Optimistic about overall growth prospects, says Pidilite MD
The company achieved a double-digit volume growth in the first three-quarters of FY24 and Puri expects to continue the momentum with a broad-based growth across categories.
NEW DELHI: Rural and semi-urban markets are growing 1.5 times faster than the urban market for Pidilite Industries, helping it register a double-digit volume growth and it sees positive demand environment in the last quarter also, says its Managing Director Bharat Puri.
The company achieved a double-digit volume growth in the first three-quarters of FY24 and Puri expects to continue the momentum with a broad-based growth across categories.
“We see a good demand environment, government spending on infrastructure, the housing sector and real estate is seeing an upsurge. So, overall we remain optimistic about the overall prospects of our sector,” said Puri in a virtual media roundtable.
Pidilite, which passed on the benefits of lower-cost prices to consumers, does not see any disruption in the supply chain from the geopolitical crisis, which is brewing in the Middle East.
“Fortunately for us, most of our raw material comes from the East rather than from via the Red Sea. Right now, raw material prices are stable and barring any black swan events, we hope they will remain stable,” said Puri.
To give a perspective, Puri said prices of VAM (Vinyl acetate monomer), which is a principal raw material of the leading adhesive maker, was around $2,000 per tonne and this year it is about $900 to $1,000 a tonne and he expects this trend to continue.
“We increased prices only at 75 per cent of inflation. As raw material prices have returned to normalcy, we have passed that back on. Hopefully, at least I can say for the next three to four months, we see stability in input prices,” he said.
The company has almost doubled its spending on advertising spend vis-à-vis last year as normalcy has returned.
Over any probable acquisitions, Puri said: “As far as inorganic growth is concerned, we are always in looking at the right opportunities, we have a good cash reserve for that.” Last week, Pidilite reported a 66 per cent increase in its consolidated net profit at Rs 510.92 crore for the December quarter. Its revenue from operations grew 4.41 per cent to Rs 3,130 crore.