This report analysis Pakistan and its adhesive industry through 12C analysis to calculate BERI Score/Index for possible expansion of Pidilite in Pakistan, a neighbouring country. It takes in account all direct and indirect influences and factors and provides a verdict as per my understanding.

1. COUNTRY ANALYSIS FOR THE COMPANY: PIDILITE INDUSTRIES
INTRODUCTION
Pidilite is a consumer centric company committed to quality and innovation. For decades, we
have been pioneering products for small to large applications, at home and industry, which
have forged strong bonds with people from all walks of life.
From adhesives, sealants, waterproofing solutions and construction chemicals to arts & crafts,
industrial resins, polymers and more, our product portfolio is as diverse as it is ever-evolving.
Today, our brands are trusted household and industrial names, and we are the market leader
in adhesives.
Global presence:
Pidilite has a strong global presence. It considers itself to be an Indian Multinational. It is
present in over 71 countries and exports more than 5000 SKUs annually. It has presence in all
neighboring countries except Pakistan. Thus, I have used 12C framework to analyse the
opportunity to expanding the business into Pakistan. There is no clear data available on the
reason behind it not expanding into Pakistan earlier.
COUNTRIES TO ENTER
1. CAMBODIA
2. RUSSIA
3. PAKISTAN
4. SOUTH AFRICA
5. AUSTRALIA
Out of these 5 countries, Pakistan outweighs the other 4 countries because:
Ø Its geographical location makes it easily accessible
Ø Steady growth of 5-6% is expected.
Ø Being a developing nation, it has constant consumption of infrastructure

2. Ø There are no prominent market players in Pakistan in adhesive industry. Thus, The
market can be easily penetrated.
“12 C” FRAMEWORK FOR PAKISTAN
1. CULTURE
The culture of Pakistan is quite similar to India. The major change in lifestyle occurs due
to followed religion practice, which impacts the usage of products, celebrated festivals
and seasons of consumption. In all other factors, The culture of pakistan can be said to be
similar to India as pakistan earlier was a part of undivided India. From the products
perspective, similar product is easily accessible in the markets.
2. COUNTRY
Ø Geographical:
Pakistan is located on the western side of India. It also shares a large border with
India. Geographically being located in Southern Asia, the weather and climate
conditions are quite similar to Northern India. Thus, The product chemistry is
also adaptable and accessible.The total are of pakistan is 796,095 km². Which is
1/4th of land mass of India. Further, pakistan shares a vast oceanic border which
makes it accessible internationally for trade.
Ø Political:
From the political stability point of view, Pakistan does not hold a very stable
govt. But recently elected Imran Khan is expected to lead the country for a long
time. The policies of the new Imran khan govt are in favour of growth and
capitalistic developments. Further, The pakistan govt. has recently extended a
friendly hand to India and requested a constructive engagement. Both the
governments are expected increase economic engagements. The fiscal deficit of
Pakistan is worry at hand. The country is notoriously famous all over the world
for being host to multiple terrorist houses and supporting terrorism. Which is a
serious matter of concern.
Ø Economical:
Pakistan is expected to grow at 5-6% annually. In the previous decades, it has
grown at a steady rate of 2-3%. But this year’s growth projection by economic
today is above 5.79% which presents an attractive opportunity to enter this
market.
3. CURRENCY
Pakistani rupee is the standard currency. The current exchange rate is about 1.71
pakistani rupee per 1 INR.

3. 4. CONSUMPTION:
Pakistan lacks developmental infrastructure and is in the transition stage of development.
That is, Pakistan is currently a developing economy and thus, with continuous rising
income levels and purchasing power, there is constant need of better infrastructure and
more consumption of related facilities. Thus, it provides a very attractive opportunity of
an adhesive brand to enter.
5. CONCENTRATION (OF MARKETS)
Pakistan has 8 cities with more than a million people, 59 cities with between 100,000 and
1 million people, and 284 cities with between 10,000 and 100,000people. The largest city
in Pakistan is Karachi, with a population of 11,624,219 people.
The capital of Pakistan Islamabad. The population of pakistan is about 20 Cr. Population
density thus is about 251 people per square kilometer. The current per capita income is
about USD 5,580.
6. COMMITMENT
Pakistan govt requires a business licence and further licence for R&D,
Marketing(Communication) and Manufacturing. Further, It also demands certificates for
consumption and public usage.
The corporate tax rate in Pakistan is 31% of the Net profit. Further on adhesive products
it has 15% import duty.
Source- http://www.commerce.gov.pk/
7. COMMUNICATION
In terms of communication, Pakistan is major consumer of television. General practices
by the companies is to penetrate through television commercials. Whereas other channels
of communications are also present and growing. Compared to India, the telecom
industry in pakistan is still growing and thus, internet and network connectivity is found
to be a major issue in many areas.
The regulations on various media publishing is also quite restrictive.
8. CHOICES
The existing adhesives landscape in Pakistan is growing and there is no major player
with dominant market share. Apart from SGS industry which controls about 32% of
chemicals and adhesives market, there are regional players with hardly 1-2% market
share. The consumer and the buyer of adhesives products are different. Thus, the choices
here often depend on industry partnership for B2B products and for B2C products it
depends on influencing the right users. (eg. carpenters, masons, plumbers, etc)
9. CHANNELS OF DISTRIBUTION

4. The prominent way of transportation in Pakistan is through rail and road. The
transportation infrastructure is developing rapidly. Keeping in mind the required infra for
Pidilite products, the transport options are well suitable.
Major purchase in the Pakistan markets happen through retail (above 67%), thus, retail
presence plays a crucial role. Though there has been a constant rise in ecommerce (5%),
hypermarkets and supermarkets (12%).
10. CONTRACTUAL OBLIGATIONS
The law & the legal system of Pakistan is very similar to of India. Both have made
amendments to British legal system as suited. While the country is encouraging foreign
investment, the regulatory framework of Pakistan is highly corrupted and in-transparent.
11. CAVEATS
Ø Corrupted practices and systems
Ø Low legal support and enforcement
Ø Terrorism related activities
12. CAPACITY TO PAY
As explained earlier, with constant growth in the economy and betterment in credit &
regulatory framework, there is increasing capacity to pay among Pakistani consumers.
The current per capita income is about USD 5580 expected to grow at 5% CAGR.
BERI INDEX SCORE
Market Attractiveness Weightage Country Score
(0 to 4)
Total
Market Size 20% 3 0.6
Market Growth 12% 4 0.48
Risk of Investment-Political 7% 0 0.0
Risk of Investment-
Economical
11% 3 0.22
Risk of Investment- Social 4% 1 0.04
Risk of Investment-
Technological
3% 1 0.06
Risk of Investment- Legal 10% 0 0
Risk of Investment-
Environmental
6% 1 0.06
Psychic Distance 8% 4 0.32
Average Industry Margin 5% 3 0.15
Competitive Conditions 6% 4 0.24
Infrastructure 8% 4 0.32
Total 100% 1.95
BERI Index Score for Pakistan is 1.95. Pidilite can consider entering in Pakistan in future with
more political and environmental stability. For now it should focus on other countries.

5. REFERENCES:
https://www.sgsgroup.pk/en/chemical/finished-product-services/industrial-
chemicals/paints-adhesives-and-resins
https://companylist.org/Pakistan/Keywords/adhesive/
https://www.businessbook.pk/category/adhesives-glues-and-sealants-23
https://www.coatingsworld.com/issues/2016-11-01/view_features/adhesives-and-
sealants-market-
https://www.marketsandmarkets.com/Market-Reports/adhesive-sealants-
market-421.html
https://www.mordorintelligence.com/industry-reports/global-adhesives-sealants-
market-industry
https://smeda.org/index.php?option=com_phocadownload&view=category&dow
nload=1412:plastics-products-2015-
2016&id=168:Trade%20Analysis%20Series&Itemid=996
https://www.prnewswire.com/news-releases/global-adhesives-markets-2016-
2018--2024-competitive-scenario--key-players---profiles-of-264-companies-
300667600.html