BY-UTKARSH SUHANE

SHUBHAM KESHARWANI

BACKGROUND

•Largest adhesive manufacturer in india.•Founded in 1959 by B.K Parekh(45 on Forbes Asia’s India Rich List )•Primarily focused on the need for a good adhesive for carpenters.•1969 – incorporated as Private Limited Company with name Parekh Dychem Industries.•1986- The company name was changed to PDI Chemicals private limited.•1989- Got the name Pidilite Industries Ltd.

RANGE OF PRODUCTS

•Fevicol is largest selling adhesive brand in ASIA.•It contributes 60% of total earning of pidilite

Adhesives & Sealants; 49%

Construction / Paint Chemicals; 19%

Art Materials & others; 9%

Industrial Resins; 8%

Organic Pigments &

Preparations; 7%

Industrial Adhesives ; 8%

STRENGTHS•Pidilite's main strength is their strong marketing/ advertising skills.•The USP of brand is ease of applying it. •Consistent quality, widespread distribution networks, and excellent customer relationships have been the key success factors for the Fevicol brand .• Fevicol is an immensely strong brand. It is so strong that anything that has a prefix 'Fevi' to it sells without any effort by the shopkeeper. • Pidilite earns 50% plus revenues from adhesives segment (Fevicol, M-Seal etc) whose brands have excellent recall value.

One of the main reasons for Fevicol's popularity is the creative marketing strategy.

The earthy humor in Fevicol ads brings a smile to everyone's face.Strong advertising and distribution has made fevicol a household name.

Pidilite spends between Rs 10 crore and Rs 15 crore on advertising Fevicol…

“Dum laga kar haisya, zor laga kar haisya""Fevicol ka mazboot jodh hai, tootega nahi““Pakde rehna chodna nahi”“Tode nahi jode”

WEAKNESSES• Sometimes the management seems to be a bit

overconfident about their advertising skills. • Pidilite seems to have strong R&D capabilities when it

comes to adhesives and home construction/care. But still lack in new innovations.

• Pidilite has grown its net profit at only 18% CAGR in the past 10 years.

• There are not many offers or schemes for carpenters, who are the largest consumers of the brand

• Lack of focus towards Middle East, European and American nations to increase market share and sales

OPPORTUNITIES• Below-the-line promotional activities like the Champions Club for

carpenters and Fevicol MR Buddy series which involve children with a knack for art and craft exhibiting their talent.

• Product variations and extensions such as Fevicol Marine, which can be used underwater and Fevicol Speedx, which binds things very quickly have been welcomed by the respective customers.

• The customer preference towards the purchase of wooden furniture is increasing day-by-day, which is a good signal for adhesive brands like Fevicol to rake in some sales.

•  Growth in the retail sector in India is a positive for Pidilite, especially the future growth of home specific stores like Home Town and Home Stop.

• 50% of their revenues are from adhesives/sealants and the raw material for this is petrochemicals which in turn is dependant on crude oil prices.

• There is obviously a threat from the small scale industries.

• 1. Araldite2. Bondtide3.Loctite

• Entry barriers for the adhesives industry are very few due to which new entrants can enter the market very easily.

• Global trade has been hit due to which exports are being affected.

THREATS

Sep 3, 2014 - "Yeh Fevicol se bhi mazboot jod hai (this

bond is stronger than that of Fevicol)" is a quote used

when Modi described the Indo-Japan relations.-

NARENDRA MODI

“toote dilo ke alawa sab kuch jode fevicol”...