Pidilite Industries Ltd

Pidilite Industries Limited is one of India's leading manufacturers of adhesives, sealants, waterproofing solutions and specialty chemicals. The company is best known for Fevicol, which is widely used in furniture making and woodworking. It also owns popular brands such as Fevikwik, Dr. Fixit, M-Seal, Roff, Fevistik, Araldite and Fevicryl.

Established in 1959, Pidilite has expanded from an adhesive manufacturer into a company serving households, carpenters, contractors, furniture manufacturers and industrial businesses. Its products are used in everyday repairs, construction, home improvement, packaging, footwear manufacturing and several other industries.

How Does Pidilite Industries Make Money?

Pidilite earns money by manufacturing and selling adhesives, construction chemicals, waterproofing products and other specialty chemical solutions. Its products reach customers through distributors, retailers, hardware stores and direct business relationships.

The company operates through two main business segments.

1. Consumer and Bazaar (C&B)

Consumer and Bazaar is Pidilite's largest business, contributing approximately 82% of its standalone sales in FY26. This segment primarily serves households, carpenters, contractors, painters and other professionals.

It includes three major product categories.

• Adhesives and sealants: Products such as Fevicol, Fevikwik and M-Seal are used for furniture making, bonding materials, fixing broken items and sealing gaps.
• Waterproofing and construction chemicals: Brands such as Dr. Fixit and Roff provide solutions for preventing water leakage, installing tiles and protecting buildings.
• Art and craft products: Fevicryl and Fevistik cater to students, artists and hobbyists through paints, glue sticks and other creative products.

A major advantage of this business is repeat demand. Carpenters regularly use Fevicol for furniture manufacturing, while contractors require waterproofing and construction chemicals for new projects and repairs.

Pidilite's established brands and extensive distribution network help it reach these customers across India.

In Q2 FY27, Consumer and Bazaar revenue grew 20.7% year-on-year, supported by 11.1% underlying volume growth. This indicates that growth was supported by higher product sales volumes, alongside changes in pricing and product mix.

2. Business to Business (B2B)

Pidilite's B2B segment supplies industrial adhesives, resins, pigments and other specialty chemical products to businesses.

These products are used in industries such as packaging, footwear, textiles, construction and manufacturing. For example, industrial adhesives are used to bond materials during production, while resins and specialty chemicals serve different manufacturing requirements.

Unlike the Consumer and Bazaar segment, where products are generally sold through retail and distribution channels, the B2B business focuses on supplying materials and solutions to industrial customers.

The B2B segment contributed approximately 18% of Pidilite's standalone sales in FY26.

In Q2 FY27, B2B revenue increased 21.8% year-on-year, supported by 9.2% underlying volume growth. However, segment profit before interest and tax declined 3.4%, showing that higher sales did not translate into higher operating profits during the quarter.

Pidilite's Product Portfolio and Market Presence

Pidilite operates across several product categories, reducing its dependence on any single product or customer group.

In FY26, adhesives and sealants accounted for approximately 53.4% of standalone sales, making them the company's largest product category. Construction and paint chemicals contributed 22.6%, while art and craft materials and other products accounted for 5.6%. The remaining sales came from industrial adhesives, resins, pigments and other specialty products.

The company operates in more than 80 countries, supported by 32 manufacturing plants, 29 co-makers and over 5,900 distributors. Its international operations include manufacturing facilities in Thailand, Dubai, Egypt, Bangladesh, Sri Lanka and Kenya.

This network allows Pidilite to serve individual consumers, small businesses and large industrial customers across different markets.

What Drives Pidilite Industries' Growth?

Pidilite's business growth is closely linked to demand from housing, construction, furniture manufacturing, home improvement and industrial production.

Its established brands, including Fevicol and Dr. Fixit, help the company maintain a strong presence across its key product categories. The company's distribution network also supports sales by making products available through retailers and dealers.

Another growth driver is product innovation. Pidilite continues to introduce new adhesives, waterproofing solutions and construction chemicals to meet changing customer needs and expand into new categories.

However, the company's profitability is influenced by raw material prices, which can fluctuate with changes in global chemical and petrochemical markets.

This was visible in Q2 FY27, when consolidated material costs increased 38.3% year-on-year, compared with 21.1% growth in net sales. As a result, Pidilite's EBITDA margin declined from 24% to 20.5%, despite healthy demand for its products.

Going forward, Pidilite's growth will depend on continued demand from its consumer and industrial customers, expansion into new product categories and its ability to manage input costs while maintaining profit margins.