I do not know the exact product profile of Pidilite except the superhit products like Fevicol and Fevikwik etc. But if I were to venture a guess, I think Pidilite has saturated its geographical coverage in India. Its products like the 5 rupee or 10 rupee small pack of Fevikwik is available even in small kirana shops. That leaves very little scope of geographical expansion.
The main avenue for growth in such a scenario remains launching new products. Its difficult to come up with products which are consistently blockbuster akin to fevicol and fevikwik. Broadly the company’s growth will mirror the setoral growth which again is a saturated market. In times when economy picks up and construction and infrastructure activities go through the roof, this company will grow fast, other times tepid.
Plus in times when raw material prices ( read crude) shoot up, company’s sales will go up, but I don’t have much idea about how profits fare during those times.
Maybe its one of the reasons why company is looking for areas beyond its usual area of competence in an attempt to get faster growth.
@nilwadmalwar I don’t track Paytm. You can go through relevant thread on the company. Digant Haria presented on the company in our last VP annual meet in April 2023. You can find it by googling or on you tube.
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