohawk (US Rupee Rate
taken as 1$ = 80 ₹

2021 3,515.37 424,194.19

2020 3,760.95 434,398.17

2019 3,582.00 358,678.13

• Both the Companies Show a slight fall in Assers in 2021 due to Pandemic
• Mohawk having share capital more than Pidilite also has more Assets.
 FUTURE PLANS PIDILITE
Pidilite plans to scale up the business with new segments that focus on growth. It will continue building the
core category--- which includes Fevicol, Fevikwik, Dr Fixit and M-Seal--- through innovation,
premiumisation and geographic expansion.

Pidilite is building 11 new factories across India at present, while scouting for opportunities overseas. It
should be a multinational of emerging markets and neighbouring countries. It has two factories in
Bangladesh. It emerged as the market leader in the last 10 years. Fevicol has a similar kind of presence
that it has in India. Now it has launched Dr. Fixit. In fact,the brand ambassador for Dr. Fixit is their cricket
captain.
• Pidilite acquired a stake of $30 million in HomeLane due to evolving market dynamics and
innovation. The company has an interest in interior design space and wants to be part of the
changing landscape due to technology.
• Tile adhesives are doing good with the category sales growing at a fast rate. The product is witnessing
higher market acceptance with consumers increasingly switching from cement to tile adhesives.
Future plans of Mohawk
Expanding capacity in growing product categories, including LVT, laminate,
quartz countertops and premium ceramic and insulation.
Recently completed a number of smaller strategic acquisitions that will enhance
current product offering and leverage our existing market positions.
In Europe, these include a sheet vinyl business, a mezzanine flooring company and
a wood veneer plant.
In the U.S. acquired a non-woven flooring producer and a flooring accessories
company.
Executing restructuring actions, lowering administrative and manufacturing costs
and reducing investments in marketing and advertising.