Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Investor Presentation (August 2019)
33 slides from Fine Organic Industries's investor presentation, August 2019
Slide 1: Investor Presentation August 2019
Investor Presentation August - 2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fine Organic Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 3: The Fine Story of Success
THE FINE STORY OF SUCCESS 3
Slide 4: Our Story of Success
Our Story of Success 1970 1973 1988 1995 2002 2005 Established as ‘Fine Commissioned first Set up second facility Incorporated Oleofine Incorporated the Established R&D Organic Industries’, food additives in Ambernath Organics (India) Pvt. Company under the Centre in Navi a partnership firm by facil
Slide 5: Legacy in Green Additives
Legacy in Green Additives Wide Product Range Diversified Customer Base Global Distribution Network Products Direct Distribution 400+ Customers 650+ 150+ Installed Capacity Global Presence 69,300 TPA 70+ Inhouse capability for product Largest manufacturer of oleochemical-based development, Process te
Slide 6: Strength formulae for Success of Fine Organics
Strength formulae for Success of FINE ORGANICS Highly Dominant Specialized 01 Position 04 Business Model 07 Experienced Management Team EFFECTIVE TECHNOLOGY Diversified Strategically 02 Product Portfolio 05 Located + RELENTLESS FOCUS Diversified Strong R&D = 06 – Innovation INNOVATIVE PRODUCTS 03 Cu
Slide 7: 1. Dominant Position
1. Dominant Position Pioneers and the largest manufacturers of oleochemical-based additives in India and a strong player globally Fully automated production facility Multiple production sites One of the five global players in the One of the six global players in the One of the leading players to dev
Slide 8: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Our product range for CosPha (Cosmetic and Pharmaceutical) The diversity of oleochemistry has Pioneer in manufacturing & applications serve both as base Using our oleochemical expertise, enabled us to develop a wide range marketing of emulsifiers
Slide 9: 2. Diversified Product Portfolio: 400+ Products
2. Diversified Product Portfolio : 400+ Products Helps food to get the desired aesthetic structure and texture along with maintaining quality and freshness. Enhances shelf life of bakery products Food Additives and keeps if safer from spoiling or from becoming toxic due to unwanted growth of bacteri
Slide 10: 3. Diversified Customer Base
3. Diversified Customer Base Warehouses in USA & Europe Products 400+ End Users 5,000+ Countries 70+ Direct Customers 650+ Distributors 150+ All the data points are as on 30th June 2019 10
Slide 11: 4. Specialised Business Model: Entry Barriers
4. Specialised Business Model : Entry Barriers The Indian oleochemical market has limited and Complex technology & manufacturing processes create smaller players, while the world over has few players multiple entry barriers into the oleochemical derived Very High additives industry. Product formulat
Slide 12: 5. Strategically Located: Current Facilities
5.Strategically Located : Current Facilities Ambernath 1 4 3 Dombivli 2 Badlapur India plants located in close proximity to Ambernath Badlapur Nhava Sheva Port – Ideal for Exports Current Operational Facility Plant Capacity (TPA) Remarks Certifications 1 1st Ambernath Facility 49,500 -- 2 Badlapur F
Slide 13: 5. Strategically Located: Expansion Plans
5.Strategically Located : Expansion Plans Proposed Expansion Plants Ambernath 5 Plant Capacity (TPA) Remarks rd Construction Patalganga 5 3 Ambernath Facility 32,000 Completed 6 6 Patalganga Facility 10,000 Q2 FY21* 7 German Facility 10,000 FY22* Leipzig, Germany 7 *Subject to all necessary approval
Slide 14: 6. Strong R&D: Innovative Approach
6. Strong R&D : Innovative Approach Strong R&D Capabilities Product Development Lab & Product Application Lab Dedicated team of 18 Scientists and Technicians Developed and launched 8 new products since April 1, 2019 New Product Development Focus on Feed nutrition additives – derived from nat
Slide 15: 7. Experienced Management Team
7. Experienced Management Team Prakash Kamat – Executive Director and Chairman Prakash Apte – Independent Director Holds a M.Sc. Tech- Master of Science & Tech (Oils) from Institute On the Board since Nov 2017. Holds a Bachelor’s degree in of Chemical Technology (formerly UDCT) Mechanical Engine
Slide 16: Industry Potential: Multiple Growth Levers
INDUSTRY POTENTIAL: MULTIPLE GROWTH LEVERS 1. Polymer Additives 2. Food Additives 3. Other Specialty Additives 16
Slide 17: 1. Polymer Additives
1. Polymer Additives Global Market Size Indian Market Size In US $ Mn 30,000 CAGR 6.4% In INR Million 90,000 CAGR 9.2% 22,000 58,000 2016 2021E Country-wise Growth 2016 2021E End-user Segment Growth (From 2016 – 2021E) (From 2016 – 2021E) In US $ Mn In INR Million 7.0% 8.4% Asia Pacific 5.2% 4.8% St
Slide 18: 2. Food Additives
2. Food Additives Global Food Emulsifiers Market Size Indian Market Size In US $ Mn 3,400 9,000 2,800 CAGR 4% In INR Million CAGR 11% 5,400 2016 2021E 2016 2021E Country-wise Growth Consumer Food Industry (From 2016 – 2021E) (From 2017 – 2022E) In US $ Mn In INR Million 4.6% 20.0% Asia Pacific 4.2%
Slide 19: 3. Other Specialty Additives: Key Drivers
3. Other Specialty Additives : Key Drivers Industry Cosmetics & Specialties Feed Nutrition Additives for Coatings Rubber Pharmaceuticals Dispersing agents Processing Aids Natural Antibiotics Emulsifiers & Emollients Key Additives Lube additives Emulsifiers Specialty Plasticizers Prop
Slide 20: Financial Highlights
AA ye feeb Hb ME weg FINANCIAL HIGHLIGHTS
Slide 21: Q1FY20 Standalone Performance Highlights
Q1FY20 Standalone Performance Highlights Rs in Crores Revenues EBITDA PAT +1% +9% +1% 242 244 58 37.07 37.43 53 Exports 55% 52% Domestic 45% 48% Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 As per IND AS 21
Slide 22: Q1FY20 Standalone Operating Performance
Q1FY20 Standalone Operating Performance Rs in Crores Revenues EBITDA & Margins 18.6% 22.5% 18.9% 19.3% 21.3% 23.8% 1,044 +14% 856 777 55% +18% 222 608 651 58% 164 62% 146 147 54% 113 Exports 59% 244 45% 58 46% 38% 42% 52% Domestic 41% 48% FY15 FY16 FY17 FY18 FY19 Q1FY20 FY15 FY16 FY17 FY18 FY19 Q1FY
Slide 23: Disciplined Use of Capital (Standalone)
Disciplined Use of Capital (Standalone) Net Debt to Equity Fixed Asset Turnover 0.48x 9.44x 7.77x 6.56x 0.25x 4.92x 5.22x 0.11x 3.10x 2.79x 3.10x 3.26x 3.71x 0.08x 0.05x FY15 FY16 FY17 FY18 FY19 FY 15 FY 16 FY 17 FY 18 FY19 Gross Net Net Debt = Total Long term debt + short term debt + current of Fix
Slide 24: Capital delivering Consistent Performance (Standalone)
Capital delivering Consistent Performance (Standalone) Return on Capital Employed Return on Net Worth 32.64% 32.77% 32.17% 30.31% 31.15% 28.86% 26.31% 24.81% 25.37% 23.88% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Return on Capital Employed = EBIT (excluding Other Income) / (Total Return on
Slide 25: Q1FY20 Standalone Profit & Loss Statement
Q1FY20 Standalone Profit & Loss Statement Particulars (Rs in Crs) Q1FY20 Q1FY19 Y-o-Y Q4FY19 Q-o-Q FY19 Revenue from Operations 243.5 241.8 0.7% 278.7 -12.6% 1,044.0 Cost of Raw Material Consumed 146.7 151.5 177.4 654.4 Gross Profit 96.8 90.3 7.2% 101.3 -4.4% 389.5 Gross Profit Margin 39.8% 37.3% 36
Slide 26: Q1FY20 Consolidated Profit & Loss Statement
Q1FY20 Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q1FY20 Q1FY19 Y-o-Y Q4FY19 Q-o-Q FY19 Revenue from Operations 250.6 247.5 1.3% 284.3 -11.9% 1,060.3 Cost of Raw Material Consumed 150.0 147.9 180.8 655.2 Gross Profit 100.6 99.6 1.0% 103.5 -2.8% 405.2 Gross Profit Margin 40.1% 40.2%
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs in Crs) Mar-19 Mar-18 Equity & Liabilities (Rs in Crs) Mar-19 Mar-18 Non-current assets Equity Property, plant and equipment 77.8 88.1 Equity share capital 15.3 15.3 Capital work-in-progress 106.3 31.7 Other equity 484.9 380.3 Intangible assets 0.3 0.3 Non Contr
Slide 28: Q1FY20 Consolidated Operating Performance
Q1FY20 Consolidated Operating Performance Rs in Crores Revenues EBITDA & Margins 18.3% 22.6% 18.6% 18.6% 21.7% 24.2% +15% 1,060 852 778 +20% 230 607 652 145 145 158 111 251 61 FY 15 FY 16 FY 17 FY 18 FY 19 Q1 FY20 FY 15 FY 16 FY 17 FY 18 FY 19 Q1 FY20 PAT & Margins Cash PAT & Margins 8.8% 11.7% 9.9%
Slide 29: Disciplined Use of Capital (Consolidated)
Disciplined Use of Capital (Consolidated) Net Debt to Equity Fixed Asset Turnover 0.48x 9.58 x 7.74 x 6.57x 0.24x 4.91x 5.23x 0.10x 3.27 x 3.77 x 3.09x 2.79x 3.11x 0.07x 0.04x FY15 FY16 FY17 FY18 FY19 FY 15 FY 16 FY 17 FY 18 FY 19 Gross Net Net Debt = Total Long term debt + short term debt + current
Slide 30: Capital delivering Consistent Performance (Consolidated)
Capital delivering Consistent Performance (Consolidated) Return on Capital Employed Return on Net Worth 32.75% 32.88% 33.85% 30.46% 30.80% 27.24% 28.51% 25.67% 23.65% 24.06% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Return on Capital Employed = EBIT (excluding Other Income) / (Total Return o
Slide 31: Looking Ahead
LOOKING AHEAD 31
Slide 32: Key Takeaways
Key Takeaways New Business Organic Growth at the Opportunities Forefront 2 new proposed facilities in Developing Feed Nutrition pipeline Additives and other specialty additives Focus is into newer high margin products Continued Focus on Expand Global Innovation and R&D Footprint • Application
Slide 33: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : CIN: L24119MH2002PLC136003 CIN: U74140MH2010PTC204285 Ms. Sonali Bhadani Ms. Neha Shroff / Mr. Shrikant Sangani Vice President - Finance +91 773807 3466 / +91 96195 95686 www.fineorganics.com Email: neha.shroff@sgapl.ne
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