- 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 companys strong
position in the domestic adhesives business, established brand and distribution network,
companys 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 companys
total turnover of Rs. 3.95 billion.