Pidilite Industries Limited · NSE:PIDILITIND
Pidilite Industries — Investor Presentation (March 2024)
48 slides from Pidilite Industries's investor presentation, Mar 15, 2024
Slide 1: Investor Presentation cover letter to exchanges
15th March, 2024 The Secretary The Secretary BSE Ltd. National Stock Exchange of India Ltd. Corporate Relationship Dept., Exchange Plaza, Plot no. C/1, G Block, 14th floor, P. J. Tower, Bandra-Kurla Complex, Dalal Street, Fort Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Stock Code – 500331 Stock C
Slide 2: Building Bonds in New Ways
BUILDING BONDS IN NEW WAYS
Slide 3: Our Journey
Our Journey Inception Building Power Brands & Pioneer Categories 1959 1965 1984 1993 2000-01 2002 2004 Plants Fevicol Consumer Pidilite goes Dr. Fixit and The “Bus” ad wins Pidilite commissioned established as Products public, valued at M-seal introduced the Silver Lion reaches for Acron brand Carpe
Slide 4: Our Journey
Our Journey Expanding the Global Footprint and entering into Collaborations 2005 2013 2015 2016 2017-19 Incorporated Acquired Nina On April 10th, Pidilite forms JV with Acquisition of CIPY in “Pidilite Middle Construction and Mr. Bharat Italy's ICA flooring space East Ltd” in Percept Puri took Sever
Slide 5: Our Journey
Our Journey Expanding the Global Footprint and entering into Collaborations 2020-21 2021-23 2023-24 Pandemic strikes & Lockdown across Business picks up pace despite multiple pandemic waves Launch of new range of interior decorative the globe. paints under the brand Haisha paints Established Pidilit
Slide 6: Creating Value through Creating Categories
Creating Value through Creating Categories Winning with a New Edge 22 30 22 40
Slide 7: Creating Value by Creating Categories
Creating Value by Creating Categories CORE GROWTH PIONEER Established Brands Emerging categories Nascent Categories with high market with significant potential with huge market maturity and strong for market growth or creation opportunity share position share gain 1-2X GDP 2-4X GDP... 100 Crores reve
Slide 8: Portfolio for Creating value
Portfolio for Creating value CORE INTERNATIONAL GEOGRAPHIES GROWTH PIONEER 2 3 2 4
Slide 9: Snapshot of the last 3 years
Snapshot of the last 3 years We delivered profitable growth over the last 3 years despite challenging external environment Sustained growth at ...with a continued …and effective margin management 1.2x of GDP improvement in portfolio mix in unprecedented inflation 20 48% 60% 18 17% 46% 53% 53% 46% 51%
Slide 10: Snapshot of the last 3 years
Snapshot of the last 3 years Our Philosophy: to make sustained investments with a long term view Investing for Enabling Growth & Driving Productivity/ Growth Becoming Future Ready Efficiency • Premiumization, innovation, and reinforcing • Investing in future-ready supply chain • Managing unprecedente
Slide 11: How we grow our core at 1-2X GDP
How we grow our core at 1-2X GDP... CORE GROWTH PIONEER Premiumizing Innovating Reinforcing Brand Leadership 2 3 2 4
Slide 12: Growing the Core at 1-2X of GDP: The Fevicol Story
Growing the Core at 1-2X of GDP: The Fevicol Story Premiumization in Core: Innovation in Core: Fevicol Evolution Fevicol Ezeespray FEATURES EASE OF USE Water resistant Anti-bubble Superfast setting, Heat Resistant adhesive adhesive best coverage Rubber Adhesive adhesive REACH ODD SPACES LAST MINUTE
Slide 13: Fevikwik: Innovating for the many Indias
Fevikwik: Innovating for the many Indias Repair Better Repair Easier Go beyond repair Water Proof 30s to adjust Easy to use & Multi-surface Application & Shock Proof Non-drip & No Mess stock at home Clear Non-drip Formula 2 3 2 4
Slide 14: Reinforcing Brand Leadership
Reinforcing Brand Leadership Fevicol Sofa Fevicol 19/20 Fevicol Jija Saala M-seal Handkerchief Araldite Fevikwik Gel 2 3 2 4
Slide 15: How we fuel growth businesses at 2-4X GDP
How we fuel growth businesses at 2-4X GDP... CORE GROWTH PIONEER Creating Categories Wholistic Brand Management Driving Penetration International Expansion Inorganic Growth 2 3 2 4
Slide 16: Creating Categories
Creating Categories Continuous innovation Passionate team ATL support Intense field marketing Technical capabilities Exhaustive insighting Spotting unmet needs 2 3 2 4
Slide 17: Roff Growth Story - Driving Category Creation
Roff Growth Story - Driving Category Creation Large untapped potential • Tile and Stone Solutions market size estimated at Rs. 2500 Cr to Rs. 3000 Cr • Penetration of category estimated at 18% to 20%, as majority market still using cement to fix tiles. Roff positioned as an expert Tile and Via Speci
Slide 18: Sales & Marketing initiatives to drive Penetration & Market development
Multiple Anchored Sales & Marketing initiatives to drive Penetration & Market development 2020 Now Pidilite Rural Involved Site ki Duniya Vans PBP visits Towns covered >18000 > 37000 No. of Pidilite PIL Bike Integrated Partnership ki Duniya ~ 6000 > 13000 Sub- with Govt. outlets World ISR Stockists
Slide 19: International Expansion
International Expansion After sucess in the Indian sub-continent, taking Pidilite’s Success Story to other Emerging Markets Pidilite Un-locking Growth in Africa • Growing presence in most African countries through distribution expansion • Play across all major categories of Pidilite (Wood Working Gl
Slide 20: Pioneering categories
Pioneering categories CORE GROWTH PIONEER 2 3 2 4
Slide 21: New category for External Wall Finishing
New category for External Wall Finishing UNOFIN DECORATIVE WATERPROOF RENDER • Joint venture between Pidilite • UnoFin replaces conventional Industries and Grupo Puma of 4Ps (Plaster, Putty, Primer & Spain to cater to the residential, Paint) system industrial, institutional & • Commercial production
Slide 22: Pioneering with Sealants market
Pioneering with Sealants market Total estimated market potential in construction: Retail & Project ~800 Cr Large opportunity with multiple players, addressed by new products to disrupt the space • Feviseal has a range of Silicone, Acrylic, PU, Hybrid, Polysulphide and Rubber sealants • It is one of
Slide 23: Range completion in our Coatings offering
Range completion in our Coatings offering Bringing delight to our customers, contractors & dealers by adding to our existing range of Dr. Fixit WP Coatings, Stainers, Premium Distempers & Wood Finishes. Introducing “HAISHA paints” a range of Interior Paint products which stay true to Fevicol legacy
Slide 24: Building Pidilite of the Future
Building Pidilite of the Future 2 3 2 4
Slide 25: The world has changed dramatically and a new reality is emerging
The world has changed dramatically and a new reality is emerging VOLATILE GLOBAL DIGITAL BECOMES HOME SWEET GREAT PLACE TO SUPPLY CHAINS UBIQUITOUS HOME WORK/ CULTURE • Volatility in RM/ PM, • Breaking adoption • Resurgence in • Hybrid working model and unprecedented boundaries real estate • War for
Slide 26: Strong long-term tailwind with some near-term risks
Strong long-term tailwind with some near-term risks • Indian economy and domestic demand relatively well positioned • Soft global economy, leading to • GDP forecast to grow at ~7% in FY24 and FY25 pressures in international markets • Govt. thrust on “Building India” • Risk of prolonging/ escalation
Slide 27: Building Pidilite of the Future – key imperatives
Building Pidilite of the Future – key imperatives Enhance agility and pace of innovation Invest in future-ready supply chain Accelerate digital and analytics Expand in high potential/ emerging channels Imagine the new workplace, talent model and culture Drive greater focus on sustainability 2 3 2 4
Slide 28: Accelerating Innovation R&D
Accelerating • Gathered insights of changing Innovation 5 fully equipped Consumer behaviour in-house centres • Multi-generation product roadmap in India based on Platform approach • Nurturing Zero Harm Safety culture at R&D R&D centres R&D Team • 150+ R&D scientists with 2000+ years of cumulative ex
Slide 29: Innovative disruptions
Innovative disruptions Paint + Waterproofing at NO additional Cost! Sticks multiple art& craft materials on Paper & Cardboard Available in 1000+ shades Non-Messy way to create Labour & time saving Safe to use Upto 2 mm crack bridging Childs independent way of doing craft Solution for all budgets – R
Slide 30: Supply chain - Building Pidilite of future
Supply chain - Building Pidilite of future • Invested Capex of Rs. 800+ Cr from 2022-23 till date • Getting ready for next phase of growth: 29 capacity building projects (11 Greenfield & 18 Brownfield, of which 15 are completed till Feb’24) and several other projects aimed at improvements in product
Slide 31: Supply chain - Building Pidilite of future
Supply chain - Building Pidilite of future TENAX GRUPOPUMA, KISHANGARH ROFF, LUCKNOW TENAX, AMOD With aim of upgrading our manufacturing facilities and ROFF, AMOD PATALGANGA commensurate market ROFF, HYDERABAD LITOKOL-1, AMOD demand, 2 new Greenfield projects will be LITOKOL-2, AMOD VIZAG commission
Slide 32: Riding the Digital Wave - Making An Impact
Riding the Digital Wave - Making An Impact Customers & Offerings Employees Operations Data & Analytics • Distributor, dealer and user apps • Digital, gamified and advanced • Intelligent dashboards on PowerBI • Robotic process automation (RPA) for engagement, loyalty, learning, analytics based sellin
Slide 33: Driving step-change in digital connect across stakeholders
Driving step-change in digital connect across stakeholders Digital platforms across key PIL stakeholders Genie - Retailer’s 24x7 digital assistant! Order anytime Retailers View schemes Track performance & earnings Distributors Check billing Share feedback Users April 22 Now 8% monthly 38% monthly bu
Slide 34: Evolving with times..Adapting to new ways of building brands
Evolving with times..Adapting to new ways of building brands… From this Now also these 2 3 2 4
Slide 35: Newer and shorter formats aligned with reduced attention span
Now with newer and shorter formats, aligned with reduced attention span of the consumer And now this 2 3 2 4
Slide 36: Wholistic brand building across categories
Wholistic brand building across categories >20 marketing & media awards in the last one year 6 Elephants at Exchange for media Indian Digital Kyoorius awards marketing awards 2022 2 awards – one each for Mseal and Dr. Fixit Winner of prestigious Effies + 10 awards Maddies 2022 - Gold Digixx 2022 awar
Slide 37: Investing in emerging channels: E-commerce
Investing in emerging channels: E-commerce • Sales at 14X in around 3 years. We are present on more than 15 platforms (Flipkart, Amazon, eGrocery platforms like Zepto, etc.) • Digital Shelf Analytics tool implemented, Organised retail, Supply chain dashboards implements for Analytics & Automation E-
Slide 38: Culture as a Competitive Edge
Culture as a Competitive Edge Building an Inspiring Place to Work Leadership Pipeline Focus on EMERGING LEADERS NPS turnaround,with scores at Best-In-Class Frontline PROGRAM Recognised amongst Top 25 companies in Listening Manufacturing workplaces Culture Capability building Career map for field tea
Slide 39: Journey towards Sustainability
Journey towards Sustainability Pidilite is geared up to reach world class standards in Sustainability Initiatives, and has a clearly defined roadmap Environment Social Governance Our Core Combatting Climate Change Servicing People Responsible Pillars & Sustainable Innovation and Communities Value Cre
Slide 40: Giving Back to Society
Giving Back to Society Agriculture & Farmer Water Swachtha Horticulture Producer Initiative Initiative Initiative Organization Education & Khadi and Women Health Skill Handloom Initiative Initiative Initiative Initiative 2 3 2 4
Slide 41: Our Vision
OUR VISION Together We Will Create A High-performance, Innovative, Indian Multi-national Where It Is A Pleasure To Work. 2 3 2 4
Slide 42: Thank you
Thank you 2 3 2 4
Slide 43: Investor Contact
Investor Contact CIN : L24100MH1969PLC014336 investor.relations@pidilite.co.in Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (E), Mumbai - 400 059. Phone : +91 22 67697000 Fax : +91 22 28216007 Disclaimer: This presentation may contain statements which reflect the management’s current
Slide 44: Annexures
Annexures 2 3 2 4
Slide 45: Company Overview
Company Overview >8800 Operations in 33 Mfg. Plants & >900 permanent 7 countries 34 Co-Makers Products employees in India 44 warehouses Exporting to 20 International & 6 R&D Centres >80 countries 13 Domestic Subsidiaries 2 3 2 4
Slide 46: Revenue Split
Revenue Split 4.4 % Pigment & 0.9 % Others Standalone Results – % of Total Sales for 2022-23 Preparations 7.8 % Industrial Resins, Construction Chemicals (Project) etc. 5.8% Industrial Adhesives B2B 18.0% 6.1% C&B 81.1% Art & Crafts 55.7 % Materials etc. Adhesives & Sealants 81.1% Consumer & Bazaar
Slide 47: Track Record of Rapid Growth
Track Record of Rapid Growth 19% 7% 17% Net Sales EBITDA EBITDA as growth over growth over a % to sales FY21-22 FY21-22 FY22-23 2,400 32% NET SALES GROWTH TREND OVER LAST 10 YEARS EBITDA GROWTH TREND OVER LAST 10 YEARS 14,000 2,200 8 % 30% 2,000 R 12. 1,984 12,000 11,752 C AG 1,847 28% 1,800 % 1,681
Slide 48: Creating Value for Shareholders
Creating Value for Shareholders 24% 559 cr 44% 10yr CAGR - MCap Dividend Payout (FY23) Dividend Payout as a % to Net Profit 600 559 49.0 1,60,000 550 508 47.0 1,40,000 500 % 1,24,803 432 24 1,19,647 450 429 44% 45.0 1,20,000 GR CA 400 398 43% 43.0 1,00,000 91,945 350 41% 367 40% 41.0 80,000 300 39.0
Pidilite Industries — Investor Presentation (March 2024) on 6ix