Pidilite Industries Limited · NSE:PIDILITIND
Pidilite Industries — Investor Presentation (February 2021)
34 slides from Pidilite Industries's investor presentation, Feb 18, 2021
Slide 1: Exchange cover letter: Investor Presentation
18th February, 2021 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 Stoc
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 2001 2005 2013 2015 2016 Plants commissioned Fevicol established as M-seal comes Dr. Fixit is Incorporated Took over NINA On April 10th, Pidilite forms JV f
Slide 4: It has been an unprecedented year…
It has been an unprecedented year… PRIOR TO ECONOMIC RECOVERY COVID 19 RECESSION Collapse of demand Significant market/ K-shaped recovery, with high variation across and supply chain behaviour shifts Geog./ pop strata (virus-driven) ecosystem in Q1 Categories (customer-driven) Players (resilience-dr
Slide 5: Shifts in demand, supply and ways of working
Shifts in demand, supply and ways of working HEALTH & CHANGING WORK FROM AT-HOME DIGITAL BECOMES OTHERS HYGIENE PRIORITIES IN ANYWHERE UBIQUITOUS SUPPLY CHAIN “Safety First” t*NQPSUBODFPG t)ZCSJENPEFM t4IPQBU)PNF t3FBMUJNF t4IJGUUPUSVTUFE (Personal resilience of working t%PJUZPVSTFMG remote decision
Slide 6: Recovery across categories for PIL due to these trends
Recovery across categories for PIL due to these trends Momentum Segments EMERGING DIY/ REPAIR E-COMMERCE TIME-SAVING HOBBY COLOURS RETAIL CONSTRUCTION INDIA PORTFOLIO PRODUCTS / FINE ARTS CHEMICALS 2 0 2 1
Slide 7: Winning in the new world - key imperatives
Winning in the new world - key imperatives Revisit portfolio of businesses, markets and channels Invest in supply chain resilience and global competitiveness Accelerate digital and analytics Enhance agility and pace of innovation Imagine the new workplace, talent model and culture Drive greater focu
Slide 8: Creating Value through Creating Categories
Creating Value through Creating Categories Winning in the New World 22 00 22 00
Slide 9: 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 rev
Slide 10: Portfolio for Creating value
Portfolio for Creating value CORE GROWTH INTERNATIONAL GEOGRAPHIES PIONEER 2 0 2 0
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 2 0 2 0
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 Fast Setting Anti-bubble Heat Resistant adhesive adhesive adhesive Rubber Adhesive REACH ODD SPACES LAST MINUTE FINISHING APPLICATIO
Slide 13: Strengthening the Core inorganically
Strengthening the Core inorganically tAraldite is an iconic tAcquired from the Huntsman Group (USA) brand and a market 100% stake in one of their subsidiaries in India leader in Epoxy of DIY business. Adhesives in India. tFor a cash consideration of approx. Rs 2100 crores. tPAPL has a nation-wide di
Slide 14: 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 2 0 2 0
Slide 15: Creating Categories
Creating Categories Passionate team ATL support Intense field marketing Technical capabilities Exhaustive insighting Spotting unmet needs 2 0 2 0
Slide 16: Wholistic Brand Management
Wholistic Brand Management t &YIBVTUJWFJNNFSTJPOTUPDPMMFDUJOTJHIUT Effie’20 Award t *EFOUJGZVTBHFQBUUFSOTBOEBDDPSEJOHMZTFMFDUUBSHFUTFHNFOUT t 'PDVTTFENFEJBTUSBUFHZUPSFBDIUBSHFUTFHNFOUBOEEFMJWFSHSPXUI Driving Penetration Through Target Reach & Usage Segments Availability Available in 4 mn outlets 2 0
Slide 17: Driving Penetration
Driving Penetration t Alternate Trade Channels like Ecommerce, Modern Trade (MT) and Pidilite Ki Duniya (PKD) have augmented Q3 growth t E-Comm Sales at 3X growth t PKD Sales at 1.3X growth 2 0 2 1
Slide 18: International Expansion
International Expansion 5BLJOH1JEJMJUFT4VDDFTT4UPSZUP&NFSHJOH.BSLFUTBDSPTTUIF8PSME Target markets with high headroom for growth, with a high-touch, “India-like” approach Drive market: Bangladesh t #FHBOPQFSBUJPOT ZFBSTBHP t 1MBZBDSPTTBMMNBKPSDBUFHPSJFTPG1JEJMJUF JODMVEJOH$#BOE*1 t 4FUVQMPDBMNBOVGBDU
Slide 19: What are our Pioneering categories
What are our Pioneering categories CORE GROWTH PIONEER 2 0 2 0
Slide 20: Roff Growth Story
Roff Growth Story 3PGGJTESJWJOHDBUFHPSZDSFBUJPOBOEFYQPOFOUJBMHSPXUIJOBOVOEFSQFOFUSBUFEUJMFBOETUPOFmYJOHTPMVUJPOTNBSLFU UISPVHIBDPNQSFIFOTJWF QPSUGPMJPBOEHPUPNBSLFUBQQSPBDI 3PGGJTQPTJUJPOFEBTBOFYQFSU5JMFBOE4UPOFTPMVUJPOTJO*OEJBO.BSLFU BOEJUJTQSFTFOUJONBKPSDBUFHPSJFT Untapped potential t The Tile & St
Slide 21: Future-Fit and Resilient Supply Chain
Future-Fit and Resilient Supply Chain Network Expansion: t "EEJUJPOPGNPSFQMBOUTCZUPDSFBUFBTFBNMFTT OFUXPSLBDSPTTUIFDPVOUSZ t &YQBOTJPOBUTFWFSBMFYJTUJOHGBDJMJUJFTJODMVEJOH#BOHMBEFTI t /FXQMBOUTIBTCFFOTFUVQJO4SJ-BOLBBOE,FOZB Capability/ resilience building: t $PNNJTTJPOJOHPGTUBUFPGUIFBSUGBDJMJUZBU7J[B
Slide 22: Riding the Digital Wave
Riding the Digital Wave Field Marketing Prescriptive Analytics - Automation project to aid via Salesforce.com sales process Channel Field Influencer Advanced Integrated Partner Force Community Analytics Supply Management Effectiveness Management Chain Dealer App Common Loyalty Upgrading and Platform
Slide 23: Acceleration of digital in sales & marketing
Acceleration of digital in sales & marketing Engaging phygitally at scale Significantly accelerated digital marketing tPhygital approach to field marketing tSignificant increase in digital mix tVirtual connects with channel, e.g., t Several digital user marketing projects virtual FCC meets, site vis
Slide 24: Accelerating Innovation
Accelerating Innovation 3 fully equipped in-house centres t (BUIFSFEJOTJHIUTPGDIBOHJOH in India Consumer behaviour t *OOPWBUJPODBMFOEBSSFQSJPSJUJTFE t 0QQPSUVOJUJFTJOBOUJWJSBMQMBUGPSN R&D centres 2 centres in 185% increase USA & Singapore in R&D spends since 2015
Slide 25: Culture as a Competitive Edge
Culture as a Competitive Edge 4 3 Building an Inspiring 2 Leadership Place to Work Pipeline 1 Focus on Frontline Listening Culture Capability building SCENT NPS turnaround, Career map for field teams with scores at Best-In-Class MyPidilite Helpline for Engaged teams all stakeholders, including emplo
Slide 26: Journey towards Sustainability
Journey towards Sustainability Pidilite is geared up to reach World class standards in Sustainability Initiatives Our Core Sustainability Pillars Taking Creating Strengthening Sustainability a strong enablers to the foundation next level Sustainable Operational Innovation Eco-Efficiency 1 4FUUJOHVQU
Slide 27: Giving Back to Society
Giving Back to Society Water Skill Covid Education Healthcare Resource initiatives relief Initiatives Management During the current year, a total We have pledged Rs. 25 crores During the year, Hanumant More than 5,200 children Built of 13,000 trainees from 185 ITIs towards relief funds to combat Hos
Slide 28: Thank you
Thank you
Slide 29: Investor Contact
Investor Contact CIN : L24100MH1969PLC014336 investor.relations@pidilite.co.in Puneet Bansal, Company Secretary Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (E), Mumbai - 400 059. Disclaimer: This presentation may contain statements which reflect the management’s current views and es
Slide 30: Annexures
Annexures
Slide 31: Company Overview
Company Overview No.1 Adhesives >5300 Operations in 27 Mfg. Plants & company in India permanent 9 countries 31 Co-Makers employees in India >600 Exporting to 20 International & 5 R&D Centres Products >80 countries 15 Domestic Subsidiaries 2 0 2 0
Slide 32: Revenue Split
Revenue Split 6.4 % Industrial Resins & 1.4 % Others Standalone Results – % of Total Sales for 2019-20 Construction Chemicals (Project) etc. 6.2 % Pigment & Preparations 6.1% Industrial Adhesives B2B 18.7% 8.1% C&B 79.9% Art & Crafts 52.6 % Materials etc. Adhesives & Sealants 79.9% Consumer & Bazaar
Slide 33: 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 18,000 32% NET SALES GROWTH TREND OVER LAST 10 YEARS EBITDA GROWTH TREND OVER LAST 10 YEARS 80,000 16,000 15,800 30% 70,000 14,000 28% % 72,542 13 % 60,000 GR 12,000 1 5 26
Slide 34: Creating Value for Shareholders
Creating Value for Shareholders 28% 4287 37% mn 10yr CAGR - MCap Dividend Payout Dividend Payout as a % to Net Profit 4,500 44.0 7,00,000 4,287 4,000 3,980 42.0 6,00,000 6,89,346 3,667 8 % 40.6 2 3,500 5,00,000 R 40.0 G CA 2,931 38.1 3,000 4,00,000 2,561 38.0 2,500 3,00,000 36.9 3,08,059 36.0 2,000
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