Shares of Pidilite Industries slipped 1.59%, closing at ₹1,493.10 on the NSE today, a decline of ₹24.10 from the previous session. The drop followed the company’s announcement of a partnership with South Korean firm Hwaseung Chemical to introduce advanced footwear adhesives in India.
The deal will see Hwaseung providing adhesive formulations and technology, while Pidilite supplies local technical support and manufacturing know‑how. Both parties highlighted that the adhesives meet strict environmental and safety standards, including REACH, SVHC, Prop 65, and ISO 14001.
Managing Director Sudhanshu Vats cautioned that crude oil prices above $100 a barrel could force Pidilite to hike prices to cover higher raw‑material costs. He added that any such adjustment would be temporary and only to offset the additional expense, not to protect profit margins.
The footwear adhesives market in India is projected to grow at a CAGR of around 9% over the next five years, with global brands looking for durable, low‑VOC solutions. Pidilite’s new partnership positions it to capture a larger share of this niche while reinforcing its existing adhesive portfolio.
There is no new guidance on quarterly earnings, but analysts expect the partnership to contribute incremental revenue in the long run. Investors will likely keep a close eye on crude oil movements, as any sustained spike could erode margins despite the strategic expansion.