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Pidilite Industries (Pidilite) is a chemical company engaged in the development, manufacture and marketing of chemicals various adhesives and sealing materials. The company's products include adhesives and sealants, construction and paint chemicals, automotive chemicals, art materials, industrial adhesives etc. The company operates in India, Middle East, Australia, US, Brazil, Singapore and Indonesia.
COMPANY PROFILE
Pidilite - established as a partnership firm Parekh Dyechem Industries in 1959 Started by three brothers -Mr. B K Parekh, SK Parekh and H K Parekh Name changed to PDI Industries after merger with Kondivita Industries in 1984 Merged with Pidilite Industries in 1989 Merged name changed to Pidilite Industries Launched Fevicol Brand in 1959 Pidilites mainstay of earnings is consumer & industrial adhesives and sealants
MAJOR BRANDS
Company has in total 40 brands spanning 400 industrial and consumer products.
FEVICOL CYCLO STARGENT ART Dr. FIXIT M-SEAL etc
PRODUCTS
CONSUMER AND CRAFTSMEN INDUSTRIAL SPECIALITY
INDUSTRIAL SPECIALITY Industrial Adhesives Textiles Chemicals Organic Pigment Powders Industrial Resins Leather Chemicals
FOLLOW UP
Maintaining close contacts with its primary target audience
MARKETING STRATEGIES
Focus on quality Building strong bonds with the industrial users. Connecting with consumers through ads. Innovative products To summarize, consistent quality, widespread distribution networks, and excellent customer relationships have been the key success factors for the company.
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
Pidilite seems to have strong R&D capabilities when it comes to adhesives and home construction/care. But for the rest, they seem to depend on acquisitions. Pidilite has grown its net profit at only 21% CAGR in the past 10 years.
OPPORTUNITIES
Growing chemical industry in India Tremendous growth opportunities for Home specific stores like- Home Town & Home Shop
THREATS
Cost of products largely dependent on crude oil prices Competitors 51% of their revenues are from adhesives/sealants and the raw material for this is petrochemicals which in turn is dependant on crude oil prices.
Current Position
The Company achieved 18.9% growth in net sales Due to the slowing down of Indian economy and weak economic conditions in US & Europe, sales growth in the second half of the year was lower than that recorded in the first half. Growth was impacted, largely in the Speciality Industrial Chemical segment, where the growth was 9.5% as compared to 24.4% in the previous year
The Consumer and Bazaar Segment grew by 22.8%, in line with past trends Earnings before interest, taxes, exceptional items and foreign exchange differences, increased by 8.10%, profit before tax (PBT) increased by 11.8% and profit after tax (PAT) increased by 10%. The Companys sales have grown at a CAGR of 18.2% over the last five years.
FUTURE PROSPECTS
Pidilite Industries near-term prospects looks to be stable. The company is focusing on the branded products business, through relaunching and repositioning its existing brand in order to retain its market share. Pidilite is planning to hive of its chemical business, which is going to put a greater emphasis and focus of the management towards the branded products business. With the current focus on brands and its strong distribution network, the company operations are likely to show healthy profitability in the coming days.
QUESTION 1
Does Fevicol qualify as a brand bigger than the company? What might be the implications of this? What are the possible solutions?
Implications
1. Promotion strategies are concentrated around FEVICOL 2. Over exploitation of the prefix Fevi 3. Ignorant towards other brands 4. Market reputation
Suggestions
Promotion of other products of Pidilite New range for fevi products stationery specific Fifth P packaging Fevicol star product User friendly CONSUMER AWARENESS CAMPAIGN
Question 2
Should the brand Fevicol be extended? If yes, then when, where, and how should this be done?
Yes , Fevicol can be extended. When? Right now How? Direct export Acquisition Target? Industry segment
PRESENTED TO:
ANOOP R OHRI
PRESENTED BY:
RAJAT SHARMA NAVDEEP THAKUR SHIFALI KANIKA JAIN GEETIKA PRABHAKAR ABHISHEK GOSWAMI