2. ABOUT PIDILITE
• 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.
• It’s headquarter is in Mumbai and employs about 3,991
people.
• The company recorded revenues of Rs.19,863.2 million in the
financial year ended March 2009, an increase of 16.3% over
2007. Its net profit was Rs.1,108.4 million in 09.
3. 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
Pidilite’s mainstay of earnings is consumer & industrial
adhesives and sealants (Almost
60% of turnover)
4. MAJOR BRANDS
Company has in total 40 brands spanning 400
industrial and consumer products.
FEVICOL
CYCLO
STARGENT ART
HOBBY IDEAS
Dr. FIXIT
ROFF
M-SEAL
8. Company’s revenue
consumer and bazar products
• Consumer and bazar products accounts of
77% of company revenue.
• It consists of following product segment
– Adhesive and sealents (49% of the company
revenue)
– Construction and chemicals(18% of company
revenue)
– Art materials and others(10% of revenue)
9. Company revenue
industry products
• Industrial chemical accounts for 23% of
company’s revenue.
• Consists of following sub-segment
– Industrial adhesive(7%)
– Industrial resins(8%)
– Organic pigments and preparations(6%)
10.
11. How did Fevicol become ‘ Fevicol- The
Brand’
• 65% of furniture production in India is out of
wood
• The carpenters play a vital role in deciding which
adhesive to use
• First mover advantage
• INITIAL STRATEGY
Help carpenters realize the importance of using quality
products.
• FOLLOW UP
Maintaining close contacts with its primary target audience
12. 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.
13. SWOT ANALYSIS
STRENGTHS WEAKNESSES
Strong Marketing & Dependent on
Advertising skills acquisitions for some
Innovative products products.
Focus on quality Launching of brands like
Cyclo
Large product line
Brand value
14. OPPORTUNITIES THREATS
Growing chemical Cost of products
industry in India largely dependent on
Tremendous growth crude oil prices
opportunities for Home Competitors
specific stores like-
Home Town & Home
Shop
15. competitors
Name Last Price Market Sales Net Profit Total
Cap. Turnover Assets
(Rs. cr.)
Tata
308.85 7,868.15 6,332.43 408.49 7,716.62
Chemicals
Pidilite Ind 141.00 7,157.85 2,380.64 303.89 1,426.26
United Phos 127.00 5,864.91 2,934.30 157.50 4,698.24
Guj
356.05 3,911.21 1,063.81 263.63 2,330.52
Flourochem
BOC India 270.00 2,302.67 992.13 93.63 1,584.22
16. Current Position
• The company achieved 21.8% growth in net sales
• Due to steady domestic demand and pickup in exports in
the second half of the year, sales growth was higher than
the last few years.
• During the year a provision of rupees 250million diminution
in value of investment in pidilite middle east ltd.
• Earning before interest tax, exceptional items and foreign
exchange difference increased by 22.7% profit before tax
and exception items increase by 28.5% and profit after tax
increase by 5.1%
• Company sales have grown at CAGR of 17.85% over the last
5 years
17. FUTURE PROSPECTS
Pidilite Industries near-term prospects looks to be stable.
The company is focusing on the branded products business, through
augmenting brands via acquisitions and relaunching and
repositioning its existing brand in order to retain its market share.
The company has identified fabric care segment as its focus area.
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.
18. QUESTION 1
• Does Fevicol qualify as a brand bigger than the
company? What might be the implications of
this? What are the possible solutions?
19. Fevicol Bigger than the Pidilite
1. Oldest brand.
2. High brand recall
3. Popular among consumer and carpenter.
4. Enjoy higher confidence as a brand
5. Propelled by imaginative ad. Campaigns.
20. Implications
1. Marketing strategy for other brands become
centric to the successful brand.
2. Customer loyalty towards the brand
3. Benefit the company in the long run
4. Company shares (+)ve equity
5. Brand image often become greater than the
company image.
21. Suggestions
• People are not aware of pidilite products
rather than Fevicol.
• Promotions are needed for all the products in
pidilite, therefore it is recommended for
company should either give demonstration or
conduct promotion campaign at sites.
• Price and quality are the main criteria when
launching the new product into the market
comparatively major brands in emulsions.
22. Question 2
• Should the brand Fevicol be extended? If yes,
then when, where, and how should this be
done?
23. • Yes , Fevicol can be extended.
• Place: Canada
• When?
Right now
• How?
Direct export
Acquisition
• Target?
Industry segment
