Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Investor Presentation (May 2019)
45 slides from Fineotex Chemical's investor presentation, May 2019
Slide 1: Fineotex Chemical Limited Investor Presentation May 2019
' FINEOTEX CHEMICAL LIMITED Investor Presentation Where Dependability Counts… May 2019
Slide 2: Index
FINEOTEX® INDEX Executive Summary Company Overview Business Overview Industry Overview Financial Overview 1
Slide 3: Executive Summary
~~ EXECUTIVESUMmMaARY ©
Slide 4: Executive Summary
FINEOTEX® EXECUTIVE SUMMARY OVERVIEW BUSINESS MIX KEY STRENGTHS FY19 FINANCIALS Fineotex Group founded in 1979 Fineotex is one of India’s largest Strong Balance Sheet with Zero Income – INR 1,823 MN; CAGR 5 is engaged in manufacturing of and most progressive speciality Debt; High ROE and ROC
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: Accreditations
FINEOTEX® ACCREDITATIONS ................ - .... uflllllt.,..... Cllllllal Cl.llllllf IMIIIIIIl'lllat 11111111-.2111 The CEO Magazine mmm .: m ( Surcndrakumar Tibrcwala J CldinDIIII &: M•-a-. DIRCbr .-~ Aneotex belnQ covered bV the om~ SCreetlrwestment jOUrnal, jUly 2011 Sanjay nbrnvaa. Aartl Jhunjh
Slide 9: 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 10: Key Milestones
FINEOTEX® KEY MILESTONES Listed on NSE Incorporated a Wholly Owned Subsidiary in Increased exports to UAE, Fineotex 60 Countries. Listed on BSE Incorporation of Specialities FZE Ranked amongst Incorporation of Incorporated a Wholly Owned Fineotex Chemical Received Star Export India
Slide 11: 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
Slide 12: 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 13: 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 14: Textile Industry Clients
FINEOTEX® TEXTILE INDUSTRY CLIENTS 12
Slide 15: Other Industry Clients
FINEOTEX® OTHER INDUSTRY CLIENTS 13
Slide 16: 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 17: 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 18: 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 19: Business Overview
BUSINESS OVERVIEW 17
Slide 20: 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 18
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: Industrial Overview
INDUSTRIAL OVERVIEW 29
Slide 32: 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 last 2020 (Kilo Tons) (USD Million) five years; the market size is expected to reach USD 70 Billion by 2020. 150
Slide 33: 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 34: Financial Overview
FINANCIAL OVERVIEW 32
Slide 35: Historical Standalone Income Statement
FINEOTEX® HISTORICAL STANDALONE INCOME STATEMENT INCOME STATEMENT (INR Mn) FY14 FY15 FY16 FY17 FY18 FY19 Revenue 535 650 681 757 919 1,126 Expenses 486 537 498 565 683 869 EBITDA 49 113 183 192 236 257 Other Income 37 48 45 44 75 12 Depreciation 2 4 5 6 6 9 Finance Cost 3 3 3 3 4 6 Extra-Ordinary It
Slide 36: Standalone Balance Sheet
FINEOTEX® STANDALONE BALANCE SHEET PARTICULARS (INR Mn) FY17 FY18 FY19 PARTICULARS (INR Mn) FY17 FY18 FY19 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets Equity Share Capital 223 223 223 Property, Plant & Equipment 163 180 247 Other Equity 798 988 1,161 Capital work-in-progress -
Slide 37: Standalone Financial Performance
FINEOTEX® STANDALONE FINANCIAL PERFORMANCE Revenue (INR Mn) Operational PAT (INR Mn) 1200 1,126 180 158 162 919 160 1000 140 800 757 115 650 120 106 681 100 600 535 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.
Slide 38: Historical Consolidated Income Statement
FINEOTEX® HISTORICAL CONSOLIDATED INCOME STATEMENT INCOME STATEMENT (INR Mn) FY14 FY15 FY16 FY17 FY18 FY19 Revenue 867 1,020 1,087 1,354 1,429 1,823 Expenses 774 855 822 1,055 1,200 1,477 EBITDA 93 165 265 299 229 346 Other Income 28 45 33 43 52 15 Depreciation 3 5 6 6 6 10 Finance Cost 4 3 4 4 6 10
Slide 39: 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
Slide 40: Consolidated Balance Sheet
FINEOTEX® CONSOLIDATED BALANCE SHEET PARTICULARS (INR Mn) FY17 FY18 FY19 PARTICULARS (INR Mn) FY17 FY18 FY19 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets 173 192 261 Equity Share Capital 223 224 223 Property, Plant & Equipment Other Equity 902 1,135 1,372 Capital work-in-progre
Slide 41: Consolidated Financial Performance
FINEOTEX® CONSOLIDATED FINANCIAL PERFORMANCE Revenue (INR Mn) Operational PAT (INR Mn) CASH FLOW FROM OPERATIONS (INR Mn) 2,000 1823 250 233 200 196 180 191 200 188 160 1,500 1,429 136 136 140 1,087 1,354 137 150 120 1,000 100 1,020 100 84 80 63 500 867 60 39 50 40 20 11 - 0 0 FY14 FY15 FY16 FY17 FY
Slide 42: Consolidated Cash Flow Statement
FINEOTEX® CONSOLIDATED CASH FLOW STATEMENT CASH FLOW (INR Mn) FY13 FY14 FY15 FY16 FY17 FY18 Cash and Cash Equivalents at Beginning of the year 12 28 118 92 85 76 Cash Flow From Operating Activities 41 11 136 136 191 63 Cash Flow from Investing Activities 8 119 (124) (98) (109) (109 Cash Flow From Fi
Slide 43: Capital Market Information
FINEOTEX® CAPITAL MARKET INFORMATION PRICE DATA (AS ON 31st March, 2019) INCREASE IN PROMOTER HOLDING INCREASE IN RETAIL SHAREHOLDERS Face value (INR) 2.0 Promoter Holding (%) Retail Shareholders Market Price (INR) 41.0 37,936 37832 73.0 40,000 52 Week H/L (INR) 90.9/29.60 72.0 30,000 Market Cap (IN
Slide 44: 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 45: 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