Fevicol : Asia’s Biggest Adhesive Company.
“Ye Fevicol Ka Mazboot Jod Hai tootega nahi.” How can we forget this ad dialogue? Of course, we are going to do a case study of Fevicol success story. A one-time peon created Asia’s biggest adhesive company. Nowadays, the company has turnover around 6332 Crores INR/year, isn’t it surprising? Let’s just deep dive in to know about it.
Introduction:
Fevicol is India’s biggest leading Adhesives company. The company was founded by Indian entrepreneur Balwant Parekh known as the Fevicol man. It was 1959 when the Fevicol was first marketed in India as an easy-to-use and replace another fat-based adhesive which consumed a lot of time for boiling prior to the application. This brand innovation has transformed the way carpentry trade operates in India.
Founder & Fevicol
Balwant Parekh was born in Gujrat who participated in a movement called “Bharat Chhodo Andolan”, launched by Mahatma Gandhi. He had finished a law degree from Mumbai, but he was reluctant to practice law. Living in Mumbai was difficult for him, so he had to work at dyeing and printing press. He ended up working as a peon at a wood trader’s office. During those days, He lived in a warehouse along with his wife.
Eventually, one of the investors recognized his business skills, Balwant started importing cycle, paper dyes, and many others from other countries. Later, he and his younger brother Sushil Parekh started their own business and named the company called Pidilite Industry.
Over the years, Fevicol built a monopoly in the adhesive industry. In 2002, The Pidilite created another product called FeviQucik and acquired company M-seal too. Later, the company expanded products by acquiring many adhesive companies.
In 2006, the company focused on international expansion. Factories have been set up in many different countries such as the US, Thailand, Dubai, Egypt, and Bangladesh. The brand also built a research center in Singapore.
Business Strategies
The founder of Fevicol Balwant Parekh owned the very ultimate strategy to sell the Fevicol. First-time, in Indian business history, he approached direct marketing strategy. He researched and found that 80% of carpenters were decision-makers. In such a case, educating carpenters about Fevicol’s benefits and direct marketing approach was a key factor for the company.
Later, the company added a new strategy. Wide Product Basket or deafferented product, the company Pidilite has introduced many adhesives products, a separate Fevicol for each different item. It would be difficult if the company separated a place for each different Fevicol’s items. That is the reason, the Pidilite provides all different kinds of adhesives products at one place for distributors, dealers, and channels. In such a way, it became so easy to dealing, delivering, and billing the products.
Inorganic Acquisition, Speedy Acquisition, and Aggressive Acquisition are the major reasons to become a wide Product basket. The Pidilite industry has acquired all those adhesives companies who could be a competitor in the market. Now, M-Seal, steel grip, Roff, Sargent Art, ColStar, Cyclo, Holdtite, WoodLok, Falcofix, and even Araldite Maker are part of the Pidilite Industry. Meaning, no matter what adhesive product, you are buying, money goes into the same bank account.
Apart from product quality, The Company focuses on maintaining a close relationship with the customers. The company has introduced different kinds of products at a very different price to meet customer demand. In this way, the customer cannot be missed.
The company follows a different SKU strategy, has launched Fevicol in a very different quantity, meaning the customer can buy ad per their needs. The products are available from pack 22.5gm to 50Kg. The Fevicol is OTC (over the counter) product that is available from the grocery store to hardware.
