FINEOTEXCHEMICAL LIMITED - Textile Chemicals ... for the textile industry including pretreatment, dyeing , printing and finishing process The company also manufactures other chemicals

  • View
    218

  • Download
    3

Embed Size (px)

Text of FINEOTEXCHEMICAL LIMITED - Textile Chemicals ... for the textile industry including pretreatment,...

  • FINEOTEX CHEMICAL LIMITED Where Dependability Counts

    Investor Presentation MAY 2017

  • INDEX

    Executive Summary

    Company Overview

    Business Overview

    Industry Overview

    Financial Overview

    FINEOTEX

    1

  • EXECUTIVE SUMMARY

    2

  • OVERVIEW

    Fineotex Group founded in 1979

    is engaged in manufacturing of

    Specialty Chemicals and Enzymes.

    Mr. Surendra Kumar Tibrewala is

    Chairman & MD and Mr Sanjay

    Tibrewala Executive Director &

    CFO.

    The company has manufacturing

    facilities in Navi Mumbai and

    Malaysia with a combined

    production capacity of 22,000

    MT/p.a.

    Current Market Capitalization is

    INR 3,632.91 MN as of 31st March,

    2016 .

    BUSINESS MIX

    Fineotex is one of Indias largest

    and most progressive speciality

    textile chemical manufacturers.

    The Company manufactures

    chemicals for the entire value

    chain for the textile industry

    including pretreatment, dyeing ,

    printing and finishing process

    The company also manufactures

    other chemicals for various

    industries like agro , adhesives ,

    construction, water treatment

    etc.

    It has more than 400 products

    catering to various industries.

    KEY STRENGTHS

    Strong Balance Sheet with Zero

    Debt; High ROE and ROCE,

    Consistently Dividend paying

    Professionally run company with

    high Promoter holding. Promoter

    stake increased from 62% to 72%

    over the last 3-4 years.

    Strong Industry knowledge over

    three decades of operations

    Low cost high margin products

    with high entry barriers

    Extremely strong brand loyalty

    Strong R&D capabilities help them

    increase customization levels of

    their products

    FY17 FINANCIALS

    Total Income INR 1,281 MN , 5

    year CAGR of 9.93%

    EBITDA INR 299 MN , 5 year

    CAGR of 31.86%

    PAT INR 206 MN , 5 year CAGR of

    27.98%

    EXECUTIVE SUMMARY

    3

    FINEOTEX

  • COMPANY OVERVIEW

    4

  • Fineotex Group was established in 1979 by Mr.Surendra Tibrewala

    FCL was incorporated as a public limited company in 2007. The company was listed on Bombay Stock Exchange in March 2011, and listed on the National Stock Exchange in January 2015.

    Fineotex is one of Indias largest and most progressive specialty textile chemical manufacturers.

    The company manufactures over 400 specialty chemicals and enzymes to Textile, Garment, Construction, Leather, Water treatment , Agrochemicals, Adhesives and others industries.

    Headquartered in Mumbai, it has manufacturing facilities in India and Malaysia with a combined production capacity of 22,000MT/p.a.

    It has a global presence across 33 countries and caters to well known companies in India and overseas.

    FCL along with its subsidiary Biotex Malaysia, has a global presence as a reputed producer of specialty chemicals.

    Domestic Revenue Break-up

    COMPANY OVERVIEW

    5

    FINEOTEX

    Textile Chemicals

    90%

    Other Chemicals

    3%

    Fertilizer Chemicals

    3%

    Adhesives 4%

    Industry wise Revenue Break-up

    Domestic 63%

    Export 37%

    North Zone 43% West

    Zone 41%

    South Zone 9%

    East Zone 7%

    Geographical Revenue Break-up

  • Commerce graduate from Mumbai University & a Law

    graduate from Government Law College

    4 decades of experience into manufacturing Specialty

    Chemicals & Enzymes for various industries namely

    Textiles & Garments, Construction, Water Treatment,

    Leather, Paper, Paint, Adhesives etc.

    Post Graduate, with specialization in Textile Processing and Chemicals from Sasmira University & a Commerce Graduate from Mumbai University

    Spearheading the company into Organic & Inorganic Growth by venturing into Exports & Foreign Acquisitions

    Instrumental in increasing the product basket for textile chemicals and diversifying into segments like Agro, Adhesives & others

    Mr. Surendra Kumar Tibrewala Chairman & MD Mr. Sanjay Tibrewala Executive Director & CFO

    PROMOTER BACKGROUND

    6

    FINEOTEX

  • Incorporation of Fineotex Chemical Industries (FCI)

    1995

    2003 Accredited with ISO 9001:2008 Registered Trademark for

    FINEOTEX

    Incorporation of Fineotex Chemical Private Limited

    2004

    2007 Acquisition of Fineotex

    Chemical Industries by

    Fineotex Chemical Limited

    Listed on BSE Incorporated a Wholly Owned

    Subsidiary in Malaysia Acquired major stake in Biotex

    Group

    2011

    2014 Bonus declared on 1:1 basis Accredited with ISO 14001:2004

    & OHSAS 18001:2007 certifications

    Listed on NSE Incorporated a Wholly

    Owned Subsidiary in UAE, Fineotex Specialities FZE

    Received Star Export House Recognition

    2015

    TM

    KEY MILESTONES

    7

    FINEOTEX

    2017 Fineotex Chemical

    Limited came up with

    their first buyback

  • Presence in 33 countries like Australia,

    Germany, Turkey, Bulgaria, Argentina,

    South Africa, Brazil, Indonesia, Thailand,

    Mauritius, Vietnam, Malaysia,

    Singapore, UAE, Tanzania etc

    Company also got recognised as a Star

    Export House in 2015.

    Constantly tapping new markets, tie ups

    with reputed distributors with a sole

    selling policy to channelize its efforts in

    view of long term relationship

    GLOBAL FOOTPRINT

    Indian Facility at Mahape, Navi Mumbai

    Malaysian Facility at Bangi, Malaysia

    8

    FINEOTEX

  • INDIAN FACILITIES LOCATED AT MAHAPE, NAVI MUMBAI

    Trans Thane Creek

    Industrial Area,

    Mahape, Navi Mumbai.

    The Current production

    capacity is 15,500 MT

    p.a.

    MALAYSIAN FACILITY AT BANDER BARU BANGI, MALAYSIA

    PLot 71, Jalan P10/21, Selaman Industrial Park,43650 Bandar Baru Bangi, Selangor, Malaysia.

    Current production capacity of 6,500 MT p.a.

    MANUFACTURING FACILITIES

    9

    FINEOTEX

  • Fineotex has state-of-the-art technology and is continuously updated with in- house R&D at 2 laboratories in Mumbai.

    Strong R&D capabilities help them increase customization levels of their products leading to higher value addition for its customers.

    Extensive R&D is performed at the clients site. This is an important source for new developments as a lot of variables/factors like the clients plant machinery type and its speed, water quality, timing etc are

    critical for tweaking the quality and performance of the products.

    Laboratories are equipped with all kinds of modern equipment's like Brookfield Viscometers, Refractometers, Pilot Vessels and application equipment's to perform pre-treatment, dyeing, printing & finishing trials.

    Product features regularly improved by incorporating the latest technology and developing new specialty and cost-effective products.

    Strong focus on R&D leads to high

    level of product customization

    STRONG R&D CAPABILITIES

    10

    FINEOTEX

  • TEXTILE INDUSTRY CLIENTS

    11

    FINEOTEX

  • OTHER INDUSTRY CLIENTS

    12

    FINEOTEX

  • Strong and well reputed

    Management Team

    Strong geographical footprints

    Low cost producer; competitive price

    positioning

    Well diversified portfolio - High level of customization;

    strong entry barriers

    Access to best

    technological knowledge

    base through Biotex,

    Malaysia

    Strong Industry Knowledge

    3 decades in specialty

    chemicals business

    Strong Balance Sheet, Zero Debt, High ROCE & ROE,

    Consistent Dividend Paying

    KEY STRENGTHS

    13

    FINEOTEX

  • Critical products having significant impact on end product properties Products with high value addition and catering to sensitive chemical processes Reluctance of customers to switch easily

    High Entry Barriers

    1 Industry dominated by few players as strong technical knowhow needed High level of customization Quality & efficiency focused products

    Sticky Customer Profile

    2

    Higher Yield Products Better Productivity leading to reduction of Time and Energy cost Lower generation of Effluent

    Lower Per Unit Cost

    4

    Cost of Products is a very small % to the end product prices. Highly technical products used in critical processes Customer dont focus on pricing but on reliability & technical superiority.

    Pricing Power

    3

    5 Offering Innovative Solutions to Customers

    6 7

    Customized Products Modifying the products as per customer needs New products developed based on in-house R&D and continuous trials at customers

    shop floor Unique & efficient concentrated products with low dosage, transport and storage costs

    Strong and Established Brand Presence The Fineotex brand is well established since 3 decades and known for its superior

    quality Leveraging Biotex to penetrate the global markets Network of 68 distributors pan-India, offering higher returns to them to ensure

    better market share

    Diversified product portfolio including 400 products Products catering to the entire value chain in textile manufacturing process

    COMP