Fineotex Investor Presentation May 2019
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' FINEOTEX CHEMICAL LIMITED Investor Presentation Where Dependability Counts… May 2019 FINEOTEX® INDEX Executive Summary Company Overview Business Overview Industry Overview Financial Overview 1 EXECUTIVE SUMMARY 2 FINEOTEX® EXECUTIVE SUMMARY OVERVIEW BUSINESS MIX KEY STRENGTHS FY19 FINANCIALS . Fineotex Group founded in 1979 . Fineotex is one of India’s largest . Strong Balance Sheet with Zero Income – INR 1,823 MN; CAGR 5 is engaged in manufacturing of and most progressive speciality Debt; High ROE and ROCE, Years 16% . Specialty Chemicals and Enzymes. textile chemical manufacturers. Consistently Dividend paying. EBITDA – INR 346 MN; CAGR 5 . Mr. Surendra Kumar Tibrewala is . The Company manufactures . Professionally run company with Years 30% . Chairman & MD and Mr Sanjay chemicals for the entire value high Promoter holding. Promoter PAT – INR 243MN; ; CAGR 5 Years Tibrewala Executive Director & chain for the textile industry stake is the same as last year. 25% CFO. including pretreatment, dyeing , . Strong Industry knowledge – over . The company has manufacturing printing and finishing process . three decades of operations . facilities in Navi Mumbai and . The company also manufactures . Low cost high margin products Malaysia with a combined other chemicals for various with high entry barriers. production capacity of 43,000 industries like agro , adhesives , . Extremely strong brand loyalty. MT/p.a. construction, water treatment . Strong R&D capabilities help them . Current Market Capitalization is etc. increase customization levels of INR 4,604.2 MN as of 31st March, . It has more than 400 products their products. 2019. catering to various industries. 3 COMPANY OVERVIEW 4 FINEOTEX® COMPANY OVERVIEW . Fineotex Group was established in 1979 by Mr. Surendra Industry wise Revenue Domestic Revenue Tibrewala. Break-up Break-up Adhesives Other . FCL was incorporated as a public limited company in 2007. The 1% East Chemicals South Fertilizer 2% company was listed on Bombay Stock Exchange in March 2011, Chemicals 1% 20% and listed on the National Stock Exchange in January 2015. 1% North 40% . Fineotex is one of India’s largest and most progressive specialty Textile West textile chemical manufacturers. Chemicals 38% 97% . The company manufactures over 400 specialty chemicals and enzymes to Textile, Garment, Construction, Leather, Water treatment , Agrochemicals, Adhesives and others industries. Geographical Revenue Geographical Revenue Break-up (Standalone) Break-up (Consolidated) . Headquartered in Mumbai, it has manufacturing facilities in India and Malaysia with a combined production capacity of 43,000MT/p.a. Export 25% Domestic . It has a global presence across 60 countries and caters to well Overseas 48% known companies in India and overseas. Domestic 52% 75% . FCL along with it’s subsidiary Biotex Malaysia, has a global presence as a reputed producer of specialty chemicals. 5 FINEOTEX® ACCREDITATIONS SA 8000 (Social Accountability ISO 9001:20015 ISO 14001:2015 OHSAS 18001:2007 Management System) Fastest growing company in chemical Recognized as a ZDHC (Zero Discharge Hazardous Chemical) manufacturing by IPF at Bombay Stock Star Export House Exchange 6 FINEOTEX® ACCREDITATIONS ................ - .... uflllllt.,..... Cllllllal Cl.llllllf IMIIIIIIl'lllat 11111111-.2111 The CEO Magazine mmm.: m ( Surcndrakumar Tibrcwala J CldinDIIII &: M•-a-. DIRCbr .-~ Aneotex belnQ covered bV the om~ SCreetlrwestment jOUrnal, jUly 2011 Sanjay nbrnvaa. Aartl Jhunjhunwala ExecutiVe Oire<tor & CFO Exec.uUve Director 6 FINEOTEX® PROMOTER BACKGROUND Mr. Surendra Kumar Tibrewala – Chairman & MD Mr. Sanjay Tibrewala – Executive Director & CFO . Commerce graduate from Mumbai University & a Law . Post Graduate, with specialization in Textile Processing graduate from Government Law College. and Chemicals from Sasmira University & a Commerce Graduate from Mumbai University. 4 decades of experience into manufacturing Specialty . Spearheading the company into Organic & Inorganic Chemicals & Enzymes for various industries namely Growth by venturing into Exports & Foreign Acquisitions. Textiles & Garments, Construction, Water Treatment, . Instrumental in increasing the product basket for textile Leather, Paper, Paint, Adhesives etc. chemicals and diversifying into segments like Agro, Adhesives & others. 7 FINEOTEX® KEY MILESTONES . Listed on NSE . Incorporated a Wholly Owned Subsidiary in . Increased exports to UAE, Fineotex 60 Countries. Listed on BSE Specialities FZE . Ranked amongst . Incorporation of . Incorporated a Wholly Owned . Incorporation of . Received Star Export India’s top 1000 Fineotex Chemical Subsidiary in Malaysia Industries (FCI) Fineotex Chemical House Recognition company by NSE. Private Limited . Acquired major stake in Biotex 1995 Group 2015 2018 2004 2011 TM 2007 . Acquisition of Fineotex Chemical Industries by 2014 . Bonus declared on 1:1 basis 2003 Fineotex Chemical Limited 2017 . Accredited with ISO 14001:2004 . Accredited with ISO 9001:2008 . Fineotex Chemical & OHSAS 18001:2007 . Registered Trademark for Limited came up with certifications ‘FINEOTEX’ their first buyback 8 FINEOTEX® GLOBAL FOOTPRINT Malaysian Facility at . Presence in 60 countries like Australia, Bangi, Malaysia 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 Indian Facility at with reputed distributors with a sole Mahape, Navi Mumbai selling policy to channelize its efforts in view of long term relationship. 9 FINEOTEX® MANUFACTURING FACILITIES MALAYSIAN FACILITY AT BANDER BARU BANGI, MALAYSIA . PLot 71, Jalan P10/21, Selaman Industrial Park,43650 Bandar Baru Bangi, Selangor, Malaysia. INDIAN FACILITIES LOCATED . Current production capacity of AT MAHAPE, NAVI MUMBAI 6,500 MT p.a. Trans Thane Creek Industrial Area, Mahape, Navi Mumbai. The Current production capacity is 36,500 MT p.a. 10 FINEOTEX® STRONG R&D CAPABILITIES . Fineotex has state-of-the-art technology and critical for tweaking the quality and is continuously updated with in- house R&D performance of the products. at 2 laboratories in Mumbai. Laboratories are equipped with all kinds of . Strong R&D capabilities help them increase modern equipment's like Brookfield Strong focus on customization levels of their products – Viscometers, Refractometers, Pilot Vessels leading to higher value addition for its and application equipment's to perform pre- R&D leads to high customers. treatment, dyeing, printing & finishing trials. level of product . Extensive R&D is performed at the client’s . Product features regularly improved by site. This is an important source for new incorporating the latest technology and customization developments as a lot of variables/factors developing new specialty and cost-effective like the client’s plant machinery type and its products. speed, water quality, timing etc are 11 FINEOTEX® TEXTILE INDUSTRY CLIENTS 12 FINEOTEX® OTHER INDUSTRY CLIENTS 13 FINEOTEX® KEY STRENGTHS Strong Balance Sheet, Zero Debt, High ROCE & ROE, Consistent Dividend Paying Strong geographical Strong and well reputed footprints Management Team Access to best Low cost producer; competitive price technological knowledge positioning base through Biotex, Malaysia Strong Industry Knowledge Well diversified portfolio - High level of customization; – 3 decades in specialty strong entry barriers chemicals business 14 FINEOTEX® COMPETITIVE ADVANTAGE High Entry Barriers . Industry dominated by few players as strong technical knowhow needed 1 . High level of customization . Quality & efficiency focused products Sticky Customer Profile . Critical products having significant impact on end product properties . Products with high value addition and catering to sensitive chemical processes 2 . Reluctance of customers to switch easily Pricing Power . Cost of Products is a very small % to the end product prices. Highly technical products used in critical processes 3 . Customer don’t focus on pricing but on reliability & technical superiority. 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 4 . Network of 68 distributors pan-India, offering higher returns to them to ensure better market share Offering Innovative Solutions to Customers . Diversified product portfolio including 400 products 5 . Products catering to the entire value chain in textile manufacturing process Lower Per Unit Cost . Higher Yield Products . Better Productivity leading to reduction of Time and Energy cost 6 . Lower generation of Effluent Customized Products . Modifying the products as per customer needs . New products developed based on in-house R&D and continuous trials at customer’s 7 shop floor . Unique & efficient concentrated products with low dosage, transport and storage costs 15 FINEOTEX® FUTURE STRATEGY Increasing Market Share . Increasing market share in textile chemicals segment with more product range and novel applications. Leverage Biotex Brand . Leverage Biotex brand in domestic markets and increasing share in export markets. Using technical knowledge & expertise of Biotex to further enhance our product basket and processes . Enter New Industry . Looking to penetrate in speciality chemicals for non- textile applications. Enhance Production . To Increase production capacity by adding Capacity machinery and equipment's