Pidilite Industries, a leading adhesives maker in the country, is likely to pass on the raw material price increase to the customers. According to company sources, Vinyl Acetate Monomer (VAM) prices have gone up by about 40% during the last one year and is now ruling at US$1,300/ton. The company is likely to resort to one more round of price hike to accommodate increased cost of raw material. VAM is one of the major raw material used in the making of Fevicol, the company’s popular brand. Pidilite had undertaken 2-5% price hikes in past few months in a few products where it has witnessed significant increase in input costsóe.g. rubber-based adhesives.
However, demand environment is not entirely encouraging and according to company sources it may take couple of more quarters for demand environment to stabilise and register healthy growth.
Pidilite is a multi-product, multi-location company having some well-known brands like Fevicol and Dr FIXIT in its kitty.
The company enjoys dominant and nearly unchallenged positioning in adhesives. The company has an impressive track-record of product portfolio expansion and end market development. The company has diverse product range – from adhesives, sealants, waterproofing solutions and construction chemicals to arts & crafts, industrial resins, polymers and more. The company has nine manufacturing facilities and has presence in 71 countries.