Nikhil Adhesives Limited

CMP = 102

 

Nikhil Adhesives Ltd is a multi-product manufacturing company and incorporated in 1986. The company manufactures speciality adhesives and emulsion through its five manufacturing facilities in Dahanu (Maharashtra), Silvassa (Dadra Nagar Haveli), Dahej (Gujarat), Tumkur (Karnataka) and at Mehatpur (Himachal Pradesh).  while its registered office is based in Mumbai. The company sell its products under the brand name of Mahacol, Formisol, Mahaquick, Embro, Mahafix, Emditex, Emdilith, Emdibind, Emdicryl and others. The company also trades in various types of polymer emulsions, chemicals which are used in emulsions and adhesives industry. 

Nikhil Adhesives Limited Corporate Film 

https://youtu.be/8jkxuLo7nOk

The company's products include Adhesives, Sealants, Art Materials, and Construction and Paint Chemicals. These products are used by carpenters, painters, masons, plumbers, mechanics, households, student, offices etc. The company has a good marketing network about 300 industrial customers, 2000 dealers and distributors  all over India. The company is presently exporting its products to countries in Asia, Africa and the Middle East. Nikhil Adhesives is suppling its products to major customers like Asian Paints, Berger, Akzo Nobel, JK Cement, Indigo, DOW, BASF, JSW etc. 

Nikhil Adhesives Ltd is an ISO 9001:2015, ISO 45001:2018 and ISO 14001:2015  certified company and its products find use in the Paints, Packaging, Furniture, Textiles, Construction and many other industries.  The company has a well-equipped laboratory to develop products for various applications and is committed to manufacture quality products at affordable prices for its customers. The company believes in constantly upgrading its products and introducing new products to meet the ever growing demands of the various industries.

Mahacol Brand Story 

Hoechst-Fedco Dyes & Chemicals Pvt Ltd was incorporated in 1958 for marketing and distribution of a wide range of dyestuffs, intermediates, organic and inorganic chemicals manufactured by Hoechst AG West Germany. Later name of this company was changed to Hoechst Dyes & Chemicals Pvt Ltd in 1961. The company was pioneer of adhesives business in India. The Mahacol brand products were launched by Hoechst Dyes & Chemicals Ltd  in 1971. Later in 1984 name of this company was changed again to Mafatlal Dyes & Chemicals Ltd. 

In the year 2003, Nikhil Adhesives Ltd had acquired the emulsion business of M/s. Mafatlal Dyes & Chemicals Ltd along with brands, Hoechst German Technology and related machineries. Thus Nikhil Adhesives Ltd become the sole owner of well-known Mahacol brand along with other brands like Emditex, Emdilith, Emdibind and Emdicryl  which have been also well accepted by the respective industry. In last 20 years company has shown exponential growth in sales, it increased from Rs. 8 crores in 2003 to Rs. 520 crores in 2024. 

Product Profile

Consumer Adhesives (MAHACOL/ EMDILITH) 

Branded consumer & contract manufacturing adhesives products contributed 20% of the total volume sales of the company. Consumer products include Wood adhesives, Packaging and Lamination Adhesives, Sticker Adhesives and Art and Craft Adhesives, Rubber & PU Adhesives and Tape Adhesives.

Industrial Adhesives

Industrial Adhesives contributes 9% of the total volume sales of the company.

Construction Chemicals (MAHAFIX)

Construction Chemicals contribute 23% of total  sales volume of the Company.

Paint Emulsions (EMDILITH, EMDICRYL)

Majority of the paint emulsions sales is supplied to large corporate paint manufacturers & the balance through distribution channels. Out of the total sales volume of the company, paint emulsions contribute 35%.

Textile  Emulsions (EMDITEX, EMDIBIND)

The Company has PAN India network for textile emulsions and binders through distributors, textile emulsions contribute 13% of the company's total sales volume

Investment Rationale

Nikhil Adhesives is focused on sustainable, innovation-driven growth over  years, emphasising on capacity expansion, operational efficiency, market diversification, and R&D investments. The company has a total manufacturing capacity of 135,000 MTPA across five plants and no major capax required in near future.

The company is shifting from low-margin trading to high-value manufacturing, resulting in steady revenue growth. The consumer products businesses is providing customers with a complete range of consumer adhesives mainly woodworking, packaging adhesives, rubber adhesives, construction based adhesives.

Nikhil Adhesives has long-term business tie-up with major customer like Asian Paints, Berger, Akzo Nobel, JK Cement, Indigo, DOW, BASF, JSW etc. With a nationwide network,  brands like 'MAHACOL' 'FORMISOL' and 'EMDILITH' enjoy a very respectable position and popularity in the adhesive market. 

Nikhil Adhesives besides manufacturing polymer emulsion is also in the business of  marketing of bulk raw materials. The company is also diversifying and expanding its activities in other areas, but all under the umbrella of Nikhil Adhesives Ltd, which would also aid to consolidate the company’s business objectives.

Growth in Mahacol RDP (Re-dispersible Polymer) (100% import substitute, largest Indian producer) and Mahafix will boost its share in sub-segments like construction chemicals.

Mahacol products serve both consumer and industrial markets, offering wide range of wood adhesives, construction chemicals, and other specialised adhesives under brands like Mahacol N3, Mahacol Jalveer, and Mahacol Heatfit. 

Major Expansion in FY 2024 -25

With commissioning and stabilising of RDP capacity at Dahej,  expecting construction recovery and RDP scaling will be seen as a game-changer for construction segment. The Navi Mumbai R&D centre enables faster customisation, positioning the Nikhil Adhesive as a 'one-stop solution' for construction chemicals. These innovations support import substitution, sustainability and scalability.

The company is  improving the efficiency and productivity through various initiatives like automation and digitalisation across Tumkur and Dahej plants,  R&D centre at Navi Mumbai upgraded with application testing facilities for construction chemical and wood adhesives products, expanding its sales network into new export markets. 

Mahacol RDP Line: 4+ products as 100% import substitute for mortars (bonding, plastering, flooring). Improves compressive strength/flexural toughness; India's largest producer at 12,000 MTPA. Initially 2-3 % sales contribution.

Mahafix Portfolio: 36 new products, including sealants, grouts, waterproofing solutions, admixtures, tile adhesives and water repellents. 

R&D pipeline: 10 products in development along with new centre for wood adhesives planned in near future.

The major thrust continues to be the expansion of consumer products and value-added import substitutes, strengthening Nikhil’s position as a trusted solutions provider. The industry trends are also very encouraging as Consumer Sector in India is expected to become the third-largest consumer market globally by 2027. 

The adhesives / construction chemicals market  is expected to grow at 7–10% CAGR. Rising housing and infra projects to benefit adhesive & polymer demand, growth driven by woodworking, packaging, automotive and consumer repair segments.

Nikhil Adhesives will further deepen its consumer business Wood Adhesives (Mahacol) and Construction Chemical (Mahafix)) footprint through brand-building, retail expansion and influencer engagement. Strong focus on cost-effective RDP for Putty and Tile Adhesive products. Cost efficiencies from automation and higher capacity utilisation to support margins.

Nikhil Adhesives promoters are having over four decades of industry experience, the company continues to be among the leading players in Specialty Chemicals, Industrial Emulsions, Adhesives (Mahacol), and Construction Chemicals (Mahafix). With a strong domestic presence across PAN India supported by a robust distribution network, the Company leverages its state-of-the-art R&D, modern manufacturing infrastructure, and committed team to deliver customer-centric solutions. 

Conclusion

The company is delivering value products and services by employing state of the art technology and absolute focus to its customers. The synergy of commitment, technology and prompt deliverables will makes the Nikhil Adhesives the right choices for the consumer and related industry.

The company has well diversified product portfolio across industrial and consumer adhesives, strong nationwide distribution with 5 plants and 22 warehouses and R & D centre with ongoing research for import substitution and new products. The company is expanding its PAN India distribution network and expecting exponential growth in the coming years. 

Nikhil Adhesives stock at  cmp Rs 102 is giving excellent investment opportunity for both short term and long term. It can be bought within 20% from cmp with 10 %  allocation.