Fineotex Chemical Limited · NSE:FCL

Fineotex Chemical — Investor Presentation (February 2020)

47 slides from Fineotex Chemical's investor presentation, Feb 13, 2020

  1. Slide 1: A Speciality Chemical Producing Public Listed Company

    FINEOTEX® A Speciality Chemical Producing Public Listed Company CB) 150 or, <0 Chey, Co La wlalr 3) () on 4 7 Sas 1S0_1400 i 13 February, 2020 To, General Manager, The Manager, Listing Department, Listing & Compliance Department BSE Limited, The National Stock Exchange of India Limited P.J. Towers,

  2. Slide 2: Investor Presentation February 2020

    FINEOTEX CHEMICAL LIMITED Investor Presentation Where Dependability Counts… February 2020

  3. Slide 3: Index

    FINEOTEX® INDEX Executive Summary Company Overview Business Overview Industry Overview Financial Overview 1

  4. Slide 4: Executive Summary

    ~~ EXECUTIVESUMmMARY ©

  5. Slide 5: Executive Summary

    FINEOTEX® EXECUTIVE SUMMARY OVERVIEW BUSINESS MIX KEY STRENGTHS FY19 FINANCIALS (I-GAAP-Consolidated)  Fineotex Group founded in 1979  Fineotex is one of India’s largest  Strong Balance Sheet with Zero  Income – INR 1,823 MN; CAGR 3 is engaged in manufacturing of and most progressive speciality

  6. Slide 6: Company Overview

    COMPANY OVERVIEW 4

  7. Slide 7: 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 1% East Chemicals  FCL was incorporated as a public limited company in 2007. The Fertilizer 1% South 20% 2% Chemicals company was l

  8. Slide 8: 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

  9. Slide 9: Accreditations

    ACCREDITATIONS Gai Fineotex awarded as IPF Fastest Growing Chemical Manufacturing Fineotex recognized amongst 25 Fastest grawing Company at BSE Ltd., December 20, 2017 Chemical Companies of [ndia by The CEO Magazine June 2018 FASTEST GROWING J.) Saban So “, ( Surendrakumar Tibrewala_ | Chairman & Ma

  10. Slide 10: 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

  11. Slide 11: Key Milestones

    FINEOTEX® KEY MILESTONES  Listed on NSE  Fineotex being awarded as  Incorporated a Wholly the IPF Fastest Growing Owned Subsidiary in Chemical Manufacturing  Listed on BSE UAE, Fineotex Company at BSE Limited on  Incorporation of  Incorporated a Wholly Owned Specialities FZE December 20, 2017.

  12. Slide 12: Global Footprint

    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

  13. Slide 13: 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.  Current production capacity of INDIAN FACILITIES LOCATED 6,500 MT p.a. AT MAHAPE, NAVI MUMBAI  Trans Thane Creek Indus

  14. Slide 14: 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

  15. Slide 15: Textile Industry Clients

    FINEOTEX® TEXTILE INDUSTRY CLIENTS 13

  16. Slide 16: Other Industry Clients

    FINEOTEX® OTHER INDUSTRY CLIENTS 14

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: Business Overview

    BUSINESS OVERVIEW 18

  21. Slide 21: 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 19

  22. Slide 22: 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 SPINNING WEAVING PRETREATMENT DYEING PRINTING FINISHING to be valued at US$25.42 billion by 2020. De-sizing Dyeing Rotary Exhaust PROCESS Sizing Scouring Washi

  23. Slide 23: Pretreatment Chemicals

    FINEOTEX® PRETREATMENT CHEMICALS  Natural fibers and synthetic fibers contain primary impurities that  Textile pre treatment is the series of cleaning operations. All are contained naturally, and secondary impurities that are added impurities which causes adverse effect during dyeing and printing

  24. Slide 24: Dyeing Chemicals

    FINEOTEX® DYEING CHEMICALS  Dyeing is the process of adding color to textile products  The dyeing process includes sequestering agents, acid buffers, like fibers, yarns, and fabrics. Dyeing is normally done in a polyester dyeing carrier, dispering and oligomer removing agent, special solution cont

  25. Slide 25: 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 only, definite patterns or designs. In properly printed fabrics the colour and in sharply defined patterns. is bonded with the fibre, so as t

  26. Slide 26: Finishing Chemicals

    FINEOTEX®® FINEOTEX FINISHING CHEMICALS  In textile manufacturing, finishing is the processes that converts  The finishing process includes stiffeners, softeners-cationic, the woven or knitted cloth into a usable material and more silicone emulsions amino, wax finishing agents, antistatic agents,

  27. Slide 27: 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

  28. Slide 28: 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

  29. Slide 29: Biotex

    FINEOTEX® BIOTEX Biotex Shareholding (%) Others  BioTex was founded in 2002 in Malaysia by Dr. Cedric Veniat 27 % Fineotex  It manufactures innovative specialty chemicals using French Technology Malaysia  The manufacturing facilities are strategically located at an industrial hub in Limited 73% S

  30. Slide 30: Biotex Bluesign System Partner

    FINEOTEX® Biotex Malaysia Group is now proud System Partner of BLUESIGN The 1st Chemical System Partner in Malaysia USING GOOD CHEMISTRY TO IMPROVE OUR INDUSTRY AND ENVIRONMENT Our Chemistry often plays an essential role in delivering the high-performing characteristics that consumers expect from ou

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: Industrial Overview

    INDUSTRIAL OVERVIEW 31

  34. Slide 34: Indian & Global Specialty Chemicals Industry

    FINEOTEX® INDIAN & GLOBAL SPECIALTY CHEMICALS INDUSTRY  The specialty chemicals market has witnessed a growth of 14% in Global Aqueous PTFE Dispersion Market value and Revenue, the last five years; the market size is expected to reach USD 70 2014-2020 (Kilo Tons) (USD Million) Billion by 2020. 1500

  35. Slide 35: 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

  36. Slide 36: Financial Overview

    FINANCIAL OVERVIEW 34

  37. Slide 37: Historical Standalone Income Statement

    FINEOTEX® HISTORICAL STANDALONE INCOME STATEMENT INCOME STATEMENT (INR Mn) FY14 FY15 FY16 FY17 FY18 FY19 9M-FY20 Revenue 535 650 681 757 919 1,126 984 Expenses 486 537 498 565 683 869 770 EBITDA 49 113 183 192 236 257 214 Other Income 37 48 45 44 75 12 30 Depreciation 2 4 5 6 6 9 8 Finance Cost 3 3

  38. Slide 38: Standalone Balance Sheet

    FINEOTEX® STANDALONE BALANCE SHEET PARTICULARS (INR Mn) FY18 FY19 H1-FY20 PARTICULARS (INR Mn) FY18 FY19 H1-FY20 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets Equity Share Capital 223 223 223 Property, Plant & Equipment 180 247 286 Other Equity 988 1,161 1,257 Capital work-in-pr

  39. Slide 39: Standalone Financial Performance

    FINEOTEX® STANDALONE FINANCIAL PERFORMANCE Revenue (INR Mn) 1,126 Operational PAT (INR Mn) 1200 180 919 156 160 1000 138 140 800 757 115 650 681 120 106 600 535 100 80 64 400 60 200 40 20 20 0 0 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 ROE ROCE Gross Debt/Equity (x) 21.8% 0.045 0.

  40. Slide 40: Historical Consolidated Income Statement

    FINEOTEX® HISTORICAL CONSOLIDATED INCOME STATEMENT INCOME STATEMENT (INR Mn) FY14 FY15 FY16 FY17 FY18 FY19 9M-FY20 Revenue 867 1,020 1,087 1,344 1,429 1,823 1,528 Expenses 774 855 811 1,049 1,200 1,477 1,262 EBITDA 93 165 276 295 229 346 266 Other Income 28 45 21 97 52 15 24 Depreciation 3 5 6 6 6 1

  41. Slide 41: Consolidated Balance Sheet

    FINEOTEX® CONSOLIDATED BALANCE SHEET 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) Net Fixed Asse

  42. Slide 42: Consolidated Balance Sheet

    FINEOTEX® CONSOLIDATED BALANCE SHEET PARTICULARS (INR Mn) FY18 FY19 H1-FY20 PARTICULARS (INR Mn) FY18 FY19 H1-FY20 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets Equity Share Capital 223 223 223 Property, Plant & Equipment 192 261 298 Other Equity 1,135 1,372 1,475 Capital work-i

  43. Slide 43: Consolidated Financial Performance

    FINEOTEX® CONSOLIDATED FINANCIAL PERFORMANCE Revenue (INR Mn) Operational PAT (INR Mn) CASH FLOW FROM OPERATIONS (INR Mn) 2,000 1,823 250 233 200 196 180 191 200 188 160 1,500 1,429 136 136 140 120 1,087 1,354 137 150 120 1,000 100 1,020 100 84 80 63 500 867 60 50 39 40 20 11 - 0 0 FY14 FY15 FY16 FY

  44. Slide 44: Consolidated Cash Flow Statement

    FINEOTEX® CONSOLIDATED CASH FLOW STATEMENT CASH FLOW (INR Mn) FY13 FY14 FY15 FY16 FY17 FY18 FY19 Cash and Cash Equivalents at Beginning of the 12 28 118 92 85 66 36 year Cash Flow From Operating Activities 41 11 136 136 191 63 120 Cash Flow from Investing Activities 8 119 (124) (98) (109) (94) 42 Ca

  45. Slide 45: Capital Market Information

    FINEOTEX® CAPITAL MARKET INFORMATION PRICE DATA (AS ON 31st December, 2019) INCREASE IN PROMOTER HOLDING INCREASE IN RETAIL SHAREHOLDERS Face value (INR) 2.0 Promoter Holding (%) Retail Shareholders Market Price (INR) 27.0 37,936 37,832 73.0 40,000 52 Week H/L (INR) 47.5/21.7 72.0 30,000 Market Cap

  46. 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

  47. 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

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