Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Investor Presentation (May 2018)
47 slides from Fineotex Chemical's investor presentation, May 2018
Slide 1: Fineotex Chemical Limited Investor Presentation
FINEOTEX CHEMICAL LIMITED Investor Presentation Where Dependability Counts… MAY 2018
Slide 2: Index
FINEOTEX® INDEX Executive Summary Company Overview Business Overview Industry Overview Financial Overview 1
Slide 3: Executive Summary
~_ EXECUTIVESUMMARY ©
Slide 4: Executive Summary
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
Slide 5: Company Overview
COMPANY OVERVIEW 4
Slide 6: Company Overview
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% Chemicals South East Fertilizer 2% company was listed on Bombay S
Slide 7: Accreditations
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
Slide 8: Promoter Background
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 Un
Slide 9: Key Milestones
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 i
Slide 10: Global Footprint
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
Slide 11: Manufacturing Facilities
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 Indus
Slide 12: Strong R&D Capabilities
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 the
Slide 13: Textile Industry Clients
FINEOTEX® TEXTILE INDUSTRY CLIENTS 12
Slide 14: Other Industry Clients
FINEOTEX® OTHER INDUSTRY CLIENTS 13
Slide 15: Key Strengths
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 Ind
Slide 16: Competitive Advantage
FINEOTEX® COMPETITIVE ADVANTAGE 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 Critical products having significant impact on end product properties 2 Produ
Slide 17: Future Strategy
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 o
Slide 18: Business Overview
BUSINESS OVERVIEW 17
Slide 19: Textile Chemicals and Other Chemicals
TEXTILE CHEMICALS Pretreatment Dyeing Printing Finishing OTHER CHEMICALS Leather Water Paper and Agro- Construction Adhesives Treatment Paint Chemicals Chemicals Chemicals Chemicals Chemicals 18
Slide 20: Textile Chemicals
FINEOTEX® TEXTILE CHEMICALS Global textile chemicals market is expected to grow at a CAGR of 3.7% by 2020. Global textile chemicals market to be SPINNING WEAVING PRETREATMENT DYEING PRINTING FINISHING valued at US$25.42 billion by 2020. De-sizing Dyeing Rotary Exhaust PROCESS Sizing Scouring Washi
Slide 21: Pretreatment Chemicals
FINEOTEX® PRETREATMENT CHEMICALS Natural fibers and synthetic fibers contain primary impurities Textile pre treatment is the series of cleaning operations. All that are contained naturally, and secondary impurities that are impurities which causes adverse effect during dyeing and added during sp
Slide 22: Dyeing Chemicals
FINEOTEX® DYEING CHEMICALS Dyeing is the process of adding color to textile products and man-made. like fibers, yarns, and fabrics. Dyeing is normally done in a special solution containing dyes and particular chemical material. The dyeing process includes sequestering agents, acid buffers, After
Slide 23: Printing Chemicals
FINEOTEX® PRINTING CHEMICALS Textile printing is the process of applying colour to fabric in printing one or more colours are applied to it in certain parts definite patterns or designs. In properly printed fabrics the colour only, and in sharply defined patterns. is bonded with the fibre, so as t
Slide 24: Finishing Chemicals
FINEOTEX®® FINEOTEX FINISHING CHEMICALS In textile manufacturing, finishing is the processes that converts silicone emulsions amino, wax finishing agents, antistatic agents, the woven or knitted cloth into a usable material and more water repellants, antistatic agents, water repellants and soil sp
Slide 25: Other Specialty Chemicals
FINEOTEX® OTHER SPECIALTY CHEMICALS FCL also manufactures other specialty chemicals like adhesives, construction , water treatment , agriculture, leather, paint & food additives, foundry chemicals, defoamers, elastomers, paper and wood & handicraft. cosmetic additives, flavours and fragrances acro
Slide 26: Case Studies
FINEOTEX® CASE STUDIES FINOX XLH FINOCON ADA FINOCON ECO BIOPRINT BDT – FINOPRET ZF – FINOX XLH – CONCENTRATED Premium – Soda Concentrate – Sodium Alginate Zero TOWEL PRODUCTS – Ash Substitute Acetic Acid Substitute Formaldehyde SILICONES Pretreatment, Benefits Substitute Benefits Resin Benefits Dye
Slide 27: Biotex
FINEOTEX® BIOTEX Biotex Shareholding (%) Others Fineotex BioTex was founded in 2002 in Malaysia by Dr. Cedric Veniat 32 % Malaysia It manufactures innovative specialty chemicals using French Technology Limited The manufacturing facilities are strategically located at an industrial hub in 68% S
Slide 28: Biotex Case Studies
FINEOTEX® BIOTEX CASE STUDIES BIOTEX NELA – Multifunctional Auxiliary for BIOTEX LTB – Low Temperature Bleaching Pretreatment Less Less Time Water & Less Wastage Energy BENEFITS BENEFITS Low temperature bleaching agent at 75-80 All in one multifunctional product for degrees for 30 min pretreatme
Slide 29: Biotex Case Studies
FINEOTEX® BIOTEX CASE STUDIES Aquastrike VCF– Non Toxic & Ecofriendly Mosquito Killer Liquid • It is a non toxic, non polluting, Eco-friendly solution, produced in Malaysia with European design engineering. • Simply poured on the water surface at a rate of 1ml per square meter, the silicon based liq
Slide 30: Industrial Overview
INDUSTRIAL OVERVIEW 29
Slide 31: Indian & Global Specialty Chemicals Industry
FINEOTEX® INDIAN & GLOBAL SPECIALTY CHEMICALS INDUSTRY Global Aqueous PTFE Dispersion Market value and Revenue, 2014- The specialty chemicals market has witnessed a growth of 14% in the 2020 (Kilo Tons) (USD Million) last five years; the market size is expected to reach USD 70 Billion by 1600 1422
Slide 32: Government Initiatives
FINEOTEX® GOVERNMENT INITIATIVES The Indian Government has taken steps to improve competitiveness in the sector. The major being: Industrial licensing being abolished for most sub sectors. FDI up to 100% granted in the chemicals sector The government is continuously reducing the list of rese
Slide 33: Financial Overview
FINANCIAL OVERVIEW 32
Slide 34: Standalone Income Statement
FINEOTEX® STANDALONE INCOME STATEMENT (As Per IND-AS) INCOME STATEMENT (INR Mn) FY18 FY17 Y-o-Y Revenue 919 820 12.1% Expenses 683 634 7.7% EBITDA 236 186 26.9% EBITDA Margins (%) 25.68% 22.68% 300 Bps Other Income 75 101 (25.7)% Depreciation 6 6 NA Finance Cost 4 3 33.3% PBT 301 278 8.3% Tax 88 67
Slide 35: Historical Standalone Income Statement
FINEOTEX® HISTORICAL STANDALONE INCOME STATEMENT (As Per I-GAAP) INCOME STATEMENT (INR Mn) FY14 FY15 FY16 FY17 FY18 Revenue 535 650 681 757 921 Expenses 486 537 498 565 680 EBITDA 49 113 183 192 241 EBITDA Margins (%) 9.16% 17.38% 26.87% 25.36% 26.17% Other Income 37 48 45 44 73 Depreciation 2 4 5 6
Slide 36: Standalone Balance Sheet
FINEOTEX® STANDALONE BALANCE SHEET (As Per IND-AS) PARTICULARS (INR Mn) FY17 FY18 PARTICULARS (INR Mn) FY17 FY18 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets Equity Share Capital 223 223 Property, Plant & Equipment 163 180 Other Equity 798 988 Capital work-in-progress - - Inves
Slide 37: Standalone Balance Sheet
FINEOTEX® STANDALONE BALANCE SHEET (As Per I-GAAP) PARTICULARS (INR Mn) FY 13 FY14 FY 15 FY16 FY17 PARTICULARS (INR Mn) FY 13 FY14 FY15 FY16 FY17 EQUITIES & LIABILITIES ASSETS Shareholder Funds 546 601 707 837 956 Non Current Assets 225 244 576 678 772 (A) Share Capital 112 112 224 225 223 (A) Fixed
Slide 38: Standalone Financial Performance
FINEOTEX® STANDALONE FINANCIAL PERFORMANCE (As Per I-GAAP) Revenue EBITDA M (%) Net Profit 1000 921 30.0% 250 222 900 800 757 25.0% 26.9% 26.2% 200 700 650 25.4% 681 20.0% 151 159 17.4% 600 535 150 500 15.0% 112 400 100 300 10.0% 58 200 9.2% 50 5.0% 100 0 0.0% 0 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY
Slide 39: Consolidated Income Statement
FINEOTEX® CONSOLIDATED INCOME STATEMENT (As Per IND-AS) INCOME STATEMENT (INR Mn) FY18 FY17 Y-o-Y Revenue 1,429 1,344 6.3% Expenses 1,129 1,049 7.6% EBITDA 300 295 1.7% EBITDA Margins (%) 20.99% 21.95% (96) Bps Other Income 52 97 (46.4)% Depreciation 7 6 16.7% Finance Cost 6 4 50.0% PBT 339 382 (11.
Slide 40: Historical Consolidated Income Statement
FINEOTEX® HISTORICAL CONSOLIDATED INCOME STATEMENT (As Per I-GAAP) INCOME STATEMENT (INR Mn) FY14 FY15 FY16 FY17 FY18 Revenue 867 1,020 1,087 1,354 1,431 Expenses 774 855 822 1,055 1,129 EBITDA 93 165 265 299 302 EBITDA Margin (%) 10.73% 16.18% 24.38% 22.08% 21.10% Other Income 28 45 33 43 52 Deprec
Slide 41: Consolidated Balance Sheet
FINEOTEX® CONSOLIDATED BALANCE SHEET (As Per IND-AS) PARTICULARS (INR Mn) FY17 FY18 PARTICULARS (INR Mn) FY17 FY18 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets Equity Share Capital 223 223 Property, Plant & Equipment 173 192 Other Equity 902 1135 Capital work-in-progress - 1 Mi
Slide 42: Consolidated Balance Sheet
FINEOTEX® CONSOLIDATED BALANCE SHEET (As Per I-GAAP) PARTICULARS (INR Mn) FY 13 FY14 FY 15 FY 16 FY17 PARTICULARS (INR Mn) FY 13 FY14 FY 15 FY 16 FY17 EQUITIES & LIABILITIES ASSETS Shareholder Funds 581 647 763 913 1,060 Non Current Assets 200 224 556 647 743 (A) Share Capital 112 112 224 225 223 (A
Slide 43: Consolidated Cash Flow Statement
FINEOTEX® CONSOLIDATED CASH FLOW STATEMENT CASH FLOW (INR Mn) FY13 FY14 FY15 FY16 FY17 Cash and Cash Equivalents at Beginning of the year 12 28 118 92 85 Cash Flow From Operating Activities 41 11 136 136 192 Cash Flow from Investing Activities 8 119 (124) (98) (68) Cash Flow From Financing Activitie
Slide 44: Consolidated Financial Performance
FINEOTEX® CONSOLIDATED FINANCIAL PERFORMANCE (As Per I-GAAP) Revenue EBITDA M (%) Net Profit CASH FLOW FROM OPERATIONS 192 1,600 30.0% 300 200 1,354 1,431 249 1,400 24.4% 239 180 25.0% 250 160 1,200 1,087 22.1% 136 136 1,020 20.0% 200 170 140 1,000 867 21.1% 120 800 10.7% 16.2% 15.0% 150 129 100 600
Slide 45: Capital Market Information
FINEOTEX® CAPITAL MARKET INFORMATION PRICE DATA (AS ON 31st March, 2018) INCREASE IN PROMOTER HOLDING INCREASE IN RETAIL SHAREHOLDERS Face value (INR) 2.0 Promoter Holding (%) Retail Shareholders Market Price (INR) 58.45 37,936 73.0 40,000 52 Week H/L (INR) 106.05/23.50 72.0 30,000 Market Cap (INR M
Slide 46: Safe Harbour
FINEOTEX® SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fineotex Chemical Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 47: Capital Market Information
FINEOTEX® CAPITAL MARKET INFORMATION INCREASE IN PROMOTER HOLDING PRICE DATA (AS ON 31ST DECEMBER, 2015) Promoter Holding (%) Face value (INR) 2 Market Price (INR) 26.45 75 52 Week H/L (INR) 44.6/17.8 70 70.7 71.7 Market Cap (INR Mn) 2970.3 65 66.3 Equity Shares Outstanding (Mn) 22.5 60 62.5 Free Fl