January 26, 2025
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Pidilite Expands Its Footprint in the Paints Sector
Pidilite Industries, known for its flagship adhesive brands Fevicol and Fevikwik, is focusing on growing its paints venture, Haisha, which was launched in select markets last year (FY24).
Sudhanshu Vats, the Managing Director-designate of Pidilite, shared that the company is currently perfecting its business model for the paints segment, with an initial focus on rural and semi-urban consumers. While the venture is aimed at these markets for now, Pidilite plans to expand Haisha into urban areas and additional markets in the future.
This development comes at a time when Pidilite, along with other industry players like Berger Paints, JSW Paints, and Indigo Paints, is rumored to be considering a potential acquisition of AkzoNobel India. The Dutch parent company, Akzo Nobel NV, is reportedly exploring the sale of its 75% stake in the Indian subsidiary as competition in the domestic paints market intensifies.
When asked specifically about Pidilite’s interest in AkzoNobel India, Vats responded, “We are always on the lookout for opportunities. Over the past five to seven years, we’ve successfully entered several partnerships and acquisitions, and we continue to explore new possibilities. However, at this point, I’d prefer not to comment on speculation.”
In recent years, Pidilite has been diversifying its portfolio by branching into adjacent sectors like sealants and protective coatings. FY24 marked the company’s entry into lending and paints as part of its broader diversification strategy. In FY25, Pidilite indicated that it would continue to explore other areas within home improvement to expand its product offerings.
Vats emphasized, “We are constantly seeking pioneering categories to test and develop. Our goal is to transform these categories into growth segments, and ultimately into core categories for our business.”
A decade ago, nearly 80% of Pidilite’s revenue came from its core categories, primarily adhesives. However, in recent years, this balance has shifted, with nearly 45% of its revenue now coming from growth categories. The lending business, currently in its pilot stage, offers retail and small-ticket loans to dealers. Meanwhile, the paints division has allowed Pidilite to complete its range of offerings to distributors, enhancing its market presence.
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