According to Pidilite Industries, acquisition of Araldite brand in India will provide opportunities for several new launches in the coming days. Though Pidilite has wider distribution network, Araldite, according to the company, has significant indirect reach.
The company believes flooring is a pioneering segment in India with lot of growth opportunities in the coming days. The company hopes to make deep inroads into this segment with the help of new acquisition.
It may be recalled here that in October, Pidilite had announced the acquisition of 100% stake in Huntsman Advanced Materials Solutions Private Limited which owns Araldite brand. Commenting on the acquisition, Mr. Apurva Parekh, Executive Director, Pidilite Industries Limited, had said: “Araldite is an iconic brand and a market leader in Epoxy Adhesives in India.”
Apart from this significant acquisition, Pidilite is seeing fast returning to the industry post lockdown relaxation. Sales in Metros are increasing month on month basis which is a clear signal of recovery. Further, revival of real estate market as revealed by increased property registrations will also be a good news for the company.
However, hardening of raw material price is a matter of concern for the company. Raw material prices, that is, VAM prices had remained benign during most part of the year. However, now the price has started hardening which may impact the company’s margins. Price has started hardening in the third quarter of the year and may remain elevated for remaining part of the year.