Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Investor Presentation (November 2021)
37 slides from Fineotex Chemical's investor presentation, Nov 11, 2021
Slide 1: Fineotex Investor Presentation Cover and Exchange Letter
FINEOTEX. A Speciality Chemical Producing Public Listed Company ; fea GY 30) :22 : ‘ISO: (~/e): AMS): ESQ)2 vi November 11, 2021 Ray Boro 45001 84 gov To, General Manager, The Manager, Listing Department, Listing & Compliance Department BSE Limited, The National Stock Exchange of India Limited P.J.
Slide 2: Fineotex Chemical Limited Investor Presentation November 2021
Fineotex Chemical Limited (BSE: 533333; NSE: FCL) Investor Presentation November 2021 Drilling Specialties Textile Specialties Home Care and Hygiene Specialties Other Specialties
Slide 3: Agenda
Agenda Company Overview 3 – 18 Sustainability Approach 19 – 29 Financial Performance 30 – 34 2
Slide 4: Company Overview
Company Overview 3
Slide 5: An Introduction to Fineotex
An Introduction to Fineotex Speciality chemicals producer for 4+ decades with a market 450+ ~70 leading position in the international textiles industry Product Categories Countries Present Bluesign, ZDHC, 43,000+ MT p.a. Successful entry into home care and hygiene and drilling Star Export House Inst
Slide 6: Fineotex Investment Case
Fineotex Investment Case Business Dynamics Acquisition Track Record Global Customer Reach • Fineotex and Biotex associated with quality and innovation across • Biotex (73% owned) net profit has • International acceptance by high industries globally grown by a factor of 10x since profile customers •
Slide 7: Our Evolution
Our Evolution 2004 2007 2011 2014 2015 ❖ Accredited with ❖ Acquisition of FCPL ❖ Listed on BSE ❖ Bonus declared on 1:1 ❖ Listed on NSE ISO 9001:2008 by Fineotex Chemical ❖ Incorporated wholly owned basis ❖ Received Star ❖ Incorporation of Limited subsidiary in Malaysia ❖ Accredited with ISO Export H
Slide 8: Driving Future Growth
Driving Future Growth Home Care Specialities Hygiene Specialities Textile Specialities Drilling Specialities Leverage core manufacturing and development expertise into new high growth areas 7
Slide 9: Strategic Partnerships
Strategic Partnerships Strategic collaboration with Eurodye-CTC, Belgium, to commercialize specialty chemicals for the Indian market Addition to its portfolio, specialized pre-treatment and dyeing products for the cotton-synthetic and woollen fibre/ fabric/ yarn Facilitates an efficient production s
Slide 10: Strategic Partnerships
Strategic Partnerships Joint venture with HealthGuard, Australia to become Setting up a state of art Research & Development the exclusive global marketing and sales channel centre in collaboration with Sasmira Institute, one of partner with joint operations from Malaysia India’s premier textile inst
Slide 11: New Facility at Ambernath, Maharashtra
New Facility at Ambernath, Maharashtra About the Facility ➢ Located on ~4 acres of land ➢ Production commenced on 9th November 2021 ➢ State of the art technological updates have been implemented Strategic Advantages ➢ Caters to customer demands in the existing Textile Specialities and fast growing H
Slide 12: Focus on Growth and Diversification
Focus on Growth and Diversification Home Care and Hygiene Chemicals Drilling Speciality Chemicals Other Speciality Chemicals • Customised solutions for: • Customised solutions for Oil and Gas • A unique ‘Mosquito Life Cycle Controller’ product ▪ Housekeeping, Kitchen Care and Disinfectants • Signifi
Slide 13: Home Care and Hygiene Division
Home Care and Hygiene Division Diversified Product Offering • Air freshener • Hygienic hard surface Housekeeping • Carpet cleaner cleaner • Carpet shampoo • Multi surface cleaner • Deodorizers • Surface cleaner cum • Floor cleaner disinfectant • Furniture maintainer • Toilet bowl cleaner • Glass cle
Slide 14: Synergistic Business Model
Synergistic Business Model Fineotex - India Biotex - Malaysia • Diverse product portfolio (400+ categories) • Niche product portfolio (50+ categories) across business segments Overview • High end super speciality textile chemical • Applications primarily across the entire textile applications value
Slide 15: Specialty Textile Chemicals Overview
Specialty Textile Chemicals Overview Steps Weaving Pre-treatment Dyeing Printing Finishing De-sizing, Dyeing, Rotary Exhaust Process Sizing Scouring, Washing, Printing, Padding Bleach Fixing Table Printing Enzymes, Dyes, Acids, Dyes, Binder Softeners, Wetting & Alkali Thickener, Fixer Product Polyme
Slide 16: Product Offerings from Biotex
Product Offerings from Biotex ‘The Bioguard Series’ of products from Biotex with water and oil repellent features in great demand post outbreak of COVID-19 15
Slide 17: Global Customer Reach
Global Customer Reach • Sales in ~70 countries including Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Syria, Thailand, USA, Venezuela and Vietnam • 30+ technical marketing experts • 100+ dealers in Indian and International markets FY21 Revenue Mix 57% 43% Facilities at Mahape and Amb
Slide 18: Strategic Direction
Strategic Direction Leverage Fineotex’s industry insights and long standing customer relationships with Biotex’s high end product expertise and regional positioning to serve global customers Fineotex+ Biotex Synergies The brownfield facility at Ambernath, Maharashtra is future ready for next phase o
Slide 19: State-of-the-Art R&D Infrastructure
State-of-the-Art R&D Infrastructure • One of the finest R&D capabilities in the industry • State-of-the-art technology that is constantly updated through our in-house R&D facilities Overview • Capabilities to develop and customize products to adhere to client requirements • Modern Equipment such as
Slide 20: Sustainability Approach
Sustainability Approach 19
Slide 21: Board of Directors
Board of Directors Surendrakumar Tibrewala Sanjay Tibrewala Aarti Jhunjhunwala Navin Mittal Chairman and Managing Director Executive Director Executive Director Independent Director Alok Dhanuka CS Bindu Shah Dr. Anand Patwardhan Dr. Sunil Waghmare Independent Director Independent Director Independe
Slide 22: Newly Appointed Independent Directors
Newly Appointed Independent Directors as on 31st October 2020 Name Brief Profile • Dr. Anand Patwardhan aged 57, is a Ph.D. (technology) in chemical engineering, from ICT Mumbai University. He has 33 years of experience in industry as well as in academics • Presently he is working as a professor in
Slide 23: Management Team
Management Team Surendra Kumar Tibrewala Sanjay Tibrewala Aarti Jhunjhunwala Education: B.Com and LLB Education: B.Com and P.G. in Textile Education: B.Com and M.Com Chemicals and Processing Managing Director Chief Financial Officer Head - International Marketing Arindam Choudhuri Noa N. Ouakass Ked
Slide 24: Manufacturing Platforms (GMP Certified)
Manufacturing Platforms (GMP* Certified) Location Operating Facts Strategic Advantages Manufacturing Excellence • Total Production • Strategically located plant near key Capacity: 36,500 MT port close to Mumbai with • Ambernath plant to logistical advantage to textile hubs gradually provide an acros
Slide 25: Accreditations: Biotex Malaysia
Accreditations: Biotex Malaysia Certificate Value Proposition • Bluesign is recognized as a leading certification for sustainability in the global textile industry. As a partner, Biotex is committed to applying the bluesign system to meet the highest level of safety for both people and environment,
Slide 26: Accreditations: Fineotex India
Accreditations: Fineotex India Certificate Value Proposition • ISO 9001:2015 defines the guiding principles to create efficiencies by aligning and streamlining processes throughout the organization, create new opportunities, meet regulatory requirements, and help organizations expand into new market
Slide 27: ESG Profile - Environment
ESG Profile - Environment Focusing on Environmental factors and make efforts to restore the environment • Product Free From Harmful Substances: Our products are not hazardous. We believe in developing our processes & products in a manner such that no harm is caused to life and nature. • Energy Consu
Slide 28: ESG Profile - Social
ESG Profile - Social Committed to improve economic, environmental and social performance 5% • Customer Satisfaction Survey: Consumer survey was conducted, We access the level of consumers’ satisfaction Attrition Rates towards the Organization’s Products & Services at various extension platforms such
Slide 29: ESG Profile - Governance
ESG Profile - Governance Focus on maximizing the wealth of shareholders, establish productive and lasting relationships with all shareholders 5 out of 8 board members • Corporate Governance Policies: The Company’s philosophy on Corporate Governance relates to creating an Are Independent and Non- org
Slide 30: ESG Accreditations
ESG Accreditations Key ESG Facts Certificates Bhive certified ISO 9001 ISO 14001 ISO 14045 ISO 45001 Blue Sign certified ISO 20000 SA 8001 OHSAS18001 ISO 22000 ECO Passport by OEKO-TEX Global Organic Textile Standard (GOTS) certified New Accreditations Hazard Analysis Critical Control Point (HACCP)
Slide 31: Financial Performance
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Slide 32: Q2 FY2022 Performance Trend
Q2 FY2022 Performance Trend Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 40.1% 37.1% 18.2% 23.3% 18.8% 34.4% 35.0% 34.7% 17.1% 15.5% 750 785 148 633 136 128 547 584 100 98 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 Q2 FY 22 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 Q2 FY 22 PBT and P
Slide 33: Consolidated P&L Summary: Q2 and H1 FY2022
Consolidated P&L Summary: Q2 and H1 FY2022 Particulars (Rs. Million) Q2 FY 22 Q2 FY 21 YoY% Q1 FY 22 QoQ% H1 FY 22 H1 FY 21 YoY% Revenue from Operations 784.9 547.5 43.4% 632.8 24.0% 1,417.7 851.3 66.5% COGS 494.0 359.0 37.6% 413.1 19.6% 907.1 568.7 59.5% Gross Profit 290.9 188.5 54.4% 219.7 32.4% 5
Slide 34: Consolidated Annual Performance Trend
Consolidated Annual Performance Trend Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 44.5% 40.3% 37.3% 36.0% 35.5% 35.7% 33.2% 21.9% 21.0% 19.0% 18.6% 17.4% 16.5% 17.4% 2,185 1,823 1,963 1,344 1,429 1,418 405 347 342 295 300 851 246 141 FY 17 FY 18 FY 19 FY 20 FY 21 H1 FY
Slide 35: Consolidated Balance Sheet and Return Ratios Trend
Consolidated Balance Sheet and Return Ratios Trend (Rs Mn) Sep-20 Mar-21 Sep-21 Return on Equity (%) ST Debt 30 34 77 LT Debt 0 0 0 22.7% Total Debt 30 34 77 20.5% 18.3% Cash & Cash Equivalent 314 339 309 15.8% Net Cash 284 305 231 Equity 1939 2161 2337 11.4% Total debt/Equity 0.02x 0.02x 0.03x 8.4%
Slide 36: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Fineotex Chemical Limited (“Fineotex Chemical” or the Company) future bus
Slide 37: Fineotex Chemical Limited
Fineotex Chemical Limited FINEOTEX CHEMICAL LIMITED (CIN Number: L24100MH2004PLC144295) 42-43, Manorama Chambers, S. V. Road Bandra (West), Mumbai - 400 050, India Phone: (+91 - 22) 26559174 / 75, (+91 - 22) 26559176 / 77 Email: info@fineotex.com www.fineotex.com 36
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