Pidilite Industries Limited · NSE:PIDILITIND
Pidilite Industries — Investor Presentation (February 2022)
35 slides from Pidilite Industries's investor presentation, Feb 9, 2022
Slide 1: Exchange intimation letter for investor presentation
9th February, 2022 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
Slide 2: Building Bonds in New Ways
BUILDING BONDS IN NEW WAYS
Slide 3: Our Journey
Our Journey Inception Building Power Brands Expanding the Global Footprint & Pioneer Categories and entering into Collaborations 1959 1965 2000-01 2005 2013 2015 2016 Plants Fevicol established Dr. Fixit and M-seal introduced Incorporated Acquired Nina On April 10th, Pidilite forms JV with Italy's I
Slide 4: Creating Value through Creating Categories
Creating Value through Creating Categories Winning with a New Edge 22 10 22 20
Slide 5: 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 6: Portfolio for Creating value
Portfolio for Creating value CORE GROWTH INTERNATIONAL GEOGRAPHIES PIONEER 2 1 2 2
Slide 7: How we grow our core at 1-2X GDP
How we grow our core at 1-2X GDP... CORE GROWTH PIONEER Premiumizing Innovating 2 1 2 2
Slide 8: 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 Fast Setting Anti-bubble Heat Resistant adhesive adhesive adhesive Rubber Adhesive REACH ODD SPACES LAST MINUTE FINISHING APPLICATIO
Slide 9: 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 1 2 2
Slide 10: Creating Categories
Creating Categories Passionate team ATL support Intense field marketing Technical capabilities Exhaustive insighting Spotting unmet needs 2 1 2 2
Slide 11: Wholistic brand building across categories
Wholistic brand building across categories 20 digital marketing awards in the last few months Exchange4media Indian Content Marketing Awards Total 23 Elephants 1. Best content marketing at Kyoorius awards social media and 2. Best crowdsourced content of the year Winner of prestigious Effies + 10 awa
Slide 12: Driving Penetration: Small-town/ Rural India
Driving Penetration: Small-town/ Rural India • Expanding reach: Coverage in ~30,000 towns • Driving growth in deep rural: ~7000 “Pidilite Ki Duniya” dealers • Driving user engagement: through a mix PIL DIRECT of personal engagement, REACH* site visits and digital marketing 45 45 • Product innovation
Slide 13: International Expansion
International Expansion Taking Pidilite’s Success Story to Emerging Markets across the World. Target markets with high headroom for growth, with a high-touch, “India-like” approach Drive market: Bangladesh • Began operations 15+ years ago • Play across all major categories of Pidilite (including C&B
Slide 14: Inorganic growth
Inorganic growth Smooth integration and stabilization Synergies leveraged and enabling levers in place Sales automation Channel synergies User connect model & excellence stabiliza�on Premiumization People Back-end capacity & innovation development & efficiencies Robust growth and share gain 2 1 Achi
Slide 15: Pioneering categories
Pioneering categories CORE GROWTH PIONEER 2 1 2 2
Slide 16: Roff Growth Story - Driving Category Creation
Roff Growth Story - Driving Catagory Creation Large Untapped potential • Tile & stone solutions market of ~Rs. 1500 Cr. • Only ~12-15% penetration of modern solutions, with majority market still using cement to fix tiles Roff positioned as an expert Tile and Solutions Exponential growth in recent yea
Slide 17: Winning with a New Edge
Winning with a New Edge 2 1 2 2
Slide 18: The world is evolving dramatically and a new reality is emerging
The world is evolving dramatically and a new reality is emerging HEALTH & VOLATILE GLOBAL DIGITAL BECOMES HOME SWEET EVOLVING ORG/ HYGIENE SUPPLY CHAINS UBIQUITOUS HOME WORKING MODELS Focus on health, • Volatility in RM/ PM, • Breaking adoption • Resurgence in • Hybrid working model safety and hygie
Slide 19: Winning with a new edge – key imperatives
Winning with a new edge – key imperatives Invest in supply chain resilience and global competitiveness Accelerate digital and analytics Penetrate by investing in emerging channels Enhance agility and pace of innovation Imagine the new workplace, talent model and culture Drive greater focus on sustai
Slide 20: Supply chain - Building Pidilite of future
Supply chain - Building Pidilite of future • Getting ready for next phase of growth: 18 capacity building projects and several other projects aimed at improvements in productivity, quality, safety and environmental parameters are under progress • Surpassed sustainability targets set for 2020-21 for
Slide 21: Riding the Digital Wave - Making An Impact
Riding the Digital Wave - Making An Impact Customers & Offerings Employees Operations Data & Analytics • Dealer and user apps for • Digital, gamified and intelligent • Intelligent dashboards to • Robotic process automation (RPA) engagement, loyalty, learning, selling for field force enhance decision m
Slide 22: Significant increase of Digital marketing in the mix
Significant increase of Digital marketing in the mix Serving multiple brand objectives Topical creatives and engagements for building brand love Get leads from consumers in 2 clicks Marketing to contractors using digital 2 1 2 2
Slide 23: Investing in emerging channels: E-commerce
Investing in emerging channels: E-commerce • Alternate Trade Channels have augmented the growth • Sales at 8X in around 2 years • We are present on more than 15 platforms AMAZON BESTSELLERS DKLOG No.1 in Drain Cleaners HomeKits & AllFix Top 3 in Universal Adhesives Terminator No.2 in Repellants Roff
Slide 24: Accelerating Innovation R&D
Accelerating • Gathered insights of changing Consumer behaviour Innovation 3 fully equipped 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 25: Culture as a Competitive Edge
Culture as a Competitive Edge 4 3 Building an Inspiring Place to Work 2 Leadership Pipeline 1 Focus on Frontline NPS turnaround,with scores at Best-In-Class Listening Culture Capability building SCENT Career map for field teams MyPidilite Recognised consecutively for 2 years by Great Place to Work® I
Slide 26: Journey towards Sustainability
Journey towards Sustainability Our ambitions Pidilite is geared up to reach world class standards in Sustainability Initiatives, and and has a clearly defined roadmap 2030 targets To be a sustainable and responsible industry leader integrating innovative growth, operational eco-efficiency and value cr
Slide 27: Giving Back to Society
Giving Back to Society Agriculture & Farmer Animal Plantation Water Women Horticulture Producer Husbandry Initiative Initiative Initiative Initiative Organization Swachtha Education Khadi and Skill Health Initiative Natural Disaster Initiative Initiative Handloom Initiative (Including COVID and Reli
Slide 28: Our Vision
OUR VISION Together We Will Create A High-performance, Innovative, Indian Multi-national Where It Is A Pleasure To Work. 2 1 2 2
Slide 29: Thank you
Thank you 2 1 2 2
Slide 30: 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 31: Annexures
Annexures 2 1 2 2
Slide 32: Company Overview
Company Overview >6500 Operations in 26 Mfg. Plants & >600 permanent 8 countries 30 Co-Makers Products employees in India Exporting to 20 International & 5 R&D Centres >80 countries 16 Domestic Subsidiaries 2 1 2 2
Slide 33: Revenue Split
Revenue Split 6.4 % Industrial Resins & 0.8 % Others Standalone Results – % of Total Sales for 2020-21 Construction Chemicals (Project) etc. 5.9 % Pigment & Preparations 5.7% Industrial Adhesives B2B 18% 7.1% C&B 81.2% Art & Crafts 54.2 % Materials etc. Adhesives & Sealants 81.2% Consumer & Bazaar P
Slide 34: Track Record of Rapid Growth
Track Record of Rapid Growth 3% 15% 22% Net Sales EBITDA EBITDA as growth over growth over a % to sales FY18—19 FY18—19 FY19—20 1,800 32% NET SALES GROWTH TREND OVER LAST 10 YEARS EBITDA GROWTH TREND OVER LAST 10 YEARS 1,679 8,000 1,600 30% 7,000 7,293 1,400 28% 1 1% 4 % R 1 G 1,200 R 26% 6,000 C A
Slide 35: Creating Value for Shareholders
Creating Value for Shareholders 28% 4287 37% mn 10yr CAGR - MCap Dividend Payout Dividend Payout as a % to Net Profit 1,00,000 500 43.0 90,000 450 432 91,979 429 80,000 41.0 400 398 39.9 70,000 8 % 367 2 R 350 40.6 G 39.0 CA 60,000 38.4 300 293 50,000 250 37.0 40,000 36.9 200 30,000 30,328 35.0 150 2
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