• Commercial paper programme - Rs. 45 crore Rating : P1+ (Reaffirmed)

The ‘P1+’ (pronounced P one plus) rating assigned to the commercial paper programme of Pidilite Industries Limited (PIL) has been re-affirmed for the enhanced amount of Rs. 550 million.

The rating re-affirmation takes into account the company’s strong position in the domestic adhesives business, established brand and distribution network, company’s success in introducing new products in related business areas, and a highly favourable financial profile. Over the medium term future, PIL proposes to transform itself into a consumer products company through brand acquisitions, new product introductions, and divestment of industrial products businesses (where the growth rates have been low over the past 2-3 years).

PIL is engaged primarily in the business of synthetic adhesives, construction and paint chemicals, art materials, pigments, and industrial resins. During the year 1998-99, the adhesives business contributed around 48% of the company’s total turnover of Rs. 3.95 billion.