Published on December 9, 2014

Pidilite Industries is the market leader in adhesives and sealants and construction chemicals in India. Its second quarter consolidated net profit rose 17 percent at Rs 138.9 crore against Rs 118.5 crore in the same quarter last year. Although the margins in Q2 were impacted by unprecedented rise in prices of key input vinyl acetate monomer (VAM), going forward there is a strong case for expansion in margins in the second half of FY15.

Recent report said that as the industrial activity in India is set to pick up. The adhesives industry will be benefitted of this expansion. Growing demand from electronics and automotive application is anticipated to fuel the demand for adhesives further in Indian market. With upcoming infrastructural projects such as railway tracks, metro rails as well as new wind energy farms, the country is set to witness a strong growth in the adhesives industry over the next five years.

Adhesives used in automotive industry are expected to witness growth as the demand for light weighing and composite joining is set to increase. The Indian market is seeing a steady increase in the demand for adhesives segment. Industry sources said that demand for adhesives is gradually improving from automotive, rubber, wood and plastic segments. To differentiate from the competitors currently market players are planning for innovative products development and new strategic plans which will create the valuable customers in market.