Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Investor Presentation (February 2019)
33 slides from Fine Organic Industries's investor presentation, February 2019
Slide 1: Investor Presentation February 2019
Investor Presentation February - 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+ 130+ 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 Experienced Dominant Specialized 01 Position 04 Business Model 07 Management Team EFFECTIVE TECHNOLOGY Diversified Strategically 02 Product Portfolio 05 Located + RELENTLESS FOCUS Diversified Strong R&D = – Innovation INNOVATIVE PRODUCTS 03 Custo
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 130+ All the data points are as on 31st December 2018 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 6 Plant Capacity (TPA) Remarks Patalganga 5 Fine Zeelandia (Patalganga) 10,000 Commenced Production 5 8 rd 6 3 Ambernath Facility 32,000 Q1 FY20 (WIP) 7 German Facility 10,000 Q1 FY21* 8 Patalganga Facility 10,000 Q3 FY20*
Slide 14: 6. Strong R&D: Innovative Approach
6. Strong R&D : Innovative Approach Strong R&D Capabilities Focus on ▪ Infrastructure spread over area of 5,000 sq. mts. Production Increasing Contribution from new ▪ Dedicated team of 10 scientists and 7 technicians Processes products developed and launched ▪ Developed and launched 30 new products
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 Industry 2. Food Additives Industry 3. Other Specialty Additives 16
Slide 17: 1. Polymer Additives Industry
1. Polymer Additives Industry Global Market Size Indian Market Size In US $ Mn 30,000 CAGR 6.4% In INR Billion 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 Billion 7.0% 8.4% Asia Pacific 5.2
Slide 18: 2. Food Additives Industry
2. Food Additives Industry Global Food Emulsifiers Market Size Indian Market Size In US $ Mn 3,400 9,000 2,800 CAGR 4% In INR Billion 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 Billion 4.6% 20.0% Asia Paci
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
, Oe ee VF ieheda pala 9 fe m= FINANCIAL HIGHLIGHTS
Slide 21: Q3FY19 Standalone Performance Highlights
Q3FY19 Standalone Performance Highlights Rs in Crores Revenues EBITDA PAT +17% +14% +17% 260 52 34 222 46 29 54% Exports 57% 46% Domestic 43% Q3FY18 Q3FY19 Q3FY18 Q3FY19 Q3FY18 Q3FY19 As per IND AS 21
Slide 22: 9MFY19 Standalone Performance Highlights
9MFY19 Standalone Performance Highlights Rs in Crores Revenues EBITDA PAT +31% +52% +56% 761 164 102 582 55% 108 66 Exports 56% 45% Domestic 44% 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 As per IND AS 22
Slide 23: Standalone Operating Performance
Standalone Operating Performance Rs in Crores Revenues EBITDA & Margins 18.6% 22.5% 18.9% 19.3% 21.5% 12% 852 777 761 651 +13% 608 164 164 58% 146 147 62% 55% 54% 113 Exports 59% 46% 38% 42% 45% Domestic 41% FY15 FY16 FY17 FY18 9MFY19 FY15 FY16 FY17 FY18 9MFY19 PAT & Margins Cash PAT & Margins 9.1%
Slide 24: Disciplined Use of Capital (Standalone)
Disciplined Use of Capital (Standalone) Net Debt to Equity Fixed Asset Turnover 0.48x 7.77x 6.56x 4.92x 5.22x 0.25x 3.10x 2.79x 3.10x 3.26x 0.11x 0.08x FY15 FY16 FY17 FY18 FY 15 FY 16 FY 17 FY 18 Gross Net Net Debt = Total Long term debt + short term debt + current of Fixed Asset Turnover (Gross) =
Slide 25: Capital delivering Consistent Performance (Standalone)
Capital delivering Consistent Performance (Standalone) Return on Capital Employed Return on Net Worth 32.64% 32.77% 30.31% 31.15% 28.86% 26.31% 23.88% 24.81% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Return on Capital Employed = EBIT (excluding Other Income) / (Total Return on Net Worth = Net Profit A
Slide 26: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs in Crs) Q3FY19 Q3FY18 Y-o-Y 9MFY19 9MFY18 Y-o-Y FY18 Revenue from Operations (Net of Taxes) 259.6 222.0 16.9% 760.6 581.5 30.8% 852.0 Cost of Raw Material Consumed 160.9 142.1 477.1 383.5 556.9 Gross Profit 98.7 79.9 23.5% 283.5 198.0 43.2% 295.2 Gr
Slide 27: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs in Crs) Sep-18 Mar-18 Equity & Liabilities (Rs in Crs) Sep-18 Mar-18 Non-current assets Equity Property, plant and equipment 83.7 88.1 Equity share capital 15.3 15.3 Capital work-in-progress 56.9 31.7 Other equity 435.7 393.1 Intangible assets 0.3 0.3 Total equity
Slide 28: Consolidated Operating Performance
Consolidated Operating Performance Rs in Crores Revenues EBITDA & Margins 18.3% 22.6% 18.6% 18.6% +12% 852 778 +13% 652 158 607 145 145 111 FY 15 FY 16 FY 17 FY 18 FY 15 FY 16 FY 17 FY 18 PAT & Margins Cash PAT & Margins 9.9% 11.2% 8.8% 11.7% 12.5% 16.3% 13.0% 13.6% +15% +21% 95 115 106 102 76 78 76
Slide 29: Disciplined Use of Capital (Consolidated)
Disciplined Use of Capital (Consolidated) Net Debt to Equity Fixed Asset Turnover 0.48x 7.76x 6.57x 4.91x 5.23x 0.24x 3.09x 3.11x 3.26x 0.10x 2.79x 0.07x FY15 FY16 FY17 FY18 FY 15 FY 16 FY 17 FY 18 Gross Net Net Debt = Total Long term debt + short term debt + current of Fixed Asset Turnover (Gross)
Slide 30: Capital delivering Consistent Performance (Consolidated)
Capital delivering Consistent Performance (Consolidated) Return on Capital Employed Return on Net Worth 32.75% 32.88% 30.46% 30.80% 28.51% 25.67% 23.65% 24.06% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Return on Capital Employed = EBIT (excluding Other Income) / (Total Return on Net Worth = Net Profit
Slide 31: Looking Ahead
LOOKING AHEAD 31
Slide 32: Key Takeaways
Key Takeaways New Business Organic Growth at the Opportunities Forefront ▪ Premixes for bakery & ▪ 4 new proposed facilities to confectionary products add a combined 62,000 TPA in (through Fine Zeelandia) capacity ▪ Developing Feed Nutrition Additives and other specialty additives ▪ Focus is into ne
Slide 33: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : CIN: U24119MH2002PLC136003 CIN: U74140MH2010PTC204285 Mr. Tushar Shah Mr. Rahul Agarwal / Mr. Shrikant Sangani Executive Director and CFO +91 91 79770 90416 / +91 96195 95686 www.fineorganics.com Email: rahul.agarwal@sg
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