INTRO

The chemical industry comprises

the companies that produce
DUCTI
industrial chemicals. Central to the modern world economy, it
converts raw materials (oil,
natural gas, air, water, metals,
ON
and minerals) into more than 70,000 different products.
Although the pharmaceutical industry is often considered a chemical
industry, it has many different characteristics that put it in a separate
category. Other closely related industries
include petroleum, glass, paint, ink, sealant, adhesive, and food
processing manufacturers.
Chemical processes such as chemical reactions operate in chemical
plants to form new substances in various types of reaction vessels. In
many cases the reactions take place in special corrosion-resistant
equipment at elevated temperatures and pressures with the use of
catalysts. The products of these reactions are separated using a variety
of techniques including distillation especially fractional distillation,
precipitation, crystallization, adsorption, filtration, sublimation,
and drying.

GDP % Contribution to the Indian Economy

Chemical industry, one of the earliest of all Indian industries contributes
considerably to Indian economy and has been doing so since the times of
independence. It manufactures 70,000 types of products ranging from
toiletries and plastics, to cosmetics, petrochemicals, pharmaceuticals,
fertilizers and many more. The large chemical industry contributes around
7 % annually to the GDP of India.

GDP CONTRIBUTION

6%

Agriculture
Real estate

15%

Banking

22%

IT Industry

13%

Transportation
Chemical

8%

Textile

10%

4%
7%

8%

Machinery
Retail

9%

Tourism

SOURCE-LISTDOSE.COM

Promoters of the Company and company

snapshot
Shareholding belonging to the category: "Promoter and Promoter Group"
Shares pledged or otherwise
encumbered

Total Shares held

No
.

Name of the Shareholder

Number

As a % of
grand total
(A) + (B) +
(C)

Number

% of Total
shares held

As a % of
grand total
(A) + (B) + (C)

1,968,000

0.38

49,148,844

9.58

Ami Ajay Parekh

4,372,166

0.85

Amrita Ajay Parekh

1,968,000

0.38

Abha Ajay Parekh

Ajay Balvantray Parekh

3
4

187,600

0.03

Apurva Narendrakumar Parekh

3,584,910

0.7

Bharati Narendrakumar Parekh

8,906,086

1.74

Darshana Bimal Mody

6,500,000

1.27

Gulabben Himatlal Parekh

261,716

0.05

10

Harish Himatlal Parekh

2,076,592

0.41

11

Harshada Harvadan Vakil

51,900

0.01

12

Harvadan

42,300

0.01

13

Himatlal Kalyanji Parekh

4,811,630

0.94

14

Indumati Chimanlal Parekh

40,368

15

Ishita Rajiv Amersey

2,901,606

0.57

16

Jasna Raoul Thackersey

3,615,126

0.71

17

Jimeet D Sanghavi

91,900

0.02

18

Kalpana Apurva Parekh

6,664,334

1.31

19

Kamalini Rashmikant Parekh

821,934

0.16

20

Kanta Balvantray Parekh

3,385,410

0.66

21

Madhukar Balvantrayparekh

56,977,568

11.11

22

Mala Madhukar Parekh

9,360,992

1.83

23

Malay Rashmikant Parekh

161,600

0.03

24

Monisha Harish Parekh

200,000

0.04

25

Mrudula Sushilkumar Parekh

3,512,120

0.69

26

Narendrakumar Kalyanji Parekh

54,332,178

10.59

27

Panna Deepak Sanghavi

80,166

0.02

28

Pareet D Sanghavi

95,600

0.02

29

Parul Harish Parekh

1,039,208

0.2

30

Purvee Apurva Parekh

800,000

0.16

31

Rashmikant Himatlal Parekh

2,357,378

0.46

32

Sushil Kumar Kalyanji Parekh

42,608,636

8.31

33

Urvi Malay Parekh

40,000

0.01

34

Devkalyan Sales Private Ltd

26,074,280

5.09

35

Harton Private Limited

12,207,634

2.38

Anuja Ankur Shah

24,630,038

4.8

1,382,628

0.27

796,700

0.16

Parkem Dyes & Chemicals Pvt Ltd

1,276,510

0.25

40

Pidichem Pvt Ltd

7,614,916

1.49

41

The Vacuum Forming Company

Pvt Ltd

11,462,186

2.24

42

Trivenikalyan Trading Pvt Ltd

463,040

0.09

358,873,800

70

36

Ishijas Chemical Pvt Ltd

37

Kalva Marketing And Services Ltd

38

Parekh Marketing Ltd

39

Total

Source-MONEY
CONTROL.COM

SNAPSHOT

Pidilite Industries Limited (BSE: 500331, NYSE: MMM) is the

largest adhesive manufacturer in India.[3] It also has worldwide
presence in adhesives, art material, construction chemicals and
other industrial chemicals.
Pidilite's most famous product is the Fevicol range of adhesives.
Its other famous brands are Fevikwik", Dr.fixit, Cyclo, Ranipal,
Hobby ideal M-seal and Acron.

The Fevicol brand, Pidilite's most recognized adhesive brand

Pidilite's corporate office is located in Andheri (East), Mumbai.
The company has manufacturing facilities at various locations in
India,
including Mahad (Maharastra), Vapi (Gujarat) Baddi (Himachal
Pradesh) and Kala Amb (Himachal Pradesh). It also makes Fevi
Kwik India's first ever One Drop Instant Adhesive. This brand is
the most popular Instant Adhesive in South Asian Countries. The
Company was founded in 1959.

Product Profile & Target Market

Pidilite Products
The product range of Pidilite includes Adhesives and
Sealants, Construction and Paint Chemicals, Art
Materials, Industrial and Textile resins and Organic
Pigments, Synthetic Organic Pigments and Industrial
Organic Pigments and Preparations.
Pidilite Adhesive Products

The product range of Pidilite includes Adhesives and

Sealants, Construction and Paint Chemicals, Art
Materials, Industrial and Textile resins and Organic
Pigments, Synthetic Organic Pigments and Industrial
Organic Pigments and Preparations. Pidilite products
conform to global quality standards and are exported to
developing and developed countries all over the world.

Wood grip Adhesive

It has in store for

our customers,
optimum quality
wood grip that are
procured from the
certified vendors of
the industry. These
wood grip adhesive
is used for bonding
wood, plywood,
laminates and veneers, particle board, block board,
hardboard, mdf to each of the substrates. To meet the
specific requirements of our customers, we are offering
these adhesives in the package size of 20 kg and 50 kg.
Our valued customers can buy these adhesives from us
at market leading prices.
Features:
high adhesion
excellent stiffness
temperature resistant
excellent bond strength

Textile Adhesives

It offers complete range of adhesives which are used for

different purposes in various types of industries.

Fevitite Adhesives

It offers fevitite in bulk as well as small packaging which

is widely used as industrial adhesives.

Fevicol Adhesive

It offers entire range of fevicol I. E. Fecicolsh, fevicol 998

and others as per the needs of our customers.

Market Share of the company

As a flagship product of the Rs.137.72 billion Pidilite Industries,

Fevicol commands a 70% market share in the white glue segment.
Today over 40% of Pidilites turnover comes from Fevicol while the
rest comes from its other brands such as Ranipal, M-Seal and others.

Competitor Analysis

CASTROL INDIA; 14868.95; 29%

PIDILITE; 21325; 42%
CASTROL INDIA

GODREJ INDS

BASF INDIA

LINDE INDIA

GODREJ INDS; 9169.84; 18%

2644.96; 5% BASF INDIA; 2750.21; 5%

PIDILITE

Historical Growth

The Indian chemicals industry, which earned revenues in

the range of $ 155-160 billion in 2013, is likely to grow at
a rate of 11-12 percent in the next two to three years,
according to Frost & Sullivan, a business consulting firm.
Owing to reduced industrial output, commodity and bulk
chemicals are likely to experience slow growth, while the
specialty chemicals segment is expected to show
considerable growth.
Personal care ingredients and additives, knowledge
chemicals like Active Pharmaceutical Ingredients (APIs),
paints and coatings, and construction and water
chemicals are some of the segments that are likely to
perform well. Even in 2013, these sectors showed good
growth and companies in this segment have been
investing and expanding, said Chaitra Narayan,
Associate Director, Chemicals, Materials & Foods
Practice, and Frost & Sullivan.

Reasons for the Growth

High-value products
Product driven market

 Requirement of raw material

SWOT Analysis
SWOT Analysis
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.
Strength

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.
1. The manufacturing cost of Pidilites 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.

Threats

STP

STP
Segment

Customers looking for ease-of-use and value-for-money products.

Target Group

Carpenters, plumbers, housewives, constructors/masons ,etc.

Positioning

Pioneer and market leader in consumer adhesives and specialty

chemicals in India.

MARKET PLANNING
1) Market strategy for other brands become centric to successful
brands.

2) Customer loyalty is towards the brand.

3) Benefits the customer in the long run.
4) Brand image often become than the company image.
5) Ads are catchy and they help in gaining the market share

Comparison of sales of company for

past 3 years

3878.24
3331.69

3194.03

2013

2012

2014

2
YEAR

SALES IN RS. CRORE

3
3

Marketing and promotional strategy

of the company
ACETECH
Dr. Fixit and Roff participated in ACETECH, a
Construction and building material trade event, in 5 cities

Fevicol Science Project Challenge

The third year of the Fevicol Science Project Challenge
Continued to inspire young minds to challenge their own
Creativity and convert classroom learning into workable
Concepts and models.

Rangeela Tempera
Rangeela Tempera Colors launched an on-pack promotion & TV campaign with popular
cartoon character Chhota
Bheem. The winners of the slogan contest got an opportunity to meet & interact with
ChhotaBheem at live events in 6 cities.

Organization Structure

Training needs of the company

Recruitment & Selection
Recruitment of all positions up to Regional Sales Manager & equivalent
level at Head Office.
Ensure quality intake of talent in a Cost effective way within the specified
time frame (cycle time) / ensure proper compliance of the recruitment
process.
Induction & Training
Ensure proper & timely induction for all new employees.
Co-ordinate with Central L&D team for training needs / ensuring that
employees are released for training as per the training calendar provided by
the Corporate L&D group.
Performance & System
o Ensure the entire process of Performance & Potential Management is
completed in a timely manner as per the laid down process

 Traveling
o Undertake regular travel to all branches to understand employee issues
and escalate unresolved issues.
Assist CEOs/Presidents in:
o Manpower Planning & Budgeting for the Division / Function.
o Ensuring that each employee in the Division is given a proper R & R/ KRA /
KPI
o Driving Corporate initiatives (employee engagement initiatives ) in the Div
/ Function
Exit Analysis on Exit analysis for all employees up to Regional Sales
Manager & equivalent level at Head Office.
Regularly co-ordinate for all HR related activities of the Division with
Corporate HR

Analysis of JDs and Job

Specifications posted by the
company on online-job portals

Organization culture

Top Reasons to work in PIDILITE

Brand Name78%
Learning & Development57%
Career Growth Opportunities48%

Top Skills to Succeed

Relationship Management54%
Initiative42%
Leadership42%

Porters Five Forces Model

Threat of New Entrants

Low and Will Remain Low
Government regulations and
patents
Significant capital requirements
Incumbents have superior efficiency
and quality in production that may
be difficult to imitate
Intense R&D and human capital
requirements

Bargaining Power of Suppliers

Moderate and Will Remain
Moderate
Chemical industry relies on
supplies from a few large
corporations (such as those in
petrochemicals industry)
Chemical producers have limited
substitutes for inputs
Most suppliers are not dependent
on their sales to chemical

GWP CONTRIBUTION
Bargaining Power of Buyers
Threat of Substitutes
Moderate and Will Remain
Weak and Will Remain Weak
Moderate
Buyers tend to need specific
chemicals as inputs
Chemicals are important inputs
There really are no similar
to many industries Industry Rivalry
substitutes for chemicals
Those in chemical industry have
many end-customers;High
dontand
relyIncreasing
Even if another chemical can be
Large number of competitors all used, it is most likely produced by
on one customer
for market share
The products (chemicals) arecompeting
not
the same Industry Players.
All are global competitors little room for
greatly differentiated
expansion
Usually purchased through long
term contracts, so switching All benefiting from economies of scale, so
competing on price
Little differentiation among current players
High fixed costs, and high exit costs

Chart Title
CHEMICAL INDUSTRIES

TEXTILE INDUSTRIES

3%

8%

89%

CONCLUSION

OTHERS

After overall research and preparation of the project I found that the
Pidilite has strong brands, a wide distribution network and an excellent
reputation amongst users of its products. Apart from the household segment,
the product enjoys a loyal following among service provider like carpenters,
plumbers and mechanics. Pidilite has a history of acquiring brands at
reasonable valuations and growing them steadily.Pedilite has shown steady
growth in last 5 years with sales and profits growing at a CAGR of 12%and
19% respectively. This performance has been spearheaded by the companys
sharp focus on the consumer segment where it enjoys strong pricing power

BIBLIOGRAPHY

WEB SITES
ACE ANALYZER

MONEY CONTROL
TIMES OF INDIA
IBEF.ORG
MBASKOOL.COM
NAUKRI.COM
FUNDOODATA.COM
LISTDOSE.COM
PIDILITE.COM
QUOTES.WSJ.COM
BOOKS

FINACIAL MANAGEMENT : I M PANDAY

MARKETING MANAGEMENT : PHILLIP KOTLAR
HUMAN RESOURCE MANAGEMENT: P SUBARAO

ANNUAL REPORT PIDILITE 2013-14

BCG MATRIX

PIDILITE INDUSTRY is in STAR

situation because as it one
company which have the
maximum market share of 42%
as compare to its competitors
and on the other hand pidilite
belong to chemical industry and
which is growing on at at a very
fast pase thus in future it will have a bright future

PLC

PIDILITE is in its maturity stage as company is coming up with

various product line such as favi quick, Dr. fixit, favi tweet, ect. And
pidilite have its present in the market since 1959 and since then it is
growing and earning profit.

ABOUT PEDILITE
Pidilite Industries
Parent Company

Pidilite Industries Ltd.

Category

Consumer chemicals/ Specialty chemicals

Sector

Industrial Products

Tagline/ Slogan

Building Bonds

USP

Market leader in adhesives, sealants, polymer emulsions, hobby colors and

construction chemicals in India.

DESCRIPTION Pidilite Industries Ltd.

Pidilite Industries Ltd. manufactures and sells adhesives and sealants, construction
chemicals, hobby colors and polymer emulsions. It operates through two business
segments: Branded Consumer & Bazaar Products and Industrial Chemicals. The
Branded Consumer & Bazaar Products business segment products include adhesives,
sealants, art materials, and construction and paint chemicals. The Industrial Chemicals
business segment covers products, such as industrial adhesives, synthetic resins,
organic pigments, pigment preparations and surfactants. Pidilite Industries was
founded in 1959 and is headquartered in Mumbai, India.

KEY PEOPLE Pidilite Industries Ltd.

Board of Directors

Name/Title

Current Board Membership

Madhukar Balvantray
Parekh, 70Executive Chairman &
Managing Director

Pidilite Industries Ltd., Vinyl

Chemicals (India) Ltd., Kalva
Marketing & Services Ltd., Fevicol
Co. Ltd., Excel Industries Ltd.

Narendrakumar Kalyan
Parekh, 76Joint Managing Director
& Executive Director

Vinyl Chemicals (India) Ltd., Pidilite

Industries Ltd., Kalpaj Sales &
Agencies Pvt Ltd., Ishijas Chemicals
Pvt Ltd., The Vaccum Forming Co.
Pvt Ltd., Pargro Investments Pvt
Ltd., Dr. Fixit Institute of Structural
Protection & Rehabilitation, Fevicol
Co. Ltd., Parkem Dyes & Chemicals
Pvt Ltd.

Sanjeev Aga, 62Independent NonExecutive Director

Idea Cellular Towers Infrastructure

Ltd., Swinder Singh Satara & Co.
Ltd., Idea Cellular Towers
Infrastructure Services Ltd., Idea
Cellular Services Ltd., Idea Cellular
Ltd., Ocean Dial Investment Funds
Plc, Aditya Birla Retail Ltd., Aditya
Birla Management Corp. Pvt Ltd.,
Pidilite Industries Ltd., Mahindra
Holidays & Resorts India Ltd., Subex
Ltd., ING Vysya Bank Ltd.

Bansidhar Sunderlal
Mehta, 79Independent NonExecutive Director

CEAT Ltd., JB Chemicals &

Pharmaceuticals Ltd., Sasken
Communication Technologies Ltd.,
Procter & Gamble Hygiene & Health
Care Ltd., Gillette India Ltd., Pidilite
Industries Ltd., NSDL e-Governance
Infrastructure Ltd., SBI Capital
Markets Ltd., Atul Ltd., Sudarshan
Chemical Industries Ltd., IL&FS
Investment Managers Ltd., Century
Enka Ltd., Jumbo World Holdings
(BVI) Ltd., Housing Development

Finance Corp. Ltd.

Ranjan Mohanlal
Kapur, 72Independent NonExecutive Director

Abbott India Ltd., EBS Worldwide

Services Pvt Ltd., Ray + Keshavan
Design Associates Pvt Ltd., Annik
Technology Services Pvt Ltd.,
Elucido Media Networks Pvt Ltd.,
Bates India Pvt Ltd., Tagit India Pvt
Ltd., Sercon India Pvt Ltd., Quasar
Media Pvt Ltd., MIRC Electronics
Ltd., Nimbus Communications Ltd.
(India), Pidilite Industries Ltd.,
Rediffusion Dentsu Young &
Rubicam Pvt Ltd., Groupm Media
India Pvt Ltd., Eon Premedia Pvt Ltd.

Apurva Narendrakumar
Parekh, 43Executive Director

Jupiter Chemicals LLC, Synapse

Technologies, Inc. (Virginia), Pidilite
USA, Inc., Parkem Dyes & Chemicals
Pvt Ltd., Kalpaj Sales & Agencies Pvt
Ltd., Sarla Technologies Middle East
LLC, Pidilite Bamco Ltd., Pidilite
Speciality Chemicals Bangladesh
(Pvt) Ltd., Pidilite Industries Egypt
SAE, Jess Trading India Pvt Ltd.,
Pidilite Industries Ltd.

Yash Paul
Mahajan, 77Independent NonExecutive Director

Pidilite Industries Ltd., Punjab

Tractors Ltd., Swaraj Automotive
Ltd.

Ajay Balvantray
Parekh, 47Executive Director

Pidilite Industries Ltd., Ishijas

Chemicals Pvt Ltd., Vacuum Forming
Co. Pvt Ltd., Vapkon Finance &
Investment Pvt Ltd., Abhajay Trade
& Commerce Pvt Ltd., Pargro
Investments Pvt Ltd., Pidilite USA,
Inc., Pagel Concrete Technologies
Pvt Ltd., Pidilite Innovation Centre
Pte Ltd., Modern Laboratories Pvt

Ltd., Pidilite Industries Trading

(Shanghai) Co. Ltd.
Bharat Tilakraj
Puri, 53Independent Non-Executive
Director

Pidilite Industries Ltd.

Narendra Jamnadas
Jhaveri, 79Independent NonExecutive Director

Siemens Healthcare Diagnostics

Ltd., ICICI Securities & Finance,
Phoenix ARC Pvt Ltd., Cadila
Pharmaceuticals Ltd., TAIB Capital
Corp. Ltd., Indian Merchants'
Chamber, National Securities
Depository Ltd., Juniper Hotels Pvt
Ltd., Afcons Infrastructure Ltd.,
Indian Aluminium Co. Ltd., Siemens
Ltd., Pidilite Industries Ltd., Hindalco
Industries Ltd., Edelweiss Financial
Services Ltd., Samruddhi Cement
Ltd., GVFL Ltd.

Uday Chander
Khanna, 64Director

Pfizer India Ltd., Thomas Cook

(India) Ltd., Bata India Ltd.,
Coromandel International Ltd.,
Lafarge India Pvt Ltd., Castrol India
Ltd., Pidilite Industries Ltd., NRB
Bearings Ltd.

All Executives

Madhukar Balvantray ParekhExecutive Chairman & Managing Director

Narendrakumar Kalyan ParekhJoint Managing Director & Executive Director

Sanjeev AgaIndependent Non-Executive Director

Bansidhar Sunderlal MehtaIndependent Non-Executive Director

Ranjan Mohanlal KapurIndependent Non-Executive Director

Apurva Narendrakumar ParekhExecutive Director

Yash Paul MahajanIndependent Non-Executive Director

Ajay Balvantray ParekhExecutive Director

Bharat Tilakraj PuriIndependent Non-Executive Director

Narendra Jamnadas JhaveriIndependent Non-Executive Director

Uday Chander KhannaDirector

Savithri ParekhSecretary & Chief Compliance Officer

AVERAGE GROWTH RATES Pidilite Industries Ltd.

Past Five Years Ending 03/31/2014 (Fiscal Year)

Revenue+18.88%

Net Income+12.48%

Earnings Per Share+12.96%

Capital Spending+23.83%

Gross Margin+31.66%

Cash Flow-6.09%

Working capital
required
CURRENT ASEET-CURRENT
LIABILITY
2014

2013

14371.2
8
7792.04

12789.8
5
7834.82

6579.28

4955.03

DEBT
EQUITY

RATIO
LONG TERM DEBT/SHARE
HOLDER FUND
2014
77/20395.15=0
.003:1

2013
602/17325=0.
034:1

FINAL REPORT ON PIDILITE INDUSTRIES

LTD

NAME-VIVEK KUMAR
PGDM 11
ROLL No.DM14B54
Introduction
This is the stage in which a new product is first made available in the market. In the
introduction stage, customers are few, competition is less, sales are low, risk is high
and profits are low or nil. There are heavy distribution and promotion expenses. This
stage is full of risks and uncertainties. Prices are also high because(1) costs are high
due to low level of output.(2) technological problems in production may not have been
solved, and(3) high profit margins are required to support the heavy promotion
expenditure. the product at the introduction stage requires high activity in promotion.

Growth
If the product is popular with consumers, then sales will start to rise. It may be a rapid growth or a
slower one. Rapid growths that fall away just as quick are called 'Fads'. That process is known as
Growth.
Advertising is often still heavy at this point.

Maturity
Once the product is well established and consumers are satisfied, then the product is widely
accepted and growth slows down. Before long, however, a successful product in this phase will
come under pressure from competitors. The producer will have to start spending again in order to
defend the product's market position or introduce extension strategies.
It may only be in the Maturity stage where companies will receive a return on their original
expenditure and investment due to potentially high start up and development costs.

Decline
Sooner or later sales fall due to changes in consumer tastes or new choices available from
competitor's products.
Again, extension strategies may be open to the company to keep the product alive. The product
can be declined if there is no proper growth and the later stage which has been discussed above.

Use in Marketing
The product life cycle is an important concept in marketing. It includes stages that a product goes
through from when it was first thought of until it is eliminated from the industry, at the end of its life.
Not all products reach this final stage. Some continue to grow and others rise and fall.