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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
