Pidilite Industries Limited, known as Pidilite, is a publicly-traded organization of Indian roots and was established in the year 1951 by its founder Mr. Balvant Parekh. Pidilite is related to the industrial products industry as it manages specialty chemicals and consumer chemicals strategies. It is the market chief in construction chemicals, hobby colors, polymer emulsions, sealants, and adhesives.
It is India’s Most Trusted Brand of adhesives. The biggest bond of the organization is through the Fevicol family of products. Fevicol has become a household name that is today synonymous with adhesives. The brand has introduced many innovative products that have transformed the way carpentry trade operates in India.
Pidilite is a consumer-centric company committed to quality and innovation. For decades, they have been pioneering products for small to large applications, at home and in 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, their product portfolio is as diverse as it is ever-evolving.
Today, their brands are trusted household and industrial names, and they are the market leader in adhesives. A robust and growing network makes its products accessible across demographics and geographies.
History
Since its origin in 1959, Pidilite Industries Limited has been a pioneer in consumer and specialty chemicals in India. More than 66% of the organization’s sales come from products and segments it has spearheaded in India.
Pidilite’s product portfolio incorporates Adhesives and Sealants, Construction and Paint Chemicals, Automotive Chemicals, Art Materials, Industrial Adhesives, Industrial and Textile Resins, and Organic Pigments and Preparations. The more significant part of the products has been created through strong in-house R&D.
The organization’s sales were around 7000 Crores for the year 2018-19.
Check the Annual Report of 2019-20
Fevicol has gotten inseparable from adhesives to millions in India and is positioned among the most reliable brands in India. Apart from that, the star products of Pidilite include Dr. Fixit, Fevi Kwik, and Roff.
Pidilite is likewise developing its International presence through acquisitions and setting up manufacturing plants and sales offices in significant areas worldwide. Fevicol is currently the largest selling adhesives brand in Asia.
Business Segments of Pidilite
Timeline
1959 – Balvant Kalyanji Parekh founded Pidilite
1992 – Madhukar B. Parekh, son of Balvant Parekh takes over as the new Chairman and M.D.
1993 – Listed on NSE; valued at INR 60 crores
2010 – Sales doubled to Rs 3,442 crore; net profit trebled to Rs 460 crore
2014 –
- Valued at INR 19,880 crores
- Ranked among the best 100 brands of 2014 by Economic Times
- Pidilite received the Dun & Bradstreet Corporate Award 2014 in the chemical sector
- PIL Transitions from a professionally run family business to a family of professionals
2015 –
- Bharat Puri Appointed as Managing Director
- M B Parekh, Executive Chairman, PIL, honored with the EY Entrepreneur of the Year Award in the Consumer Products category
2016 – Awarded ‘Most Promising Company of the Year’ at CNBC-TV18 IBLA 2016 by the Finance Minister & Law Minister of India
Marketing Mix
Product – Pidilite Industries is one of the leading brands in India, making adhesives and different products. Pidilite item portfolio incorporates Adhesives and Sealants, Art Materials and Stationery, Fabric Care, Construction and Paint Chemicals, Automotive Chemicals, Textile Resins, and Organic Pigments and Preparations. Pidilite likewise has Industrial Specialty items like Industrial Adhesive, Footwear, Pigment powder, and Industrial gums.
Price
Pidilite being the market leader takes advantage of having high pricing power in all segments. It is effortless for Pidilite to pass on the significant expense of crude material to the consumer. They have Rs.5 as a value point for a no. of consumer items. It has helped them extend their market. Their retail margins vary around 12-25%, relying upon the products. Smaller players have higher margins, yet Pidilite gives a superior quality item, which helps them beat the smaller players.
Promotion
The slogan of Pidilite is “Building Bonds,” and it depicts the organization to the point. It has executed various marketing strategies to expand its image visibility towards the consumers. Pidilite has released several advertisement campaigns in electronic and print media through magazines, newspapers, billboards, radio, and well-known TV channels.
Additionally, it promotes via online platforms like its website, e-commerce sites, Facebook, Twitter, and YouTube.
Knowing the influence of big celebrities on the general public’s mindset, they’ve roped in Mr. Amitabh Bachchan to be their brand ambassador and act in their commercials.
Place
Pidilite utilizes different distribution channels to advance and market its items. Their products are sold through Hardware stores, stationery shops, Kirana stores, furniture stores, modern trade, and medical shops. It also sells directly to the end buyers. Its reach isn’t limited to tier 1 cities, yet it is expanding its reach in tier 2 and 3 cities and rural areas. Pidilite has over 4000 distributors supplying products to 4,00,000 retailers or vendors. Pidilite sustains excellent relations with intermediaries and suppliers, which gives them an edge over competitors.
Pidilite launched a training workshop for carpenters and additionally gave them a Fevicol furniture book displaying furniture plans.
SWOT Analysis
Strengths
- Market Leader
- Strong Branding Strategy
- Vast Product Portfolio
Weaknesses
- Over-dependence on specific brands
- Outsourcing of research
- Increasing dependence on acquired brands
Opportunities
- Project Parivartan
- International expansion
Threats
- Declining growth in the adhesive sector
- Slump in real estate
- Government policies
Also Read: Asian Paints – Redefining The Concept of Paints
#60YearsOfBuildingBonds
Founded in 1959, the adhesive brand Fevicol is commemorating its 60 years of operations. Dispatched with a solitary product, Fevicol today has more than 75 variations, for example, Marine, HeatX, Hi-per, EzeeSpray, among others.
As the adhesive brand completes 60 years of its essence in India, Ogilvy made a film that featured the USP of the item, that is, longevity. Described from the perspective of a sofa, the film mirrors the assumptions of Indian consumers. Rural India influences the background music, the sort of music usually heard at weddings.
Attempting to extend their influence on social platforms, Fevicol has asked consumers about their desk stories where they had written their names on a desk, which stays flawless. This campaign evoked the general public’s sentimentality, and once again, Fevicol proved its accurate grasp and understanding of the Indian mindset.
Famous Elephants
When Cersei Lannister, Queen of the Seven Kingdoms in HBO’s television show ‘Game of Thrones’ stated, “I wanted those elephants” in season seven’s debut episode, the Internet got new meme material. Lannister, who needed to reinforce her military with the incorporation of elephants, received an answer from Pidilite’s Fevicol through a Facebook post. “Apologies, Your Grace.” It added the line, “The elephants belong to House Fevicol! #FevicolKaJod”. The brand’s logo has two elephants who’ve been trapped in a back-and-forth for as long as 60 years.
The famous Fevicol logo was made during the ’70s by OBM’s (Ogilvy, Benson, and Mather) designer M. Swaminathan. At the time, P N Sarma was at the top of the agency. The thought was to make something easy to recall yet aesthetic to see. The two elephants have been tied to the brand from that point forward.
#MyFevicolAd
In November 2019, the brand launched a new campaign that invited the general public to reach out and submit their ideas and versions of the Fevicol advertisements. This created a significant impact on the Indian mindset as Fevicol had always been a “Desi” advertisement brand, and everyone was very enthusiastic about submitting their ideas.
