The Hindu Business Line : Dr Fixit - a focus brand for Pidilite

At Rs 44 crore, this division's contribution to the company's 2004-05 turnover of Rs 780 crore is a minuscule 5 per cent, but its growth and margin profile should prove beneficial to Pidilite in the coming years, Mr Sanjay Bahadur, CEO - Construction and Chemicals Division, Pidilite, said.

"We intend to increase the construction and chemicals division's contribution to the company's turnover to 8 per cent and then to 15 per cent," Mr Bahadur said.

The company has defined this business under six product groups — water proofing; repair materials; sealants; grouts; floor products; admixtures and tile fixing. "We have 50 products under the brand name Dr Fixit," Mr Bahadur said.

The company has also embarked on initiatives, particularly at the retail level, to grow the market for these products.

"The biggest opportunity in this business is from creating awareness about construction. Therefore, we have started training contractors and applicators. In the last six months, we have trained 6,000 applicators," Mr Bahadur said.

Not only does the booming housing industry augur well for this division, but also there is a huge opportunity in the repair and reconstruction segment of the housing industry, he said.

The brand strength of Dr Fixit has helped the company to grow this business in excess of 50 per cent CAGR (compounded annual growth rate), higher than the industry's growth of 30 per cent. "We have been able to establish the number one position in the retail market," he said.

The margin profile of this business, according to Mr Bahadur, helps the company absorb input costs increases. However, this segment of business has not faced a severe increase in raw material prices. Cost increases have been only to the extent of 5 per cent. Besides, the company has been able to pass on price increases in some of its products.

Through its acquisition of Singapore-based Chemson Asia Pte Ltd, Pidilite Industries has also been able to add to its product portfolio.

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