Pidilite Industries Limited · NSE:PIDILITIND
Pidilite Industries — Investor Presentation (May 2023)
45 slides from Pidilite Industries's investor presentation, May 18, 2023
Slide 1: Cover letter to stock exchanges: Investor Presentation
18th May, 2023 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 Cod
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 2020-21 Incorporated Acquired Nina On April 10th, Pidilite forms JV Acquisition of CIPY in Pandemic strikes & Lockdown across the globe. “Pidilite Construction and Mr. Bharat with Italy's ICA floo
Slide 5: Creating Value through Creating Categories
Creating Value through Creating Categories Winning with a New Edge 22 20 22 30
Slide 6: 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 7: Portfolio for Creating value
Portfolio for Creating value CORE INTERNATIONAL GEOGRAPHIES GROWTH IN NEW WAYS PIONEER 2 2 2 3
Slide 8: 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 42% 60% 53% 53% 18 17% 41% 40% 47%
Slide 9: 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 10: 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 2 2 3
Slide 11: 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 12: Reinforcing Brand Leadership
Reinforcing Brand Leadership Fevicol Sofa Fevicol 19/20 M-seal Handkerchief Araldite 2 2 2 3
Slide 13: 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 2 2 3
Slide 14: Creating Categories
Creating Categories Continuous innovation Passionate team ATL support Intense field marketing Technical capabilities Exhaustive insighting Spotting unmet needs 2 2 2 3
Slide 15: 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 16: Multiple Sales & Marketing initiatives to drive Penetration
Multiple Anchored Sales & Marketing initiatives to drive Penetration & Market development 2020 Now Pidilite Rural Involved Site ki Duniya Vans PBP visits Towns covered >18000 > 30000 No. of Pidilite PIL Bike Integrated Partnership ki Duniya ~ 6000 > 8000 Sub- with Govt. outlets World ISR Stockists b
Slide 17: 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 18: Pioneering categories
Pioneering categories CORE GROWTH PIONEER 2 2 2 3
Slide 19: 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 20: 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 21: 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 22: Winning in the new normal
Winning in the new normal 2 2 2 3
Slide 23: 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 24: 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 • Global recessionary environment • Easing global supply chains, driving inflation • Potential spill-over impact on India under 6% • Continued revival of real estate market • Risk of p
Slide 25: Winning in the new normal – key imperatives
Winning in the new normal – 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 2 2 3
Slide 26: Accelerating Innovation R&D
Accelerating • Gathered insights of changing Innovation 3 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 27: Innovative disruptions
Innovative disruptions Paint + Waterproofing Powerful & high-strength at NO additional adhesive Cost! Sticks everything Labour & time saving Sticks multiple art everywhere & craft materials on Available in Paper & Cardboard Water - resistant 1000+ shades Non-Messy way Safe to use Upto 2 mm to create
Slide 28: Supply chain - Building Pidilite of future
Supply chain - Building Pidilite of future • Augmented Capex of Rs. 500+ Cr in the last 2 years • Getting ready for next phase of growth: 24 capacity building projects (13 Greenfield & 11 Brownfield, of which 12 are completed) and several other projects aimed at improvements in productivity, quality
Slide 29: Supply chain - Building Pidilite of future
Supply chain - Building Pidilite of future LUDHIANA TENAX GRUPOPUMA LUCKNOW TENAX LITOKOL PATALGANGA MAHAD With aim of upgrading our manufacturing facilities VIZAG and commensurate market demand, 8 new plants will be commissioned across Plants already commissioned the country by Jun’23. Plants to be
Slide 30: 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 31: 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 25% monthly bu
Slide 32: 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 2 2 3
Slide 33: 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 34: 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 35: 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 Listening Culture Capability building Recognised consecutively for 2 years by Career map for field teams Great Place to Work®
Slide 36: 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 37: Giving Back to Society
Giving Back to Society Agriculture & Farmer Animal Water Horticulture Producer Husbandry Initiative Initiative Organization Swachtha Education & Khadi and Women & Health Skill Handloom Initiative Initiative Initiative Initiative 2 2 2 3
Slide 38: Our Vision
OUR VISION Together We Will Create A High-performance, Innovative, Indian Multi-national Where It Is A Pleasure To Work. 2 2 2 3
Slide 39: Thank you
Thank you 2 2 2 3
Slide 40: 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 41: Annexures
Annexures 2 2 2 3
Slide 42: Company Overview
Company Overview >8000 Operations in 33 Mfg. Plants & >850 permanent 8 countries 35 Co-Makers Products employees in India Exporting to 20 International & 4 R&D Centres >80 countries 12 Domestic Subsidiaries 2 2 2 3
Slide 43: 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 44: 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 45: Creating Value for Shareholders
Creating Value for Shareholders 24% 508 cr 43% 10yr CAGR - MCap Dividend Payout (FY22) 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
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