Fineotex Investor Presentation August 2018
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FINEOTEX CHEMICAL LIMITED Investor Presentation Where Dependability Counts… August 2018 FINEOTEX® INDEX Executive Summary Company Overview Business Overview Industry Overview Financial Overview 1 EXECUTIVE SUMMARY 2 FINEOTEX® EXECUTIVE SUMMARY OVERVIEW BUSINESS MIX KEY STRENGTHS FY18 FINANCIALS (I-GAAP Consolidated) . Fineotex Group founded in 1979 . Fineotex is one of India’s largest . Strong Balance Sheet with Zero . Income – INR 1,431 MN , 5 year is engaged in manufacturing of and most progressive speciality Debt; High ROE and ROCE, CAGR of 11.95% Specialty Chemicals and Enzymes. textile chemical manufacturers. Consistently Dividend paying. EBITDA – INR 302 MN , 5 year . Mr. Surendra Kumar Tibrewala is . The Company manufactures . Professionally run company with CAGR of 22.32% Chairman & MD and Mr Sanjay chemicals for the entire value high Promoter holding. Promoter . PAT – INR 249 MN , 5 year CAGR of Tibrewala Executive Director & chain for the textile industry stake is the same as last year. 24.51% 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 29,300 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 6,098 MN as of 30th June, . It has more than 400 products their products. 2018. 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 East . FCL was incorporated as a public limited company in 2007. The 1% South Fertilizer Chemicals 2% 20% company was listed on Bombay Stock Exchange in March 2011, Chemicals 1% 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 29,300MT/p.a. Export 25% . It has a global presence across 33 countries and caters to well Overseas Domestic 52% 48% known companies in India and overseas. Domestic 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® 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 . Listed on BSE Owned Subsidiary in . Incorporation of . Incorporated a Wholly Owned UAE, Fineotex Fineotex Chemical . Incorporation of Subsidiary in Malaysia Specialities FZE Industries (FCI) Fineotex Chemical . Acquired major stake in Biotex . Received Star Export 1995 Private Limited Group House Recognition 2004 2011 2015 TM 2014 2003 2007 2017 . Accredited with ISO 9001:2008 . Acquisition of Fineotex . Bonus declared on 1:1 basis . Accredited with ISO 14001:2004 . Fineotex Chemical . Registered Trademark for Chemical Industries by & OHSAS 18001:2007 Limited came up with ‘FINEOTEX’ Fineotex Chemical Limited certifications their first buyback 8 FINEOTEX® GLOBAL FOOTPRINT Malaysian Facility at . Presence in 33 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 22,800 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 on a regular basis. Currently FCL have acquired land in Wada, Khopoli and additional land in Ambernath for future expansion. Disciplined Capital . The Company has made gradual capital allocations Allocation to increase capacities as needed and runs its facilities at optimum utilisations before planning any 16 new capex. BUSINESS OVERVIEW 17 TEXTILE CHEMICALS Pretreatment Dyeing Printing Finishing OTHER