PIDILITE

Pidilite is a consumer centric company committed to quality and innovation. For decades, we
have been pioneering products for small to large applications, at home and industry, which
have forged strong bonds with people from all walks of life.

From adhesives, sealants, waterproofing solutions and construction chemicals to arts & crafts,
industrial resins, polymers and more, our product portfolio is as diverse as it is ever-evolving.
Today, our brands are trusted household and industrial names, and we are the market leader
in adhesives.

A robust and growing network makes our products accessible across demographics and
geographies.

We also embrace our responsibility towards the community through social initiatives in rural
development, education and healthcare.

JOURNEY

The Birth Of Fevicol

1959
Everything great starts small and Pidilite is no exception. The company started with a single
factory that manufactured only one product, Fevicol. This white synthetic resin adhesive was
primarily launched to make the lives of carpenters and woodworkers easy. Up until then,
animal fat, which was clumsy and cumbersome, was the only glue available.
Commissioning Of Manufacturing Plant
1963
Barely four years after starting the company, the first modern manufacturing plant was
established in Kondivita Village, Mumbai. Today, this building houses the Corporate Head
Office.

Establishing Brand Pidilite

1990
The name, Pidilite Industries Private Limited, was incorporated, thus taking the first step
towards brand recognition.

Pidilite Goes Public

1993
Pidilite was listed on the Bombay Stock Exchange.

Fevicol Makes It To The Top 15

1997
There’s no stopping now! Fevicol continues to win hearts, and market share, and is ranked
amongst the Top 15 Indian brands by FE Brandwagon Year Book 1997.

M-Seal Is Acquired. A New Division Is Set Up.

2000
M-seal, a leading brand of epoxy compounds was acquired. This laid the foundation for a
new division, the company’s Maintenance Division.

Dr. Fixit – The Waterproofing Expert!

2001
Pidilite launched Dr. Fixit, an extensive range of Construction Chemicals, thus diversifying
its product range. Dr. Fixit was specially developed as a waterproofing solution to be used in
new constructions, or in the repair of old ones.
 Truly A Winner – Fevicol Wins At Cannes.
2002
The famous Fevicol 'Bus ad' not only won the hearts of the Indian people but also the world,
going ahead to win the Silver Lion award at Cannes Lions International Festival of Creativity
2002.

Hits The Rs.1000 Crores Turnover Mark!

2004
Just over 4 decades after its launch, Pidilite declared a turnover of Rs.1000 crores. The
company had grown 1000 times in just 45 years.

Expanding The Global Footprint.

2006

 Pidilite USA Inc., acquired businesses and assets of Sargent Art Inc., makers of art materials
which had been selling world-class art materials in USA for over 50 years.

 Pidilite acquired Tristar Colman, now known as Colstar, a market leader in brushes, canvases
and colours.

 Pidilite established its Singapore R&D centre to attract international talent and expand its
product innovation strategies.

Another Year, Another Award.

2016
Pidilite Industries received the 'Most Promising Company of the Year Award' at the CNBC-
TV18, 11th Indian Business Leader Awards (IBLA). The award is a tribute and testimony to
the diligence of Pidilitians all over.
 SWOT ANALYSIS OF PIDILITE

SWOT analysis is the study of the Strengths, Weaknesses, Opportunities, and Threats of a
company. This helps the company to know its position in the market and what needs to be
improved and what areas it can excel in. It also helps the company to strategize its framework
related to business and factors affecting its growth.

Strengths of Pidilite
Strengths are the activities that a company possesses. This helps in contributing to the
company’s success. The strengths of Pidilite can be analyzed as follows:
 Market Leader in Adhesive: Pidilite has created a monopoly when it comes to Adhesive
Industry and it was all possible due to its flagship brand Fevicol. The adhesive market is
estimated to be at USD 5 billion in India, out of which Fevicol has a market share of 68 per
cent.
 Global Presence: Not only in India but Pidilite is also spread in more than 100 countries
with the company having manufacturing facilities in more than 9 countries. You can find
their diverse range of products in major developed countries.
 Good Brand Name: Pidilite has used branding and marketing strategies so well that one of
their brand name, Fevicol, has become very synonymous with household adhesive. They
have built their brand image in such a way that it is considered one of the most trusted brands
in India.
 Fully-equipped In-house R&D: Pidilite two-thirds of sales happen through in-house
innovations by over 150 professionals. They have their in-house R&D centres in India,
Singapore, Thailand, Brazil, Dubai and USA.  
 Wide Product Range: Pidilite has a very wide range of products right from adhesives,
sealants, waterproofing solutions, construction chemicals, industrial resins to even chemicals
for arts and crafts.
 Good Network of Suppliers & Distributors: The company has built a very good network
and has an extensive channel of distribution across the country which helps it reach out to
customers in a very aggressive way. One can go to a stationery store to purPidilite any of
their consumer chemical goods.
 Awards & Recognitions: Pidilite and its products Fevicol and Dr Fixit has some of the
biggest awards in the nation. Pidilite has been awarded one of the most promising and
 prestigious companies of the year, its product Fevicol has also made through the top 15 best
adhesives.
 Great Place to Work: Pidilite has been awarded as a great place to work and this tells us that
employees at Pidilite are happy and healthy with their work-life and the organisation in which
they are working. 

Weaknesses of Pidilite
Weaknesses stop an organization from performing to its utmost potential. One should analyze
the weakness and work upon them to help the firm excel in all terms.
 Focus on Consumer Chemicals: The company extensively focuses on consumer chemicals
only. They can dive into other product lines too.
 Over Dependence on Fevicol and M-Seal: The company is excessively dependent on the
two brands: Fevicol and M-Seal which accounts for more than 55 per cent of their revenue.
Thereby most of their focus is dived into these 2 brands only as that’s what makes them earn
most of their profit. If somehow one brand fails will cost hefty for the company.
 Improper Research Strategy: They have a very improper research and development
strategy. They delegate and outsource most of their research work or they acquire companies
for research purposes. This is a very poor strategy as it limits their innovation and future
growth.
 High Dependency on Acquired Brands & Partners: As discussed before, in most other
domains, Pidilite looks up to acquisition for research support. This becomes a weakness in
terms of innovation since it limits the company to a great extent and increases its dependency
on acquired brands.

Opportunities for Pidilite

Opportunities are external factors that are in favour of the company and the firm can use it to
its advantage to grow.
 Project Parivartan: The company has launched a new initiative Project Parivartan which
will analyze their supply chain workflow and try to streamline costs in all fields from
warehousing to transportation.
 New Branding Strategies: The company has appointed Amitabh Bachchan as their brand
ambassador and this move is expected to further improve their brand image and shares &
equity since this campaign is also going to be followed by strong digital and social media
promotion.
 Acquisitions of International Brands: Pidilite has agreed with WD-40 Company, which is a
global marketing agency, to help them better manage sales and distribution of their WD-40
Multi-Use product. This product has an array of applications such as maintenance and repair.
 The firm can also use the goodwill and brand image of WD-40 allowing them to sell their
products in the home construction and adhesive verticals.

Threats to Pidilite
External factors that might affect the bank are known as threats. These issues should be taken
into consideration as soon as possible to prevent causing damage to the firm. The threats to
Pidilite are as follows:
 Low Growth in the Adhesives Sector: Pidilite is overly dependent on the adhesive and
sealants sector which saw annual growth of 4 per cent in 2016 and this is expected to slow
down since it has been impacted by the fluctuations in the macroeconomic environment.
 Low Growth in Chemical Industries Segment: Sales growth in other fields like paint
chemicals and art & craft supplies have seen a gradual decline which indicates that the
company might have to look at newer product categories for survival.
 Fall in Real Estate: Sales growth in the domestic subsidiaries of Pidilite in waterproofing
solutions has seen a sharp decline mainly because of the fall in real estate prices.
 High Dependence on Other Low Growth Sectors: Many of the product categories of
Pidilite are such that they are dependent on sectors like manufacturing and construction
which currently have very low demand in this status quo. These have emerged as threats to
the company.

To Conclude
Pidilite is a big conglomerate that has become well known for its range of adhesive products.
All of us have already heard about its 2 most popular products: Fevicol and M-Seal. In the
SWOT analysis of Pidilite, we observed how the company makes good use of their branding
strategies and distributor network to emerge out as the market leader and how its over-
dependence on Fevicol has turned out to be its biggest weakness. 
They do have thought of a few long term plans which will help them to reduce weakness and
retain their position of market leader for a long time. With increasing competition in this
saturated market, companies are left to use more innovative marketing strategies and
campaigns to retain profits and to see gradual growth.