Pidilite Industries is gearing up to broaden the horizons of its paint brand, Haisha, targeting rural and semi-urban markets. In an exclusive conversation, Managing Director Sudhanshu Vats shared insights into the company’s ambitious plans, aiming to create a balanced revenue stream between its established and newer brands.
Expanding the Growth Portfolio
Pidilite, renowned for its flagship products Fevicol and Fevikwik, is also keen on enhancing its emerging brands such as Araldite, Roff, and Dr Fixit. These newer offerings are pivotal to Pidilite’s growth strategy, contributing approximately 48% of the company’s overall revenue. The remaining 52% is generated from its core adhesive brands.
- Target Revenue Balance: Vats expressed a desire to achieve a 50:50 revenue split between core and growth portfolios.
- Sustained Investment: He emphasized that ongoing investments in the growth segments are crucial for maintaining business momentum.
Increased Marketing Efforts
To boost brand recognition, Pidilite has ramped up its marketing initiatives for products like Dr Fixit, specializing in waterproofing, and Roff, which focuses on tile and stone adhesives. Vats noted that both on-ground and digital activations have significantly increased recently.
Pidilite’s financial performance has been impressive, closing FY25 with a consolidated revenue of ₹13,094 crore and a net profit of ₹2,096 crore, marking increases of 6.1% and 20%, respectively, from the previous year. In the March quarter alone, the company reported net sales of ₹3,130 crore and a net profit of ₹428 crore, reflecting growth rates of 8.3% and 40.5% year-over-year.
Future Growth Prospects
Looking ahead, Vats is optimistic about achieving double-digit volume growth and maintaining EBITDA margins in the 20-24% range over the medium term. Pidilite is also exploring potential acquisitions and partnerships to enhance its presence in the specialty chemicals sector.
- Strategic Acquisitions: The company has previously made significant moves, including the ₹2,100 crore acquisition of Araldite from Huntsman’s India unit in 2020, which filled a gap in epoxy adhesives.
Navigating the Paints Market
Pidilite’s entry into the paint sector represents a bold diversification strategy. Vats acknowledged the competitive landscape but remains confident in the company’s approach to this market.
Notably, Pidilite is reportedly considering acquiring AkzoNobel India, alongside other competitors like JSW Paints and a consortium involving Advent International and Indigo Paints.
Haisha’s Market Positioning
Launched in May 2023, Haisha is designed to cater to consumers in smaller towns, drawing its name from a memorable tagline associated with Fevicol. Initially rolled out in Tamil Nadu, the brand has since expanded to regions including Odisha, Telangana, Andhra Pradesh, and Karnataka.
“We are witnessing consistent growth with the Haisha initiative and have established a solid foundation in southern and Odisha markets. We believe we are well-positioned to succeed in rural and semi-urban India,” Vats noted.
While a national rollout for Haisha is not imminent, the company plans to enhance distribution channels while closely monitoring demand and growth in key towns.
Pidilite Industries is poised for an exciting chapter as it continues to innovate and adapt to the evolving market landscape, ensuring its legacy as a leader in the adhesives and paints industry.
