Celebrating 61 Years of Pidilite

Author - Ananya Garg


Adhesive Industry

The India Adhesives & Sealants market is expected to record a CAGR of 11.17% during the forecast period of 2019-2024.

The India adhesives and sealants market is consolidated, with the top four players with an approximate market share of 85.3%. The major companies include Pidilite Industries, Henkel AG & Co, Sika, Arkema Group (Bostik India), and H.B. Fuller Company.


Pidilite

Founded in 1959 by Balvant Kalyanji Parekh

Indian based adhesives manufacturing company (started as a pigment company)

It also sells art material, construction chemicals, and other industrial chemicals.

Pidilite markets the Fevicol range of adhesives. Its other brands are FeviKwik, Dr. Fixit, Roff, Cyclo, Ranipal, Hobby Ideas, M-seal, and Acron

Owner – Madhukar Parekh

CEO – Bharat Puri

Reported net profit for 2019-20: Rs 1,122.05 crore

Market Share: 70%

Believes in Blue Ocean Strategy: creates categories instead of entering into existing categories

Dr Fixit: In year 2000, Pidilite latched on to an opportunity in the untapped and unorganised waterproofing business by acquiring Mr. Fixit (later Dr Fixit) from the Mahindras. The strategy was set — find niche sectors and create a compelling product.

Fevicol Marine: When the industry was talking about introducing waterproof plywood and water-resistant laminates, Pidilite introduced a variant of Fevicol, Fevicol Marine for wet conditions


Revenue Split (2018-19)


Timeline

  • 1959: The company started with a single factory in Kondivita Village, Mumbai that manufactured only one product, Fevicol. Prior to fevicol, animal fat, which was clumsy and cumbersome, was the only glue available.

  • 1963: First modern manufacturing plant was established in Kondivita Village, Mumbai

  • 1965: Fevicol established as the preferred choice among target market i.e. carpenters

  • 1985: Fevikwik Launched

  • 1990: The name, Pidilite Industries Private Limited, was incorporated, thus taking the first step towards brand recognition.

  • 1992: Madhukar B. Parekh, son of Balvant Parekh takes over as the new Chairman and M.D.

  • 1993: Listed on NSE; valued at INR 60 crore

  • 2000: Dr. Fixit, an extensive range of Construction Chemicals, was acquired from Mahindra & Mahindra - waterproofing solution to be used in new constructions, or in the repair of old ones.

  • 2002: Launched Hobby Ideas as India’s first chain of art, craft, and hobby stores

  • 2005: First international subsidiary in Singapore, followed by subsidiaries in the Middle East & Brazil

  • 2014: Ranked among the best 100 brands of 2014 by Economic Times

  • 2015: Bharat Puri Appointed as Managing Director

  • 2016: 'Most Promising Company of the Year Award' at the CNBC-TV18, 11th Indian Business Leader Awards (IBLA)

  • 2019: Pidilite invested in Pepperfry and Home Lane to access newer customers, products, markets, technologies and trends


Acquisitions

2000: M-Seal and Dr. Fixit acquired from M&M

2002: Steel Grip – Leading brand of PVC insulation tape – acquired from M&M

2004: Roff – Pioneer of construction chemicals in India

2006: Sargent Arts Inc. – World-class art materials space in the USA

2006: Tristar Colman –Canvas and student art colors

2006: Cyclo – Brand of automotive maintenance products

2008: Holdtite – Sealant business of Hard Castle Ltd

2009: Woodlok – Retail woodworking brand of Henkel

2013: Falcofix – adhesives business of Suparshva Adhesives and bluecoat


Fevicol

  • 1965: Fevicol established as the preferred choice among target market i.e. carpenters

  • 1970: First product line extension introduced for the retail market - 30 gm collapsible tube

  • 1970: Logo by OBM’s (then Ogilvy, Benson and Mather) designer M. Swaminathan (till date the same elephant is used in the logo to signify the strength of the Fevicol)

  • 1997: Fevicol released its first TV ad, ‘Dum laga ke haisha’, featuring filmmaker Rajkumar Hirani and is ranked amongst the Top 15 Indian brands by FE Brandwagon Yearbook 1997.

  • 2000: Fevicol campaign won the Silver ABBY for the Campaign of the Century in India

  • 2002: The famous Fevicol 'Bus ad' not only won the hearts of the Indian people but also the world, going ahead to win the Silver Lion award at Cannes Lions International Festival of Creativity 2002.

Uses Demand pulling strategy: Approaching contractors/carpenters and they, in turn, asking for the product from the dealers


Various variants:

Fevicol SH: Synthetic resin adhesive intended for woodworking

Fevicol MR: Used for bonding paper, cardboard, thermocol, fabrics, wood, and plywood

Fevicol Marine: Waterproof adhesive for wet areas

Fevicol HI-PER: High-performance adhesive for premium laminates


Fevicol Champions Club (FCC): Started in 2002 (initially launched only in Kanpur and Surat) to provide soft skills training to carpenters, contractors; training for using the equipment. FCC helps them in social networking and to provide recognition in society and to uplift their families by educating their children.


Brand Communication

Fevicol synonymous with adhesives/glue

Creative advertisement campaigns, highlighting product strengths through the use of witty humour

Rural backdrop in advertising/promotional campaigns

Most of the ads are an outcome of honest conversations with the consumers (Piyush Pandey)

Native Indian rusticity along with the usage of local language coupled with humour has played a critical role in establishing connect with rural consumers which are key market

Involves actual users of products directly in advertisements



Fevicol - Iconic ads



Fevikwik

Unlocks new usage opportunities that would help the category expand

Cashcow for Pidilite

Marketing communication elements: Rumour + Functional benefits + Emotional

Changing value propositions in advertisements with time: Initially focus on the word “INSTANTLY” fix things to “SIRF 5 RUPAYE me”

2017: Launched a series with a woman repairing things using Fevikwik (based on insights that only males are involved in repairs)


Moment Marketing