PIDILITE INDUSTRIES
India is the sixth-largest producer of chemicals in the world and contributes 3.4% to the global chemical industry and ranks 14th and 8th in exports and imports respectively. Indian colorants industry has emerged as a key player with a global market share of 15% and 16% of the world production of dyestuffs and dye intermediates in India.
Pidilite Industries started with a single factory that manufactured only one product, Fevicol in 1959 which diversified its business and established its brands such as Dr Fixit, Fevikwik, M-seal, Fevicryl, Hobby Ideas, Rangeela, Terminator, Steelgrip and many more. The products of Pidilite Industries are easily reliable and so can be seen in every household. The company also showcase its responsibility towards the community through social initiatives in rural development, education and healthcare. In 1990, The name, Pidilite Industries Private Limited, was incorporated by taking its first step towards brand recognition and got listed on the Bombay Stock Exchange (BSE) in 1993.
Pidilite Industries have won several awards and recognized as a constantly growing company. In 2016, the company won CNBC TV 18 11th IBL Award for the most promising company of the year and Silver in Abby Awards 2016 for Events and Experiential Public Relations and many more. Pidilite’s greatest strength is its market supremacy in the adhesive field in India thanks to its flagship brand Fevicol. The adhesive market in India is growing at a rapid pace and India has a market of 5 Billion US Dollars. 68% Market Share is captured by Pidilite Industries Limited. Also, the company have a strong cash-generating ability from core business – Improving Cash Flow from operation for the last 2 years and low debt.
On November 04, 2020, Pidilite Industries acquired Huntsman Group’s Indian subsidiary for Rs. 2,100 crores (US$ 283.38 million) to strengthen adhesives and sealants portfolio that will complement the company’s retail portfolio. In December 2020, Bhoramdev Cooperative Sugar Factory Kawardha and Chhattisgarh Distillery’s subsidiary NKJ Biofuel signed a memorandum of understanding (MoU) for the country’s first ethanol plant to be set up in the state under the public-private partnership (PPP) model. In January 2020, Ultramarine & pigments have successfully commissioned the Sulphonation plant setup in Nellore, Andhra Pradesh, to manufacture surfactants and speciality chemicals.
The Board of Directors has recommended a final dividend of Rs. 8.5 per equity share for the year ended March 2021. And as per Q4 FY21 results, Pidilite got a 31.13% sequential decline in consolidated profit against the previous quarter at Rs 446.43 crore and revenue decreased by 2.76% against the December quarter. PBT decreased by 31.60% QoQ while gross profit margin decreased by 2.86% QoQ. Also, Earnings per share (EPS) declined by 30.69% while assets showed an increase by 26.91% in H2.
The Q4 results of Pidilite Industries were insubstantial.
