H.R.

COLLEGE OF COMMERCE & ECONOMICS

123, Dinshaw Wachha Road, Churchgate, Mumbai - 400020

A PROJECT

ON

PIDILITE INDUSTRIES
in the subject of

STRATERGIC MANAGEMENT

SUBMITTED TO

UNIVERSITY OF MUMBAI

FOR (SEM-I) OF

MASTER OF COMMERCE

BY

Name: JANAM SHAH

Roll No: 58

UNDER THE GUIDANCE OF

Prof. ______________________________

YEAR 2015-1
 H.R. COLLEGE OF COMMERCE & ECONOMICS
123, Dinshaw Wachha Road, Churchgate, Mumbai - 400020

DECLARATION BY THE STUDENT

I, JANAM SHAH student of M Com.(SEM-I)/ (SEM-III) Roll Number 58 hereby

declare that the project for the Paper STRATERGIC
MANAGEMENT_______________________
titled, PIDILITE INDUSTRIES submitted by me for Semester-I / Semester-
III during the academic year 2015-16, is based on actual work carried out by
me.

I further state that this work is original and not submitted anywhere else for
any examination.

Signature of Student

H.R. COLLEGE OF COMMERCE & ECONOMICS

 INTERNAL ASSESSMENT
PROJECT (40 Marks)

Name of the Student Class R. No.

JANAM SHAH MCOM BM 58

(SEM-I)

Subject: STRATERGIC MANAGMENT____________

Topic for the Project : PIDILITE INDUSTRIES_______

Marks
Signature
Awarded
Documentation

Internal Examiner

(10 Marks)
External Examiner

(10 Marks)
Presentation

(10 Marks)
Viva and Interaction

(10 Marks)
TOTAL MARKS (40
Marks)

H.R. COLLEGE OF COMMERCE & ECONOMICS

TO BE FILLED IN BY STUDENTS WHO DEFAULT

 LATE SUBMISSION

I hereby understand that I have submitted the Project late, on

_________________at ____________ a.m.

The date of submission announced by the college was _________________at

______________ a.m.

Signature of Student
------------------------------------------------------------------------------------------------

INTERNAL VIVAS

I declare that I was not present at the time of Internal Viva arranged by the
College.
This has been a serious lapse on my part.

Signature of Student
------------------------------------------------------------------------------------------------

EXTERNAL VIVAS

I declare that I was not present at the time of External Viva arranged by the
College.
This has been a serious lapse on my part

Signature of Student
 INDEX

Sr No. CONTENT Page No.

1 PIDILITE INDUSTRIES
1.1 INTRODUCTION 7
1.2 HISTORY 8
1.4 GROWTH STRATERGIES AND PROGRESS 9
1.6 SWOT ANALYSIS 20
1.10 Strengths 21
weakness 22
Oppurtunities 24
Threats 25
GROWTH STRATERGY BY MARKET EXPANSION 26
6 OF CUSTOMER SATISFACTION
MARKET DISCSSION AND ANALYSIS 30
7 CONCLUSION
 PIDILITE INDUSTRIES
FOUNDER : BALVANT PAREKH ; 1969
SLOGAN : BUILDING BONDS

COMPANY PROFILE

INTRODUCTION

Pidilite industries is the largest adhesive manufacturer in India. It also

has world wide presence in adhesives , art material , construction chemicals
and other industrial chemicals. It was first founded in the year 1969 by
BALVANT PAREKH who had almost 70% of the stake of industries
shares which is listed in the Bombay stock exchange (BSE) .

Pidilite's most famous product is the FEVICOL range of

adhesives . Its other famous brands are " Fevikwik", Dr. Fixit, Cyclo ,
Ranipal , Hobby Ideas , M-seal and Acron .

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.
 HISTORY

The company was founded in 1959. Fevicol , the largest selling brand of adhesives in
India , has added another feather in its cap with the roll out of Fevicol SH Xtra.
Fevicol SH Xtra is an improved , new generation variant of Fevicol SH, the flagship
brand under Pidilite industries. Fevicol SH Xtra will be launched in Hyderabad
initially , followed by country wide launch in phased manner .

At present the managing director of Pidilite industries is Mr. M.B.PAREKH .

 GROWTH STRATERGIES AND PROGRESS
OVER THE YEARS
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
Balvantray Kalyanji 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. amalgamated with 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 amalgamated with
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 Carbazole Dioxiene
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.

- 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 commissioned with 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
abyeance due to dispute relating to the title of the same.

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.
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
its produt portfolio.

2003

-Pidilite Industries has tied up with Chota Jadugar, the 3D movie

distributed by Srinagar films to help its new launch AcronRangeela
Colours

-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.Mandar M.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

-Ms. Savithri Parekh has been appointed as the Company Secretary and
Compliance Officer.
2011

-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 Joint Venture Company in India for this purpose.

-Pidilite Industries Ltd has the name of the Registrar & Share
1 Name of the Company

1. Fevicol Company Limited

2. Pidilite International Pte. Limited

3. Pidilite Middle East Limited

4. Jupiter Chemicals( LLC)

5. Pidilite Specialty Chemicals Bangladesh Private Limited

6. Pidilite Bamco Limited

7. PT Pidilite Indonesia

8. Pidilite USA Inc.

9. Pidilite Innovation Centre Pte. Limited

10. Madhumala Traders Private Limited

11. Bhimad Commercial Co. Private Limited

12. Pidilite Industries Egypt S.A.E.

13. Pulvitec do Brazil Industria e Comercio de colas e Adesivos Ltda.

14. Bamco Supply And Services Limited

15. PIL Trading ( Egypt ) Company

Transfer Agent (RTA) of the Company has been changed from TSR
Darashaw Limited to TSR Darashaw Private Limited.

LIST OF SUBSIDAIRY COMPANIES

 SWOT ANALYSIS

Over the years Pidilite industries has grown at a large scale in India today by following
certain stratergies which has lead to one of the most successful adhesive manufacturing
industry in India.
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 Research and Development centre to cater to the growing need for innovative
products and services
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 organizesmany creative competition 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 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.
 GROWTH STRATERGY
MARKET EXPANSION THROUGH CUSTOMER
SATISFACTION
 1. CORPORATE SOCIAL RESPONSIBILITY POLICY

Preamble Corporate Social Responsibility (CSR) is linked to sustainability. Such decisions

are mainly based on the social and environmental consequences. It is the Companys intent to
make a positive difference to society. Focus areas: The Company supports various bodies in
carrying out activities in the areas of rural development, education, health care, general
semantics etc. CSR Objectives To attain its CSR objectives in a professional manner and
integrated manner, the main objectives are:

(1) To promote, carry out, support activities relating to: Education and Training including in
Science and Technology, Humanities etc; Healthcare; Welfare of Children, Women, Senior
Citizens, and Differently Abled Persons; Employment enhancing Vocational skills;
Sanitation; Water management; Agriculture; Horticulture; promotion of Culture; Art & Craft;
Conservation of Natural Resources; Promotion and development of traditional Arts &
Handicrafts; Employment Generation; Environment Sustainability; Science & Technology;
Rural Development; Animal Welfare; welfare and development measures towards reducing
inequalities faced by Socially and Economically Backward groups; and such activities may
include establishing, supporting and / or granting aid to institutions engaged in any of the
activities referred to above.

(2) To conduct and support studies & research; publish and support literature, publications &
promotion material; conduct and support discussions, lectures, workshops & Seminar in any
of the areas covered above.

(3) To promote, carry out, support any activities covered in Schedule VII to the Companies
Act, 2013, as amended from time to time. Projects or Programs Various activities may be
undertaken on the basis of objectives as set out herein as projects or programs. Such projects
or programs may be undertaken through a registered trust or registered society or a company
established by the Company or by its holding or subsidiary Company or associate company
or through such agencies with established track record of at least three financial years.
Constitution of CSR committee: The Following Directors are presently members of CSR
Committee: 1. Shri Sanjeev Aga (Independent Director) 2. Shri N.K.Parekh 3. Shri
A.B.Parekh Shri M.B.Parekh shall be a permanent invitee in the Committee meetings. The
Committee shall be empowered to select programs in line with the objectives of the CSR
Policy. Budget The Company proposes to spend 2% of the Net profit on Corporate Social
Responsibility (CSR). Net Profit shall be calculated as per the provisions of Companies Act,
2013 or such other legislation as may be applicable from time to time. CSR expenditure CSR
expenditure shall include all expenditure including contribution to corpus for projects or
programs relating to CSR activities approved by the Board on the recommendation of its CSR
Committee. Surplus arising out of CSR activities Any surpluses arising out of CSR projects
or programmes or activities shall not form part of the business profits of the Company.
Geographical Locations Considering the accelerated social benefit that will be derived if the
Company focuses its activities in one geographical area /location, the Company proposes to
undertake most of its Corporate social responsibility initiatives in the Mahuva / Bhavnagar
area in Gujarat. This will not just exploit the benefits of synergy, it will also exploit the
extensive groundwork and momentum of past CSR activities in and around the Mahuva /
Bhavnagar area in Gujarat. Process The CSR Committee shall institute a transparent
monitoring mechanism for implementation of the Corporate Social Responsibility projects or
programs or activities undertaken by the Company and significantly higher engagement for
the community.

2. PIDILITE INDUSTRIES LIMITED WHISTLE BLOWER POLICY

1. Preface: Pidilite Industries Limited is committed to adhere to the highest standards of

ethical, moral and legal conduct of business operations. The Company, in order to maintain
these standards has adopted the Code of Conduct, which lays down the principles and
standards that should govern the actions of the Employees in the course of conduct of
business of the Company. Any actual or potential violation of the Code, howsoever
insignificant or perceived as such, would be a matter of serious concern for the Company.
The Company has also established a mechanism called Sampark which is a one-stop
solution provider for all the employees to express themselves, their views and thoughts
openly. The role of the stakeholders in pointing out such violations of the Code cannot be
undermined. It is therefore imperative for the Company to have a Whistleblower Policy (the
Policy). The objective of the Policy is for directors and employees, who have concerns about
suspected misconduct, to come forward and express these issues without fear of punishment
or unfair treatment.
2. Policy: The Whistleblower policy intends to cover serious concerns that could have
impact on the operations and performance of the Company and should not be used for taking
up personal grievances. Employees are encouraged to raise operational issues not covered
under this Policy with the respective division heads.

3. Definitions: The definitions of some of the key terms used in this Policy are given below.
Terms not defined in the policy shall have the meaning as per the Companies Act, 2013.

a. Employee means every employee of the Company, its subsidiaries or Joint Venture
Companies (whether working in India or abroad), including the Directors in the employment
of the Company.

b. Investigators means those persons who are authorised, appointed, consulted or

approached by the Whistle officer or Whistle Committee or audit committee or the Chairman
thereof. Investigator includes, the auditors of the Company, the police or any other
investigating officer appointed as such. It is clarified that this does not take away any
authority of the Whistle officer or the Whistle committee to conduct any investigation into
any matter referred to him/ her/ it.

c. PIL Group means Pidilite Industries Limited, its subsidiaries and its Joint Venture
Companies.

d. Protected Disclosure means any communication made in good faith that discloses or
demonstrates information that may evidence unethical or improper activity.

e. Subject means an employee against or in relation to whom a Protected Disclosure has

been made or evidence gathered during the course of an investigation.

f. Whistle Blower: Whistle Blower means directors and employees of the Company.

g. Whistle Officer or Whistle Committee or Committee means an officer or

Committee of persons who is/are nominated/ appointed to conduct detailed investigation of
the disclosure received from the Whistle Blower and recommend disciplinary action.
Currently, Shri Apurva Parekh, Director is nominated as Whistle Officer. The Committee, if
appointed, should include Senior Level Officers of HR & BRG, Company Secretary, CFO,
Internal Audit and a representative of the Division/ Department where the breach has
occurred. Such Committee shall be appointed by the Audit Committee.
4. Protected Disclosure can be made for the following type of Concerns:

i. Unethical behaviour ii. Actual or suspected fraud iii. Violation of the Companys
Code of Conduct .This Policy should not be used as a route for raising malicious or
unfounded allegations against colleagues. The Whistle Blowers role is that of a reporting
party with reliable information. They are not required or expected to act as investigators or
finders of facts, nor would they determine the appropriate corrective or remedial action that
may be warranted in a given case. Whistle Blowers should not act on their own in conducting
any investigative activities, nor do they have a right to participate in any investigative
activities other than as requested by the Whistle Officer or Whistle Committee or the audit
committee or the Chairman thereof or the Investigators. Protected Disclosure will be
appropriately dealt with by the Whistle Officer or Whistle Committee or the audit committee
or the Chairman thereof, as the case may be.

5. Disqualifications: While it will be ensured that genuine Whistle Blowers are accorded
complete protection from any kind of unfair treatment, any abuse of this protection will
warrant disciplinary action. Protection under this Policy would not mean protection from
disciplinary action arising out of false or bogus allegations made by a Whistle Blower
knowing it to be false or bogus or with a mala fide intention.

6. Procedure: a. The Compliant in writing can be lodged by sending an email to

whistleblower@pidilite.co.in (OR) b. By following the procedure as may be applicable from
time to time.

7. Rights of Subject: Subjects will normally be informed of the allegations at the outset of a
formal investigation and have opportunity for providing their inputs during the investigation.

8. Duties / Responsibilities of Subject: Subjects have a responsibility not to interfere with

the investigation. Evidence shall not be withheld, destroyed or tampered with, and witnesses
shall not be influenced, coached, threatened or intimidated by the Subjects.

9. Direct access to the Chairman of the Audit Committee In exceptional cases, where the
Whistle blower is not satisfied with the outcome of the investigation carried out by the
Whistle officer or the Committee, he/ she can make a direct appeal to the Chairman of the
Audit committee. 3
 10. Decision: If an investigation leads the Whistle Officer or Whistle Committee, to conclude
that an improper or unethical act has been committed, the Whistle Officer or Whistle
committee shall recommend to the management of the Company to take such disciplinary or
corrective action as it deems fit.

11. Reporting: A quarterly report with the number of complaints received under the policy
and their outcome shall be placed before the Audit Committee.

12. Retention of documents: All Protected Disclosures in writing or documented along with
the results of investigation relating thereto shall be retained by the Company for a minimum
period of seven years.

13. Amendment: The Company for good corporate governance may establish further rules
and procedures, from time to time, to give effect to the intent of this policy The Company
reserves its right to amend or modify this Policy in whole or in part, at any time without
assigning any reason whatsoever. Any amendment to policy shall take effect from the date
when it is approved by the Board of Directors of the Company.

SUPPLY CHAIN MANAGEMENT

An organizations supply chain is integrally linked to its successful growth, and with
mounting pressure to deliver multiple, often conflicting objectives of cost optimization,
flexibility, and excellent customer service, enterprises often struggle to manage all the
inherent trade-offs and complexities. An integrated supply chain operations strategy is
imperative for enterprises to manage these trade-offs.

pidilites experienced supply chain consultants help you meet your business goals through
their deep experience and established methodologies to assess, define and implement
enabling supply chain capabilities (people, process, and technology) to meet business
objectives.

Pidilite service offering includes:

Procurement 360

Our Procurement 360 is a comprehensive solution that:

o Is a complete, end-to-end, source to pay service designed to assess and help organization
identify, prioritise and close performance gaps
o Helps procurement directors and CPOs gain credibility with senior leadership
 o Increases the effectiveness of procurement
o Delivers Tangible saving across 5-20% savings from sourcing programs
o Reduces OPEX up to 7% through adoption of best-in class process and capabilities
o Leverages best-in class tools and frameworks to help an organisation put in place the right
enablers

Supply Chain Risk Resilience

Pidilite's Incident Management (IM) solution helps you manage your supply chain risks
through:

o Better ability to anticipate risk

o Revenue protection by proactive risk management
o Ability to take coordinated actions during a disaster situation
o End-to-end supply chain visibility during business as usual situations

Supply Chain Opportunity Diagnostic (SCOD)

An end to end Supply chain data driven diagnostic framework and toolset developed to assess
an organisation's supply chain
o Comprehensive set of best practices and benchmarks to assess potential opportunity areas
across the domains of process, technology, people, strategy
o Business case generator to develop financial case underpinning recommendations

MANAGEMENT DISCUSSION & ANALYSIS

CONCLUSION

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 slow down in
the sales growth, the Company undertook several cost conservation initiatives so as to limit
the increase in costs. Consequently EBIDTA (earnings before interest, taxes, depreciation,
exceptional items and foreign exchange differences) excluding non-operating income grew
by 12.5%. As required by the Companies Act 2013, the Company reviewed and revised the
useful life of its fixed assets. As a result depreciation charge for the year increased and is
higher than last year by ` 391 million. During the year, the Company acquired the adhesive
business of Bluecoat Pvt Ltd on a slump sale basis. The intangibles acquired along with the
business are being amortized and this together with the higher depreciation rates, resulted in a
57% increase in the depreciation and amortization charge. Non operating income was
marginally lower than last year. Based on an independent valuation, the Company made an
impairment provision of ` 127 million towards its investment in Pulvitec, the Brazilian
subsidiary. During the year, the Company offered voluntary retirement to its workmen in its
units in Panvel, Kamothe and Taloja for which a charge of ` 49 million was taken.
Consequently Profit before Tax grew by 5.9% and Profit after Tax grew by 7.1%.

On a consolidated basis, net sales grew by 13.1%. During the financial year, the Company
acquired 70% shareholding in Nina Waterproofing Systems Private Ltd. (NWSPL), making
NWSPL a domestic subsidiary of the Company. Subsequently, in April, 2015, NWSPL
acquired the water proofing business of Nina Concrete Systems Private Ltd. on a slump sale
basis. NWSPL is engaged in the business of supply and installation of waterproofing systems.
It may be noted that in FY 2013-14 the Company had set up two domestic subsidiaries
namely Building Envelope Systems India Ltd (BESI) and Percept Waterproofing Services Ltd
(PWSL). The results of the current year include the full year performance of these
subsidiaries. The performance of overseas subsidiaries have shown improvement as
compared to the previous year. While aggregate sales of overseas subsidiaries grew by
14.2%, aggregate losses (PBT) declined from ` 180.1 million to ` 20.2 million this year. The
Company along with its wholly owned subsidiary, Pidilite International Pte Ltd has
incorporated a subsidiary Company, namely Pidilite Chemical PLC, in Ethiopia for
manufacturing of adhesives, paints, varnishes etc.

BIBLIOGRAPHY

Referencences from books and papers

Business today magazine/pidilite management

Economic times/balvant parekh and history of company

Links
http://www.pidilite.com/financials-reports.html
http://www.pidilite.com/financials-performance.html
https://www.google.co.in/?
gfe_rd=cr&ei=XFi_VNbCOJLD4AL9ioCwCw&gws_rd=ssl#q=supply
%20chain%20management%20of%20pidilite
http://www.slideshare.net/verma_rhythm/pidilite-11560495?
next_slideshow=1
http://www.moneycontrol.com/company-
facts/pidiliteindustries/history/PI11#PI11
http://www.moneycontrol.com/news/pidiliteindustries/business-PI11-
6months-1.html#PI11
http://www.moneycontrol.com/stocks/sectors/chemicals.html#PI11
http://economictimes.indiatimes.com/pidilite-industries-
ltd/stocks/companyid-10460.cms
https://en.wikipedia.org/wiki/Pidilite_Industries
https://search.1and1.com/find?
q=pidilite+adhesives&ae=10000&at=4&lang=en&mkt=in&origin=29&m
ty=b&kwd=pidilite+adhesives&net=g&cre=55969089785&pla&mob&so
u=s&aid&adp=1s5&kwid=kwd-
61159454548&agid=16999650545&clickid=16845645461839217078&d
ate=20141009