INTRODUCTION

Thechemical industrycomprises thecompaniesthat produce industrialchemicals. Central to the modernworld economy, it convertsraw materials(oil,natural gas,air,water,metals, andminerals) into more than 70,000 differentproducts.Although thepharmaceuticalindustry is often consideredachemical industry, it has many different characteristics that put it in a separate category. Other closely related industries includepetroleum,glass,paint,ink,sealant,adhesive, andfood processing manufacturers.Chemical processes such as chemical reactions operate inchemical plantsto form new substances in various types of reaction vessels. In many cases the reactions take place in special corrosion-resistant equipment at elevated temperatures and pressures with the use of catalysts. The products of these reactions are separated using a variety of techniques includingdistillationespeciallyfractional distillation, precipitation,crystallization,adsorption,filtration,sublimation, anddrying.

GDP % Contribution to the Indian Economy

Chemical industry, one of the earliest of all Indian industries contributes considerably to Indian economy and has been doing so since the times of independence. It manufactures 70,000 types of products ranging from toiletries and plastics, to cosmetics, petrochemicals, pharmaceuticals, fertilizers and many more. The large chemical industry contributes around 7 % annually to the GDP of India.

SOURCE-LISTDOSE.COMPromoters of the Company and company snapshot

Shareholding belonging to the category: "Promoter and Promoter Group"No.Name of the ShareholderTotal Shares heldShares pledged or otherwise encumbered

NumberAs a % ofgrand total(A) + (B) + (C)Number% of Total shares heldAs a % ofgrand total(A) + (B) + (C)

1Abha Ajay Parekh1,968,0000.38---

2Ajay Balvantray Parekh49,148,8449.58---

3Ami Ajay Parekh4,372,1660.85---

4Amrita Ajay Parekh1,968,0000.38---

5Anuja Ankur Shah187,6000.03---

6Apurva Narendrakumar Parekh3,584,9100.7---

7Bharati Narendrakumar Parekh8,906,0861.74---

8Darshana Bimal Mody6,500,0001.27---

9Gulabben Himatlal Parekh261,7160.05---

10Harish Himatlal Parekh2,076,5920.41---

11Harshada Harvadan Vakil51,9000.01---

12Harvadan42,3000.01---

13Himatlal Kalyanji Parekh4,811,6300.94---

14Indumati Chimanlal Parekh40,3680---

15Ishita Rajiv Amersey2,901,6060.57---

16Jasna Raoul Thackersey3,615,1260.71---

17Jimeet D Sanghavi91,9000.02---

18Kalpana Apurva Parekh6,664,3341.31---

19Kamalini Rashmikant Parekh821,9340.16---

20Kanta Balvantray Parekh3,385,4100.66---

21Madhukar Balvantrayparekh56,977,56811.11---

22Mala Madhukar Parekh9,360,9921.83---

23Malay Rashmikant Parekh161,6000.03---

24Monisha Harish Parekh200,0000.04---

25Mrudula Sushilkumar Parekh3,512,1200.69---

26Narendrakumar Kalyanji Parekh54,332,17810.59---

27Panna Deepak Sanghavi80,1660.02---

28Pareet D Sanghavi95,6000.02---

29Parul Harish Parekh1,039,2080.2---

30Purvee Apurva Parekh800,0000.16---

31Rashmikant Himatlal Parekh2,357,3780.46---

32Sushil Kumar Kalyanji Parekh42,608,6368.31---

33Urvi Malay Parekh40,0000.01---

34Devkalyan Sales Private Ltd26,074,2805.09---

35Harton Private Limited12,207,6342.38---

36Ishijas Chemical Pvt Ltd24,630,0384.8---

37Kalva Marketing And Services Ltd1,382,6280.27---

38Parekh Marketing Ltd796,7000.16---

39Parkem Dyes & Chemicals Pvt Ltd1,276,5100.25---

40Pidichem Pvt Ltd7,614,9161.49---

41The Vacuum Forming Company Pvt Ltd11,462,1862.24---

42Trivenikalyan Trading Pvt Ltd463,0400.09---

Total358,873,80070---

Source-MONEY CONTROL.COM

SNAPSHOT

Pidilite Industries Limited(BSE:500331,NYSE:MMM) is the largestadhesivemanufacturer inIndia.[3]It also has worldwide presence in adhesives, art material, construction chemicals and other industrial chemicals.Pidilite's most famous product is theFevicolrange of adhesives. Its other famous brands are Fevikwik",Dr.fixit,Cyclo,Ranipal, Hobby idealM-sealandAcron.

The Fevicol brand, Pidilite's most recognized adhesive brand

Pidilite's corporate office is located inAndheri(East),Mumbai. The company has manufacturing facilities at various locations in India, includingMahad(Maharastra),Vapi(Gujarat)Baddi(Himachal Pradesh) andKala Amb(Himachal Pradesh). It also makesFevi KwikIndia's first ever One Drop Instant Adhesive. This brand is the most popular Instant Adhesive in South Asian Countries. The Company was founded in 1959.

Product Profile & Target Market

Pidilite ProductsThe product range of Pidilite includes Adhesives and Sealants, Construction and Paint Chemicals, Art Materials, Industrial and Textile resins and Organic Pigments, Synthetic Organic Pigments and Industrial Organic Pigments and Preparations.Pidilite Adhesive Products

The product range of Pidilite includes Adhesives and Sealants, Construction and Paint Chemicals, Art Materials, Industrial and Textile resins and Organic Pigments, Synthetic Organic Pigments and Industrial Organic Pigments and Preparations. Pidilite products conform to global quality standards and are exported to developing and developedcountries all over the world.

Wood grip Adhesive

It has in store for our customers, optimum quality wood grip that are procured from the certified vendors of the industry. These wood grip adhesive is used for bonding wood, plywood, laminates and veneers, particle board, block board, hardboard, mdf to each of the substrates. To meet the specific requirements of our customers, we are offering these adhesives in the package size of 20 kg and 50 kg. Our valued customers can buy these adhesives from us at market leading prices.Features: high adhesion excellent stiffness temperature resistant excellent bond strength

Textile Adhesives

It offers complete range of adhesives which are used for different purposes in various types of industries.

Fevitite Adhesives

It offers fevitite in bulk as well as small packaging which is widely used as industrial adhesives.

Fevicol Adhesive

It offers entire range of fevicol I. E. Fecicolsh, fevicol 998 and others as per the needs of our customers.

Market Share of the company

As a flagship product of the Rs.137.72 billion Pidilite Industries, Fevicol commands a 70% market share in the white glue segment. Today over 40% of Pidilites turnover comes from Fevicol while the rest comes from its other brands such as Ranipal, M-Seal and others.

Competitor Analysis

Historical Growth

The Indian chemicals industry, which earned revenues in the range of $ 155-160 billion in 2013, is likely to grow at a rate of 11-12 percent in the next two to three years, according to Frost & Sullivan, a business consulting firm. Owing to reduced industrial output, commodity and bulk chemicals are likely to experience slow growth, while the specialty chemicals segment is expected to show considerable growth.

Personal care ingredients and additives, knowledge chemicals like Active Pharmaceutical Ingredients (APIs), paints and coatings, and construction and water chemicals are some of the segments that are likely to perform well. Even in 2013, these sectors showed good growth and companies in this segment have been investing and expanding, said Chaitra Narayan, Associate Director, Chemicals, Materials & Foods Practice, and Frost & Sullivan.

Reasons for the Growth

High-value products Product driven market Requirement of raw material

SWOT Analysis

SWOT Analysis

Strength1. 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 R&D center to cater to the growing need for innovative products and services.

Weakness1. 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.

Opportunity1. Pidilite organizes many creative competitions 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.

Threats1. 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.

STP

STP

SegmentCustomers looking for ease-of-use and value-for-money products.

Target GroupCarpenters, plumbers, housewives, constructors/masons ,etc.

PositioningPioneer and market leader in consumer adhesives and specialty chemicals in India.

MARKET PLANNING1) Market strategy for other brands become centric to successful brands.

2) Customer loyalty is towards the brand.

3) Benefits the customer in the long run.

4) Brand image often become than the company image.

5) Ads are catchy and they help in gaining the market share

Comparison of sales of company for past 3 years

Marketing and promotional strategy of the company

ACETECH

Dr. Fixit and Roff participated in ACETECH, aConstruction and building material trade event, in 5 cities

Fevicol Science Project Challenge

The third year of the Fevicol Science Project ChallengeContinued to inspire young minds to challenge their ownCreativity and convert classroom learning into workableConcepts and models.Rangeela Tempera

Rangeela Tempera Colors launched an on-pack promotion & TV campaign with popular cartoon character ChhotaBheem. The winners of the slogan contest got an opportunity to meet & interact with ChhotaBheem at live events in 6 cities.

Organization Structure

Training needs of the company

Recruitment & Selection Recruitment of all positions up to Regional Sales Manager & equivalent level at Head Office. Ensure quality intake of talent in a Cost effective way within the specified time frame (cycle time) / ensure proper compliance of the recruitment process.

Induction & Training Ensure proper & timely induction for all new employees. Co-ordinate with Central L&D team for training needs / ensuring that employees are released for training as per the training calendar provided by the Corporate L&D group.

Performance & Systemo Ensure the entire process of Performance & Potential Management is completed in a timely manner as per the laid down process

Travelingo Undertake regular travel to all branches to understand employee issues and escalate unresolved issues.

Assist CEOs/Presidents in: o Manpower Planning & Budgeting for the Division / Function.o Ensuring that each employee in the Division is given a proper R & R/ KRA / KPIo Driving Corporate initiatives (employee engagement initiatives ) in the Div / Function

Exit Analysis on Exit analysis for all employees up to Regional Sales Manager & equivalent level at Head Office.

Regularly co-ordinate for all HR related activities of the Division with Corporate HR

Analysis of JDs and Job Specifications posted by the company on online-job portals

Organization culture

Top Reasons to work in PIDILITE Brand Name78% Learning & Development57% Career Growth Opportunities48%Top Skills to Succeed Relationship Management54% Initiative42% Leadership42%

Porters Five Forces Model

Bargaining Power of SuppliersModerate and Will Remain ModerateChemical industry relies on supplies from a few large corporations (such as those in petrochemicals industry)Chemical producers have limited substitutes for inputs Most suppliers are not dependent on their sales to chemical manufacturersThreat of New EntrantsLow and Will Remain LowGovernment regulations and patentsSignificant capital requirementsIncumbents have superior efficiency and quality in production that may be difficult to imitateIntense R&D and human capital requirements

Industry RivalryHigh and IncreasingLarge number of competitors all competing for market shareAll are global competitors little room for expansionAll benefiting from economies of scale, so competing on priceLittle differentiation among current playersHigh fixed costs, and high exit costsThreat of SubstitutesWeak and Will Remain WeakBuyers tend to need specific chemicals as inputsThere really are no similar substitutes for chemicalsEven if another chemical can be used, it is most likely produced by the same Industry Players.Bargaining Power of BuyersModerate and Will Remain ModerateChemicals are important inputs to many industriesThose in chemical industry have many end-customers; dont rely on one customerThe products (chemicals) are not greatly differentiatedUsually purchased through long-term contracts, so switching costs are high

GWP CONTRIBUTION

CONCLUSION

After overall research and preparation of the project I found that the Pidilite has strong brands, a wide distribution network and an excellent reputation amongst users of its products. Apart from the household segment, the product enjoys a loyal following among service provider like carpenters, plumbers and mechanics. Pidilite has a history of acquiring brands at reasonable valuations and growing them steadily.Pedilite has shown steady growth in last 5 years with sales and profits growing at a CAGR of 12%and 19% respectively. This performance has been spearheaded by the companys sharp focus on the consumer segment where it enjoys strong pricing power

BIBLIOGRAPHY

WEB SITES ACE ANALYZER MONEY CONTROL TIMES OF INDIA IBEF.ORG MBASKOOL.COM NAUKRI.COM FUNDOODATA.COM LISTDOSE.COM PIDILITE.COM QUOTES.WSJ.COM

BOOKS

FINACIAL MANAGEMENT : I M PANDAY MARKETING MANAGEMENT : PHILLIP KOTLAR HUMAN RESOURCE MANAGEMENT: P SUBARAO

ANNUAL REPORT PIDILITE 2013-14

BCG MATRIX

PIDILITE INDUSTRY is in STAR situation because as it one company which have the maximum market share of 42% as compare to its competitors and on the other hand pidilite belong to chemical industry and which is growing on at at a very fast pase thus in future it will have a bright future

PLC

PIDILITE is in its maturity stage as company is coming up with various product line such as favi quick, Dr. fixit, favi tweet, ect. And pidilite have its present in the market since 1959 and since then it is growing and earning profit.

ABOUT PEDILITEPidilite Industries

Parent CompanyPidilite Industries Ltd.

CategoryConsumer chemicals/ Specialty chemicals

SectorIndustrial Products

Tagline/ SloganBuilding Bonds

USPMarket leader in adhesives, sealants, polymer emulsions, hobby colors and construction chemicals in India.

DESCRIPTIONPidilite Industries Ltd.Pidilite Industries Ltd. manufactures and sells adhesives and sealants, construction chemicals, hobby colors and polymer emulsions. It operates through two business segments: Branded Consumer & Bazaar Products and Industrial Chemicals. The Branded Consumer & Bazaar Products business segment products include adhesives, sealants, art materials, and construction and paint chemicals. The Industrial Chemicals business segment covers products, such as industrial adhesives, synthetic resins, organic pigments, pigment preparations and surfactants. Pidilite Industries was founded in 1959 and is headquartered in Mumbai, India.

KEY PEOPLEPidilite Industries Ltd.Board of DirectorsName/TitleCurrent Board Membership

Madhukar Balvantray Parekh,70Executive Chairman & Managing DirectorPidilite Industries Ltd., Vinyl Chemicals (India) Ltd., Kalva Marketing & Services Ltd., Fevicol Co. Ltd., Excel Industries Ltd.

Narendrakumar Kalyan Parekh,76Joint Managing Director & Executive DirectorVinyl Chemicals (India) Ltd., Pidilite Industries Ltd., Kalpaj Sales & Agencies Pvt Ltd., Ishijas Chemicals Pvt Ltd., The Vaccum Forming Co. Pvt Ltd., Pargro Investments Pvt Ltd., Dr. Fixit Institute of Structural Protection & Rehabilitation, Fevicol Co. Ltd., Parkem Dyes & Chemicals Pvt Ltd.

Sanjeev Aga,62Independent Non-Executive DirectorIdea Cellular Towers Infrastructure Ltd., Swinder Singh Satara & Co. Ltd., Idea Cellular Towers Infrastructure Services Ltd., Idea Cellular Services Ltd., Idea Cellular Ltd., Ocean Dial Investment Funds Plc, Aditya Birla Retail Ltd., Aditya Birla Management Corp. Pvt Ltd., Pidilite Industries Ltd., Mahindra Holidays & Resorts India Ltd., Subex Ltd., ING Vysya Bank Ltd.

Bansidhar Sunderlal Mehta,79Independent Non-Executive DirectorCEAT Ltd., JB Chemicals & Pharmaceuticals Ltd., Sasken Communication Technologies Ltd., Procter & Gamble Hygiene & Health Care Ltd., Gillette India Ltd., Pidilite Industries Ltd., NSDL e-Governance Infrastructure Ltd., SBI Capital Markets Ltd., Atul Ltd., Sudarshan Chemical Industries Ltd., IL&FS Investment Managers Ltd., Century Enka Ltd., Jumbo World Holdings (BVI) Ltd., Housing Development Finance Corp. Ltd.

Ranjan Mohanlal Kapur,72Independent Non-Executive DirectorAbbott India Ltd., EBS Worldwide Services Pvt Ltd., Ray + Keshavan Design Associates Pvt Ltd., Annik Technology Services Pvt Ltd., Elucido Media Networks Pvt Ltd., Bates India Pvt Ltd., Tagit India Pvt Ltd., Sercon India Pvt Ltd., Quasar Media Pvt Ltd., MIRC Electronics Ltd., Nimbus Communications Ltd. (India), Pidilite Industries Ltd., Rediffusion Dentsu Young & Rubicam Pvt Ltd., Groupm Media India Pvt Ltd., Eon Premedia Pvt Ltd.

Apurva Narendrakumar Parekh,43Executive DirectorJupiter Chemicals LLC, Synapse Technologies, Inc. (Virginia), Pidilite USA, Inc., Parkem Dyes & Chemicals Pvt Ltd., Kalpaj Sales & Agencies Pvt Ltd., Sarla Technologies Middle East LLC, Pidilite Bamco Ltd., Pidilite Speciality Chemicals Bangladesh (Pvt) Ltd., Pidilite Industries Egypt SAE, Jess Trading India Pvt Ltd., Pidilite Industries Ltd.

Yash Paul Mahajan,77Independent Non-Executive DirectorPidilite Industries Ltd., Punjab Tractors Ltd., Swaraj Automotive Ltd.

Ajay Balvantray Parekh,47Executive DirectorPidilite Industries Ltd., Ishijas Chemicals Pvt Ltd., Vacuum Forming Co. Pvt Ltd., Vapkon Finance & Investment Pvt Ltd., Abhajay Trade & Commerce Pvt Ltd., Pargro Investments Pvt Ltd., Pidilite USA, Inc., Pagel Concrete Technologies Pvt Ltd., Pidilite Innovation Centre Pte Ltd., Modern Laboratories Pvt Ltd., Pidilite Industries Trading (Shanghai) Co. Ltd.

Bharat Tilakraj Puri,53Independent Non-Executive DirectorPidilite Industries Ltd.

Narendra Jamnadas Jhaveri,79Independent Non-Executive DirectorSiemens Healthcare Diagnostics Ltd., ICICI Securities & Finance, Phoenix ARC Pvt Ltd., Cadila Pharmaceuticals Ltd., TAIB Capital Corp. Ltd., Indian Merchants' Chamber, National Securities Depository Ltd., Juniper Hotels Pvt Ltd., Afcons Infrastructure Ltd., Indian Aluminium Co. Ltd., Siemens Ltd., Pidilite Industries Ltd., Hindalco Industries Ltd., Edelweiss Financial Services Ltd., Samruddhi Cement Ltd., GVFL Ltd.

Uday Chander Khanna,64DirectorPfizer India Ltd., Thomas Cook (India) Ltd., Bata India Ltd., Coromandel International Ltd., Lafarge India Pvt Ltd., Castrol India Ltd., Pidilite Industries Ltd., NRB Bearings Ltd.

All Executives Madhukar Balvantray ParekhExecutive Chairman & Managing Director Narendrakumar Kalyan ParekhJoint Managing Director & Executive Director Sanjeev AgaIndependent Non-Executive Director Bansidhar Sunderlal MehtaIndependent Non-Executive Director Ranjan Mohanlal KapurIndependent Non-Executive Director Apurva Narendrakumar ParekhExecutive Director Yash Paul MahajanIndependent Non-Executive Director Ajay Balvantray ParekhExecutive Director Bharat Tilakraj PuriIndependent Non-Executive Director Narendra Jamnadas JhaveriIndependent Non-Executive Director Uday Chander KhannaDirector Savithri ParekhSecretary & Chief Compliance Officer

AVERAGE GROWTH RATESPidilite Industries Ltd.

Past Five Years Ending 03/31/2014 (Fiscal Year)

Revenue+18.88%Net Income+12.48%Earnings Per Share+12.96%

Capital Spending+23.83%Gross Margin+31.66%Cash Flow-6.09%

Working capital required

CURRENT ASEET-CURRENT LIABILITY

20142013

14371.2812789.85

7792.047834.82

6579.284955.03

DEBT EQUITY RATIO

LONG TERM DEBT/SHARE HOLDER FUND

20142013

77/20395.15=0.003:1602/17325=0.034:1

FINAL REPORT ON PIDILITE INDUSTRIES LTD

NAME-VIVEK KUMARPGDM 11ROLL No.DM14B54

Introduction This is the stage in which a new product is first made available in the market. In the introduction stage, customers are few, competition is less, sales are low, risk is high and profits are low or nil. There are heavy distribution and promotion expenses. This stage is full of risks and uncertainties. Prices are also high because(1) costs are high due to low level of output.(2) technological problems in production may not have been solved, and(3) high profit margins are required to support the heavy promotion expenditure. the product at the introduction stage requires high activity in promotion.

Growth If the product is popular with consumers, then sales will start to rise. It may be a rapid growth or a slower one. Rapid growths that fall away just as quick are called 'Fads'. That process is known as Growth.Advertising is often still heavy at this point.

MaturityOnce the product is well established and consumers are satisfied, then the product is widely accepted and growth slows down. Before long, however, a successful product in this phase will come under pressure from competitors. The producer will have to start spending again in order to defend the product's market position or introduce extension strategies.It may only be in the Maturity stage where companies will receive a return on their original expenditure and investment due to potentially high start up and development costs.

DeclineSooner or later sales fall due to changes in consumer tastes or new choices available from competitor's products.Again, extension strategies may be open to the company to keep the product alive. The product can be declined if there is no proper growth and the later stage which has been discussed above.

Use in MarketingThe product life cycle is an important concept in marketing. It includes stages that a product goes through from when it was first thought of until it is eliminated from the industry, at the end of its life. Not all products reach this final stage. Some continue to grow and others rise and fall.