Post on 15-Oct-2015
description
5/26/2018 Pidilite Ltd 7445
1/46
COMPANY REVIEW SESSION O
By,
Ganesh
TPS - 2
5/26/2018 Pidilite Ltd 7445
2/46
Pidilite Industries Limited has been a pioneer in consu
specialties chemicals in India.
Over two-third of the companys sales come from pro
segments it has pioneered in India.
Its product range includes Adhesives and Sealants, Co
and Paint Chemicals, Automotive Chemicals, Art MatIndustrial Adhesives, Industrial and Textile Resins an
Pigments and Preparations.
Pidilites main strength is their strong marketing/ adve
skills.
Fevicol is now the lar est sellin adhesives brand in A
5/26/2018 Pidilite Ltd 7445
3/46
CORPORATE OFFICE
Ramkrishna Mandir Road
Off Sir Mathuradas Vasanji Road,Andheri (East), Mumbai - 400059
Maharashtra. INDIA
REGISTERED OFFIC
Regent Chambers, 7th F
Jamnalal Bajaj Marg, 20
Nariman Point, Mumba
Maharashtra. INDIA
5/26/2018 Pidilite Ltd 7445
4/46
NATURE OF BUSINESS AND
BUSINESS SEGMENT Sector: Chemical
Industry: Adhesives and Sealants
5/26/2018 Pidilite Ltd 7445
5/46
1959- Pidilite was established as a partnership
Parekh Dyechem Industries.
FOUNDERS:
Three brothers-
B K ParekhS K Parekh
H K Parekh
HISTORY
5/26/2018 Pidilite Ltd 7445
6/46
HISTORY (CONT.) 1984-Name changed to PDI Industriesafter merge
Kondivita Industries. 1989- Merged with Pidilite IndustriesMerged nam
changed to Pidilite Industries.
1993- Went public.
1994- Apuraj Chemicals Ltd., was amalgamated withCompany.
1996- Introduction of several new products in techni
collaboration with M/s. Crown Berger Ltd., U.K.
5/26/2018 Pidilite Ltd 7445
7/46
HISTORY (CONT.) 2000- Acquired from Mahindra Engineering & Chemi
Products Ltd (MECP), subsidiary of Mahindra & Mahtheir adhesives and sealants business consisting of the
Seal and Mr. Fixit.
2005- Acquired Dubai-based company UCC, manufac
construction chemical brand.
2006-Acquisitions were made in USA to expand the c
Automotive Chemical and Art Material segments.
2007 & 2008-Expanded through acquisition in Brazil
Bangladesh respectively.
5/26/2018 Pidilite Ltd 7445
8/46
FACTS ON PIDILITE Pidilite has become the largest manufacturer of adh
Pidilitesmainstay of earnings is consumer and induadhesives and sealants.
Fevicol is companys largest brand.
Company has in total 40 brands spanning 400 indus
consumer products.
20 manufacturing plants worldwide.
60000 dealers and distributors across India.
Its headquarter is in Mumbai and employs about 3,
people.
5/26/2018 Pidilite Ltd 7445
9/46
VISION AND MISSIONVISION-To be the most Innovative Research and TecCompetence Center for Sustaining Innovation-Driven
for Pidilite Group of Companies globally.
MISSION- Invite, invest, and embrace talented people and scienti
for great challenges ahead.
Support, serve, and satisfy all valuable customers wit
innovative products and excellent technical competen
Innovate with our customers to provide total product
satisfactions and business growths.
5/26/2018 Pidilite Ltd 7445
10/46
KEY PEOPLEChairman & Managing Director
M B Parekh
Vice Chairman
S K Parekh
5/26/2018 Pidilite Ltd 7445
11/46
GLOBAL PRESENCE India
Middle East Australia
US
Brazil
Singapore Indonesia
Thailand
Bangladesh
5/26/2018 Pidilite Ltd 7445
12/46
5/26/2018 Pidilite Ltd 7445
13/46
SUBSIDIARIES OF PIDILITE Fevicol Company Ltd.
Bhimad Commercial Co Pvt Ltd.
Madhumala Traders Pvt Ltd.
Pagel Concrete Technologies Ltd.
Nitin Enterprises
Building Envelope Systems India Ltd.
Pidilite International Pte Ltd.
Pidilite Middle East Ltd. Pulvitec do Brasil Industria e
Commercio de Colas e Adesivos Ltda.
Pidilite USA Inc.
PT Pidilite Indonesia
Pidilite Speciality Che
Bangladesh Pvt Ltd.
Pidilite Innovation Cen
Pidilite Industries Egy
Pidilite Bamco Ltd.
Pidilite South East Asi
PIL Trading Egypt (LL Pidilite Industries Trad
(Shanghai) Co. Ltd.
Bamco Supply Service
Jupiter Chemicals (LL
5/26/2018 Pidilite Ltd 7445
14/46
BRANDS OF PIDILITE
1. Fevicol
2. Dr.Fixit
3. Fevikwik
4. MotoMax
5. M-Seal
6. Fevi Stick
5/26/2018 Pidilite Ltd 7445
15/46
MARKETING STRATEGY OF PIDILI
Parent Company Pidilite Industries Ltd.
Category Consumer chemicals/ Specialty chemicals
Sector Industrial Products
Tagline/ Slogan Building Bonds
USP
Market leader in adhesives, sealants, polymer e
hobby colours and construction chemicals in In
Segment Customers looking for ease-of-use and value-foproducts.
Target Group Carpenters, plumbers, housewives, constructor
Positioning
Pioneer and market leader in consumer adhesiv
specialty chemicals in India.
5/26/2018 Pidilite Ltd 7445
16/46
COMPETITORS
TATA CHEMICALS
BASF
LINDE
GUJ FLO
UPL
5/26/2018 Pidilite Ltd 7445
17/46
COMPETITORS (CONT.)
SOLAR IND
GUJ ALKALI
GULF OIL CORP
HIMADRI C
5/26/2018 Pidilite Ltd 7445
18/46
PRODUCTS
First product of Pidilite:
Fevicol
5/26/2018 Pidilite Ltd 7445
19/46
PRODUCTS (CONT.)FOR CONSUMERS & CRAFTSMENAdhesives & Sealants
Art material and stationary
Automotive
Construction ChemicalsFabric Care
Wood Finishes & Paints
5/26/2018 Pidilite Ltd 7445
20/46
PRODUCTS (CONT.)FOR INDUSRIAL PURPOSE :
Industrial Adhesives
Leather Chemicals
Textile Chemicals
Pigment Powders
Industrial Resins
5/26/2018 Pidilite Ltd 7445
21/46
SHARE PRICE INFORMATION
BSE : 500331
286.40 (-0.10%)
NSE : PIDILITIND
286.35 (-0.24%)
5/26/2018 Pidilite Ltd 7445
22/46
SHARE HOLDING PATTERN
5/26/2018 Pidilite Ltd 7445
23/46
BUSINESS OF PIDILITE
5/26/2018 Pidilite Ltd 7445
24/46
5/26/2018 Pidilite Ltd 7445
25/46
FINANCIAL STATEMENTS Current Assets and Liabilities :
5/26/2018 Pidilite Ltd 7445
26/46
FINANCIAL STATEMENTS (CON
Earning per Share (EPS):
5/26/2018 Pidilite Ltd 7445
27/46
FINANCIAL STATEMENTS (CON
Total Sales and Net Profit :
5/26/2018 Pidilite Ltd 7445
28/46
5/26/2018 Pidilite Ltd 7445
29/46
5/26/2018 Pidilite Ltd 7445
30/46
5/26/2018 Pidilite Ltd 7445
31/46
HR POLICIES
5/26/2018 Pidilite Ltd 7445
32/46
HR POLICIESPidilite cares about the overall well-being of their employees and
initiatives are taken to ensure it.
Employee welfare scheme comprises:-Various festival celebrations in company campus
-Free health check-up program
-Hobby Workshops
-Annual employee Outings, Get-together and Picnics
Facilitiesinclude:-Gymnasium
-Game zones
-Library
- Canteen
-Swimming Pool
5/26/2018 Pidilite Ltd 7445
33/46
Retirement and other employee benefits:-Contribution to Provident, Superannuation and F
Pension funds are funded as a percentage of salary/wa-Gratuity liability is funded as per group gratuity
of Life Insurance Corporation of India.
-Gratuity, leave encashment, anniversary award,
premature death pension & total disability pension areprovided for on the basis of actuarial valuation as at th
end.
5/26/2018 Pidilite Ltd 7445
34/46
NEW TECHNOLOGIES
SAP ImplementationThe Company has implemented SAP across all itdepots and Head Office effective May 2013. This will
productivity and provide accurate real time informatio
improved analysis and decision support.
5/26/2018 Pidilite Ltd 7445
35/46
PIDILITE EXPANSION PLANSPidilite Industries Ltdplans to set up a manufacturing facility i
Arabia to shore up the contribution of its sales from overseas mark
per cent.
We want to set up a plant in Saudi Arabiaas a part of our overse
expansion plans. However, it is difficult to mention a timeline as i
on the economic conditions and demand in that country, said Mr
Ghosh, President - Business Development, Fevicol Division, Pidil
Industries.
Overseas operations now account for about six-to-seven per cen
total turnover so the company is concentrating in increasing its o
revenue
LATEST NEWS ON PIDILITE
5/26/2018 Pidilite Ltd 7445
36/46
LATEST NEWS ON PIDILITE Pidilite Industries Ltd has informed BSE that there is a change in
pattern of Percept Waterproofing Services Limited (PWSL) whic
wholly owned subsidiary of Pidilite Industries Limited and with
shareholding, the holding of Pidilite Industries Limited in PWSL80% of total paid up capital of PWSL. Source :BSE
Pidilite Industries has reported a consolidated sales turnover of R
crore and a net profit of Rs 97.24 crore for the quarter ended Dec
income for the quarter was Rs 7.08 crore.
For the quarter ended Dec 2012 the consolidatedwas Rs 931.79 crore and net profit was Rs 118.99 crore, and other in
crore.
Because of higher spend on advertising and sales promotion exp
quarter our performance at an EBITDA level has been lower than
said its CFO Sandeep Batra
5/26/2018 Pidilite Ltd 7445
37/46
SWOT ANALYSISSTRENGTH1. The advertising and marketing of Pidilite has been very strong, especia
Fevicol ads have become a viral hit among the masses.2. The name Fevicol has become synonymous with adhesives and has alm
become a generic for anything that sticks. This also has helped other bran
Pidilite such as Fevistik, Fevikwik, etc. in their sales.
3. Fevicol and M-seal alone account for more than 50% of the total reven
Pidilite, which eases the pressure on the sales of other brands and busines
4. Brand recall and value are extremely strong for Pidilite and have becomstar attraction for many television commercials.
5. Fevicol ads have also won accolades and awards at major advertising a
festivals and shows.
6. Strong R&D center to cater to the growing need for innovative produc
services.
5/26/2018 Pidilite Ltd 7445
38/46
SWOT ANALYSIS (CONT.)WEAKNESS
1.Acquisition of the Cyclo brand of car care products is a weak factor as
exhibits a very fragmented market for the same with very little customer2. Revenue generation is over dependent on Fevicol and M-seal which re
reduced investments on other brands and businesses.
OPPORTUNITY1.Pidilite organizes many creative competitions for students and young s
such as the 'International Creative Contest' where approx. 800,000 stude
3000 schools participate. It also helps in promoting the brand very well.
2. The chemical industry in the world in growing very strongly and focu
emerging economies in other parts of the world such as Brazil, South Af
China, Singapore, Thailand and East Africa is a great opportunity to esta
stronghold in the international market.
5/26/2018 Pidilite Ltd 7445
39/46
SWOT ANALYSIS (CONT.)
1. The manufacturing cost of Pidilitesproducts is la
dependent on crude oil and petroleum prices which a
fluctuating by the minute.
2. Competitors are equally hard pressed on deliverin
innovative products and services.
THREAT
PEST ANALYSIS
5/26/2018 Pidilite Ltd 7445
40/46
Political Factors:-Globalization has led to shrinking the boundaries of the world.
-Political unrest in many places in the world can be harmful for profit m
-Global & Local Terrorism.
-Introduction of new trading blocs.
Economic Factors:-Challenging economic condition across the globe.
-Economic laws in various countries.
Social Factors:-Employment rate in the country.
-Awareness in Public about the products & industry.
Technological Factors:-Developments in construction, automobile industry.
-Due to improvements in communication, creating awareness has becom
PEST ANALYSIS
AWARDS OF PIDILITE
5/26/2018 Pidilite Ltd 7445
41/46
AWARDS OF PIDILITE At the Chemtech CEW Leadership and Excellence
Awards,2013, the Chemtech CEW honoured Mr. M B
(MD - Pidilite Industries Ltd.) the Business Leader oYear - Chemicals and Petrochemicals Industry.
Fevicol was awarded Gold Effie
for the Best On-Going Campaign
at Effie Awards 2012 organized
by the Advertising club.
Fevicol was ranked amongst the
Most Trusted Brands list for 5
consecutive years.
5/26/2018 Pidilite Ltd 7445
42/46
AWARDS OF PIDILITE(CONT.)
For the year 2012, Fevicol has been named Powerbrand - an in
by the Planman Group.
Fevicol was a recipient of the Zee
Business Brand Excellence Award.
A 40 feet raincoat was installed on
a building by Dr. Fixit Raincoat.
This won a Gold award for Madison
Media in the Exchange4media OutdoorAwards.
Fevicol was also ranked 3rd Most
Trusted Brand in the Household
Care Category.
5/26/2018 Pidilite Ltd 7445
43/46
CORPORATE SOCIAL RESPONSIB
300 night schools established
Over 225000 patients treated
Over 25000 cattle treated through
surgical procedures
Pension facilities for more than
400 elderly people
100000 trees planted
Over 100 small & medium-sizedprojects have been undertaken in
relation to water conservation and
watershed development
CORPORATE SOCIAL
5/26/2018 Pidilite Ltd 7445
44/46
CORPORATE SOCIAL
RESPONSIBILITY (CONT.) Pidilite supports the Indira Awaas Yojana scheme in Mahuva di
provide grant for construction of houses to members of schedul
castes/scheduled tribes, bonded labourers and those surviving b
poverty line
Arogya Fund with contributions from donors, well-heeled and w
meaning people and other organizations, helps Hanumant hospi
extend medical assistance to
needy patients free of cost
Girls school at Kelsar village
Bhavnagar is made to ensure
that girls can persue their
education
5/26/2018 Pidilite Ltd 7445
45/46
5/26/2018 Pidilite Ltd 7445
46/46