Page 40 - Annual Report 2019-20

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Transfer to Reserves
The Company does not propose to transfer amounts
to the general reserve.
Term Finance
The Company has no outstanding term loans
(previous year NIL). c. Nina Percept Private Limited (NPPL), subsidiary
Capital Expenditure
The total capital expenditure during the year was
` 369.03 crores (previous year ` 186.23 crores)
primarily spent on fixed assets for various
manufacturing units, offices, laboratories, warehouses
and on information technology.
Deposits
The Company has not accepted any deposits covered d. The Company alongwith Chetana Expotential
under Chapter V of the Companies Act, 2013 during
the financial year 2019-20 (previous year NIL).
Subsidiaries
Investment in Subsidiaries
During the year, investment of ` 146.18 crores
(previous year ` 61.04 crores) was made in
subsidiaries. Of this, ` 127.08 crores was invested in
domestic subsidiaries and ` 19.10 crores in overseas
subsidiaries.
e. The Company has, for operational convenience
The investments in domestic subsidiaries were in
Madhumala Ventures Pvt. Ltd. (formerly known
as Madhumala Traders Pvt. Ltd.) amounting to
` 126.47 crores and in newly incorporated subsidiaries
namely Pidilite Litokol Pvt Ltd (` 0.60 crores) and
Pidilite Grupo Puma Manufacturing Ltd (` 0.01 crores).
The investments in overseas subsidiaries were
in Pidilite International Pte Ltd., Singapore
(` 18.03 crores), Pidilite Chemical PLC, Ethiopia
(` 0.75 Crores) and Pidilite Industries Egypt SAE
(` 0.32 crores).
f.
During the year
a. The Company along with Litokol S.p.A, Italy
has incorporated a joint venture subsidiary in
the name of “Pidilite Litokol Private Limited”
(PLPL) on 7 October 2019 to carry on the
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business of chemicals epoxy grouts, chemical
PIDILITE ANNUAL REPORT 2019-20 b. The Company alongwith Corporacion Empresarial
based products etc. The Company holds 60% of
the paid up share capital and has management
control of PLPL.
Grupo Puma S.L., Spain has incorporated a
joint venture subsidiary in the name of “Pidilite
Grupo Puma Manufacturing Limited” (PGPML)
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on 13 January 2020 to carry on the business Performance of Major Domestic and Overseas Subsidiaries
of manufacturing, processing and distribution (` in crores)
of technical mortars and other materials used in Name of Subsidiary Sales Sales % Growth EBITDA EBITDA % Growth
construction. The Company holds 50% of the 2019-20 2018-19 2019-20 2018-19 PIDILITE ANNUAL REPORT 2019-20
paid up share capital and has management
control of PGPML. Nina Percept Pvt Ltd 267.76 304.80 (12.2%) 11.50 34.08 (66.3%)
ICA Pidilite Pvt Ltd 185.83 168.33 10.4% 24.13 1.56 1450.1%
of the Company along with Pidilite Speciality
Chemicals Pvt Ltd (PSCB), a step down subsidiary CIPY Poly Urethanes Pvt Ltd 121.38 155.43 (21.9%) 15.38 20.93 (26.5%)
of the Company, has incorporated a company on
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29 January 2020, in Bangladesh namely “Nina Pidilite Speciality Chemicals 119.19 99.14 20.2% 18.38 17.14 7.2%
Percept (Bangladesh) Pvt Ltd.” to carry on the Bangladesh Pvt Ltd
business of roofing and waterproofing services in Pidilite Lanka (Pvt) Ltd 41.46 35.04 18.3% 2.91 (0.60) 584.7%
Bangladesh. NPPL holds 99% of the paid up share
capital of Nina Percept (Bangladesh) Pvt. Ltd and
the balance 1% is held by PSCB. Pidilite USA Inc 113.72 104.97 8.3% (0.42) 1.36 (131.3%)
Pulvitec do Brasil Industria e 88.12 81.80 7.7% 1.98 0.32 511.0%
Technologies Pvt Ltd, Bangalore has incorporated Comercio de Colas e Adesivos Ltda
a joint venture company in the name of “Pidilite Pidilite Industries Egypt SAE 35.03 31.64 10.7% (0.07) (1.92) 96.1%
C-Techos Walling Limited” (PCWL) on 5 March includes PIL Trading (Egypt)
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2020, to carry on the business of construction Company
of building works or any other structural or Pidilite Bamco Ltd includes Bamco 60.69 63.07 (3.8%) 5.14 4.02 27.9%
architectural work of any kind using C-Techos wall
technology, manufacturing of ACC panels and Supply and Services Ltd (Thailand)
other ancillary products. The Company holds 60%
of the paid up share capital and has management Pidilite MEA Chemicals LLC (UAE) 109.55 100.78 8.7% (4.14) (7.55) 45.2%
control of PCWL. Overseas subsidiaries figures are at constant currency.
Nina Percept saw a decline in sales and decrease in decline in sales due to market conditions. EBITDA in
and synergies, entered into a business transfer profitability due to a slowdown in the real estate sector. these subsidiaries improved due to benefit of softer
agreement for acquiring the business of wholly input cost and controlled spends.
owned entity, M/s. Nitin Enterprise (a partnership ICA Pidilite reported higher sales and improved
firm having two partners, both of which are profitability on account of scaled up local The subsidiary in UAE reported reduction in EBITDA
wholly owned subsidiaries of the Company) on manufacturing. losses due to higher sales, margin improvement and
cost saving initiatives.
a slump sale basis for a cash consideration of an Cipy witnessed lower sales and decline in profitability
amount not exceeding ` 18.50 crores subject to on account of a slowdown in the Auto and Consolidated Financial Statements
necessary approvals. The acquisition process is Engineering segment. In accordance with the provisions of the Companies
likely to be completed during the financial The subsidiary in Bangladesh reported good sales Act, 2013 (hereinafter referred to as ‘the Act’),
year 2020-21. growth with healthy profitability. The second Regulation 33 of the Securities and Exchange
Madhumala Ventures Pvt Ltd (formerly known manufacturing plant at Bhaluka was commissioned Board of India (Listing Obligations and Disclosure
as Madhumala Traders Pvt Ltd), a wholly owned during the year. Requirements) Regulations, 2015 (hereinafter referred
subsidiary of the Company, has made three to as ’Listing Regulations’) and applicable Accounting
strategic investments in relevant start-ups in the Pidilite Lanka continued to grow in the current year, Standards, the Audited Consolidated Financial
domain of home décor, furnishings, painting and and reported positive EBITDA due to lower material Statements of the Company for the financial year
waterproofing aggregating to ` 122.48 crores. cost and benefit of local manufacturing. 2019-20, together with the Auditors’ Report, form
With these investments, the Company intends to Pidilite USA sales grew due to higher sales of Tempera, part of this Annual Report. A statement containing
the salient features of the Company’s subsidiaries,
g. Pursuant to a share purchase agreement executed pertaining to the past period. Form AOC- 1, are set out in Note No. 59 to the
support and collaborate with these start ups for
Pencil and Acrylic colours, however it reported
associate and joint venture company in the prescribed
mutual benefits.
a negative EBITDA due to one off tax expenses
Consolidated Financial Statements.
with Tenax S.p.A, Italy, the Company acquired
Pulvitec do Brasil reported moderate sales growth and
The Consolidated Financial Statements have been
70% of the share capital of Tenax India Stone
higher EBITDA on account of margin improvement
prepared on the basis of audited financial statements
Products Pvt. Ltd. for a cash consideration of
and cost saving initiatives.
of the Company, its subsidiaries, associate company
approx. ` 80 crores. The acquisiton process was
and joint venture, as approved by their respective
The subsidiaries in Egypt reported moderate sales
completed on 28 May 2020.
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growth. The subsidiaries in Thailand saw marginal Board of Directors except Pulvitec do Brasil Industria e