Fairchem Organics Ltd · NSE:FAIRCHEMOR
Fairchem Organics — Investor Presentation (June 2021)
29 slides from Fairchem Organics's investor presentation, Jun 11, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation
FAIRCHEM ORGANICS LIMITED Works & Office : 253/P & 312, Village Chekhala, Sanand Kadi Highway, - Taluka: SANAND, Dist.: Ahmedabad 382 115, INDIA. Phone (Board Nosj: (02717) 687900, 687901, +91 90163 24095 FAI RC HEM E-mail cs@tairchem.in CIN U24200MH2019PLC323176 Website : www.fairchem.in A FAIRFAX
Slide 2: Investor Presentation June 2021
Investor Presentation June 2021
Slide 3: Company at a Glance
Company at a Glance Promoted by Fairfax Well entrenched India Holdings and Long lasting Pan India Customer backed by Raw Material sourcing Relationships in high experienced capabilities with growth industries like Management team diversified vegetable Paint, Inks, Printing oil refineries Ongoing Cap
Slide 4: Company Overview
Company Overview 3
Slide 5: Company Overview
Company Overview • Fairchem Organics Ltd. (Fairchem) is engaged in the business of manufacturing of Oleo Chemicals and Nutraceuticals, since the last 25 years. Revenue & EBITDA Margin (In Mn) • The company’s key oleo chemical products include Dimer Acid, Linoleic Acid, Palmitic 17.32% Acid, Monomer
Slide 6: Fairchem's Competitive Advantage
Fairchem’s Competitive Advantage Major Player in the Indian Oleo Chemical Market Using Renewable Resources • Processing waste from edible oil refining process to produce high value oleo chemicals giving it price advantage • Enjoy Leadership Position in the industry due to barriers to entry • Focus o
Slide 7: Key Milestones
Key Milestones Main focus on reduction of manufacturing cost per ton. De-Merged from The original project was Fairchem Speciality to process by-product Complete Re- Engineering of its and now operating as stream of Rice Bran Oil. Energy Consumption System. Fairchem Organics Commenced project in Inst
Slide 8: Board of Directors
Board of Directors Utkarsh Bhikhoobhai Shah - (Chairman and Non-Executive Director) Mr. Shah aged 60 years is a science graduate with Chemistry as a principal subject. Over a period of last more than 38 years and apart from spreading the existing coal business, he diversified into textile dyes, spec
Slide 9: Manufacturing Facility
Manufacturing Facility • The company’s State -of-the-Art Manufacturing unit is located in Sanand, Ahmedabad. • It has one of the largest processing capacities for Natural Soft Oil based Fatty acids in India. • The low cost of raw material and efficient manufacturing process enables the company to be
Slide 10: Capacity Expansion
Capacity Expansion • Over the years Fairchem has gone through various stages of expansion, debottlenecking and technological advancements to create a one of its kind world class facility. Plant Capacity (Metric Tons) • Majority of the capacity expansion has been undertaken primarily through internal
Slide 11: Financial Governance Standards
Financial Governance Standards Invest for long term growth value creation Always be adequately capitalized Not overleverage the balance sheet Secure sources of sustainable raw material supply Invest in backward and forward integration Transparent communications with all the stakeholders Low volatili
Slide 12: Business Overview
Business Overview 11
Slide 13: Business Segments
Business Segments FAIRCHEM ORGANICS OLEO CHEMICALS NUTRACEUTICAL Investor Presentation | www.fairchem.in 12
Slide 14: Oleo Chemicals
Oleo Chemicals Oleo Chemicals are chemicals derived from Plant and Animal Fats. They are analogous to petrochemicals derived from petroleum. The formation Main Product Application of basic oleochemical substances like Fatty Acids, Fatty Acid Methyl Esters Linoleic Acid / Soya Fatty (FAME), Fatty Alc
Slide 15: Linoleic Acid
Linoleic Acid Applications Paints Inks Linoleic Acid is designed especially to produce fast drying protective coating having lighter color. It is an unsaturated fatty acid and is a liquid at room temperature. Purpose of Use: • Linoleic Acid is designed especially to produce fast drying protective co
Slide 16: Dimer Acid
Dimer Acid Dimer Acid also known as dimerized fatty acids are prepared from unsaturated fatty acids obtained Applications from vegetable oil. It is a light yellow or yellow viscous transparent liquid. It is non-toxic. Paints Inks Purpose of Use: • Offers improved bonding. • Used as curing agents for
Slide 17: Monomer Acid & Distilled fatty acids
Monomer Acid & Distilled fatty acids Applications Fairchem is one of the leading producers of Monomer and Other distilled fatty acids with significantly Paints Lubricants lower raw material costs Monomer Acid: • Monomer Acids are non-petroleum, non-animal based products that can be used as substitut
Slide 18: Nutraceuticals
Nutraceuticals • Nutraceutical, a portmanteau of the words “nutrition” and “pharmaceutical” Revenue Contribution (INR Mn) applied to products that range from isolated nutrients, dietary supplements and herbal products, specific diets, genetically modified food, and processed foods 334 such as cereal
Slide 19: Mixed Tocopherol Concentrate
Mixed Tocopherol Concentrate • Tocopherol is used as raw material to manufacture natural Vitamin E. Natural Vitamin E is almost Applications 3-4 times more expensive than synthetic Vitamin E. Developed markets like US and Europe are the key consumers due to the high value of the product. Vitamin E F
Slide 20: Industry Overview
Industry Overview 19
Slide 21: Oleo Chemicals Industry
Oleo Chemicals Industry • The oleo chemicals market is broadly segmented into four key applications markets: World Production of Leading Oil & Fat, 2020 • Pharmaceutical & personal care, • Food & beverages, Others Palm • Soaps & detergents, 28.40% 27.80% • Polymers • Pharmaceutical & personal care i
Slide 22: Oleo chemicals Industry in India
Oleo chemicals Industry in India • India oleochemicals market is projected to cross US$2.6 billion by 2025. • India oleochemicals market has been segmented into five categories namely - fatty acids, fatty alcohols, glycerin, fatty acid methyl esters and fatty amines. Robust growth in India oleochemi
Slide 23: Financial Overview
Financial Overview 22
Slide 24: Profit & Loss Statement
Profit & Loss Statement PARTICULARS (INR Mn) FY19 FY20 FY21 Revenue from Operations 2,499 3,065 3,966 Total Expenses 2,138 2,581 3,279 EBITDA 361 484 687 EBITDA Margin 14.44% 15.79% 17.32% Other Income 43 66 3 Depreciation 55 60 66 Finance Cost 57 66 68 PBT 292 424 556 Tax 77 77 131 Profit After Tax
Slide 25: Balance Sheet
Balance Sheet ASSETS FY19 FY20 FY21 EQUITY AND LIABILITIES FY19 FY20 FY21 Non-Current Assets EQUITY Property, Plant and Equipment 1,108 1,219 1,220 Equity Share Capital 391 130 130 Capital work-in-progress 9 94 295 Instruments entirely equity in nature Right of use assets 44 43 43 Other Equity 635 1
Slide 26: Cash Flow Statement
Cash Flow Statement PARTICULARS (INR Mn) FY19 FY20 FY21 Cash and Cash Equivalents at Beginning of the year 0.2 0.2 0.3 Cash Flow From Operating Activities 342 312 394 Cash Flow from Investing Activities (137) (239) (228) Cash Flow From Financing Activities (205) (73) (166) Net Inc./(Dec.) in Cash an
Slide 27: Key Financial Highlights
Key Financial Highlights Revenue (In Mn) EBITDA (In Mn) & EBITDA Margin (%) PAT (In Mn) & PAT Margin (%) 5 Year CAGR - 14% 17.32% 11.32% 10.72% 5 Year CAGR -24% 5 Year CAGR - 36% 15.79% 3,966 13.92% 14.44% 8.60% 687 8.00% 425 3,065 11.62% 2,499 347 2,428 484 5.00% 2,039 338 361 215 194 237 91 FY17 F
Slide 28: Capital Markets
Capital Markets 20% Dividend Percentage 15% 35.00% 10% 5% 25.00% 0% -5% 15.00% 15.00% -10% 10.00% -15% Dec-20 Jan-21 Feb-21 Mar-21 Sensex FY17 FY18 FY19 FY20 FY21 Price Data (31st March, 2021) INR Shareholding Pattern as on 31st March, 2021 Face Value 10.00 Market Price 748.6 Public 26% 52 Week H/L
Slide 29: Disclaimer
Disclaimer Fairchem Organics Limited Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that al
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