Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Investor Presentation (November 2016)
42 slides from Fineotex Chemical's investor presentation, November 2016
Slide 1: Fineotex Chemical Limited exchange submission letter
3 FINEOTEX CHEMICAL LIMITED 16s/62 21° November 2016 To, | General Manager, | | Listing Department, | The Bombay Stock Exchange Limited, | | P.J. Towers, Dalal Street, | | Mumbai ~ 400 001 | | | Company code: 533333 Dear Sirs/Madam, Subject:- Investor Presentation November 2016 With reference to the
Slide 2: Investor Presentation November 2016
FINEOTEX CHEMICAL LIMITED Investor Presentation Where Dependability Counts… NOVEMBER 2016
Slide 3: Index
FINEOTEX® INDEX Executive Summary Company Overview Business Overview Industry Overview Financial Overview 1
Slide 4: Executive Summary
~_ EXECUTIVESUMMARY ©
Slide 5: Executive Summary
FINEOTEX® EXECUTIVE SUMMARY OVERVIEW BUSINESS MIX KEY STRENGTHS FY16 FINANCIALS Fineotex Group founded in 1979 Fineotex is one of India’s largest Strong Balance Sheet with Zero Total Income – INR 1,121 MN , 5 is engaged in manufacturing of and most progressive speciality Debt; High ROE and R
Slide 6: Company Overview
COMPANY OVERVIEW 4
Slide 7: Company Overview
FINEOTEX® COMPANY OVERVIEW Fineotex Group was established in 1979 by Mr.Surendra Industry wise Revenue Break-up Tibrewala Fertilizer Chemicals Adhesives 4% FCL was incorporated as a public limited company in 2007. The 3% company was listed on Bombay Stock Exchange in March 2011, Other and listed
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 Uni
Slide 9: Key Milestones
FINEOTEX® KEY MILESTONES Listed on NSE Incorporated a Wholly Listed on BSE Owned Subsidiary in Incorporated a Wholly Owned UAE, Fineotex Incorporation of Incorporation of Subsidiary in Malaysia Specialities FZE Fineotex Chemical Fineotex Chemical Acquired major stake in Biotex Receiv
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 11
Slide 14: Other Industry Clients
FINEOTEX® OTHER INDUSTRY CLIENTS 12
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 16
Slide 19: Textile Chemicals / Other Chemicals
TEXTILE CHEMICALS Pretreatment Dyeing Printing Finishing OTHER CHEMICALS Leather Water Paper and Agro- Construction Adhesives Treatment Paint Chemicals Chemicals Chemicals Chemicals Chemicals 17
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 (%) Dr . Cedric BioTex was founded in 2002 in Malaysia by Dr. Cedric Veniat Veniat It manufactures innovative specialty chemicals using French Technology 40% FCL The manufacturing facilities are strategically located at an industrial hub in 60% Selangor, Ma
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: Industrial Overview
INDUSTRIAL OVERVIEW 27
Slide 30: Indian & Global Specialty Chemicals Industry
FINEOTEX® INDIAN & GLOBAL SPECIALTY CHEMICALS INDUSTRY The Indian Specialty Chemicals industry is pegged around $17.7 bn (excluding agro chemicals, dyes & pigments). 1,880.0 The Indian Chemical Industry which is 3% of the global market size, is pegged at approximately $ 108 bn . 713.0 The Indi
Slide 31: 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 32: Financial Overview
FINANCIAL OVERVIEW 30
Slide 33: Standalone Income Statement
FINEOTEX® STANDALONE INCOME STATEMENT INCOME STATEMENT (INR Mn) FY12 FY13 FY14 FY15 FY16 H1FY17 Total Income* 355 432 572 698 726 386 Expenses 276 353 485 537 498 280 EBITDA 79 79 87 161 228 106 EBITDA Margin % 22.3% 18.3% 15.2% 23.1% 31.4% 27.5% Depreciation 2 2 2 5 5 3 Finance Cost 3 4 3 2 3 1 Ext
Slide 34: Standalone Balance Sheet
FINEOTEX® STANDALONE BALANCE SHEET PARTICULARS FY 13 FY14 FY 15 FY16 H1 FY17 PARTICULARS FY 13 FY14 FY15 FY16 H1 FY17 EQUITIES & LIABILITIES ASSETS Shareholder Funds 546 601 707 837 908 Non Current Assets 225 244 576 678 742 (A) Share Capital 112 112 224 225 225 (A) Net Fixed Assets 63 68 106 120 14
Slide 35: Standalone Financial Performance
FINEOTEX® STANDALONE FINANCIAL PERFORMANCE Total Income EBITDA % Net Profit 800 698 726 35% 200 700 30% 151 572 600 31.40% 25% 150 500 432 112 20% 400 23.10% 100 15% 58 300 18.30% 54 200 15.20% 10% 50 100 5% 0 0% 0 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 ROCE ROE Debt/Equity 25 21.79 0.14 20.43 0.12
Slide 36: Consolidated Income Statement
FINEOTEX® CONSOLIDATED INCOME STATEMENT INCOME STATEMENT (INR Mn) FY12 FY13 FY14 FY15 FY16 H1FY17 Total Income* 821 984 895 1,065 1,121 612 Expenses 723 864 774 855 822 455 EBITDA 98 120 121 210 299 157 EBITDA Margin % 11.9% 12.2% 13.5% 19.7% 26.7% 25.7% Depreciation 3 3 3 5 6 3 Finance Cost 5 6 4 3
Slide 37: Consolidated Balance Sheet
FINEOTEX® CONSOLIDATED BALANCE SHEET PARTICULARS FY 13 FY14 FY 15 FY 16 H1 FY17 PARTICULARS FY 13 FY14 FY15 FY 16 H1 FY17 EQUITIES & LIABILITIES ASSETS Shareholder Funds 581 647 763 913 1,003 Non Current Assets 200 224 556 647 709 (A) Share Capital 112 112 224 225 225 (A) Net Fixed Assets 66 76 117
Slide 38: Consolidated Cash Flow Statement
FINEOTEX® CONSOLIDATED CASH FLOW STATEMENT CASH FLOW (INR Mn) FY13 FY14 FY15 FY16 Cash and Cash Equivalents at Beginning of the year 12 28 118 92 Cash Flow From Operating Activities 41 11 136 136 Cash Flow from Investing Activities 8 119 (124) (98) Cash Flow From Financing Activities (31) (36) (26)
Slide 39: Consolidated Financial Performance
FINEOTEX® CONSOLIDATED FINANCIAL PERFORMANCE Total Income EBITDA % Net Profit CASH FLOW FROM OPERATIONS 1,121 136 136 1200 1,065 30% 200 140 984 170 180 120 1000 895 25% 160 26.60% 140 129 100 800 20% 120 80 600 19.70% 15% 100 54 70 65 60 80 41 400 13.50% 10% 60 40 12.20% 200 5% 40 11 20 20 0 0% 0 0
Slide 40: Capital Market Information
FINEOTEX® CAPITAL MARKET INFORMATION INCREASE IN PROMOTER HOLDING PRICE DATA (AS ON 30th SEPTEMBER, 2016) Promoter Holding (%) Face value (INR) 2 Market Price (INR) 25.95 75.0 52 Week H/L (INR) 37.95/19.5 70.0 71.7 71.7 65.0 70.2 Market Cap (INR Mn) 2,914.18 66.3 Equity Shares Outstanding (Mn) 112.3
Slide 41: 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 42: 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
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