MOSL: THE CORNER OFFICE (PIDILITE INDUSTRIES) — Focus on double-digit volume growth

​THE CORNER OFFICE (Pidilite Industries) — Focus on double-digit volume growth; All-time high adhesives margins a near-term risk

Mr Bharat Puri—Managing Director

Mr Puri’s association with Pidilite began as an Independent Director in 2008. He started his career with Asian Paints in 1982 and rose to the position of General Manager - Sales & Marketing. He then moved to Cadbury in 1998 as Director of Sales and Marketing for Cadbury India. In 2002, he was appointed Managing Director South Asia, after which he moved to Singapore in 2006 where he was responsible for Strategy, Marketing and Sales for the Asia Pacific region. In his last assignment, he was President - Global Chocolate, Gum and Candy Categories at Mondelez International, Zurich with worldwide responsibilities for the growth of these categories. Mr Puri has completed his MBA from the Indian Institute of Management, Ahmedabad.

• Pidilite Industries (PIDI) is cautious on near-term performance, given GST implementation. While it might take a month or so to assess the impact of GST, PIDI perceives it as a positive reform for the Adhesives industry.
• Underlying demand remains healthy, and during our meeting, Mr Puri reiterated time and again PIDI’s long-term target of delivering double-digit volume growth. He also reiterated that current margins are unsustainable, prioritizing volumes over margins.
• While he highlighted the attractive long-term opportunity in a variety of categories, PIDI does not intend to enter Paints unless it gets a disruptive proposition. The company has a strategy of deriving 2/3rd growth from “Growth” and “Pioneer” categories and the remaining 1/3rd from “Core” categories. It will continue to expand reach and make significant investments in R&D to build a strong foundation for multiple years of growth.