EXECUTIVE SUMMARY

Company taken under consideration: Pidilite Industries Ltd.

Sector: Industrial Products and Chemicals
Primary Products: Fevicol Range- FeviKwik, Dr. Fixit, Roff, Cyclo, Ranipal, Hobby Ideas, Acron
Primary Products: Fevicol Range- FeviKwik, Dr. Fixit, Roff, Cyclo, Ranipal, Hobby Ideas, Acron
Pidlite is an Indian company with its headquarters in Andheri, Mumbai, India. It primarily contains
products that fall under the category of adhesives, construction chemicals, and industrial
chemicals(fast-moving consumer durables). The company has various manufacturing facilities
across the country[Mahad (Maharastra), Vapi (Gujarat) Baddi (Himachal Pradesh), and Kala Amb
(Himachal Pradesh)]. Pidilite's Fevikwik is one of the leading brands in the whole of South Asia
and India it holds the majority market share in adhesives. It was incepted in 1959 and since then it
has been distributing high-quality consumer and specialties chemicals in India and abroad.

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TABLE OF CONTENTS

INTRODUCTION………………………………………………………………………………3
OBSERVATION AND DATA ANALYSIS…………………………………………………...5
CONCLUSION………………………………………………………………………………….6
RECOMMENDATION…………………………………………………………………………6
REFERENCES…………………………………………………………………………………..7

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INTRODUCTION

Pidilite envisions to be a business leader via innovation and achieving Global Standards and ensure
maximum customer satisfaction by excellent quality control and management. This aspect makes
the company so important from an operational management perspective and the all-encompassing
processes that ensure such premium products year after year are worth introspecting. The products
are manufactured from the raw materials in the company-owned plant situated at Vapi, Bhiwandi,
and Malhaar. Since the primary products are adhesives, therefore, it must have certain
characteristics like adhering to surfaces, quick-drying, and maintain stability. The perfect amount
of chemical mix coupled with labor and automated functioning is required for optimizing
productivity and bringing in revenue. Then they are sent out in challan under Pidilite Industries
Ltd. They are then moved on to godowns for further distribution. Then they are moved on to C&F
agents and the Company owned Depots. Subsequently, the goods are invoiced under PML and
sent to WSS who are responsible for billing the goods under the respective concerns and then
transfer the same to the retailers. The retailers are responsible for making the primary sale. Since
Pidilite mostly works in the domain of consumer durables, they have to properly manage the
inventory and ensure high customer satisfaction, and bridge manufacture and demand gaps.
In the subsequent sections, the detailed analysis of the processes involved has been elucidated
further.

Some areas wherein Pidilite excels have been introspected as follows:

Strategy Implementation on Site
Workplace efficiency and effectiveness are two important criteria that drive performance
management techniques in this fast-moving industry. To access selected markets, Pidilite strives
to minimize production costs and transport expenses of its customers' assets. Employees, suppliers,
and targeted customers are all close to markets, according to the company's performance
management. The PESTEL(political, economic, social, technological, environmental, and legal)
analysis carried out by the company is quite robust which enables it to set up plants, manufacturing
facilities, and distribution centers at suitable locations all across the country.

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Procurement Management
To prevent the shortage of inventory managers must ensure the smooth procurement of raw
materials as it is also associated with formulating certain important business strategies by the
company. Pidilite follows an optimized strategy, whereby less amount of time is spent on the
administrative front and most of the communication is completed online. This makes the entire
process go quite smoothly. With the high use of analytics in the domain of supply chain
management systems recently, a complete understanding of logistics can be easily achieved and
be leveraged to reduce cost centers.
Supply Chain Management
The company ensures quite a robust supply chain management system. With its manufacturing
facilities placed strategically all across the country, the cost of logistics and transportation is
reduced to a great extent. This also ensures the responsiveness of the purchase of raw materials.
The distribution channel is also quite well planned with a significant number of intermediaries.
Although, the profit margin in this regard is pretty low the supply chain cost is reduced to a great
extent.
Quality Management
Regular surveys and research is carried out to gauge customer feedback and sentiment,
Accordingly, changes in the product are carried out. Alongside, quality control is of the utmost
importance which is supplemented by performance management of the organization.
Adoption of New Technologies
The recent adoption of new technologies has helped in smooth communication, effective branding
and marketing, and automated manufacturing.

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OBSERVATION AND DATA ANALYSIS

The performance of Pidilite Industries Limited can be gauged by taking into consideration several
Key Performance Indicators (KPI). These KPIs will enable us to understand better the strategies
adopted by the company, the product diversification techniques, and the marketing mix of the
same.
Product Customization
PIL focuses extensively on developing new products and updates the existing ones to guarantee
high performance and customer satisfaction. The company also focuses on several research and
development activities to ensure the same. The singular focus is on the customer at Pidilite and
thus catering to individual customer requests is a feature that is very unique to this company.
Out of Stock Rate
Pidilite ensures that the out-of-stock rate is kept at a bare minimum. The customer shall never find
the shortage of adhesives or industrial chemicals produced by Pidilite be it in the local shops in
the retail stores.
Carrying Cost
The carrying cost of inventory in Pidilite is optimized because the company distributes stocks
based on the customer research and feedback it receives. With such extensive market research
campaigns, Pidilite leverages precise data to cut down on unnecessary carrying costs of inventory.
Margin by Product Category
Since most of the products marketed by Pidilite are in the consumer durable sector, therefore, the
profit margin is kept moderately low. This is also due to the increased number of intermediaries
before the primary sale is made. Although, due to high nationwide demand and repeated purchases,
the total profit remains substantial which is reflected in Pidilite's market capitalization.($16.28Bn)
Targeted Communication
Pidilite has a very comprehensive way of addressing customer concerns and asking for new
features to add to their product line to ensure their market share and customer loyalty.

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CONCLUSION

Pidilite Industries Limited has been performing significantly well in the last few decades and has
consistently been the market leader. With their extensive marketing research methods, they
measure customer sentiment. Pidilite leverages its market research to develop new products and
update the existing ones with the aid of optimal supply chain management, logistics, and
operation management. The primary reason for their enduring success is the quality that they
maintain year after year and the value for money they provide to their customers.
Recently Pidilite is also growing its international presence via mergers and acquisitions with elite
companies from all across the globe. They have been establishing manufacturing facilities and
sales offices in important regions around the world. As of now, Fevicol is the largest adhesive
brand in Asia.
The commitment of the employees, shared values between the team members, spirit of
innovation, and closeness to the customers have paved the way for Pidilite to emerge as the sole
market leader in the adhesive and industry chemicals industry.

RECOMMENDATIONS

Pidilite primarily depends on Fevicol and M-seal for their revenue. New products should be
developed with vigorous marketing campaigns to capture a large customer base(supplementing
Fevicol and M-seals) which may bring in a sizeable amount of the revenue and further ensure the
growth of the company.

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REFERENCES
• https://www.pidilite.com/
• https://www.pidilite.com/industrial/
• https://companiesmarketcap.com/pidilite/marketcap/
• https://en.wikipedia.org/wiki/Pidilite_Industries
• https://www.marketing91.com/swot-analysis-pidilite/

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