Study of Pidilite Essay Example

Industrial Adhesives, Construction and Paint Chemicals, Art Materials, Industrial and Textile Resins and Organic Pigments and Preparations, which have mostly been developed through in-house research and development. The company is also expanding its global reach with international acquisitions, manufacturing facilities and sales offices in key regions. Fevicol has become the top brand of adhesives in Asia.

In 1969, Parekh Dychem Industries Pvt. Ltd. was established as a private limited company on July 28th. Its purpose was to acquire and continue the business operations of M/s.Parekh Dychem Industries, a partnership firm established in 1961 with a factory located in Mumbai.

Balvantray Kalyanji Parekh and his brothers founded the Company that produces Fevicol, Fevibond, Fevigum, Pidifix, Pidivyl, Pidicryl, Acrolise and other brand names. The Company's plans include establishing a synthetic resin project in Raigad district, Maharashtra, with a capacity of 3000 TPA at Mahad Industrial area and creating a constructions chemicals project at Taloja industrial area in Taloja, Maharashtra.

In 1984, there were three other companies within the same group: Kodivita Pvt. Ltd., and the former Pidilite Industries Ltd.

, Triveni Chemicals Ltd., and Kondivita Pvt. Ltd. were merged with the Company on various dates. The amalgamation of Triveni Chemicals Ltd. was effective from 1st July, 1989, while that of Kondivita Pvt. Ltd. took place on 1st July after necessary approvals. The Company also merged with Kondivita Pvt. Ltd. on 1st April 1992. Shareholders of the former Kondivita Pvt. Ltd.

Ltd. received 41,000-15% preference shares worth Rs 10 each and 19,500 shares worth Rs 10 each. In addition, 54,000 I and II Pref. - 4% shares were allotted to the promoters and there were also 26,000 shares.

Initially, 26,000

equity shares were allotted to promoters. In 1980, 52,000 rights shares were issued in proportion of 1:1. In 1981, 52,000 bonus shares were issued in proportion of 1:1. In 1985, both I and II preference shares of 4% were redeemed and 12% redeemable shares were upgraded to 15%. Additionally, there were 19,500 equity shares.

Upon amalgamation, Kondivita Pvt. Ltd. was granted 41,000-15% Preference shares and equity shares. Additionally, 54,000-15% Preference shares were allocated to the promoters as a replacement for the initial and secondary 4% Preference shares.

The company underwent several name changes such as from PDI chemicals private limited to PDI chemicals limited in 1988 and then to Pidilite Industries Ltd. in 1990. In 1989, Pidilite Industries Ltd. was merged with the company, effective April 1st.

Under the amalgamation scheme, the former shareholders of Pidilite Industrial Ltd were granted 1,93,500 equity shares valued at Rs 10 each, as well as 72,000 preference shares valued at Rs 10 each. In 1992, Triveni Chemicals Ltd merged with the company following the approval of the Mumbai High Court's Scheme of Amalgamation, which took effect on April 1st. As a result, 90588 equity shares were also granted.

Former shareholders of TCL were given 10 rupee equity shares and 10 rupee preference shares in the amount of 40,000-15%. On January 29th, 1993, promoters were allotted 8,49,034 shares in a ratio of 72:10.

In October 1993, a total of 15,36,378 shares were issued at a premium of Rs 100 per share. Out of these, 1,50,000 shares were offered to Viny Chemicals India Ltd. on a preferential allotment basis, but only 1,35,000 shares were taken up. The remaining balance of 13,86,378 shares along

with the 1,50,000 shares not taken up were issued to the public and all were taken up. In 1994, the SBR Latices, AZO Pigments and Carbazole Dioxiene Violet Pigments projects were commissioned.

The amalgamation of Apuraj Chemicals Ltd. with the Company resulted in the allotment of 66,000 equity shares valued at Rs 10 each to the former's shareholders, in accordance with the amalgamation scheme. Vapkon Finance ; Industries Ltd. was involved in the process.

60,000 No. is held by subsidiaries of the Company, namely Fevicil Adhesives ; Chemicals Ltd. and Pidifin Finance and Investment Ltd.

The scheme of amalgamation involves the issuance and allocation of Equity shares worth Rs. 10 each to the existing equity shareholders of Apuraj Chemicals Ltd. Additionally, in 1995, an expansion project at Taloja was commissioned, which resulted in an overall plant capacity of 2400 TPA of construction chemical.

The Company has extended their technical collaboration agreement with Schomburg ; Co. , KG. Germany until September 8th, 1996. The collaboration involves the transfer of technical process know-how and specifications of the plant. In March, the first phase of a grass root plant was commissioned in Mahad with a capacity of 7800 TPA. The plant is used for the manufacture of synthetic resins of various types.

The next stage involves setting up a continuous emulsion polymerization loop plant. This includes collaborating with M/s. Crown Berger Ltd. U to introduce multiple new products.

The Company granted 61,17,200 equity shares worth Rs 10 each as bonus shares at a ratio of 1:1. However, 3,800 shares were put on hold due to a disagreement regarding their ownership. In 1997, an additional 600 bonus shares were issued from

the Bonus Share Issue Suspense Account.

The Pidilite Industries Limited has installed three wind mills, each with a capacity of 230 kv, in Village Pransla near Dhank in Gujarat. In an effort to either sell off its chemical and resins business or collaborate with other companies, the manufacturer of the Fevicol brand of adhesives has engaged in discussions with various international players. Triveni Chemicals, a group company, was merged with PIL in 1992. The company's consumer products division was established in 1984 and the amalgamation of PGP Engineering Works Ltd and Pidilite Finance Ltd was approved by its Board of Directors.

As of 1-4-99, the company has become effective, and there are plans to merge with Nebula Chemicals Ltd., which produces certain types of adhesives pending necessary approvals. Additionally, 2,800 bonus shares that were previously on hold have now been allocated.

Pidilite Industries is transforming itself into a marketing-focused company and partnering with a strategic partner to manage its manufacturing facilities. In 2000, the company acquired the adhesives and sealants business of Mahindra & Mahindra Ltd subsidiary, Mahindra Engineering & Chemical Products Ltd (MECP), including the popular brands M-Seal and Mr. Fixit, as well as the goodwill of MECP's adhesives and sealants business. In 2001, Pidilite Industries Ltd announced a 5% increase in performance.

During the second quarter, Pidilite Industries Ltd experienced a 76% decrease in net profit, from Rs. 3.54cr in the same period last year to Rs. 12.76cr. In addition, in 2002, the Income Tax Department has issued a notice to Pidilite Industries Ltd for an additional income tax liability of Rs.

Pidilite Industries has acquired the Steel Grip insulation tape brand from Bhor Industries for Rs.

8cr. This acquisition is part of Pidilite's strategy to expand its product portfolio in several segments, including fabric care, car care and stationery. In 2003, Pidilite partnered with Srinagar Films to support the launch of its new AcronRangeela Colours product as part of its ongoing efforts to broaden its offerings. Pidilite also introduced a new liquid pipe sealant and Fevicol Marine in that year. The company's Board of Directors noted the resignation of Shri Amit Roy, Director and Whole time director, at a meeting held on October 17, 2006. His resignation would be effective on December 31, 2006.

On December 2, 2006, the Board of Directors of Pidilite Industries Ltd announced that Shri. V S Vasan has been appointed as an Additional Director and Whole Time Director of the Company.