Pidilite Industries Ltd
Pidilite Industries Ltd (PIDILITIND)

Pidilite Industries Ltd (PIDILITIND)

₹2800.650.34%

Key Stats

₹2770
Day's Price Range
₹2812.95
₹1988.55
52-Week Price Range
₹2918.95
1 Month Return5.5 %
3 Month Return29.53 %
1 Year Return15.39 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 16
106.14
EPS
Rank 11
₹26.38
BVPS
Rank 13
₹125.98
Dividend Yield
Rank 13
0.47%
ROE
Rank 7
21.18%
Price To Book Ratio
Rank 15
22.22
Debt To Asset
Rank 10
0.36

Company Information

A consumer and specialities chemical company Pidilite Industries Limited Pidilite was incorporated on 28th July 1969. Pidilite is the market leader in adhesives and sealants construction chemicals hobby colours and polymer emulsions in India. Its brand name Fevicol has become synonymous with adhesives to millions in India and is ranked amongst the most trusted brands in India. The companys product range includes Adhesives and Sealants construction chemicals craftsmen products polymer emulsions paint chemicals automotive chemicals art materials and stationery fabric care maintenance chemicals industrial adhesives industrial textile resins and organic pigments and preparations. Some of the companys major brands are MSeal Fevikwik Fevistik Roff Dr. Fixit Fevicryl Motomax and Hobby Ideas. Pidilite was the first company in India which started production of violet pigment in the year 1973. In 1984 the companys consumer product division was born and in 1989 the company entered fevicryl acrylic colours transform fabric and multisurface painting market. The Company made its maiden public offering of equity shares in the year 1993. During the year 1995 plants of the company in Mumbai and Vapi acquired an ISO 9001 certification. Also the plant at Mahad received an ISO 9002 certification in the same year. Fevicol the premier brand of the company ranked among the Top 15 Indian brands by FE Brandwagon Year Book 1997. After two years in 1999 Pidilite had acquired Ranipal leading brand of optical whitener and subsequently acquired MSeal leading brand of epoxy compounds in the year of 2000. In the identical year of 2000 itself Fevicol campaign won the Silver ABBY for the Campaign of the Century in India. The Company had launched Dr. Fixit range of Construction Chemicals in the year 2001 and had acquired Steelgrip leading brand of PVC insulation tape in India during the year 2002. Pidilite had again acquired the Roff brand of Construction Chemicals in the year of 2004. A whollyowned subsidiary in Singapore under the banner Pidilite International Pte Ltd was incorporated by the company in the year 2005 for its international operations encompassing the acquisition of overseas companies and joint ventures. Also in the same year 2005 Pidilite had acquired Chemson Asia Pte Ltd an existing Singaporebased company in the business of manufacturing waterproof coating and emulsion paints thereby adding to its existing and rapidlygrowing construction chemicals and paints range and the company had took over Jupiter Chemicals in Dubai. During the identical year of 2005 the company had incorporated a subsidiary namely Pidilite Do Brasil Desenvolvimento De Negocios Ltd in Sao Paulo Brazil and Pidilite Middle East Limited as an offshore company in the Jebel Ali Free Zone of Dubai. During the year 2006 Pidilite had acquired Tristar Colman brand and business Tristar Fine Art a market leader in brushes for drawing and painting and Bamco Thailand a Construction Chemical company. Also Pidilite had acquired the business and assets of Sargent Art Inc through a subsidiary Pidilite USA Inc Delaware. The Company had established its RD centre in Singapore under the banner Pidilite Innovation Centre Pte Ltd. Pidilite had demerged VAM manufacturing unit at Mahad of Vinyl Chemicals India Ltd into the company with effect from 1st April of the year 2007. During 200708 Fevicol 1K PUR and Fevicol Kwikgrab were introduced by the company to take care of special applications in building construction segment. Pidilite with its whollyowned subsidiaries had acquired assets and business of branded sealants and adhesives from Hardcastle Waud Manufacturing Co. Ltd and associates. The Company had acquired Bhimad Commercial Co. and Madhumala Traders by investing Rs 170000 each in February of the year 2008. Fevicol has been ranked No. 1 in Household Care Segment in June 2008.The Board of Directors of Pidilite Industries at its meeting held on 10 June 2013 decided to explore induction of a strategic partner for the Synthetic Elastomer Project.On 22 September 2014 Pidilite Industries announced that its Board of Directors has approved the acquisition of the adhesive business of Blue Coat Private Limited on a slump sale basis for a cash consideration of Rs 263.57 crore. On 12 December 2014 Pidilite Industries announced that the company along with its wholly owned subsidiary Pidilite International Pte Ltd. has incorporated a private limited subsidiary company in Ethiopia on 10 December 2014 in the name of Pidilite Chemical PLC for manufacture of adhesives mastics paints varnishes or similar coatings printing writing and painting inks etc. The Board of Directors of Pidilite Industries at its meeting held on 30 March 2015 approved investment in equity shares of Nina Waterproofing Systems Private Limited. The proposed shareholding of the company in Nina will be 70 thereby making Nina a subsidiary of the company. The initial investment of Pidilite Industries in Nina will be about Rs 23.33 lakh. The Board has also approved additional investment up to Rs 100 crore in Nina. On 16 April 2015 Pidilite Industries announced that its subsidiary Nina Waterproofing Systems Private Ltd. NWSP has acquired the waterproofing business of Nina Concrete Systems Private Ltd. NCS on a slump sale basis. PIL holds 70 of the paid up capital in NWSP. The waterproofing business under the brand name NINA was established in 1965. NINA is recognized as one of the leading waterproofing solution contractors in India. NINA has its major presence across the construction spectrum including residential commercial industrial institutional and infrastructure segments. On 25 November 2015 Pidilite Industries announced that the company along with its wholly owned subsidiary Fevicol Company Limited has on 20 November 2015 incorporated a company in the name of Wood Coat Private Limited to be engaged in all types of coatings for wood including wood stains fillers primers wood finish etc. On 30 November 2015 Pidilite Industries announced that Pidilite Lanka Private Limited a step down subsidiary of the company incorporated in Sri Lanka has acquired from CIC Holdings PLC the Chemifix trade mark and other brands associated with PVAC Adhesives business along with the commercial and technical knowhow relating to PVAC Adhesive business. CIC Holdings PLC is a large conglomerate in Sri Lanka and is involved in number of segment in Sri Lanka such as chemicals fertilizers pharmaceuticals agri chemical food products etc. On 25 April 2016 Pidilite Industries announced that its Board of Directors has approved execution of definitive agreements with INDUSTRIA CHIMICA ADRIATICA SPA ICA a leading wood finish manufacturer based in Italy. As part of the joint venture Pidilite Industries along with its wholly owned subsidiary Fevicol Company Limited will hold 50 of the shareholding in Wood Coat Private Limited the joint venture company and the remaining 50 of the shareholding will be held by ICA and Italcoats a partnership firm and distributor of ICA wood finishes in India. The joint venture company will initially engage in high technology wood finish business in India and other select countries. Wood Coat Private Limited is currently a wholly owned subsidiary of Pidilite Industries. The joint venture company will acquire the current wood finish distribution business of Italcoats and will be exclusive distributor of ICA wood finishes in India and other select countries. The joint venture company will also acquire technology and knowhow for manufacture of select wood finish products from ICA and shall be entitled to manufacture ICA wood finishes for marketing distribution and sales in India and other select countries. Pidilite Industries Board of Directors has approved an equity investment of up to Rs 63.75 crore on or before 15 May 2016 and a further equity investment of up to Rs 62.50 crore in accordance with the business requirements of the joint venture company. On 16 June 2016 Pidilite Industries informed stock exchanges that its two wholly owned subsidiaries Pidilite International Pte. Ltd and Pidilite Middle East Ltd have acquired shares of Nebula East Africa Private Limited NEAPL a company incorporated in Kenya. With this acquisition the wholly owned subsidiaries of the company hold 100 of the paid up share capital which is Kenyan Shillings 100000 equivalent to approximately USD 1000 in NEAPL. NEAPL is proposed to be engaged in the business as manufacturers importers exporters buyers sellers etc. in adhesives sealants and all other products used for making or producing adhesives and sealants. The Board of Directors of Pidilite Industries at its meeting held on 26 December 2017 approved buyback proposal for purchase by the company of its own fully paid up equity shares of Re 1 each not exceeding 50 lakh equity shares being 0.975 of the total paid up equity capital of the company at a price of Rs 1000 per share for an aggregate amount of up to Rs 500 crore. The proposed buyback will be through the tender offer route.On 9 February 2018 Pidilite Industries announced that it has completed the acquisition of 70 equity shares of CIPY Polyurethanes Pvt. Ltd. CIPY is engaged in the business of manufacture and sale of floor coatings using polyurethanes epoxies polyurea and polyaspartic polymers. CIPY is one of the wellknown floor coating companies in India. The nature of consideration will be cash being an amount of Rs 96.40 crore in aggregate payable to the existing shareholders of CIPY for the purchase of a portion of the shares held by them in CIPY. The acquisition will help Pidilite Industries to participate in the growth of the resin flooring and floor coatings market. The turnover of CIPY was Rs 110.40 crore for the year 201617. Earlier the Board of Directors of Pidilite Industries at its meeting held on 5 January 2018 approved acquisition of 70 equity shares of CIPY Polyurethanes Pvt. Ltd.On 7 March 2018 Pidilite Industries announced that it has entered into a collaboration with Jowat SE a German familyowned enterprise and one of the leading suppliers of industrial adhesives worldwide. As part of the collaboration Pidilite will now exclusively handle sales and distribution of the entire range of Jowat adhesives in India and other neighboring countries including Sri Lanka Bangladesh and Nepal. In addition to this the two companies have also entered into a technical collaboration encompassing the high growth specialised category of Hot Melt adhesives. This will provide a comprehensive range of Thermoplastic Hot Melt adhesives for use in several industrial and modular and other wooden furniture segments.The total capital expenditure during the FY2019 was Rs 186.23 crore spent on fixed assets for various manufacturing units offices laboratories warehouses and on information technology.During the year 201819 investment of Rs 61.04 crore previous year Rs 151.19 crore was made in the subsidiaries. Of this Rs 26.24 crore was invested in the overseas subsidiaries and Rs 34.80 crore in the domestic subsidiaries.The investments in overseas subsidiaries were in Pidilite Middle East Ltd Rs 5.31 crore and Pidilite International Pte Ltd Rs 4.17 crore for onward investments in their step down subsidiaries and Pulvitec do Brasil Industria e Comercio de Colas e Adesivos Ltda Rs 9.35 crore and in newly incorporated subsidiary Pidilite Ventures LLC Rs 7.41 crore.The investments in domestic subsidiaries were in ICA Pidilite Pvt. Ltd. Rs 26.64 crore and Cipy Polyurethanes Pvt. Ltd. Rs 8.16 crore.During the FY2019 Percept Waterproofing Services Limited Percept 80 subsidiary of the Company was merged with Nina Waterproofing Systems Private Limited Nina 70 subsidiary of the Company pursuant to the Honble National Company Law Tribunal Mumbai Bench Order dated 11th January 2019 w.e.f. the appointed date i.e. 1st April 2017 and consequently Percept stands dissolved without winding up. Further post the said merger w.e.f. 27th March 2019 Ninas name was changed to AEKAM Construction Specialties Private Limited AEKAM and w.e.f. 15th April 2019 AEKAM is known as Nina Percept Private Limited. Accordingly the Companys investment in Percept is merged with Nina Percept Private Limited and the Company now holds 71.53 stake in the merged entity.The Company incorporated a wholly owned subsidiairy in USA Pidilite Ventures LLC which shall be engaging mainly in the investments in early stage operating companies in USA. Pidilite Lanka Private Limited Pidilite Lanka a step down subsidiary of the Company in Sri Lanka has entered into an agreement with Nina Waterproofing Systems Private Limited now known as Nina Percept Private Limited Nina and Nina Lanka Construction Technologies Pvt Ltd Nina Lanka a wholly owned subsidiary of Nina in Sri Lanka and also a step down subsidiary of the Company to acquire up to 40 of the share capital in Nina Lanka. As on 31st March 2019 Pidilite Lanka has acquired 25.2 stake in Nina Lanka. Pidilite International Pte. Ltd. a wholly owned subsidiary of the Company in Singapore alongwith Crown Classics Limited a company in Kenya has promoted a joint venture company in Kenya namely Pidilite East Africa Limited PEAL to carry on business of construction chemicals and waterproofing material. PEAL by virtue of control is a stepdown subsidiary of the Company. Fevicol was awarded the Evergreen Brand Award at the Pitch Magazine Top 50 Brands Awards 2019. The Fevicryl Colours bus shelter on World Colouring Book Day won a Bronze at the Neon OOH 2019 outdoor advertising awards. The total capital expenditure during the FY2020 was Rs 369.03 crore previous year Rs 186.23 crore primarily spent on fixed assets for various manufacturing units offices laboratories warehouses and on information technology.During the year 201920 investment of Rs 146.18 crore previous year Rs 61.04 crore was made in subsidiaries. Of this Rs 127.08 crore was invested in domestic subsidiaries and Rs 19.10 crore in overseas subsidiaries.The investments in domestic subsidiaries were in Madhumala Ventures Pvt. Ltd. formerly known as Madhumala Traders Pvt. Ltd. amounting to Rs 126.47 crore and in newly incorporated subsidiaries namely Pidilite Litokol Pvt Ltd Rs 0.60 crore and Pidilite Grupo Puma Manufacturing Ltd Rs 0.01 crore.The investments in overseas subsidiaries were in Pidilite International Pte Ltd. Singapore Rs 18.03 crore Pidilite Chemical PLC Ethiopia Rs 0.75 Crore and Pidilite Industries Egypt SAE Rs 0.32 crore.During the FY2020the Company along with Litokol S.p.A Italy has incorporated a joint venture subsidiary in the name of Pidilite Litokol Private Limited PLPL on 7th October 2019 to carry on the business of chemicals epoxy grouts chemical based products etc. The Company holds 60 of the paid up share capital and has management control of PLPL.The Company alongwith Corporacion Empresarial Grupo Puma S.L. Spain has incorporated a joint venture subsidiary in the name of Pidilite Grupo Puma Manufacturing Limited PGPML on 13th January 2020 to carry on the business of manufacturing processing and distribution of technical mortars and other materials used in construction. The Company holds 50 of the paid up share capital and has management control of PGPML. Nina Percept Private Limited NPPL subsidiary of the Company along with Pidilite Speciality Chemicals Pvt Ltd PSCB a step down subsidiary of the Company has incorporated a company on 29th January 2020 in Bangladesh namely Nina Percept Bangladesh Pvt Ltd. to carry on the business of roofing and waterproofing services in Bangladesh. NPPL holds 99 of the paid up share capital of Nina Percept Bangladesh Pvt. Ltd and the balance 1 is held by PSCB The Company alongwith Chetana Expotential Technologies Pvt Ltd Bangalore has incorporated a joint venture company in the name of Pidilite CTechos Walling Limited PCWL on 5th March 2020 to carry on the business of construction of building works or any other structural or architectural work of any kind using CTechos wall technology manufacturing of ACC panels and other ancillary products. The Company holds 60 of the paid up share capital and has management control of PCWL. The Company has for operational convenience and synergies entered into a business transfer agreement for acquiring the business of wholly owned entity M/s. Nitin Enterprise a partnership firm having two partners both of which are wholly owned subsidiaries of the Company on a slump sale basis for a cash consideration of an amount not exceeding Rs 18.50 crore subject to necessary approvals. The acquisition process is likely to be completed during the financial year 202021. Madhumala Ventures Pvt Ltd formerly known as Madhumala Traders Pvt Ltd a wholly owned subsidiary of the Company has made three strategic investments in relevant startups in the domain of home dcor furnishings painting and waterproofing aggregating to Rs 122.48 crore. With these investments the Company intends to support and collaborate with these start ups for mutual benefits.Pursuant to a share purchase agreement executed with Tenax S.p.A Italy the Company acquired 70 of the share capital of Tenax India Stone Products Pvt. Ltd. for a cash consideration of approx. Rs 80 crore. The acquisiton process was completed on 28th May 2020. In March 2020 the World Health Organisation declared COVID 19 to be a pandemic. The operation of the Company were disrupted since mid of March 2020. The outbreak of COVID 19 pandemic and consequent lockdown has impacted the regular business operations.The Company has acquired 70 stake in equity shares of Tenax India Stone Products Pvt. Ltd Tenax from Tenax SPA Italy Tenax Italy thereby making Tenax a subsidiary of the Company on 28th May 2020. Tenax Italy is the leading manufacturer of adhesives coating surface treatment chemicals and abrasives for the marble granite and stone industry. Tenax is engaged in the in the sales and distribution of Tenax Italy products for the retail market in India.The Board of Directors at its meeting held on 28th October 2020 approved a definitive agreement with Huntsman Group USA to acquire 100 stake in one of the subsidiary in India namely Huntsman Advanced Materials Solutions Private Limited HAMSPL for a cash consideration of approximately Rs. 2100 Crore excluding customary working capital and other adjustments. Huntsman Group is a leading global producer of differentiated organic chemical products. HAMSPL manufactures and sells Adhesives Sealants and other products under wellknown brands such as Araldite Araldite Karpenter and Araseal. The Company has completed the acquisition of 100 stake in HAMSPL on 3rd November 2020 thus HAMSPL has become a subsidiary of the Company.
OrganisationPidilite Industries Ltd
HeadquartersMumbai
IndustryChemicals