The chemical industry in India is one of the earliest domestic industries, contributing around 7% to India's GDP. It has witnessed growth of 13-14% in the last 5 years and is in the growth phase of its industry lifecycle. The Indian chemicals market size is estimated at $110 billion for fiscal year 2015, growing at over 10-13% annually. Key growth drivers include the huge growth potential in the developing domestic market, rising GDP and purchasing power, low-cost manufacturing, and policies supporting 100% FDI. Critical success factors for players in the industry include developing the Indian market, leveraging the cost advantage for production and exports, capturing growth in associated chemical-dependent sectors, and ensuring reliable feedstock supply.

1. STM Assignment Workbook
INDUSTRY: CHEMICALS
Organization:Pidilite
Under
Faculty: Prof. Brajaraj Mohanty
Presented by:
Section B Group: 2
UM15082: Imtiaz Zafar
UM15094: Pankaj Gandotra
UM15100: RaunakAvlani
UM15102: Rajat Agarwal
UM15109: Sekhar Suman Mohanty

2. Contents
1 Executive Summary.................................................................................................................................................4
2 Industry Overview....................................................................................................................................................5
2.1 Nature and Size of the Industry..............................................................................................................5
2.2 Key Growth drivers for the Industry......................................................................................................6
2.3 Identification of Critical Success Factors (CSF)................................................................................6
2.4 Market Analysis based on CSFs...............................................................................................................7
2.5 Industry Benchmarks....................................................................................................................................8
2.6 PESTEL Analysis.............................................................................................................................................12
2.7 Porter’s Five Forces Analysis...................................................................................................................15
2.8 Strategic Group Mapping........................................................................................................................17
2.9 Competitive Landscape.............................................................................................................................18
2.9.1 Low Cost................................................................................................................................................18
2.9.2 New entrants must develop world-class capabilities...............................................19
2.9.3 Incumbents must reappraise their opportunities and adapt...............................20
2.9.4 Riding the new market-growth waves...............................................................................21
2.10 Market Segmentation................................................................................................................................22
2.11 Buying Criteria Analysis of the Industry............................................................................................23
2.12 Key trends and future developments.................................................................................................24
3 Company Overview...............................................................................................................................................25
3.1 Company background...............................................................................................................................25
PIDILITE......................................................................................................................................................................25
3.2 Timeline with key milestones and their strategic impact.........................................................26
3.3 Vision, Mission, Goals, and Strategic Themes................................................................................29
3.4 Key Product and Service Portfolio.......................................................................................................30
3.5 Core Competencies of the firm.............................................................................................................30
3.6 Business Model of the organization...................................................................................................31
3.7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and
Activity System Map)................................................................................................................................................32

3. 3.8 SWOT Analysis...............................................................................................................................................33
3.9 Competitor Analysis (identify competitors)....................................................................................35
3.9.1 Based on Critical Success factors................................................................................................35
3.9.2 Based on Financial indicators.......................................................................................................36
Future Growth Strategy for the organization....................................................................................................39
4.1Portfolio Analysis..................................................................................................................................................39
4.1.1Based on BCG Matrix..................................................................................................................................39
4.2 Company’s Strategic Roadmap for future.......................................................................................39
5. Reference

4. 1 Executive Summary
The chemical industry in India is one of the earliest domestic industries, contributing
considerably to both the industrial as well as economic growth of the country since it
achieved independence. With around 70,000 commercial products, which range from
toiletries and cosmetics, to plastics and pesticides Chemical sector contributes around 7% of
Indian GDP today. The chemical sector has witnessed growth of 13-14% in the last 5 years.
Indian Government has recognized Chemical Industries as a key sector and allowed 100%
FDI.
With a growing market and purchasing power, the domestic industry is likely to growth at
over 10-13% in the coming years. Growing disposable incomes and increasing urbanization
are fuelling the end consumption demand for paints, textiles, adhesives and construction,
which, in turn, leads to substantial growth opportunity for chemicals companies
The Indian chemicals industry has a diversified manufacturing base that produces world-class
products. There is a substantial presence of downstream industries in all segments. Further,
this large and expanding domestic chemicals market also boasts of a large pool of highly-
trained scientific manpower. Chemicals constitute ~5.4% of India’s total exports. India
already has a strong presence in the export market in the sub-segments of dyes,
pharmaceuticals and agro chemicals. India exports dyes to Germany, the UK, the US,
Switzerland, Spain, Turkey, Singapore and Japan.
Indian chemical industry is rapidly growing industry and is estimated at $110 billion for fiscal
year 2015. Specialty chemicals have observed a high growth rate in the past and have grown
at 11.5% per annum since fiscal year 2007 when the market size was $13.5 billion. Here in
this report we have presented our findings based on the findings we have derived using a
number of strategic tools.
Pidilite Industries (Pidilite) is engaged in the development, manufacture and sale of
chemicals, adhesives and sealing materials. The company's products include adhesives and
sealants, art material and stationary, construction chemicals, automotive products, fabric care
products, and wood finishes and paints. Pidilite operates in Asia Pacific, the Middle East, the
US, Brazil, South Africa and Europe. It is headquartered in Mumbai, India, and employs
around 4,904 people.
The company recorded revenues of INR48,441 million (approximately $793.9 million) in the
fiscal year ended March 2015, an increase of 13.1% over 2014. The company's operating
profit was NR6,984.8 million (approximately $114.5 million) in fiscal 2015, an increase of 10%
over 2014. Its net profit was INR5,125.7 million (approximately $84 million) in fiscal 2015, an
increase of 14% over 2014.
The company’s industrial products segment includes organic pigments, industrial resins and
industrial adhesives. These products cater to industries such as packaging, textiles, paints,
printing inks, paper, and leather.
Pidilite’s others segment comprises manufacture and sale of speciality acetates.
The company's brands include Fevicol, Dr.Fixit, FeviKwick, m-seal, FeviStik, hobby ideas,
Rangeela, Fine Art, Prime, Holdtite, Cheetah glue, Kids Art, Fevi Gum, Ranipal, Fevibond,

5. Terminator, Steelgrip, Wudfin, Piditint, and Pulvitec, among others.
2 Industry Overview
2.1 Nature and Size of the Industry
Guidelines  Brief Description of the industry segment or sub segment
 History and Evolution of the Industry
 Position of Industry depending on Industry Life Cycle (Introduction,
Growth, maturity, decline)
 Size (% of National GDP) of the industry
History and Evolution of the
industry
The chemical industry in India is one of the earliest domestic
industries, contributing considerably to both the industrial as
well as economic growth of the country since it achieved
independence. With around 70,000 commercial products,
which range from toiletries and cosmetics, to plastics and
pesticides Chemical sector contributes around 7% of Indian
GDP today.The chemical sector has witnessed growth of 13-
14% in the last 5 years. Indian Government has recognized
Chemical Industries as a key sector and allowed 100% FDI.
Key Consumers of this
industry and their changing
needs
Chemicals are a part of every aspect of human life, right from
the food we eat to the clothes we wear to the cars we drive.
Chemical industry contributes significantly to improving the
quality of life through breakthrough innovations enabling pure
drinking water, faster medical treatment, stronger homes and
greener fuels. The chemical industry is critical for the economic
development of any country, providing products and enabling
technical solutions in virtually all sectors of the economy.
Stage in the Industry Life
cycle
There are Five stages in Industry lifecycle namely Development
Phase, Introduction Phase, Growth Phase, Maturity Phase and
Decline Phase. The Indian chemical industry has earned a
revenues in the range of $155-160 billion in 2013 and is
expected to grow at a rate of 11-12% in the next two to three
years according to Frost & Sullivan, a business consulting
group. This industry has also seen a CAGR of 13-14% which
indicates that this industry is in Growth phase of Industry

6. Lifecycle.
Total Available Market Size
(National and Global)
Indian chemical industry is rapidly growing industry and is
estimated at $110 billion for fiscal year 2013. Specialty
chemicals have observed a high growth rate in the past and
have grown at 11.5% per annum since fiscal year 2007 when
the market size was $13.5 billion.
Global chemical market size was estimated at $3.7 trillion in
fiscal year 2012 and is expected to grow at 4-5% per annum
over the next decade to reach $5.8 trillion by 2021.
Total ServiceableMarket
Size (National and Global)
National: 11 US Billion Dollar
Global: 5.12 Trillion US dollar
Source: Annual Reports of Top 5 Companies in Chemical Sector.
2.2 Key Growth drivers for the Industry
Key Growth drivers Rationale
1.Huge growth potential in
domestic market
2.Rise in GDP and
Purchasing power
3.Low cost manufacturing
4.Policies supporting FDI
100% FDI has been granted by Indian Government in Chemical
sector. This boosts the confidence of foreign investor to carry
out their business in India. Easy availability of factor of
production is one of the key reason why it is always preferable
to set up industry in our country. Also industries enjoy low
operating and manufacturing cost here.
2.3 Identification of Critical Success Factors (CSF)
Critical Success Factor
identified
Rationale
CSF 1 : Developing market
in India
The developing market of India is taking a lot of steps to make
India better place for industry friendly by allowing FDI.
CSF 2: Cost advantage by
investing in production for
export and in R&D
Low Unit cost of production and export friendly policies in
India help investors to set up industries in India.
CSF 3: Growth in associated
(chemical dependent)
Dependence on agriculture, pharmaceutical, plastic, polymer
and cosmetics is contributing to the critical success factors for

7. sector the chemicals industry
CSF 4: Availability of
reliable and competitive
feedstock supply
Availability of abundant raw materials across the countries
helps industries run smoothly.
2.4 Market Analysis based on CSFs
Region
CSF 1: Developing
market
CSF 2: Cost
advantage by
investing in
production for
export and in R&D
CSF 3: Growth in
associated sector
CSF 4:
Availability of
reliable and
competitive
feedstock
supply
India
The main feedstock
for the chemical
industries are
natural gas for
fertilizers, coal for
power and naphtha
for petrochemicals.
More than half of
production of
natural gas is done
by ONGC and OIL3.
ONGC has
significant presence
in western region of
India and several
sites of OIL is
present in Assam (
i.e. North east
India). The main
naphtha
manufacturing
centres are India RIL
(Baroda), HPL
(Haldia) and IOC
Cracker (Panipat)
and these sites are
spread out all
Research and
development
opportunities in
India are limited
but it is expected
to grow above the
rate of 2% thereby
bridging the
competitive gap
with China and
other countries to
a certain extent.
India has a vast
pool of scientists
which can be
leveraged to set
up R&D centres in
India. Major
specialty chemical
companies
including BASF,
DuPont, DSM and
Dow Chemical
have already set
up R&D or
technology centres
in India.5
Indian
manufacturers have
been developing
market access quite
strongly with
increased
understanding of
regional needs and
more focus on
brand development.
Consumption of
major chemicals has
also witnessed 6%
CAGR between
2009 and 20131
.Bulk
chemicals form the
largest sub-
segment of Indian
chemical industry
with 40% market
share whereas
specialty chemicals
with ~19% market
share is the fastest
growing segment.
Moreover India has
a very strong
outlook for the key
Speciality
chemicals
have gained
great
importance in
the local
market. The
domestic
market is
achieving
critical
economies of
scale. Product
sophistication
is forcing an
equivalent
chemical
usage. The
local
production
has been
positively
influenced by
these trends.

8. across the nation. end user industries
Note: Use data for the year 2013-14
2.5 Industry Benchmarks
Size of industry: 11 US Billion Dollar
Category Indicator
Industry Average of Top 5 Firms or
players serving 75-80% of the
market
Market Leader
2011-
12
2012-
13
2013-
14
2014-
15 (till
Q3)
2011
-12
2012
-13
2013
-14
2014-
15 (till
Q3)
Industry
Level
(National)
Market Size
4976.41 5533.17 5728.
73
4963.
04
7987
.28
8529
.87
8725
.26
8689.6
4
Size as % of
GDP
.035 0.04960
7
0.05086
8
0.04173
2
.041 .044 .041 .070 .076 .077 .073
Activity
Ratios
Inventory
turnover
13.058 11.734 11.08 NA 6.38 9.2 10.7
2
5.71
Receivables
turnover
8.138 7.628 6.756 NA 7.64 5.22 4.84 NA
Payables
turnover
NA
Asset
turnover
1.158 1.13 1.056 NA 0.8 0.79 0.8 1.15
Liquidity
Ratios
Current
ratio
1.99 1.736 1.744 NA 1.21 1.53 2.02 1.78
Quick ratio 1.404 1.176 1.142 NA 0.83 1.25 1.68 1.2
Cash ratio NA NA
Debt-to-
assets ratio
.341 .326 .368 NA .332 .326 .368 .308
Debt-to-
capital ratio
NA NA

9. Category Indicator
Industry Average of Top 5 Firms or
players serving 75-80% of the
market
Market Leader
2011-
12
2012-
13
2013-
14
2014-
15 (till
Q3)
2011
-12
2012
-13
2013
-14
2014-
15 (till
Q3)
Solvency
Ratios
Debt-to-
equity ratio
1.546 2.503 1.586
6
1.987 0.49 0.46 0.53 .44
Interest
coverage
ratio
10.50 15.41 19.38 20.33 5.00
6
5.14
8
5.00
6
6.6
Profitability
Ratios
Gross profit
margin
10.01 9.354 8.726 8.89 9.99 9.75 8.85 8.39
Operating
profit
margin
12.265 11.778 11.02 11.68 12.8 12.2
6
10.6
7
10.30
Net profit
margin
6.42 6.47 4.69 5.63 7.06 7.23 4.9 6.32
Return on
assets
(ROA)
.0700 .06587 .0699
7
.067
0.07
2835
0.07
4845
0.10
4629
0.0973
23
Return on
equity
(ROE)
15.992 16.17 7.156 8.69 12.1
2
12.5
6
7.94 10.55
Valuation
Ratios or
Price Ratios
Price to
Earnings
(P/E)
18.69 18.43 19.61 17.25 15.0
1
12.7
7
16.7
6
17.8
PEG Ratio =
(P/E Ratio) /
Projected
Annual
Growth in
Earnings
per Share
NA NA NA NA NA NA NA NA
Price to
Cash Flow
-14.032 -7.024 -2.952 -3.68 -
46.9
1
-
12.8
1
-39 -25.3
Price to
Book (P/B)
2.58 2.76 3.052 3.001 1.78 1.55 1.29 1.48
Price to
Sales
1.37 1.41 1.48 1.25 1.1 .979 .84 .88
Dividend
Yield
1.79 2.322 1.614 2.63 2.89 3.1 3.49 3.6

10. Category Indicator
Industry Average of Top 5 Firms or
players serving 75-80% of the
market
Market Leader
2011-
12
2012-
13
2013-
14
2014-
15 (till
Q3)
2011
-12
2012
-13
2013
-14
2014-
15 (till
Q3)
Dividend
Pay-out
Ratio
29.656 30.446 28.03 29.63 43.4
3
39.6 58.4
2
49.31
Enterprise
value (EV is
market
capitalisatio
n plus debt
minus
cash)/
EBITDA
10.84 11.22 12.77
6
13.45 8.47 7.68 8.47 8.55
Competitiv
e Ratios
Staff
Turnover or
Industry
Attrition
Rate
NA NA NA NA NA NA NA NA
Staff Cost/
Salary as
percentage
of Sales
0.05184
3
0.05262
3
0.051
266
.0058
7
0.02
8598
0.03
0823
0.02
917
.02854
Operating
Expenses as
percentage
of Sales
0.2068 0.20205 0.209
5
.2156 0.21
04
0.22
47
0.20
82
.2092
Depreciatio
n as
percentage
of Sales
0.026 0.025 0.029 .0035 0.03
2
0.03
4
0.03
2
.0033
Fixed Assets
to Sales
Revenue
0.428 0.405 0.407 .458 0.50
50
0.51
5
0.52
0
.522
Advertising
as
percentage
of Sales
.51 .61 .75 .78 1.7 2.2 2.7 2.45
In case you come across other benchmark ratios used in particular Industry, then please
include them as well.

11. Source: http://www.gurufocus.com/, http://www.moneycontrol.com/

12. 2.6 PESTEL Analysis
Category Description Key factors for
analysis
Rationale
Political Chemical sector is
greatly influenced
by the political
forces. There is a
change in policies
every time the
government
changes. The
business decisions
are steered to a
great extent based
on the individual
preferences of the
new leadership.
 100 per cent FDI is
permissible
 government has
been encouraging
R&D in the sector
 Setting up of
PCPIRs
The cumulative FDI for the
period April 2000–February
2014 stood at USD9.5
billion Procedures relating
to FDI have been simplified;
and most of the items in the
chemicals sector fall under
the automatic approval
route for FDI/NRI/OCB
investment up to 100 per
cent The government is
continuously reducing the
list of reserved chemical
items for production in the
small-scale sector, thereby
facilitating greater
investment in technology
up-gradation and
modernisation.Policies have
been initiated to set up
integrated Petroleum,
Chemicals and
Petrochemicals Investment
Regions (PCPIR).
Economic The economic
boom in India
particularly in the
last one decade
has played a
significant role in
charting the
success of the
company. Lot of
Industrialization
has been brought
about, which has
always been a
catalyst for
sectorial sprinting
growth
 Increase in GDP
growth Rate
 Increase in
Global player
 Liberal economic
policies
 Ease of doing
business in the
country
Chemical industry
contributes 5 per cent of
nationalGDP. It is 3rd
largest chemical industry in
Asia, preceded by China
and Japan. 10.1 per cent of
Overall Industrial Index
Production (IIP).
13 per cent of total exports
and 8 per cent of total
imports.20 per cent
contribution to national tax
Revenue. Strong growth
outlook for the Indian
chemicals industry which
grew at a CAGR of 13.7%.
Increasing investments by
foreign players in India

13. through mergers &
acquisition and joint
ventures
Social In India the whole
country and its
people are poised
for a giant leap
towards economic
growth and
prosperity. People
have realized how
important it is for
the economy to
develop for their
own betterment.
Levels of
awareness have
gone up
drastically and
people are much
more open to
industrial growth.
 Growth in
dependant sectors
 Huge growth
potential for the
domestic market
 Low-cost
manufacturing
A large population,
dependence on agriculture,
and strong export demand
are the key growth drivers
for the chemicals industry
Polymers and
agrochemicals industries in
India present immense
growth opportunities
Per-capita consumption of
chemicals in India is lower
relative to Western peers
and there exists a large
latent demand
Technological Chemical Sector in
India is to a great
degree driven by
technological
developments and
innovations and
has its earnest
efforts directed
towards improving
its technological
prowess to meet
the changing
requirements of a
growing economy.
 Introduction of
Green Chemistry
 R&D for new
production
methodology for
pesticides
 Partnership with
foreign institution
for symbiotic
development
A new methodology for
creating product or service
in a way to reduce waste
and hazardous substance is
now in practice which is
termed as Green chemistry.
Indian institutions like CIPET
and CSIR are now making
partnership with global
institutions for sustainable
development. R&D is
developing constantly in
chemical sector. We have
successfully tested the pilot
project of a new production
technique in Odisha.
Environmental Providing safe and
healthy working
 Possibility of
environmental
Majority of by-products
from the chemical industries

14. environment to all
its stakeholders is
one of the most
important aspects
of chemical
industries. The
depleting water
and energy
resources are a
cause of concern
for all. Yet with
advancements the
authority trying to
check the
environment
degradation.
damage
 Waste
Management and
clean
development
mechanism
 Introduction of
carcinogenic and
related diseases
 Location of the
production unit
are responsible for
environmental degradation,
damaging air, water, soil.
Ultimately human race is
the sufferer of the entire
phenomena. Chemical
industries are. Few chemical
industries contribute to the
reason for carcinogenic and
pulmonary diseases. Not to
mention, the country has
not yet forget the Bhopal
Gas Tragedy. Yet, now
adopting technology for
waste management and
clean development in order
to reduce environment
damage. Location of the
production unit is also a
major concern when the
authority fails to control the
hazardous by-products.
Legal These days no
company wants to
be unethical in its
activities and be
on the wrong side
of the law books,
as the media in
India is very active
and the smallest
of irregularities
noticed and
reported by them
can ruin the image
of the company
hugely.
 High regulation in
chemical sector
 Increase in legal
expenditure
 Comprehensive
Legal instruments
for process safety
 Speedy resolution
in IPR issues in the
legal system
The company has to adhere
to the scores of legal rules
and regulations, the acts,
particularly the Companies
Act 1956, The Factories Act,
the Environmental
Protection Act, and Sale of
Goods Act etc. There exists
a high regulation in Indian
chemical sector. Process
safety has been a priority
for all the production unit.
This was taken much
seriously after Bhopal gas
tragedy. Here in India we
have speedy resolution of
IPR issues which favours the
process of industrialisation.

15. 2.7 Porter’s Five Forces Analysis
Porter’s Five
Forces
Description Key factors for analysis Rationale
Buyer Power Here we ask
how easy it is
for buyers to
drive prices
down. If one
deal with few,
powerful
buyers, then
they are often
able to dictate
terms to it.
 multiple sources
of supply
 long-term
contracts
 pricing power
Customers have multiple
sources of supply. Chemical
companies are bound by
long-term contracts. Niche
specialty chemicals have
some pricing power
Supplier Power Here we assess
how easy it is
for suppliers to
drive up prices.
The fewer the
supplier
choices one
has, and the
more one need
suppliers' help,
the more
powerful one’s
suppliers are.
 Dependencies on
supplies from
larger plants
 Not easily
substituted
Small chemical companies
rely on supplies from larger
plants, or petrochemical units
Inputs for a chemical plant
cannot be easily substituted
Existing
Competition
What is
important here
is the number
and capability
of competitors.
If one has
many
competitors,
and it offer
equally
attractive
products and
services, then
it will most
likely have
 Total No of firms
(Listed as well as
Unlisted):111
 No of large
firms:17
 Highly
fragmented
industries
 Stiff competition
from foreign
competitors
 low price
sensitivity
Chemical sector is highly
fragmented with intense
rivalry amongst companies.
Since, 100 per cent FDI is
allow hence domestic
companies face stiff
competition from foreign
competitors as well.
International companies may
also dump chemicals at low
price

16. little power in
the situation.
Threat to new
entrants
Power is also
affected by the
ability of
people to
enter our
market. If it
costs little in
time or money
to enter
market and
compete
effectively, if
there are few
economies of
scale in place,
or if there
exists little
protection for
key
technologies,
then new
competitors
can quickly
enter our
market and
weaken our
position.
 Entry/ Exit
barriers and costs
 Huge capital
requirements
 Other barriers
Here exists Entry/ Exit
barriers and costs. Huge
capital requirements and
patent protection are
significant barriers. Other
barriers include - R&D and
personnel requirements
Threat to
substitutes
This is affected
by the ability
of customers
to find a
different way
of doing what
you do. If
substitution is
easy and
substitution is
viable, then
this weakens
the power.
 Specific chemical
requirements
 No direct
substitutes
Buyers tend to have specific
chemical requirements .There
are no direct substitutes for a
specific chemical
requirement.

17. Effect of
Complementors
2.8 Strategic Group Mapping
We have taken the first 10 listed companies out of the 94 companies in chemical sector to
construct strategic map. We have taken production category breadth in horizontal axis and
extent of market presence in the vertical axis to plot the companies in a 2 dimensional graph.
The size of the bubble represents the relative market share of the particular industry in the
segment.
Here is the detail representation.
Company Name NetSales Product category breadth Market Presence(Scale of1 to 5)
Tata Chemicals 8689.64 10 5
UPL 4968.27 1 5
BASF 4429.89 5 4
PidiliteInd 3878.24 5 3
IndiaGlycols 2885 3 3
AartiInd 2632.78 7 2
PhillipsCarbon 2277.46 2 3
Guj HeavyChem 2224.21 2 1
Guj Alkali 1896.06 1 1
Linde India 1428.46 3 1
Inference from the Strategic Map:
[CELLRANGE][CELLRANGE]
[CELLRANGE]
[CELLRANGE][CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE][CELLRANGE][CELLRANGE]
0
1
2
3
4
5
6
-2 0 2 4 6 8 10 12
MarketPresence
Product Category Breadth
Tata Chemicals
UPL
BASF
Pidilite Ind
India Glycols
Aarti Ind
Phillips Carbon
Guj Heavy Chem
Guj Alkali
Linde India

18. 1. Guju Heavy Chem, Guj Alkali and Linde India are having lower breadth and relatively
lower market segment. Hence they can be clubbed together in one competition
segment.
2. Similarly Philips carbon, India glycol, Pidilite, BASF and AratiInd can be considered
into another competition segment.
3. UPL is having high market presence and low product category breadth. No other
industry has the same composition and hence is enjoying absolutely no competition
in its place.
4. Tata chemical being the market leader is having both high product category breadth
and market share. Similar to UPL it is enjoying absolutely no competition in the
market.
2.9 Competitive Landscape
 Value propositions ( Low Cost, Differentiation, Niche)
With significant cash reserves on hand, many global chemical companies are developing or
launching new products and services – and appear optimistic about increasing revenue in
the short term. A major shift in the competitive landscape of the worldwide chemical
industry is under way as new players from oil- and gas-producing countries and the high-
growth developing markets of China and India join the industry’s top ranks in sales. The
new players focus on resource monetization and economic development, in contrast to the
classic shareholder value-creating goals that have historically informedthe strategies of top
players.Not only are these newcomers playing by different rules, but they are also better
placed to benefit from two of the key dynamics driving the industry’s future: control of
advantaged feedstock in a high-oil-price world, and privilegedaccess to the most attractive
consumer-growth markets. If the newcomers want to establish themselves as industry
leaders in the coming decades and fully realize the industry’s wealth-creating and society-
supporting potential, they must evolve rapidly. They should move beyond simply
monetizing their cost- and market-advantaged positions to build capabilities that will put
them on more equal footing with incumbents when it comes to management, innovation,
and marketing performance. At the same time, to assure continuing success in this new
landscape, incumbents must reconsider their position in the industry and adapt their
strategies and priorities accordingly. Newcomers and incumbents that can take these steps
will be well positioned to ride the global chemical industry’s continuing profitable growth
trajectory.
2.9.1 Low Cost
Coming out of the financial crisis and economic slowdown of the past two years, the global
chemical industry is seeing major changes. The first relates to energy-price dynamics. The
chemical industry is confronting unprecedented hydrocarbon price volatility. In addition,
energy prices are significantly higher than they have been for the past two decades—and
they are higher than they were coming out of previous recessions. While there is little
progress on climate-change regulation, which could add carbon tax–related costs for

19. chemical companies in certain regions, the industry is nevertheless seeing increasingly
pronounced divergences in gas and electric power prices among regions. Overall, the
degrees of cost advantage and disadvantage among regions have increased.
Second, the economic downturn has highlighted the accelerating shift in the growth of
global chemical demand from developed economies to the developing world.
The industry’s leading incumbents have operated for the past two decades with similar goals:
striving to increase shareholder value based on their technology portfolio and asset base,
and making opportunistic excursions from traditional home markets to tap emerging-market
growth.
In contrast, for governments and their production subsidiaries from hydrocarbons-rich
countries, chemical manufacturing represents an opportunity to monetize advantaged
feedstock resources and build industries that will provide jobs for their rapidly expanding
populations—even if it will have a detrimental effect on industry structure and profitability.
For leading companies based in fast-growing major emerging markets, chemical production
is seen as a necessity to provide the products needed for continued economic expansion.
Lower labor costs in these countries translate into competitive capital-investment and
operating costs for these companies, many of which are owned by the state or by families
that have close ties to the government. These companies can establish production to capture
local market growth, and they are little concerned about any resulting global supply-demand
imbalances for the chemicals in question.
Importantly, both groups of newcomers include many government-backed companies. As a
result, these companies can invest on a scale that is much greater than even the largest
traditional chemical-industry players.
These changes have been building for years, but their importance is hard to overstate. In
summary, incumbents that have ridden growth in developed and developing markets are
now undercut by powerful new rivals with access to cheap feed stocks and the most
attractive growth markets.
The new competitive dynamics pose important questions for both newcomers and
incumbents about the steps they must take to assure their continued success. For the
newcomers, the choices are arguably more straightforward than for the incumbents, which
have large legacy businesses to reposition.
2.9.2 New entrants must develop world-class capabilities
For new producers—whether based in feedstock-rich countries or high-growth emerging-
market countries with low labor costs—market entry has been built on production, taking
advantage of their lower cost base to establish a presence based on price in their export
markets. This is a logical approach and a natural entry point. But it tends to result in the
commoditization of the market and a strict focus on the lowest price, and it therefore risks
destroying a lot of the value that exists in the market for the new entrants as well as for
existing players.
There have been numerous examples of competition from new low-cost producers that has
reduced prices well below the level that would assure them a foothold in developed markets,

20. in products as varied as polyethylene terephthalate and fluorochemicals. Similarly, Chinese
specialty-chemical products are often sold in developed markets in North America and
Europe on a specification basis through third parties, which means that the Chinese
producers are cut off from customers and have limited insights into market dynamics.
As new players build their presence in the industry, they must develop capabilities to sustain
their growth and look more ambitiously at the kind of profile they want to create. As a first
step, they must establish their own R&D and innovation capabilities, which will enable them
to offer differentiated products and make them less dependent on incumbents for
technology.
Second, new producers must start to build marketing capabilities that will enable them to
move beyond selling simply on low price and reap the full economic benefits from their
products. They must develop expertise in approaches such as differentiated marketing,
transactional pricing and value pricing, and sales-force management. This is a need shared
by all new producers, whether they are manufacturing for export or meeting surging demand
in home markets.
Developing these capabilities will help new producers get better returns from their current
product range and avoid leaving money on the table from selling at unnecessarily low prices.
Doing so will become even more pressing as new producers expand their portfolios to
include more sophisticated and higher-value-added products, from which they will want to
extract maximum value.
Becoming worldwide suppliers will require new producers to establish marketing and sales
capabilities in developed markets that are sophisticated enough to support this type of
product. Many of these products will require a completely different type of sales approach—
one that is capable of dealing with product-approval registrations, gaining intimacy with
customers’ product-development programs, and getting products specified for these
programs.
2.9.3 Incumbents must reappraise their opportunities and adapt
Chemical industries will have to take steps to adapt to lower overall demand-growth rates
for chemicals in their home markets. Clearly, there are segments of the industry in mature,
developed markets that continue to enjoy good prospects and that are relatively safe in the
new competitive landscape. These divide into two main areas, upmarket and down-market,
where there will be niches that are relatively impregnable.
The first area is chemical-industry segments in markets that require customer intimacy and a
high level of service support. Examples include flavours-and-fragrances companies that have
developed superior customer insights and exclusive manufacturing know-how to support
customer demands; coating companies that manage the painting of automobiles within the
production line; leather chemicals, where the producer works closely with luxury-goods
makers; and water-treatment and construction chemicals. In all these cases, customer
intimacy makes them less vulnerable to inroads from low-cost offshore competitors. The
second area is a group of basic chemicals where the low prices mean that importation is not
viable; this includes such products as sulphuric acid, hydrogen peroxide, industrial gases,
and, to an extent, caustic soda. These are, and will continue to be, regional markets.

21. Where incumbents must look especially carefully is at the many market segments between
the two poles. In many of these segments, lower demand growth is likely to translate into the
consolidation of players in certain sectors and capacity closures.
Companies must bear in mind that as the industry landscape shifts, the relative attractiveness
of products will change, with some more vulnerable to the trends in the industry than others.
They must look at their portfolios accordingly. Established markets are becoming net
importers of a growing range of chemicals, as new feedstock-advantaged producers can
profitably serve these markets. While imports frequently lead to lower prices and reduced
margins in the short term, this is not always the case in the long run, particularly if
incumbents are willing to shut part of their capacity. Imports are rarely able to cover all
domestic demand volumes, and for the surviving incumbents that can manufacture
domestically at belowthe cost of imports, this evolution can be positive if it results in a more
clearly structured and disciplined market with pricing based on import-price parity.
2.9.4 Riding the new market-growth waves
The chemical companies must look beyond their home markets and consider how they can
ride the dynamics that are transforming the industry—the rise of chemical production in
feedstock-advantaged countries and the shift in demand growth to emerging markets.
Incumbents must ask themselves how they can join up with the new players, whether by
establishing a presence in a resource-rich country or by building capacity in China and other
high-growth markets—or by doing both.
They must then consider what they can do to enhance and maintain their attractiveness as a
partner. Many incumbents operate broad portfolios of businesses; these companies must
think about how they can clarify and best articulate the value proposition that they bring to
their potential partners. High on any list will be innovation—creating new technologies and
products—which has always been a route to profitable growth in the chemical industry and
remains an area of strength for incumbent chemical companies. Companies that have
technology that is needed by oil-producing countries to use in their new petrochemical
plants will be best placed in any contest to participate in joint ventures. And companies with
know-how that is much in demand in rapidly growing emerging markets will be of greater
interest to those countries’ governments; they are thus better placed to gain access to such
markets.
The number of exceptionally resource-advantaged countries is finite, and major emerging
markets such as India and China may pursue a policy of favouring domestic champions.
Incumbents should use any momentum gained from recovery in their traditional businesses
to advance their positions in the new industry landscape.

22.  Competitive Strength Assessment (Normal and Weighted)
Tata
Chemicals UPL India Glycol Pidilite BASF
Measures/Strength
Weig
ht
Ratin
g
Scor
e
Ratin
g
Scor
e
Ratin
g
Scor
e
Rati
ng
Sco
re
Rati
ng
Sco
re
Product
performance 0.15 8 1.2 8 1.2 6 0.9 7
1.0
5 8 1.2
Brand Image 0.1 9 0.9 8 0.8 8 0.8 5 0.5 6 0.6
Manufacturing
capability 0.1 7 0.7 7 0.7 6 0.6 6 0.6 7 0.7
Technological skills 0.1 7 0.7 8 0.8 7 0.7 7 0.7 7 0.7
Distribution
channel 0.1 8 0.8 7 0.7 5 0.5 8 0.8 5 0.5
Newproduct
innovation 0.1 6 0.6 5 0.5 6 0.6 6 0.6 7 0.7
Financial resources 0.2 8 1.6 7 1.4 6 1.2 7 1.4 8 1.6
Relative cost
position 0.1 7 0.7 6 0.6 5 0.5 8 0.8 6 0.6
Customerservice
capability 0.05 8 0.4 6.5
0.32
5 8 0.4 7
0.3
5 7
0.3
5
Sumof weights 1
Overall strength
rating 7.6
7.02
5 6.2 6.8
6.9
5
RatingScale:1 = veryweak;5 = average;10
= verystrong
2.10 Market Segmentation
Key Products and/or Services Sub-Segment
Pharmaceuticals Prescription and over-the-counter drugs; in-vitro and
other diagnostic substances, vaccines; serums, plasmas
and other biological products; and vitamins and other
pharmaceutical preparations for both human and
veterinary use.
Basic chemicals/Commodity
Chemicals
Inorganic chemicals, bulk petrochemicals, organic
chemical intermediates, plastic resins, synthetic rubber,
man-made fibers, dyes and pigments, printing inks,

23. Specialty chemicals Paint, adhesives, electronic chemicals, water
management chemicals, oilfield chemicals, flavours &
fragrances, rubber processing additives, paper
additives, industrial cleaners, and fine chemicals.
Agricultural chemicals Fertilizers and crop protection chemicals, i.e., pesticides
Consumer products Soap, detergents, bleaches, laundry aids, toothpaste
and other oral hygiene products, shampoos and other
hair care products, skin care products, cosmetics,
deodorants and other body care products, and perfume
and cologne, among others
2.11 Buying Criteria Analysis of the Industry
Parameter Details End-user Segments Significance
Attached (Low,
Medium, High)
Consumption Pattern It describes the
consumption pattern
of consumers.
Consumption pattern
depends upon
proximity,
demographic and
behaviour of the user
Individual
Customers
SMEs
Corporate
High
Low
Low
Credit Policy
It describes the
purchase policy of
customer. In case of
B2B sales this is a
consideration for a
number of
companies.
Business User
Retailers
High
Low
Quality It describes the
quality of the product
and service provided
by the vendor to the
end user.
Everyone Medium
 Impact of buying criteria on consumer choices
 Listing of key buying criteria for different consumer segments

24. The impact of the buying criteria is graded on the basis of the intensity and duration of
their impact on the current market landscape. The magnitude of the impact has been
categorized as describedbelow:
 Low - Negligibleor no impact on the market landscape
 Medium - Medium-level impact on the market
 High - Very high impact with radical influence on the growth of the market
2.12 Key trends and future developments
Key Trend Impact on Industry (Low,
Medium, High)
Certainty of Impact (Low
probability, medium
probability, high probability)
Competitive Price High High
Product line extension High Medium
Diversification High High
 Analysis of Trends with High Impact and High Certainty to be carried out
 Impact on strategies or business models to be highlighted

25. 3 Company Overview
3.1 Company background
PIDILITE
Pidilite Industries Limited is the largest adhesive manufacturer in India. It also has
worldwide presence in adhesives, art material, construction chemicals and other industrial
chemicals. The company was founded in 1959Pidilite Industries was incorporated in 1969 is a
well-known name in adhesives market. Pidilite 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. Fevicol, the premier brand of the company ranked among
the Top 15 Indian brands by FE Brandwagon Year Book 1997. The Company's product range
includes Adhesives and Sealants, Construction and Paint Chemicals, Automotive Chemicals,
Art Materials, Industrial Adhesives, Industrial and 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
on 1989 entered into fevicryl acrylic colours 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. Also the plant at Mahad received an ISO 9002 certification in the same year. In
1999, Pidilite had acquired 'Ranipal', leading brand of optical whitener and subsequently
acquired 'M-Seal', leading brand of epoxy compounds in the year of 2000. In the identical
year of 2000 itself, Fevicol campaign won the Silver ABBY for the Campaign of the Century in
India. 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. A wholly-owned subsidiary in Singapore, under the banner 'Pidilite International Pte
Ltd was incorporated by the company in the year 2005 for its international operations,
encompassing the acquisition of overseas companies and joint ventures. Also in the same
year 2005, Pidilite had acquired Chemson Asia Pte Ltd, an existing Singapore-based in the
business of manufacturing waterproof coating and emulsion paints, thereby adding to its
existing, and rapidly-growing construction chemicals and paints range and the company had

26. took over Jupiter Chemicals in Dubai. During the identical year of 2005, the company had
incorporated a subsidiary, namely 'Pidilite Do BrasilDesenvolvimento De Negocios Ltd', in
Sao Paulo, Brazil and 'Pidilite Middle East Limited', as an offshore company in the Jebel Ali
Free Zone of Dubai. During the year 2006, Pidilite had acquired Tristar Colman brand and
business, Tristar Fine Art, is a market leader in brushes for drawing and painting and Bamco
Thailand, a Construction Chemical company. Also Pidilite had acquired the business and
assets of Sargent Art Inc through a subsidiary Pidilite USA Inc, Delaware. The Company had
established its R&D centre in Singapore under the banner 'Pidilite Innovation Centre Pte Ltd.'
Pidilite had de-merged VAM manufacturing unit at Mahad of Vinyl Chemicals (India) Ltd into
the company with effect from 2007. During 2007-08, Fevicol 1K PUR and FevicolKwikgrab
were introduced by the company to take care of special applications in building construction
segment. Pidilite with its wholly-owned subsidiaries had acquired assets and business of
branded sealants and adhesives from Hardcastle&Waud Manufacturing Co. Ltd and
associates. The Company had acquired Bhimad Commercial Co. and Madhumala Traders by
investing Rs 170,000 each in February of the year 2008. Fevicol has been ranked No. 1 in
Household Care Segment in June 2008.
3.2 Timeline with key milestones and their strategic impact
Year
Pidilite
1959 Founded in 1959

27. 1969 The Company was incorported as a private limited company on 28th July under the
name of Parekh Dychem Industries Pvt. Ltd., to acquire and take over on a going
concern the business carried on by a partnership firm M/s. Parekh Dychem Industries
established in 1961 and having a factory in Mumbai. The Company was promoted by
BalvantrayKalyanji Parekh along with his brothers. The brand names, are being
Fevicol, Fevibond, Fevigum, Pidifix, Pidivyl, Pidicryl, Acrolise, etc.
- The Company undertook to set up synthetic resin project with a capacity resin
project with a capacity of 3000 TPA at Mahad
Industrial area in Raigad district, Maharashtra. Also undertook to set up a
constructions chemicals project at Taloja industrial area,
Taloja, Maharashtra.
1984 Three other companies in the same group viz., Kodivita Pvt. Ltd., erstwhile Pidilite
Industries Ltd., and Triveni Chemicals Ltd. were amalgamated with the Company
effective 1st July, 1st April 1989 and 1st April 1992 respectively.
- Effective 1st July, Kondivita Pvt. Ltd. amalgamatedwith the Company after
necessary approvals. The shareholders of erstwhile
Kondivita Pvt. Ltd., were allotted 41,000-15% preference share of Rs 10 each and
19,500 shares of Rs 10 each.
- 54,000 I and II Pref. - 4% shares allotted to promoters. 26,000 No. of equity shares
allotted to promoters originally: 26,000 Rights
Shares issued in prop. 1:1 in 1980, 52,000 bonus shares issued in prop. 1:1 in 1981.
1985 I & II Pref. 4% shares redeemed. 12% redeemable shares upgraded to 15%. 19,500
No. of equity shares and 41,000-15% Pref. shares allottee to Kondivita Pvt. Ltd. on
amalgamation. 54,000-15% Pref. shares allotted to promoters & in lieu of 1st and 2nd
4% Pref. shares.
1986 The Name of the Company was changed to PDI chemicals private limited on 1st July,
and then to PDI chemicals limited, on 28th October, 1988. Name was once again
changed to Pidilite Industries Ltd., on 21st February, 1990.
1989 Effective 1st April, Pidilite Industries Ltd. was amalgamatedwith the Company. As per
the scheme of amalgamation, 1,93,500 No. of equity shares of Rs 10 each and 72,000-
15% preference shares of Rs 10 each were allotted to the shareholders of erstwhile
Pidilite Industrial Ltd.
1992 As per the Scheme of Amalgamation approved by High Court of Mumbai, Triveni
Chemicals Ltd., (TCL) was merged with the Company effected 1st April. Accordingly
90588 No. of equity shares of Rs 10 each and 40,000-15% preference shares of Rs 10
each were allotted to the erstwhile shareholders of TCL. 38,49,034 shares allotted in
prop. 72:10 to promoters on 29.1.93.
1993 15,36,378 shares issued at a premium of Rs 100 per share in October. Of which
1,50,000 shares issued on preferential allotment basis to Viny Chemicals India Ltd.
(only 1,35,000 shares taken up). Balance 13, 86, 378 shares along with 1,50,000 shares
not taken up were issued to the public (all were taken up).
1994 The projects for SBR Latices, AZO Pigments and CarbazoleDioxiene Violet Pigments
were commissioned.
- Apuraj Chemicals Ltd., was amalgamated with the Company. As per the scheme of
amalgamation, 66,000 No. of equity shares of Rs 10 each were allotted to the
shareholders of erstwhile Apuraj Chemicals Ltd.

28. - Vapkon Finance & Industries Ltd., Fevicil Adhesives & Chemicals Ltd. and Pidifin
Finance and Investment Ltd., are subsidiaries of the Company.
- 60,000 No. of Equity shares of Rs. 10 each to be issued and allotted to equity
shareholders of the erstwhile Apuraj Chemicals
Ltd. pursuant to the scheme of amagalamtion.
1995 Expansion project at Taloja was commissionedwith an overall plant capacity of 2400
TPA of construction chemical.
- The Company's technical collaboration agreement with Schomburg& Co., KG.
Germany for transfer of technical process know-how and specifications of the plant
etc., was extended till 8th September.
1996 The first phase of grass root plant for manufacture of synthetic resins of various types
was commissioned in March at Mahad with a capacity of 7800 TPA. In the second
phase, a loop process plant for continuous emulsion polymerisation was to be
commissioned.
- Introduction of several new products in technical collaboration with M/s. Crown
Berger Ltd., U.K.
- The Company allotted 61,17,200 No. of equity shares of Rs 10 each as bonus shares
in the ratio of 1:1. 3,800 shares were kept in
abeyance due to dispute relating to the title of the same.
1997
1997
600 bonus shares allotted from Bonus Share Issue Suspence Account.
- The company has set up three wind mills of 230 kv each at Village Pransla near
Dhank In Gujarat.
- The Pedilite Industries Limited, manufacturer of the popular Fevicol brand of
adhesives, is actively scouting around for buyers
For its chemical and specially resins business. The company has been in talks with
several international players in a bid to either sell
Off the business or enter into a joint venture.
1998 Triveni Chemicals, another group company was also merged with PIL in 1992. PIL's
consumer products division was set up in 1984.
- The Board of Directors gave their approvals for the amalgamation of PGP
Engineering works Ltd and Pidilite Finance Ltd. with the company itself effective 1-4-
99. Also, Nebula Chemicals Ltd. manufacturers of certain grades of adhesives, was to
be amalgamated with the company subject to necessary approvals.
- 2,800 bonus shares kept in abeyance allotted.
1999 Pidilite Industries is re-engineering itself into a pure brand-oriented marketing
company and is hiving of its manufacturing
facilities into a joint venture with a strategic partner.
2000 The Company has acquired from Mahindra Engineering & Chemical Products Ltd
(MECP), subsidiary of Mahindra & Mahindra Ltd, their adhesives and sealants business
consisting of the brand M-Seal and Mr. Fixit along with goodwill of MECP's adhesives
and sealants business.
2001 Pidilite Industries Ltd has posted 5.76% lower net profit at Rs.12.76cr for the second
quarter as compared to Rs.13.54cr in the
same period last year.

29. 2002 Income Tax Department has issued a notice to Pidilite Industries Ltd, for an additional
income tax liability of Rs.16cr.
-Pidilite Industries has taken over an insulation tape brand called Steel Grip, for Rs.8cr
from Bhor Industries.
-Pidilite Industries is expanding its presence in Fabric care, car care and stationery
segments as part of its strategy to broadbase
itsprodut portfolio.
2003 Pidilite Industries has tied up with ChotaJadugar, the 3D movie distributed by
Srinagar films to help its new launch AcronRangeelaColours
-Pidilite unveils new liquid pipe sealant
-Pidilite unveils Fevicol Marine
2005 Pidilite enters into snack market with 'Chikkers'
-Pidilite Industries has acquired Dubai-based company UCC, manufacturer of
construction chemical brand Probuild for an undisclosed amount.
-Company has splits its Face value of Shares from Rs 10 to Re 1
2006 Pidilite Industries Ltd has informed that the Board of Directors of the Company at its
meeting held on October 17, 2006 has noted the resignation of Shri Amit Roy,
Director and Whole time director with effect from December 31, 2006.
-Pidilite Industries Ltd has informed that the Board of Directors of the Company at its
meeting held on December 02, 2006, Shri. V S Vasan has been appointed as an
Additional Director and also as Whole Time Director of the Company with effect from
December 02, 2006.
2007 Pidilite Industries Ltd has appointed Mr.MandarM.Tambe as the Company Secretary,
Compliance Officer under Clause 47(a) of the Listing Agreement and Compliance
Officer under SEBI (Prohibition of Insider Trading) Regulations, 1992 in place of
Mr.P.C.Patel, who was holding the said position till 30/11/2007.
2008 Pidilite Industries Ltd has appointed Shri. Bharat Puri as an Additional Director of the
Company with effect from May 28, 2008.
2009 Pidilite Industries Ltd has informed that Shri. Debu Bhattacharya has been appointed
as an Additional Director of the Company with effect from February 26, 2009.
2010 Pidilite Industries has given the Bonus in the Ratio of 1:1
2011 -Ms. Savithri Parekh has been appointed as the Company Secretary and Compliance
Officer.
PidiliteInds - Appointment of Foreign Currency Convertible Bonds (Share Allotment).
-Shri Sanjeev Aga has been appointed as an Additional Director of the Company.
2012 Pidilite Industries Ltd has entered into a Joint Venture Agreement with Hybrid
Coatings for manufacture of construction chemicals and to establish a JointVenture
Company in India for this purpose.
-Pidilite Industries Ltd has the name of the Registrar & Share Transfer Agent (RTA) of
the Company has been changed from TSR
3.3 Vision, Mission, Goals, and Strategic Themes

30. Pidilite
Vision
To Be The Most Innovative Research and Technical Competence Center for Sustaining
“Innovation-Driven” Growths for Pidilite Group of Companies globally.
Mission
Invite, invest, and embrace talented people and scientists for great challenges ahead
Support, serve, and satisfy all valuable customers with our innovative products and excellent
technical competency
Innovate with our customers to provide total product satisfactions and business growths
Goals
Be a business leader by promoting innovation and achieving Global Standards.
Delight customers by offering quality products and services.
Instill a 'Can Do' attitude, nurture team spirit, learn continuously and achieve a high level of
employee satisfaction.
Adopt ethical, safe and environment-friendly practices.
Strategic themes
To enable industrial product like Fevicol to carve out its niche as a consumer brand. To focus
on future outlook of the company to retain its dominating position in the Indian market in
light of increasing competition from multinationals and the unorganized sector.
3.4 Key Product and Service Portfolio
Pidilite: The product portfolio of Pidilite is:
 Adhesive and Sealants
 Construction and Paint chemicals
 Art materials and others
 Industrial resins
 Industrial Adhesives
 Organic pigment and preparations
3.5 Core Competencies of the firm
Pidilite: Pidilite Industries, one of the biggest companies in the adhesives industry, has stuck
to its core competency of manufacturing various kinds of adhesives used across different
industries. With a portfolio of brands including Fevicol, Dr Fixit, M-seal and Fevistik, the

31. company has been able to carve out a market share of close to 45% in the adhesives and
sealant market.
3.6 Business Model of the organization
Key Partners:
1. Vendors
2. Inventory
intelligence
agency
3. Distributor
s
4. Retailors
5. Customers
(MSMEs
and
Standalone
)
Key Activities:
1. Vendor
Base
developm
ent
2. Customer
Base
developm
ent
3. Market
based
developm
ent
4. Quality
check
5. Marketing
(Digital
and Social
Media)
Value
Propositions:
1. Single
stop
point
or
portal
for all
MRO
needs.
2. Qualit
y
checke
d
produ
cts
which
helps
mainta
in
contin
uity of
service
or
manuf
acturin
g
proces
s.
3. Less
hassle
acquiri
ng
items,
less
paper
work,
cost
Customer
Relationships:
1. Face- to-
face
interactio
n
2. Customer
complaint
redressal
team
3. Online
Customer
Segments:
1. MSMEs
a. Manufa
cturing
b. Ancillary
2. Standalone
customers
Key Resources:
1. Sales
Team
2. Warehous
e or store
3. Vendors
4. Website
5. Variety of
products
offered
6. Procurem
ent team
Channels:
1. Website
2. Sales
Team
3. Suppliers
4. Retailers
5. Distributo
rs

32. Cost Structure:
1. Web hosting costs
2. Marketing and sales costs
3. Quality check costs
4. Vendor development costs
5. Administrative costs
6. Delivery Costs
7. Warehousing cost
8. R&D Cost
Revenue Streams:
1. Offline sales(Mainly bulk)
2. Online sales (Bulk and single)
3. Personalised product sales
3.7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation
BSC and Activity System Map)
Aspects GOAL MEASURE Target
Key
Stakeholder
Perspective
Expand Sales
by 50%
Increase in IMC Spending 50%
Increase in Customization Level 20%
No of new market Penetration per year 5
Customer
Perspective
Retain
Customer
Increase in Annual After Sales Expenses 10%
Increase in Amount for Discount and
Promotion 10%
Build to Order Implement
Learning and
Growth
Product
Enhancement
Flexible Manufacturing System
Implement
Increase in R&D Spending 20%
Increase in Market Research Spending 20%
Internal
Perspective
Improve
Margin and
Cash Flow
Increase in Cost Cutting 20%
Increase in Resource utilisation 20%
decrease in Employee Attrition rate
5%

33. 3.8 SWOT Analysis

34. SWOT Analysis:Pidilite
Strength 1. The advertising and marketing of Pidilite has been very strong, especially
the Fevicol ads have become a viral hit among the masses.
2. The name Fevicol has become synonymous with adhesives and has almost
become a generic for anything that sticks. This also has helped other brands
of Pidilite such as Fevistik, Fevikwik, etc. in their sales.
3. Fevicol and M-seal alone account for more than 50% of the total revenue
of Pidilite, which eases the pressure on the sales of other brands and
businesses.
4. Brand recall and value are extremely strong for Pidilite and have become
the star attraction for many television commercials.
5. Fevicol ads have also won accolades and awards at major advertising
award festivals and shows.
6. Strong R&D center to cater to the growing need for innovative products
and services.
Weakness 1.Acquisition of the Cyclo brand of car care products is a weak factor as India
exhibits a very fragmented market for the same with very little customer
loyalty.
2. Revenue generation is over dependent on Fevicol and M-seal which results
in reduced investments on other brands and businesses.
Opportunity 1.Pidilite organizes many creative competitions for students and young
scholars, such as the 'International Creative Contest' where approx. 800,000
students from 3000 schools participate.It also helps in promoting the brand
very well.
2. The chemical industry in the world in growing very strongly and focus on
emerging economies in other parts of the world such as Brazil, South Africa,
China, Singapore, Thailand and East Africa is a great opportunity to establish
stronghold in the international market.
Threats 1. The manufacturing cost of Pidilite’s products is largely dependent on crude
oil and petroleum prices which are fluctuating by the minute.
2. Competitors are equally hard pressed on delivering innovative products
and services.

35. 3.9 Competitor Analysis (identify competitors)
3.9.1 Based on Critical Success factors
1. Developing market in India
Pidilite
Analysis
Net sales of the Company grew by 13.5%. Sales of Consumer & Bazaar products grew by
15% while growth in Industrial Products was slower at 6.6%. Margins were impacted in the
first half of the year due to the steep increase in prices of key inputs like VAM. Selective price
increases were taken during the year and with input prices softening in the second half,
margins in the fourth quarter were higher than the rest of the year. Due to the slowdown in
the sales growth, the Company undertook several cost conservation initiatives so as to limit
the increase in costs. Consequently “EBIDTA” (earnings beforeinterest, taxes, depreciation,
exceptional items and foreign exchange differences) excluding non-operating income grew
by 12.5%

36. 2. Cost advantage by investing in production for export and in R&D
Pidilite
1. Specific areas in which R&D is carried out by the Company
R&D activities are continued for development of new products, improvement of existing
products in the category of Adhesives, Art Materials, and Construction Chemicals for water
proofing, flooring and surface coating solutions, Synthetic Resins, Sealants, Pigments and
Pigment Dispersions, Intermediates, Surfactants, Coatings, Fabric Care Products,
Maintenance Chemicals, Emulsions Polymers etc.
2. Benefits derived as a result of the above R&D
Increase in sales due to product improvements and introduction of new products, reduction
in cost due to formulation, optimisation, process improvements and cycle time reduction.
3. Future Plan of Action
Future R&D efforts will continue along present lines.
4. Expenditure on R&D (in million)
Year ended 31st March 2014 Year ended 31st March
2013
I) Capital 28.82 9.44
ii) Recurring 199.95 164.17
Total 228.77 173.61
iii) Total R&D Expenditure as a Percentage of total turnover 0.56 0.49
3.9.2 Based on Financial indicators
STANDALONE Dec'15 Sep'15 Jun'15 Mar'15
Net Sales 1,169.93 1,158.61 1,298.36 962.44
Other Income 8.22 11.98 9.41 7.80

37. PBDIT 286.80 280.56 327.84 139.25
Net Profit 185.70 182.76 219.54 77.22
Balance Sheet
Mar'15
(In Rs Cr)
Total Share Capital 51.27
Net Worth 2,349.45
Total Debt 5.78
Net Block 827.84
Investments 690.49
Total Assets 2,355.25
3.1 Balance Sheetof Pidilite Industries ------------------- in Rs. Cr. -------------------
Mar '15 Mar '14
12 mths 12 mths
Sources Of Funds
Total Share Capital 51.27 51.26
Equity Share Capital 51.27 51.26
Share Application Money 0.00 0.00
Preference Share Capital 0.00 0.00
Reserves 2,298.18 1,988.25
Networth 2,349.45 2,039.51
Secured Loans 5.78 7.68
Unsecured Loans 0.00 0.00
Total Debt 5.78 7.68
Total Liabilities 2,355.23 2,047.19
Mar '15 Mar '14
12 mths 12 mths
Application Of Funds

38. Gross Block 1,416.98 1,102.32
Less:Revaluation Reserves 0.00 0.00
Less:Accum.Depreciation 589.14 491.03
Net Block 827.84 611.29
Capital Work in Progress 460.31 431.09
Investments 690.49 573.80
Inventories 534.72 508.20
Sundry Debtors 514.58 453.60
Cash and Bank Balance 58.10 145.18
Total CurrentAssets 1,107.40 1,106.98
Loans and Advances 181.04 166.05
Fixed Deposits 0.00 0.00
Total CA, Loans & Advances 1,288.44 1,273.03
Deferred Credit 0.00 0.00
CurrentLiabilities 689.51 637.92
Provisions 222.32 204.09
Total CL & Provisions 911.83 842.01
Net Current Assets 376.61 431.02
Miscellaneous Expenses 0.00 0.00
Total Assets 2,355.25 2,047.20
ContingentLiabilities 222.33 168.93
Book Value (Rs) 45.83 39.78
Source : Dion Global Solutions Limited

39. Future Growth Strategy for the organization
4.1Portfolio Analysis
4.1.1Based on BCG Matrix
4.2 Company’s Strategic Roadmap for future
Pidilite Near Term (<- 2
years)
Mid Term (2-5 years) Long Term (5-10
years)
Growth Areas Operational
Efficiency
Corporate
Governance
Sustaining the
strength of its
contents and getting
grip over newer
channels
High Level Tasks Develop the ability to
keep the cost under
check coupled with
sound sales
strategies.
Adhere to the
highest levels of
transparency,
accountability and
ethics in all its
operations, at the
same time fully
realizing its social
responsibilities.
Changing with time,
timely identification
of need gap of
customers and
embracing the
technology.
Strengthening the
digital presence.
Adhesives andSealants
Organic Pigments
Industrial Adhesive
Construction & Paint
Chemical
Industrial Resins
Construction & Paint
Chemical
ProductPortfolio: Pidilite
CASHCOWDOG
STARQUESTION

40. Potential Benefits to
be achieved
Improved circulation
mix, better control
on costs of sales,
control over
newsprint cost
fluctuations could be
established.
Improved Trust and
better returns to
shareholders,
satisfied customers
and better business.
Competitive
advantage from
peers, by sustaining
the strength of its
contents and brand
and always be a
winner.
Improved ranking
and market position
Rewards Average Revenue per
User
Business model
innovativeness,
Churn rate, Core
technology
innovativeness
5. References
http://profit.ndtv.com/stock/
http://economictimes.indiatimes.com/pidilite-industries-
ltd/infocompanyhistory/companyid-10460.cms
http://www.moneycontrol.com/annual-report/pidiliteindustries/PI11/2015
http://www.pidilite.com/
https://en.wikipedia.org/wiki/Pidilite_Industries
http://www.fundsindia.com/
http://articles.economictimes.indiatimes.com/2012-12-19/news/35912506_1_cash-
flows-pidilite-industries-net-profits
https://hbr.org/1999/03/competing-with-giants-survival-strategies-for-local-
companies-in-emerging-markets
http://www.investindia.gov.in/chemicals-sector/
http://ficci.in/spdocument/20325/India%20chem.pdf