“ CUSTOMER SATISFACTION

UNDERTAKEN AT
PIDILITE INDUSTRIES LIMITED
DELHI ”

A PROJECT REPORT

Submitted by :
SYYED MESUM RAZA

in partial fulfillment for the award of the degree of

BACHELOR IN BUSINESS ADMINSITRATION

RIMT INSTITUTE OF MANAGEMENT AND

COMPUTER TECHNOLOGY

PUNJAB TECHNICAL UNIVERSITY, JALANDHAR

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 ACKNOWLEDGEMENT
The research on “CUSTOMER SATISFACTION ” has been given to
me as part of the curriculum in 4th sem of Degree of Bachelor Of
Business Administration.
I have tried my best to present this information as clearly as possible
using basic terms that i hope will be comprehended by the widest
spectrum of researchers, analysts and students for further studies.
I have completed this study under the able guidance and supervision
of Mr. Gaurav Chandna , my parents of their direct/indirect support
the entire course of this project. I will be failed in my duty if I do not
acknowledge the esteemed scholarly guidance, assistance and
knowledge that I have received from them towards fruitful and timely
completion of this work.

Compiled by:-
SYYED MESUM RAZA

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 DECLARATION
I SYYED MESUM RAZA studying in RIMT, Mandi Gobindgarh de
here by declare that this Dissertation Report relating to PIDILITE
INDUSTRIES LTD. and the topic Customer Satisfaction on Pidilite
Products has been prepared by me after doing a research in this firm,
as part of the requirement of the BBA program of Punjab Technical
University (Batch of 2007-10).
I further declare that this Dissertation Report has been submitted
earlier to any other University or Institute for the award of any
Degree.

Date:- Submitted by:-

SYYED MESUM
RAZA
Roll No.
80802320071
BBA-5th Sem

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 CONTENTS

S.NO. TOPIC PAGES

1 Executive summary 7

2 Introduction 8

3 Company Profile 22

4 Objectives 25

5 Research Methodology 26

6 Data Analysis and Interpretation 28

7 Conclusion and Summary 42

Bibliography
Annexure

PREFACE
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 A project report is an outcome of sincere labor of different minds.
The importance of any academic course would gain advantage and
acceptance of the true form only through practical experience.
The main objective of this summer training is to supplement
theoretical knowledge with the exposure in practical operations of an
organization. This provides the students with a better understanding
of all the functional areas and management also.
This project/assignment gave me an opportunity to gain an insight
into the practical applicability to learn faster and develop better
understanding of any problem or decision making which in turn
contributed significantly in better utilization of resources available to
the management.
I did my summer training in THE PIDILITE INDUSTRIES LIMITED.
My project title is “ CUSTOMER SATISFACTION WITH PIDILITE
PRODUCTS.” This project aims about the market analysis of the
product available in the market.

BOARD OF DIRECTORS

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Chairman B K Parekh

Vice Chairman S K Parekh

Managing Director M B Parekh

Joint Managing Director N K Parekh

Director H K Parekh

Director R M Gandhi

Director N J Jhaveri

Director Bansi S Mehta

Director Ranjan Kapur

Director Yash Mahajan

Director (wef 28th May 2008) Bharat Puri

Whole-Time Director A B Parekh

Whole-Time Director A N Parekh

Whole-Time Director V S Vasan

Introduction of the Company

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Since its inception in 1959, Pidilite Industries Limited has been a pioneer in
consumer and specialties chemicals in India. Over two-third of the company’s
sales come from products and segments it has pioneered in India.

Product range includes Adhesives and Sealants, Construction and Paint

Chemicals, Automotive Chemicals, Art Materials, Industrial Adhesives, Industrial
and Textile Resins and Organic Pigments and Preparations. Most of the products
have been developed through strong in-house R&D.

The Group's turnover is about US $ 500 Million for the year 2007-08. In a recent
report by Economic Times, Pidilite ranked 131st amongst the top 500 listed
companies in India.

Pidilite Industries is the market leader in adhesives and sealants, construction

chemicals, hobby colours and polymer emulsions in India. Pidilite’s brand name
Fevicol has become synonymous with adhesives to millions in India and is
ranked amongst the most trusted brands in India.

Brand Equity by Economic Times, (issue dated 11th June 2008), India’s financial
daily ranked Fevicol as 20th amongst the top trusted brands for the year.

Pidilite is also growing it's International presence through acquisitions and setting
up manufacturing facilities & sales offices around the world. Fevicol is now the
largest selling adhesives brand in Asia.

The extensive product range of the Company is used by millions of hands every
day. These hands belong to craftsmen, children, housewives, teachers,
hobbyists, DIY enthusiasts and many others. By using Pidilite’s products, the
skillful hands of customers construct buildings, make furniture, create objects of
art, print magazines, paint houses and make hundreds of products used in our
daily lives such as footwear, garments, pencils, toys and handicrafts.

Fevicryl Hobby Ideas – has defined hobby & craft products in India over the last
several decades has now transformed itself into a more encompassing hobby
ideas brand which includes hobby products as well as hobby stores. The high
quality of the products have only improved over time, and are now available
under the new hobby ideas range. The hobby ideas stores retail several in-house
hobby products of Pidilite under the hobby ideas brand as well as other imported
products. Several activities and workshops have now become a part of the hobby
ideas’ retail experience. These retail Stores are started in Mumbai, Surat,
Amhedabad and Bengaluru.

Pidilite Industries Limited; GAIL; GSK Pharma; HDFC; Hindustan Unilever; ITC;
Nestle India; ONGC; Tata Power; West Coast Paper Mills; Ballarpur; Balrampur

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Chini; Cipla and Concor. These companies have been identified as “Storm
Shelters” for investors and have shown consistent growth in terms of market cap,
sales, profits and dividend payout even during the periods of economic
slowdown.

Pidilite Industries Limited has 8 Regional Branches along with 18 Depots and
C&F Agents all over the India to distribute their Products.

Pidilite has their Regional Branch in Nagpur also. For Vidharba Region (region
made-up of 11 Districts of Maharashtra), company give the C&F Agency to Neeta
Enterprises of Nagpur. From Nagpur’s Depot Pidilite Products are supplies to all
the distributors of the Vidharba region.

Pidilite Industries Limited (Holding Company) and its subsidiary companies are:-
Name of Subsidiary Company Country of Incorporation Proportion of Ownership
InterestFevicol Company Ltd. India 100% Subsidiary Bhimad Commercial Co Pvt
Ltd. India 100% Subsidiary Madhumala Traders Pvt Ltd. India 100% Subsidiary
Pidilite International Pte Ltd. Singapore 100% Subsidiary Pidilite Middle East Ltd.
Middle East 100% Subsidiary Pulvitec do Industria e Adesivos Ltda. Brazil 100%
Subsidiary Pidilite USA Inc. USA 100% Subsidiary Pagel Concrete Technologies
Ltd. India 75% Subsidiary Jupiter Chemicals (L.L.C.) Middle East 100% wholly
owned Subsidiary Nebula Trading FZE. Middle East 100% wholly owned
Subsidiary PT Pidilite Indonesia. Indonesia 100% wholly owned Subsidiaries
Pidilite Chemicals Bangladesh Pvt Ltd. Bangladesh 100% wholly owned
Subsidiaries Pidilite Innovation Centre Pte Ltd. Singapore 100% wholly owned
Subsidiary Pidilite Industries Egypt - SAE Egypt 100% wholly owned subsidiaries
Chemson Asia Pte Ltd. Singapore 75% wholly owned Subsidiary Bamco Ltd.
Thailand 75% wholly owned Subsidiary Vinyl Chemicals (India) Ltd. India 40.64%
Shares

Performance by Industry Segment

Consumer and Bazaar Products

Branded Consumer and Bazaar Products contributed 72% to the total sales of
the Company and grew by 25% during the year. Sales of branded Adhesives and
Sealants grew by 23.9% and contributed 51%
to the total sales of the Company. Construction and Paint Chemicals grew by
29% and Art Materials and other products grew by 24.8%. Most major brands of
the Company maintained or increased their market share.
Exports of Consumer and Bazaar products grew by 44.6% to Rs 736 million. The
Company achieved this growth due to expansion of distribution, introduction of
new products and brand building activities. The Company continues to focus on
Middle East, Africa, South East Asia and SAARC for growth in exports of
Consumer and Bazaar products. Profit before interest and tax for the Consumer
and Bazaar segment grew by 38% during the year.

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Speciality Industrial Chemicals
Speciality Industrial Chemicals contributed 21% to the total sales of the Company
and grew by 16%. Exports of Speciality Industrial Chemicals grew by 53% to Rs
702 million. The Company achieved this growth due to new product
development, focused activities and application development. Profit before
interest and tax for the Speciality Industrial Chemicals segment grew by 24%
during the year.

Others Segment
Others segment sale which includes sales of the said Demerged unit contributed
7% to the total sales of the Company. Others segment had profit before tax of Rs
171 million during the year.

New Products
During the year, several new adhesives, sealants and construction chemicals
were introduced. Fevicol 1K PUR and Fevicol Kwikgrab were introduced to take
care of special applications in building construction segment. Fevicol Vertifix for
cladding of vertical walls with marble and granite and Fevicol BWP waterproof
adhesive were also added to the range. The construction chemical range was
expanded with the introduction of special offerings of antibacterial wall and floor
coatings suitable for hospitals, hotels as well as food and pharmaceutical
manufacturing units.
Over the last few years, the Company has continued its efforts to introduce a
range of Adhesives and Sealants at an affordable price of Rs 5 (MRP). During
this year, the Company introduced Fevicol craft adhesive at MRP of Rs 2 and
Fevigum at MRP of Re 1. This will make high quality adhesives available to
consumers at very affordable prices.

Hobby Ideas Stores

The Company had started-for the first time in India-stores under the brand name
Hobby Ideas in March 2005. Hobby Ideas stores offer a large variety of hobby
and craft products sourced from around the world. Besides various products,
Hobby Ideas stores also offer workshops and demonstrations to make hobby fun
and easy for hobby enthusiasts. During the year the Company opened a 6,500
square feet store in Mumbai.
In addition, the Company also opened stores in Ahmedabad, Surat and
Bengaluru. The Company will evaluate the viability and business prospects for
these stores before deciding on future course of action.

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Customer Relations
The Company continued to take several initiatives to increase awareness of its
products and brands, increase consumption of its products and to strengthen
relationship with customers, influencers and end-users. The Company continued
to publish very popular Fevicol Furniture Books. The Company publishes 3
editions each year covering designs for homes and offices. The furniture books
have found good acceptance in households and among carpenters and interior
decorators. The Company has till date published over 5 million copies of furniture
books. The Company is now also publishing a CD-ROM version of the furniture
book. Fevicol Champion’s Club, a platform initiated by the Company for
carpenters and those associated with the furniture industry to come together,
continued to expand with over 300 clubs in 114 towns having over 45,000
members. To recognise outstanding talent amongst interior design and
architecture students, Pidilite Award of Excellence was given to the best student
from each of over 200 architecture and interior design colleges across the
country.
Dr. Fixit Institute, set up to provide training on use of waterproofing and
construction chemicals to applicators, consultants, contractors, builders,
architects and civil engineering students conducted 20 training programmes
during the year. The annual International Art & Craft Contest organised by the
Company had over 4,000 schools and 1.7 million students participating from
India and abroad.

Mergers and Acquisitions

• Pidilite do Brasil, wholly-owned subsidiary of the Company in Brazil, acquired
the entire share capital of Pulvitec do Brasil Industria e Commercio de Colas e
Adesivos Limitada, engaged in the business of adhesives, sealants and
construction chemicals. This company and its manufacturing plant are located in
Sau Paulo, Brazil and the business has annual sales of approximately Rs 750
million. This acquisition will help Pidilite enter high potential Latin American
market of adhesives and sealants.

• Pidilite Industries Ltd along with its wholly-owned subsidiaries, acquired assets
and business of branded sealants and adhesives from Hardcastle & Waud
Manufacturing Co. Ltd and associates. The acquired assets include brands like
Holdtite, Rustolene and Leakgaurd, which have a healthy market share in their
respective segments. The total sales of the business is Rs 150 million.

Miscellaneous

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The Company’s net worth (Equity Capital + Reserves) has grown from Rs 3,087
million in 2003-04 to Rs 6,396 million at the end of 2007-08, giving a
Compounded Annual Growth Rate (CAGR) of 20%. The market capitalisation of
the Company on 31st March 2008 was Rs 33,624 million and has grown at
CAGR of 32.2% since the IPO in 1993. In respect of Market Capitalisation, Net
Sales, Net Profit and Dividend, ET Investor’s Guide (Economic Times dated 23 rd
June 2008), Pidilite is listed among the following 14 defensive companies which
have performed well during market slow down during F.Y. 1997 and F.Y. 2002:
GAIL; GSK Pharma; HDFC; Hindustan Unilever; ITC; Nestle India; ONGC;
Pidilite; Tata Power; West Coast Paper Mills Ballarpur; Balrampur Chini; Cipla
and Concor. These companies have been identified as “Storm Shelters” for
investors and have shown consistent growth in terms of market cap, sales, profits
and dividend payout even during the periods of economic slow down.

Financial Performance
The current year’s sales turnover is inclusive of Rs 1153 million for VAM
manufacturing unit at Mahad which was demerged into the Company with effect
from 1st April 2007. The Operating Profit and Net Profit, for the year at Rs 2791
million and Rs 1883 million grew by 46.3% and 57% respectively. Income Tax for
the current year is lower at Rs 223 million (including Rs 34.1 million for Fringe
Benefit Tax) as against Rs 309 million in the previous year.

Equity Dividend
The Directors recommend the payment of a dividend of Rs 1.75 per Equity Share
of Re 1 each (previous year Rs 1.50 per Equity Share of Re 1 each), amounting
to Rs 442.9 million (previous year Rs 378.6 million) out of the Current Year’s
profit on 253.1 million Equity Shares of Re 1 each (previous year 252.4 million
Equity Shares of Re 1 each). The dividend for the current year will be free of tax
in the hands of Shareholders. The dividend payout amount has grown at a CAGR
of 20.81% during the last 5 years.

Preference Dividend
The Directors recommend the payment of dividend at Rs 0.60 per share on
28,74,805 6% Cumulative Redeemable Preference Shares of Rs 10 each, on a
prorate basis amounting to Rs 4816. These shares were allotted on 31st March
2008 pursuant to the Scheme of Demerger of VAM manufacturing unit of Vinyl
Chemicals (India) Ltd into the Company. The tax on dividend of Rs 819 will be
borne by the Company.

Capital Expenditure

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The overall expenditure during the year was Rs 2484 million. Out of this
approximately Rs 900 million was mainly on fixed assets for various
manufacturing units, offices, laboratories and warehouses. Capital expenditure of
approximately Rs 1053 million was incurred on the Synthetic Elastomer
(Polychloroprene) Project mainly towards acquisition of IPR, technology, fixed
assets and towards dismantling and shipping of plant and machinery from the
original site in France. Rs 118 million was spent on acquisition of brands, know
how, technology, etc. from Hardcastle & Waud Manufacturing Company Ltd. The
capital expenditure also includes fixed assets of Rs 389.9 million acquired on
demerger of VAM manufacturing unit into the Company wef of 1st April 2007.

Investment in Subsidiaries
Investment of Rs 841 million was made in subsidiaries out of which
approximately Rs 531 million was spent on acquisition of Pulvitec Business in
Brazil.

Synthetic Elastomer Project

The Company acquired plant and machinery, patents, trademark and technology
of a Synthetic Elastomer (Polycholoroprene Rubber) plant in June 2007. The
plant was located in Champaigner, France and was owned by Polymeri Europa
Elastomers, France. The Company is in the process of dismantling & shipping
the plant. The plant will be setup in a Special Economic Zone (SEZ) in Dahej in
the State of Gujarat in India.
The plant is expected to commence commercial production in March 2010 and
will have an initial capacity of 25,000 tonnes per annum. The capacity can be
increased to 35,000 tonnes per annum by debottlenecking. The total capital
investment in the plant excluding debottlenecking is estimated to be Rs 5.3
billion. The Company is also considering putting up a Caustic Chlorine plant at an
additional investment of Rs 0.9 billion at the same location. Both Caustic and
Chlorine are important inputs for the manufacture of Polycholoroprene.
Polycholoroprene Rubber is a speciality synthetic rubber featuring superior
mechanical strength, load-bearing capacity, adhesion to metal, and resistant to
weather, oil and chemicals as compared to other synthetic rubbers. Due to this,
Polycholoroprene Rubber is the preferred synthetic rubber for many applications
in automotive, industrial components, building products and adhesives.

Manufacturing Plants
During the year the Company opened a manufacturing facility at SEZ Surat, to
facilitate the export of art material products. The Company also commenced
operations of a plant at Baddi in Himachal Pradesh for manufacturing Adhesives.

VAM Unit

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Pursuant to the Scheme of Demerger, VAM manufacturing unit at Mahad of Vinyl
Chemicals (India) Ltd was demerged into the Company with effect from 1st April
2007. The operations of the unit during the year were satisfactory, both in terms
of volume and profits.

Foreign Currency Convertible Bonds (FCCB)

In December 2007, the Company raised US $ 40 million through zero coupon
Foreign Currency Convertible Bonds. The Bonds have a yield to maturity of
6.75% per annum (calculated on a semi-annual basis), and are redeemable in
2012 i.e. after 5 years and 1 day from closing date. The Bonds are convertible
into equity shares of the Company at any time on and after 16th January 2008
until 1st December 2012 at a price of Rs 256.035 per share (Initial Conversion
Price) which represents a premium of 32.73% to the closing price of the equity
shares of Pidilite Industries Limited on the Bombay Stock Exchange Limited
(“BSE”) as of 23nd November 2007. The Bonds have been issued at par and will
be redeemed, if not converted into shares, at 139.37% of par value on maturity.
The above Initial Conversion Price can be reset downwards if average of the
closing price of the shares (the “Reset Preference Price”) for each day during the
period of 20 consecutive Trading Days immediately prior to 45 days before each
of 30th May 2009 and 30th November 2010 (each such date, the “Reset Date”) is
less than the Initial Conversion Price. The Initial Conversion Price in such a case
will be reset to Reset Preference Price but it will not be lower than 80% of the
Initial Conversion Price. The Bonds are listed on the Singapore Exchange
Securities Trading Limited and the shares to be issued upon conversion of the
Bonds will be listed on the NSE and BSE.

Subsidiaries
Overseas Subsidiaries
The Company has 13 overseas subsidiaries (4 direct and 9 step-down
subsidiaries) including subsidiaries having significant sales and manufacturing
operations in USA, Brazil, Thailand, Singapore and Dubai. Pidilite USA, Inc. is in
business of automotive chemicals and art materials. Pidilite USA achieved sales
of Rs 882.3 million for the year. The Company was successful in expanding its
reach to many new international markets during the year. Pidilite do Brasil (now
Pulvitec do Brasil Industria e Commercio de Colas e Adesivos Limitada) is a
manufacturer of adhesives, sealants and construction chemicals. The Company
has a manufacturing plant in Sao Paulo and sells its products in most parts of
Brazil and also exports its products to some countries in Latin America. Pidilite
do Brasil achieved sales of Rs 645.6 million for the year. A new CEO and several
members of management team were recruited during the year. Pidilite Bamco
Ltd based in Bangkok, Thailand, is a manufacturer of speciality bitumen-based
waterproofing products and sealants and markets its products in Thailand and

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other ASEAN countries. Pidilite Bamco Ltd achieved sales of Rs 144.73 million
for the year. A new plant to manufacture additional construction chemicals was
set up in Thailand during the year. Jupiter Chemicals LLC based in Dubai, UAE,
which manufactures tile adhesives, plasters, waterproofing products and
coatings, achieved sales of Rs 98.06 million for the year. The Company has
added around fifteen products to its portfolio of construction chemicals during the
year.
Most of the overseas subsidiaries continue to incur losses owing to additional
expenses for business development consisting mainly of expenses towards
additional manpower, new product introduction, sales promotion and brand
building. The overall loss of Rs 168.23 million, mainly arising out of these
expenses is intended to strengthen the operations of these subsidiaries in the
long term. The Company is in the process of building manufacturing plants for
adhesives and sealants in Bangladesh and Egypt. Both these plants are
expected to be operational in the 3rd quarter of the current financial year. The
investments in overseas subsidiaries during the year is approximately Rs 840.7
million.

Subsidiaries in India
During the year, the Company acquired entire issued and paid-up capital of
Bhimad Commercial Co. Pvt Ltd and Madhumala Traders Pvt Ltd by investing Rs
0.17 million each, making them wholly-owned subsidiaries of the Company. A
statement pursuant to Section 212 of the Companies Act, 1956, relating to
Fevicol Company Ltd, Bhimad Commercial Co. Pvt Ltd, Madhumala Traders Pvt
Ltd, Pagel Technologies Pvt Ltd and 12 overseas subsidiary companies is
attached hereto.

Consolidated Accounts
In accordance with the requirements of Accounting Standards AS 21 (read with
AS 23) issued by the Institute of Chartered Accountants of India, the
Consolidated Accounts of the Company and its 16 subsidiaries are annexed to
this Annual Report. Additionally, a statement giving prescribed particulars of
information, in aggregate for each subsidiary is attached. By letter
No.47/422/2008-CL-III dated 27. 6. 2008 the Company has obtained from the
Government of India, Ministry of Company Affairs, New Delhi, under Section 212
of the Companies Act, 1956, an exemption from annexing to this Report, the
Annual Reports of above subsidiary Companies for the year ended on 31st
March 2008 Accordingly, the Annual Reports of these subsidiary Companies are
not annexed to this Report. Members desiring to have a copy of audited Annual
Accounts of the above subsidiaries may write to the Company Secretary at the
Registered Office of the Company and they will be provided with the same upon
such a request. Annual Accounts of these subsidiary Companies will also be kept
for inspection of the Members at the Registered Office of the Company as well as
at the Registered Office of the subsidiary companies.

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Directors
The terms of appointment of Shri M B Parekh as Managing Director, Shri N K
Parekh as Joint Managing Director and Shri A B Parekh as Whole-Time Director
will expire on 31st July 2008. Your Directors at their meeting held on 8th July
2008 have re-appointed them in their respective posts for a further period of 5
years. Further, the Directors have re-appointed Shri V S Vasan as a Whole-Time
Director of the Company for a further period of 2 years with effect from 2nd
December 2008.
The Board has also approved the revised terms of remuneration to Shri A N
Parekh, Whole-Time Director with effect from 1st April 2008. The Members’
approval is being sought at the ensuing Annual General Meeting for above re
appointments/revised terms of remuneration, to the said Directors. In accordance
with the Articles of Association of the Company, Shri H K Parekh, Shri R M
Gandhi, Shri N J Jhaveri and Shri A N Parekh, Directors of the Company, retire
by rotation and being eligible, offer themselves for re-appointment.
Shri Bharat Puri has been appointed as Additional Director of the Company with
effect from 28th May 2008 and he holds office up to the conclusion of the
ensuing Annual General Meeting. A notice in writing, with requisite deposit has
been received from a member proposing Shri Bharat Puri as a candidate for the
office of Director.

Directors’ Responsibility Statement

Your Directors confirm that in the preparation of the Annual Accounts, the
applicable accounting standards have been followed; the Directors have selected
such accounting policies and applied them consistently and made judgements
and estimates that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the financial year ended 31st
March 2008 and of the profit of the Company for that year; the Directors have
taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 1956 for
safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities; and the Directors have prepared the Annual Accounts on
a going concern basis.

Corporate Governance
Reports on Corporate Governance and Management Discussion and Analysis, in
accordance with Clause 49 of the Listing Agreements with Stock Exchanges,
along with a certificate from M/s M M Sheth & Co, Practising Company
Secretaries, are given separately in this Annual Report.

Auditors

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Members are requested to re-appoint M/s Haribhakti & Co. Chartered
Accountants, as Auditors of the Company and also for its branches/depots/C&F
depots for the current year and to fix their remuneration.

Cost Auditor
The Company has received the approval of the Central Government for the
appointment of M/s V J Talati & Co as Cost Auditor to conduct cost audit for the
financial year 2008–2009.

Conservation of Energy, Technology Absorption, etc

The particulars under Section 217(1)(e) of the Companies Act, 1956, read with
the Companies (Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1988, are attached to this Report as Annexure I.

Industry Structure and Development

There is no material change in the industry structure as was reported in the last
year. The Company operates under two major business segments i.e. Branded
Consumer & Bazaar Products and Speciality Industrial Chemicals. Products such
as Adhesives, Sealants, Art Materials, Construction and Paint Chemicals are
covered under branded Consumer & Bazaar Products segment. These products
are widely used by carpenters, painters, plumbers, mechanics, households,
students, offices, etc. Speciality Industrial Chemicals segment covers products
such as Industrial Adhesives, Synthetic Resins, Organic Pigments, Pigment
Preparations, Surfactants, etc. and caters to various industries like packaging,
textiles, paints, printing inks, paper, leather, etc. In both the above business
segments, there are a few medium to large companies with national presence,
and a large number of small size companies that are active regionally. There is
growing presence of multinationals in many of the segments in which we operate.
The share of imports is less than 10% of domestic volumes in most of the
product segments. Others segment covers mainly business of VAM
manufacturing unit. Our Company is the only manufacturer of VAM in the country
with installed capacity of 30,000 MT per annum. There are increasing imports of
VAM into the country accounting for approximately 40% of the domestic demand.

Current Year Outlook

There has been recent significant increase in prices of raw materials, packing
materials and freight charges and this may adversely impact margins of most of
our products. The Company expects to increase selling price of most of these
products. However the margins in the current year may be adversely impacted.

16
Outlook on Opportunities, Threats, Risks and Concerns
The Company sees significant opportunity in export markets as well as in the
small population centers in India. In view of this, the Company is deploying
additional resources in these two areas. Over the last few years more and more
customers have been buying readymade furniture. A part of this readymade

furniture is made in workshops/factories located in India and part of this is

imported from abroad. Increasing use of readymade furniture is likely to
adversely impact, over a period of time, the growth rates for our premium wood
working and furniture making adhesives. The Company is taking steps to
maintain/improve the growth rates for these adhesives by putting additional focus
on small population centres in India. The Company is also expanding sales of
premium adhesives and sealants for special purpose applications in interiors and
construction work.

Risk and Internal Adequacy

The Company has adequate internal control procedures commensurate with its
size and nature of business. The Company has appointed Internal Auditors who
audit the adequacy and effectiveness of internal controls laid down by the
management and suggest improvements. For overseas subsidiaries, this is being
done by their Statutory Auditors. The Audit Committee of the Board of Directors
periodically reviews the audit plans, internal audit reports, adequacy of internal
controls and risks management.

Human Resources
The Company continues to place significant importance on its human resources
and enjoys cordial relations at all levels. During the year, with the objective of
enabling various divisions to have greater focus on their businesses, the Human
Resource Department was restructured and the “Business Resource Group”
(BRG) was formed. The BRG will support all the business divisions through new
initiatives on Talent Development, Operational Improvement, IT, Systems &
Knowledge Management, etc. In line with this, current HR processes like Talent
Acquisition, Performance Management, Learning & Development, etc. are being
strengthened with the help of renowned external consultants. The total number of
employees on 31st March 2008 was 3,991. A statement of particulars pursuant to
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975, forms part of this report as Annexure II.
As per the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956, the
Report, together with Accounts, is being sent to the Shareholders of the
Company, excluding the statement of particulars of employees under Section
217(2A) of the Act. Members desiring to have a copy of the same may write to

17
the Company Secretary at the Registered Office of the Company and they will be
provided with the same upon such a request.

Demerger
As reported in the last year’s Directors’ Report, pursuant to a Scheme of
Demerger, VAM manufacturing unit of Vinyl Chemicals (India) Ltd. (VCIL) at
Mahad was demerged into Pidilite Industries Ltd. (PIL) with effect from 1st April
2007 after securing necessary approvals from the Shareholders and sanction of
Hon’ble High Court of Judicature at Mumbai The Court Order was filed with the
Registrar of Companies, Maharashtra on 18th January 2008 by both companies.
Accounts for the year ended 31st March 2008 have been prepared after giving
effect of the Scheme of Demerger. On 31st March 2008 as per the Scheme: a.
The Company has allotted 667,306 Equity Shares of Re 1 each and 2,874,805
6% Cumulative Redeemable Preference Shares of Rs 10 each to the members
of VCIL excluding the shares held by PIL. b. VCIL has reduced the nominal and
paid-up value of its 18,337,111 Equity Shares from Rs 10 per share to Re 1 per
share. The company has received permissions from Bombay Stock Exchange
Ltd and National Stock Exchange of India Ltd for listing and trading of 667,306
Equity shares of Re 1 each.

18
 VALUES & VISION

1. Be a business leader by promoting innovation and achieving Global

Standards.
2. Delight customers by offering quality products and services.

3. Instill a 'Can Do' attitude, nurture team spirit, learn continuously and
achieve a high level of employee satisfaction.

4. Adopt ethical, safe and environment-friendly practices.

QUALITY

1. The products that are designed to satisfy the needs and expectations of
customers are developed by dedicated Research & Development (R & D)
professionals and tested with end users before launching.
2. Pidilite spends fairly large resources on R & D of its products and
processes. Pidilite’s team of scientists at its six R & D laboratories has
developed the entire range of the Company’s products

3. The quality of products is assured and supported by well-defined,

structured and focused quality assurance system that is continuously
audited and upgraded in line with in-house Quality Policy.

4. The state-of-the-art manufacturing facilities are located at Mahad, Panvel

and Taloja in Maharashtra and Vapi in Gujarat. The manufacturing
processes are precisely controlled and monitored. Its Industrial products
segment and four manufacturing units at Mahad A/22, Vapi 78, Vapi 23
and Andheri are ISO-9001 certified by RWTUV.

5. Even branded products in the consumer and bazaar products category

strictly follow quality parameters defined under the Company’s internally
designed Pidilite Quality System (PQS).

6. Pidilite has implemented `Small Group Activities’ (Quality Circles), Pragati

(Kaizan) and `Sadachar’ under its Total Quality Management (TQM)
programme.

7. Divisional Functional Committee (DFC) and Profit Improvement Plan

meetings (PIP) at senior management level review the performance of
various core activities at Pidilite to further upgrade quality of its products.

8. Our dedication towards quality in all our products has made Fevicol a
household name and a fact well acknowledged. The Economic Times

19
 (Brand Equity) ranked our brand `Fevicol’ at 25th among the top brands in
India.

CORPORATE SOCIAL RESPONSIBILITY

The Company remains committed to continuously serving and supporting areas

like rural development, water conservation, health care and education. Significant
steps were taken this year in these areas through Gram Nirman Samaj,
Hanumant Hospital, Mahuva Education Trust and Science City project in
Bhavnagar.

Rural Development

A group of 26 villages were taken up under Gram Nirman Samaj for total
sanitation under T.S.C. programme this year. 1,500 toilets were built in 16
villages. Construction of check dam at Lakhupura on River Malan in Mahuva has
been completed. Six new proposals for check dams are being processed.
Under Sardar Awas Yojana, 22 Awas for rural poor and 9 Awas under Indira
Awas Yojana were completed. Gram Nirman Samaj started a night school at
Indira Nagar in Mahuva and 157 children are currently attending this school. It
also established Childrens’ Library at primary schools in 50 villages of Mahuva
taluka.

Health Care

From its inception, Hanumant Hospital has treated over 1,25,000 outpatients,
performed over 3,300 surgeries and successfully handled over 400 deliveries.
The hospital is being continuously upgraded with new medical facilities and
equipments. Facilities like CT scan, Dialysis, Tread Mill Test, Pulmonary
Function Test, Audiometry and Blood Storage have been added to the hospital
this year. The hospital also conducted more than 45 speciality medical camps at
different villages and towns in the last two years and conducted 15 educational
training programmes for the medical fraternity by calling renowned consultants
belonging to different disciplines.

20
Education

Shree Mahuva Education Trust operates Parekh College in the streams of Arts,
Science, Commerce, Computer Science and Business Management. Over 1,300
students are studying in this college. Post-graduation courses in Hindi and
Gujarati have been started recently. Second year admissions for BBA College
will commence in September 2008. A gymkhana has been opened in the college
campus and a new library building will be commissioned shortly.

Science City

Science City at Bhavnagar is progressing fast and expected to be ready by

December 2008. As the first project of the proposed Science City, 45,000
students at 500 centres participated in the Gujarat Science Olympiad (GSO) and
scholarships of Rs 2.25 lac were awarded to top rankers.

21
 OBJECTIVES

• To study about the product provided by Pidilite.

• To study the satisfaction level of customer.

• To study the customer’s perception about quality of products of Pidilite.

• To study how customers evaluate the offered services, provided by the

company.

• To study how they assess the Pidilite in comparison with others.

22
 RESEARCH METHODOLOGY

The research methodology used by me for the purpose of this project is as

follows:-

1. RESEARCH DESIGN:-
The research design used here for this project is a combination of
Exploratory & Explanatory design. First a general know about of the
product and services provided by the Pidilite Industries Limited. Then
personal interaction with the people concerned are made to figure out the
results.

2. DATA COLLECTION METHOD:-

According to the needed research of the project ; I pursued both primary &
secondary data collection methods. I have used some publications on the
net and information broacher for secondary data collection. To ensure the
accuracy of the results the primary data collection method used is the
structured interview method.

3. SAMPLING:-
The sampling units in my project are wholesalers and retailers. The
sample size was small by following the convenience sampling method.
There were queries for the person interacted & the questionnaire has
been attached at last.

4. SAMPLING SIZE:-
The sampling size of my research is 100 shopkeepers. Large sample give
more reliable results that’s why I tried my best to cover more users
(customers).

23
 SAMPLING SIZE- 100
SAMPLE UNIT- USERS (CUSTOMERS WHOLESALERS &
RETAILERS)

DATA AVAILABILITY
Data has been collected from the users (customers) related to Pidilite
Industries
Limited.

TRAINING INCHARGE
Mr. Gaurav Chandna

THE RESEARCH STANDS FOR:-

1. To know how of the actual Phenomenon occurring & exploring the new ideas
with a
clear & precise insights.

2. To test the hypothesis with being variables to be compared within their

relationship.

24
 DATA ANALYSIS AND INTERPRETATION

The statistical tools used by me are mainly average, percentage & comparisons
etc. I would like to give brief points about.

1. QUESTIONNAIRE:-

The questionnaires are given to respondent with no pressurization at all,

i.e. he/ she is free to provide the information whatever the concern is. One
thing to be kept in mind that personal question apart from name, address
etc. should not be included.

2. DIRECT INTERVIEWS:-

The direct interviews are one up against all the data collection tools just
because one can judge that what a person is telling to the surveyor.
Although it is time consuming but the information gathered is of much
more weight age than others.

3. SAMPLING DESIGN, PROCEDURE & SAMPLE SIZE:-

A sample is always a part of the desired universe & it should represent

each & every aspects of the study being conducted. The only thing is that
the sample being chosen is of relevance & accurate source of information.
My sampling design is based on random sampling because each element
gets probability to be included & all choices made are independent of each
other.

25
Q.1 Which product of Pidilite Co. you purchase?
Ans.

a. M-seal 5%
b. Steelgrip tape 3%
c. Fevikwik 2%
d.All 10%

a. M-seal
b. Steelgrip tape
c. Fevikwik
d.All

5% customers said that they purchase m-seal.

3% customers said that they purchase steelgrip tape.
2% customers said that they purchase fevikwik.
90% customers said that they purchase all products.

26
Q.2 How often you purchase Pidilite products?
Ans.
a. DAILY 12%
b. ONCE\ WEEK OR MORE 69%
c. ONCE / MONTH 19%

a. DAILY
b. ONCE\ WEEK OR MORE
c. ONCE / MONTH

12% customers said that they purchase daily.

69% customers said that they purchase once\ week or more.
19% customers said that they purchase once\month.
27
 Q.3 How satisfied are you with Pidilite product?
Ans.

a. VERY UNSATISFIED 7%

b. UNSATISFIED 19%

c. VERY SATISFIED 74%

a. VERY UNSATISFIED
b. UNSATISFIED
c. VERY SATISFIED

28
 7% customers said they are very unsatisfied with pidilite product.
19% customers said they are unsatisfied with pidilite product
74% customers said they are very satisfied with pidilite product

Q.4 How do you assess the quality of Pidilite product?

a) QUALITY

a. HIGH 29%

b. MEDIUM 61%

c. LOW 10%

a. HIGH
b. MEDIUM
c. LOW

29
29% of customers said that the quality of pidilite product are high.
61% of customers said that the quality of pidilite product are medium.
10% of customers said that the quality of pidilite product are low.

b) PACKAGING

a. HIGH 14%

b. MEDIUM 78%

c. LOW 8%

a. HIGH
b. MEDIUM
c. LOW

30
 14% of customers said that the packaging of pidilite product are high.
78% of customers said that the packaging of pidilite product are medium.
8% of customers said that the packaging of pidilite product are low.

Q.5 Would you recommend Pidilite product to other?

Ans.

a. DEFINITELY 59%

b. PROBABLY 24%

c. DEFINITELY NOT 17%

a. DEFINITELY
b. PROBABLY
c. DEFINITELY NOT

31
59% customers said that they will definitely recommend pidilite product to
others.
24% customers said that they will probably recommend pidilite product to
others.
17% customers said that they will definitely not recommend pidilite product to
others.

Q. 6 How do you evaluate the offered service?

a) Attention to your enquiries?

Ans.

a. VERY POOR 8%
b. VERY SATISFACTORY 59%
SOME WHAT
c. UNSATISFACTORY 33%

32
 a. VERY POOR

b. VERY
SATISFACTORY
c. SOME WHAT
UNSATISFACTORY

8% of customers said that the services offered by the company are very poor.
59% of customers said that the services offered by the company are very
satisfactory.
33% of customers said that the services offered by the company are some
what unsatisfactory .

b) Order conformation?
Ans.

a. VERY POOR 10%

b. VERY SATISFACTORY 72%

SOME WHAT
c. UNSATISFACTORY 18%

33
 a. VERY POOR

b. VERY SATISFACTORY

c. SOME WHAT
UNSATISFACTORY

10% of customers said that the services offered by the company are very
poor.
72% of customers said that the services offered by the company are very
satisfactory.
18% of customers said that the services offered by the company are some
what unsatisfactory.

c) Punctuality in delivery?
Ans.

34
 a. VERY POOR 7%

b. VERY SATISFACTORY 78%

SOME WHAT
c. UNSATISFACTORY 15%

a. VERY POOR

b. VERY SATISFACTORY

c. SOME WHAT
UNSATISFACTORY

7% of customers said that the punctuality in delivery of products are very

poor.
78% of customers said that the punctuality in delivery of products are very
satifactory.
15% of customers said that the punctuality in delivery of products are some
what
unsatisfactory.

35
d) Management of claims?
Ans.

a. VERY POOR 17%

b. VERY SATISFACTORY 63%
c. SOME WHAT UNSATISFACTORY 20%

a. VERY POOR

b. VERY SATISFACTORY

c. SOME WHAT
UNSATISFACTORY

17% of customers said that the management of claims are very poor.
63% of customers said that the management of claims are very satisfactory.
20% of customers said that the management of claims are some what
unsatisfactory.

36
Q.7 Assessment of Pidilite in comparison with other suppliers?

a) Related to supplied products?

Ans.

a. WORSE 7%

b. STEADY 68%

c. BETTER 25%

a. WORSE
b. STEADY
c. BETTER

37
 7% of customers said that the supplied product in comparison with other
existing
companies are worse.

68% of customers said that the supplied product in comparison with other
existing
companies are steady.

25% of customers said that the supplied product in comparison with other
existing
companies are better.

b) Related to offer services?

Ans.

a. WORSE 20%
b. STEADY 51%
c. BETTER 39%

a. WORSE
b. STEADY
c. BETTER

20% of customers said that the services offered by the company in

comparison
with other existing companies are worse.

38
 51% of customers said that the services offered by the company in
comparison
with other existing companies are steady.

39% of customers said that the services offered by the company in

comparison
with other existing companies are better.

FINDINGS

1. 90% of customers purchase all the products.

2. 61% of customers says that quality is good.

3. 29% of customers says these are high quality products.

4. 79% of customers are satisfied by packaging.

5. 59% of customers are satisfied by services.

6. 72% of customers are satisfied by order confirmation.

39
 SUGGESTIONS

1. They have to give attention to their internal customers, only then they can
satisfy their rest customers who are unsatisfied.

2. They do not have to ignore their unsatisfied customers whether they are less.

3. They have to expand their manufacturing.

40
 QUESTIONAIRE

NAME :- _____________
AGE:- _______________
QUALIFICATION:- ______________
OCCUPATION:- ________________
ANNUAL INCOME:- _____________

1.Which product of Pidilite Co. you purchase?

a) M-Seal c) Steelgrip tape
b) Fevikwick d) All

2. How often you purchase Pidilte product?

a) Daily c) Once/ month
b) Once/ week or more

3. How satisfied are you with Pidilite products?

a) Very unsatisfied c) Very satisfied
b) Unsatisfied

4. How do you assess the quality of Pidilite product?

- Quality

41
 a) High c) Low
b) Medium

- Packaging
a) High c) Low
b) Medium

5. Would you recommend Pidilite product to other?

a) Definitely c) Definitely not
b) Probably

6. How do you evaluate the offered services?

- Attention to your enquiries.
a) Very poor c) Some what unsatisfactory
b) Very satisfactory

- Order conformation.
a) Very poor c) Some what unsatisfactory
b) Very satisfactory

- Punctuality in delivery.
a) Very poor c) Some what unsatisfactory
b) Very satisfactory

- Management of claims.
a) Very poor c) Some what unsatisfactory
b) Very satisfactory

7. Assessment of Pidilite in comparison with other suppliers?

- Related to supplied product.
a) Worse c) Better
b) Steady

- Related to offer services.

a) Worse c) Better
b) Steady

42
 BIBLIOGRAPHY

• DATA COLLECTED FROM COMPANY PROFILE

• WWW.GOOGLE.COM

43