Fairchem Organics Ltd · NSE:FAIRCHEMOR
Fairchem Organics — Investor Presentation (June 2022)
29 slides from Fairchem Organics's investor presentation, June 2022
Slide 1: Investor Presentation
Investor Presentation June 2022
Slide 2: Company at a Glance
Company at a Glance Well entrenched Customer Relationships in Promoted by Fairfax Forward integration to Long lasting Pan India high growth India Holdings and make value added Raw Material sourcing industries like backed by experienced products or upgrading capabilities with Paint, Inks, Printing Ma
Slide 3: Company Overview
Company Overview 3
Slide 4: Company Overview
Company Overview • Fairchem Organics Ltd. (Fairchem) is engaged in the business of manufacturing of Oleo Chemicals and Nutraceuticals, since the last 25 years. Revenue & EBITDA Margin (In Mn) • The company’s key oleo chemical products include Dimer Acid, Linoleic Acid, Palmitic Acid, 17.32% 16.31% M
Slide 5: Fairchem's Competitive Advantage
Fairchem’s Competitive Advantage Major Player in the Indian Oleo Chemical Market Using Renewable Resources • Processing waste from edible oil refining process to produce high value oleo chemicals giving it price advantage • Enjoy Leadership Position in the industry due to barriers to entry • Focus o
Slide 6: Key Milestones
Key Milestones Main focus on reduction of manufacturing cost per ton. De-Merged from The original project was Fairchem Speciality to process by-product Complete Re- Engineering of its and now operating as stream of Rice Bran Oil. Energy Consumption System. Fairchem Organics Commenced project in Inst
Slide 7: Board of Directors
Board of Directors Nahoosh Jayvadan Jariwala - (Chairman and Managing Director) He holds a bachelor’s degree in commerce from Gujarat University. He has work experience of more than 25 years in the chemical industry. He was the Managing Director of Fairchem Speciality Limited (now known as Privi Spe
Slide 8: Manufacturing Facility
Manufacturing Facility • The company’s State -of-the-Art Manufacturing unit is located in Sanand, Ahmedabad. • It has one of the largest processing capacities for Natural Soft Oil based Fatty acids in India. • The low cost of raw material and efficient manufacturing process enables the company to be
Slide 9: Capacity Expansion
Capacity Expansion • Over the years Fairchem has gone through various stages of expansion, debottlenecking and technological advancements to create a one of its kind world class facility. Plant Capacity (Metric Tons) • Majority of the capacity expansion has been undertaken primarily through internal
Slide 10: Financial Governance Standards
Financial Governance Standards Invest for long term growth value creation Always be adequately capitalized Not overleverage the balance sheet Secure sources of sustainable raw material supply Invest in backward and forward integration Transparent communications with all the stakeholders Low volatili
Slide 11: Business Overview
Business Overview 11
Slide 12: Business Segments
Business Segments FAIRCHEM ORGANICS OLEO CHEMICALS NUTRACEUTICAL Investor Presentation | www.fairchem.in 12
Slide 13: Oleo Chemicals
Oleo Chemicals Oleo Chemicals are chemicals derived from Plant and Animal Fats. They are analogous to petrochemicals derived from petroleum. The formation Main Product Application of basic oleochemical substances like Fatty Acids, Fatty Acid Methyl Esters Linoleic Acid / Soya Fatty (FAME), Fatty Alc
Slide 14: Linoleic Acid
Linoleic Acid Applications Paints Inks Linoleic Acid is designed especially to produce fast drying protective coating having lighter color. It is an unsaturated fatty acid and is a liquid at room temperature. Purpose of Use: • Linoleic Acid is designed especially to produce fast drying protective co
Slide 15: Dimer Acid
Dimer Acid Dimer Acid also known as dimerized fatty acids are prepared from unsaturated fatty acids obtained Applications from vegetable oil. It is a light yellow or yellow viscous transparent liquid. It is non-toxic. Paints Inks Purpose of Use: • Offers improved bonding. • Used as curing agents for
Slide 16: Monomer Acid & Distilled fatty acids
Monomer Acid & Distilled fatty acids Applications Fairchem is one of the leading producers of Monomer and Other distilled fatty acids with significantly Paints Lubricants lower raw material costs Monomer Acid: • Monomer Acids are non-petroleum, non-animal based products that can be used as substitut
Slide 17: Nutraceuticals
Nutraceuticals • Nutraceutical, a portmanteau of the words “nutrition” and “pharmaceutical” Revenue Contribution (INR Mn) applied to products that range from isolated nutrients, dietary supplements and herbal products, specific diets, genetically modified food, and processed foods 258 such as cereal
Slide 18: Mixed Tocopherol Concentrate
Mixed Tocopherol Concentrate • Tocopherol is used as raw material to manufacture natural Vitamin E. Natural Vitamin E is almost Applications 3-4 times more expensive than synthetic Vitamin E. Developed markets like US and Europe are the key consumers due to the high value of the product. Vitamin E F
Slide 19: Industry Overview
Industry Overview 19
Slide 20: Oleo Chemicals Industry
Oleo Chemicals Industry • The oleo chemicals market is broadly segmented into four key applications markets: • Pharmaceutical & personal care, • Food & beverages, • Soaps & detergents, • Polymers • Pharmaceutical & personal care is the largest application market for oleo chemicals accounting for maj
Slide 21: Oleo Chemicals Industry in India
Oleo Chemicals Industry in India • India oleochemicals market is projected to cross USD 2.6 Bn by 2025. • India oleochemicals market has been segmented into five categories namely - fatty acids, fatty alcohols, glycerin, fatty acid methyl esters and fatty amines. Robust growth in India oleochemicals
Slide 22: Financial Overview
Financial Overview 22
Slide 23: Historical Income Statement
Historical Income Statement PARTICULARS (INR Mn) FY19 FY20 FY21 FY22 Revenue from Operations 2,499 3,065 3,966 6,432 Total Expenses 2,138 2,581 3,279 5,383 EBITDA 361 484 687 1,049 EBITDA Margin 14.44% 15.79% 17.32% 16.31% Other Income 43 66 3 3 Depreciation 55 60 66 71 Finance Cost 57 66 68 69 PBT
Slide 24: Balance Sheet
Balance Sheet ASSETS FY20 FY21 FY22 EQUITY AND LIABILITIES FY20 FY21 FY22 Non-Current Assets EQUITY Property, Plant and Equipment 1,219 1,220 1,363 Equity Share Capital 130 130 130 Instruments entirely equity in nature Capital work-in-progress 94 295 420 Other Equity 1,137 1,557 2,191 Right of use a
Slide 25: Cash Flow Statement
Cash Flow Statement PARTICULARS (INR Mn) FY20 FY21 FY22 Cash and Cash Equivalents at Beginning of the year 0.2 0.3 0.3 Cash Flow From Operating Activities 312 394 405 Cash Flow from Investing Activities (239) (228) (342) Cash Flow From Financing Activities (73) (166) (63) Net Inc./(Dec.) in Cash and
Slide 26: Key Financial Highlights
Key Financial Highlights Revenue (In Mn) EBITDA (In Mn) & EBITDA Margin (%) PAT (In Mn) & PAT Margin (%) 11.32% 10.72% 10.56% 5 Year CAGR - 26% 6,432 5 Year CAGR -35% 17.32% 16.31% 5 Year CAGR - 49% 15.79% 13.92% 14.44% 1,049 8.60% 8.00% 679 3,966 3,065 687 2,428 2,499 425 484 347 338 361 215 194 FY
Slide 27: Capital Markets
Capital Markets Stock Market Performance (as on 31st March, 2022) Dividend Percentage* 250% 130% 200% 150% 100% 50% 35.00% 25.00% 0% 15.00% 15.00% -50% Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 FY18 FY19 FY20 FY21 FY22 Fai rchem Sensex *FY22 Dividend Percent
Slide 28: Disclaimer
Disclaimer Fairchem Organics Limited Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that al
Slide 29: Thank you
Thank you 29
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