Pidilite explores growth through partnerships and acquisitions

Pidilite Industries, a leading adhesives and construction chemicals manufacturer reaffirmed its commitment to exploring "partnerships and acquisitions," according to Sudhanshu Vats, the company’s managing director-designate. At a recent virtual press meet, Vats highlighted the company’s ongoing focus on identifying growth opportunities across different scales.

Reports suggest Pidilite and Berger Paints are among the frontrunners in acquiring Akzo Nobel India. Parent company Akzo Nobel NV, which holds a 74.76% stake in its Indian subsidiary, is reportedly considering a divestment. Other potential bidders include Indigo Paints and JSW Paints. The acquisition is valued at approximately Rs 13,107 crore, following Akzo Nobel NV's strategic decision to sell its Indian operations. This move highlights growing consolidation within the Indian paints industry as companies vie for strategic growth.

Vats stated, "We continuously look at opportunities. This is an ongoing process. We look at smaller opportunities, medium-sized opportunities—whatever comes our way."

Vats noted Pidilite's strong track record in strategic growth through collaborations. "Over the last five to seven years, we’ve done some very successful partnerships and acquisitions. This is something we keep doing," he said. However, he refrained from confirming Pidilite’s interest in Akzo Nobel India, adding, "We would not like to comment on any speculation."

Separately, Pidilite announced a consolidated net profit of Rs 557-crore for the October–December quarter, marking a 9% year-on-year increase. Revenue from operations rose 8% to Rs 3,368.91-crore. Vats highlighted the company’s performance, stating, "We’ve delivered a 9.7% underlying volume growth with the EBITDA on the higher end of our long-term guidance of 20% to 24%. We remain focused on consistent, double-digit, profitable growth."

As Pidilite gears up for its leadership transition in April, with Vats set to succeed Bharat Puri, the company aims to enhance its distribution network, particularly in rural markets. "Strengthening our reach across towns and rural areas remains a key priority," Vats added.

Akzo Nobel India has separately announced plans to explore the sale of its powder coatings business and R&D operations to a subsidiary of its parent entity. The developments signal an active period of industry restructuring as leading players position themselves for future growth.