Pidilite Industries Limited · NSE:PIDILITIND
Pidilite Industries — Investor Presentation (June 2019)
40 slides from Pidilite Industries's investor presentation, Jun 7, 2019
Slide 1: Pidilite exchange filing cover letter
,4001"111" Pidilite 7th June, 2019 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 Cod
Slide 2: Investor Presentation
> a Investor Pidilite Presentation
Slide 3: Disclaimer
Disclaimer This presentation may contain statements which reflect the management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being e
Slide 4: Agenda
Agenda • Company Overview • Business Overview • Macro Indicators • Strategic Direction • Key Consideration
Slide 5: Company Overview
Company Overview Since 1959 No. 1 Adhesives >5300 permanent Operations in India’s Super 50 company in India employees 9 countries Company 23 Mfg. Plants & >500 Exporting to 19 International & 3 R&D 23 Co Makers in India Products >80 countries 9 Domestic Subsidiaries Centers >INR 60,000 Crore 10 Year
Slide 6: Sustainable Strong Growth
Sustainable Strong Growth … Net Sales Growth Trend Over Last 10 Years EBITDA Growth Trend Over Last 10 Years 80,000 16,000 28% 70,348 13,762 70,000 14,000 26% 12,000 24% 60,000 22% 10,000 50,000 42,606 20% 20% 8,000 6,770 40,000 18% 6,000 30,000 16% 16% 19,863 4,000 14% 20,000 2,286 2,000 12% 12% 10
Slide 7: FY19 Net Sales & EBITDA
FY 19 Net Sales & EBITDA 80,000 15,000 75,000 70,348 14,000 13,762 70,000 13,449 65,000 13,000 60,324 60,000 12,000 55,000 50,000 11,000 FY 2017-18 FY 2018-19 FY 2017-18 FY 2018-19 Consolidated Net Sales (Rs Millions)** Consolidated EBITDA (Rs Millions)* **Sales net of excise duty *EBITDA before Non
Slide 8: Creating Values for Shareholders
Creating Values for Shareholders 7,00,000 6,31,087 4,500 44.0 6,00,000 3,980 4,000 42.0 3,667 5,00,000 3,500 40.6 40.0 2,931 4,00,000 3,000 38.4 2,561 38.0 2,500 3,00,000 36.0 2,000 1,789 2,00,000 1,56,561 34.4 1,500 33.8 34.0 33.1 1,00,000 21,374 1,000 32.0 FY15 FY16 FY17 FY18 FY19 - Dividend Payou
Slide 9: Agenda
Agenda • Company Overview • Business Overview • Macro Indicators • Strategic Direction • Key Consideration
Slide 10: Our Businesses
Our Businesses Consumer & Bazaar Consumer Products – Woodworking, Maintenance and Arts, Wall and Wood Construction Chemicals Stationery, Fabric Finishes Industrial Business
Slide 11: Our Businesses: Revenue Split
Our Businesses: Revenue Split Pigments & Preparations {6%} Industrial Resins etc. {5%} Others {1%} Industrial Adhesives {4%} Art & Craft Materials etc. {8%} IP 15% C&B 84% Adhesives & Sealants {56%} Construction& Paint Chemicals {20%} C&B – Consumer & Bazaar, IP – Industrial Products Standalone Resu
Slide 12: C&B Businesses
C&B Businesses 84% Strong Brands Of Company’s Revenue Adhesives & Sealants : 56% Paint Chemicals : 20% Art & Craft Materials etc. : 8% Market Leader Extensive Distribution in all segments of adhesives and Direct Coverage : 1.5 Lacs + Dealers sealants, construction chemicals In-direct Coverage : 50 L
Slide 13: Industrial Businesses
Industrial Businesses 15% Industrial Products: - Specialty polymers and co-polymers Of Company’s Revenue - Hot melt adhesives Industrial Adhesives : 4% Industrial Resins etc. : 5% - Adhesives for Footwear, Leather Pigments & Preparations : 6% - Organic & high-performance Pigments - Epoxy & Cyanoacry
Slide 14: Global Footprint
Global Footprint International manufacturing activities in: INR 6,068 mn Export Revenue FY’19 - USA - Brazil - Thailand Export to.. - Bangladesh - Egypt 80+ Countries - - Dubai Sri Lanka - Singapore 19 Specific focus on growing business in Bangladesh and Sri Lanka Overseas Subsidiaries 6 direct, 13
Slide 15: Global Footprint: Int'l Subsidiaries
Global Footprint : Int’l Subsidiaries North America SAARC / SEA • Sargent Arts is a leading supplier of quality art materials • Bangladesh: No. 1 player manufacturing adhesives, to the educational and retail markets throughout the sealants. Growing & profitable business, and in the United States. pr
Slide 16: We continue to deliver value through high quality customer connect
We continue to deliver value through high quality customer connect.
Slide 17: Regular Recognition
Regular Recognition Pidilite STICKING TO BASICS BEST CREATIVE CAMPAIGN FEVICOL WELCOMES A DIFFERENT KIND OF | 232s ELEPHANT. ===
Slide 18: Agenda
Agenda • Company Overview • Business Overview • Macro Indicators • Strategic Direction • Key Consideration
Slide 19: Macro indicators provide strong impetus
Macro indicators provide strong impetus.. GDP GROWTH STORY INTACT BY 2030, 40% OF INDIA WILL LIVE IN CITIES 600 Urban Population (M) 590 GDP Growth (%) 9.0% 500 8.2% 340 7.7% 400 8.0% 290 7.0% 7.1% 300 7.0% 6.6% 220 6.3% 5.8% 200 6.0% 5.6% 100 5.0% 0 Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY 1
Slide 20: Agenda
Agenda • Company Overview • Business Overview • Macro Indicators • Strategic Direction • Key Consideration
Slide 21: How we view our portfolio
6 How we view our portfolio Pidilite aie. FEVICOL Psat =“ @ Fevikwi® ™-seal Fevicryl' PIONEER Jowate “¢- 1ICA| Pidilite}
Slide 22: How we grow our core at 1-2X of GDP
How we grow our core at 1-2X of GDP 1. DRIVE PENETRATION CORE 2. INNOVATE 3. PREMIUMIZE
Slide 23: Drive Penetration: Case Study Fevikwik
How we grow our core at 1-2X of GDP 1. DRIVE PENETRATION Case Study: Fevikwik Exhaustive immersions to collect insights Usage CORE Driving Penetration Through Identify usage patterns and accordingly select target segments Target Segments Focused media strategy to reach target segment and deliver gro
Slide 24: Innovate: Case Study Fevicol Ezeespray
How we grow our core at 1-2X of GDP 2. INNOVATE Ease of Reach Use Odd Case Study: Fevicol Ezeespray Spaces Last Minute Finishing Fast Grab & Rapid Bonding Excellent Heat Resistance Application Control
Slide 25: Premiumize: Case Study Evolution of Fevicol
How we grow our core at 1-2X of GDP 3. PREMIUMIZE Case Study: Evolution of Fevicol
Slide 26: How growth businesses grow at 2-4X of GDP
How growth businesses grow at 2-4X of GDP GROWTH 1. CREATE CATEGORIES CORE 2. WHOLISTIC BRAND MANAGEMENT
Slide 27: Create Categories
How growth businesses grow at 2-4X of GDP 1. CREATE CATEGORIES Few examples..
Slide 28: Wholistic Brand Management: Messaging
How growth businesses grow at 2-4X of GDP 2. WHOLISTIC BRAND MANAGEMENT Messaging Driving need of waterproofing by Driving need of Communicating importance of showing consequences of not waterproofing right waterproofing doing it Right Waterproofing is using right quantity of LW+ Right Waterproofing
Slide 29: Our Pioneer Categories
Our Pioneer Categories Largest player in specialized floor coatings Acquisition for establishing place in resin flooring and floor coatings market. GROWTH CORE Technical collaboration aimed at providing a comprehensive range of Thermoplastic Hot Melt adhesives for catering to the requirements of joi
Slide 30: Organisation-wide Cross-cutting Themes
Organisation-wide Cross-cutting Themes CROSS-CUTTING 1. SALES & DISTRIBUTION EXCELLENCE THEMES 2. GOING DIGITAL 3. CULTURE AS A COMPETITIVE EDGE
Slide 31: Sales & Distribution Excellence
Organisation-wide Cross-cutting Themes 1. SALES & DISTRIBUTION EXCELLENCE
Slide 32: Sales & Distribution Excellence
Organisation-wide Cross-cutting Themes 1. SALES & DISTRIBUTION EXCELLENCE
Slide 33: Going Digital
Organisation-wide Cross-cutting Themes 2. GOING DIGITAL.. Leveraging potential of data, predictive and prescriptive analytics to transform Ways of Working
Slide 34: Culture as a Competitive Edge
Organisation-wide Cross-cutting Themes 3. CULTURE AS A COMPETITIVE EDGE Idea Youthful Meritocracy Communication Culture which is ro-eneurial Action- Celebration Oriented
Slide 35: Deep insight into each domain
Deep insight into each domain, leading to continuous identification of Major Initiatives Passionate about pioneering segments and achieving significant leadership Wholistic brand management that builds strong emotional connect with users, influencers & consumers Persistent innovation focused on cont
Slide 36: Agenda
Agenda • Company Overview • Business Overview • Macro Indicators • Strategic Direction • Key Consideration
Slide 37: Key Consideration
Key Consideration • High market share and strong position in most products and categories • Strong portfolio of trusted brands • High mix of sale from products / categories pioneered by Pidilite in India • Track record of consistent growth in Sales and Profits • Enough headroom to grow domestic busi
Slide 38: Questions?
@ ya Pidilite | Questions?
Slide 39: Thank You
@ ya Pidilite | Thank You
Slide 40: Investor Contact
Investor Contact Investor Relations - investor.relations@pidilite.co.in Mr. Puneet Bansal, Company Secretary Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (E), Mumbai - 400 059. Phone : +91 22 2835 7949 CIN : L24100MH1969PLC014336 Fax : +91 22 28216007
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