November 2015

Investor Presentation

Where Dependability Counts...

Fineotex Chemical Limited

Certain matters discussed in this Presentation may contain statements regarding the Companys market opportunity and
business prospects that are individually and collectively forward-looking statements. Such forward-looking statements
are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions
that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian
economy and of the economies of various international markets, the performance of the tire industry in India and worldwide, competition, the companys ability to successfully implement its strategy, the Companys future levels of growth
and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows,
the Companys market preferences and its exposure to market risks, as well as other risks. The Companys actual results,
levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied
by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this
Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are
not adopted by the Company and the Company is not responsible for such third party statements and projections.

This Presentation has been prepared by the Company based on information and data which the Company considers
reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be
placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This
Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any
liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

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 for any securities, and shall not form the basis or be relied on in
connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made
except by means of a statutory offering document containing detailed information about the Company.

Safe Harbour

FINEOTEX

Technical
Knowhow
from Europe
and Malaysia

ZERO DEBT

Product
Range of over
400 Products

Snapshot

FINEOTEX

Relationships
with Large
Customers

Strong R&D

Presence
across 33
Countries

Production
Facilities in
India &
Malaysia

Expertise of
over 35 years
in Speciality
Chemicals

Experienced
Management
Team from
MNC
background

Diversified
Customers
and Product
Base

EBITDA 30%
PAT 29%
4YCAGR

 Listed on NSE
Incorporated a Wholly
iary in
Owned Subsidiary
UAE, Fineotex
Specialities FZE

2011

2004

2015

2007

Incorporation of
Fineotex Chemical
Industries (FCI)

1995

2014
Bonus declared on 1:1 basis
Accredited with ISO
14001:2004 & OHSAS
18001:2007 certifications

Acquisition of Fineotex Chemical Industries

by Fineotex Chemical Limited

Accredited with ISO 9001:2008

2003
Registered Trademark for
FINEOTEX

Listed on BSE
Incorporated a Wholly Owned
Subsidiary in Malaysia
Acquired major stake in Biotex Group

Incorporation of Fineotex
Chemical Private Limited

Evolution

FINEOTEX

Certifications

07

06

Varied Products
for Multiple
Industries

Innovating
Products

Product
08 Customization

09

FINEOTEX

05

10

Strong Client
Relationships

Strengthening
Stakeholders
Value

04

01

In-House
Research &
Development
Brands

Presence across
the Globe

03

02

Multi-Product
Manufacturing
Facilities

Experienced Board
Of Directors

 Graduate with experience in Iron & Steel Industry

More than 2 decade experience in bringing innovation to its
peak and to build value in growth oriented businesses and
support them to achieve higher levels of performance

Mr. Alok Dhanuka Independent Director

Qualified MBA from Hariot Watt University in UK
Experience in EXIM and is an entrepreneur running his
business in export of Agro products

Chairman of the Remuneration Committee

Commerce Graduate with over 20 years of experience in

various industries

Mrs. Ritu Gupta Independent Director

MBA Finance from S P Jain, School of Global Management

A part of Key Management Team at the time of IPO

Experience includes managing campuses of S P Jain School of

Global Management in Dubai, Singapore and Sydney

Extensive knowledge in the field of Law and Business

Mr. Navin Mittal Independent Director

Mr. Manmohan Mehta Independent Director

Diversified into segments like Construction Chemicals,

Adhesives & Enzymes

Spearheading the company into Organic & Inorganic Growth

by venturing into Exports & Foreign Acquisitions

Commerce Graduate from Mumbai University & a Post

Graduate, having specialized in Textile Processing and
Chemicals from Sasmira University, Mumbai

Commerce graduate from from Mumbai University & a Law

graduate from Government Law College

4 decades of experience into manufacturing Specialty

Chemicals & Enzymes for various industries namely Textiles &
Garments, Construction, Water Treatment, Leather, Paper,
Paint, Adhesives etc.

Mr. Sanjay Tibrewala Executive Director & CFO

Mr. Surendra Kumar Tibrewala - Chairman & MD

01 Experienced Board Of Directors

FINEOTEX

Malaysian Facility at Bander Baru Bangi, Malaysia

Indian Facility at Mahape, Navi Mumbai

02 Multi-Product Manufacturing Facilities

FINEOTEX

A chemical
chem
ch
emic
ical
ic
al reaction,
rrea
eact
ctio
ct
ion,
io
n, usually
usu
u
sual
ally
al
ly carried
ccar
arri
ried
ri
ed
outt with
ou
with a catalyst,
ccat
atal
at
alys
al
yst,
ys
t, heat
hea
h
eatt or light,
ea
llig
ight
ig
ht, and
ht
and
ofte
of
ten
te
n under
unde
un
derr high
de
high pressure,
pre
p
ress
re
ssur
ss
ure, in
ur
i which a
often
larg
la
rgee number
numb
nu
mber
er of
o relatively
re
large
simple
molecule
molecu
molecules combine to form a chain
like macromolecule

POLYMERIZATION
POLYMERIZATION
POLYMERIZATIION

The method to derive products from

acids by the exchange of the
replaceable hydrogen of the latter of
an organic radical. The usual reaction is
that of an acid (organic or inorganic)
with an alcohol or other organic
compound rich in OH groups

ESTERIFCATION

Sulphation and Sulphonation are the

most widely used processes for the
production of synthetic anionic
surface active agents derived from a
wide range of synthetic and natural
feedstocks

SULPHONATION

Varied Manufacturing Process

FINEOTEX

It is the adding and mixing of several

raw materials with water in the
required proportion at the right
temperature with a specialized
technique

BLENDING & FORMULATION

Phosphonation is a process for the

production of Phosphate ester which
can be called organic salts of
orthophosphoric acid O=P(OH)3. They
are also organophosphorous
compounds

PHOSPHONATION

2 state-of-the-art laboratories at Navi Mumbai & Andheri continually

updated with in house R&D

Undertaking constant development measures through in-house R&D to

stand up with the growing requirements of the clients

Laboratories are equipped with all kinds of modern equipments like

Brookfield Viscometers, Refractometers, Pilot Vessels and Application
Equipments to perform Pre-treatment, Dyeing, Printing & Finishing Trials

An experienced and technically qualified team strives round the clock to

develop and improve upon the product features by incorporating the latest
technology and developing New Specialty and Cost-Effective Products
which will in turn add value to our products

03 In-House Research & Development

FINEOTEX

Well Equipped Research Laboratories

FINEOTEX

10

Finox

Fineocoll

Fineotex

Strong Brand Positioning

FINEOTEX

Finofix

Finocon

11

 Constantly tapping new markets, tie ups with reputed distributors with a sole selling policy to
channelize its efforts in view of long term relationship

Company expands its export directly & also indirectly through export house

Presence in 33 countries like Argentina, Bangladesh, Indonesia, Thailand, Pakistan, Colombia,

Singapore, UAE, Sri Lanka, Tanzania etc

04 Presence across the Globe

FINEOTEX

12

05 Strong Client Relationships

FINEOTEX

13

Strong Client Relationships

FINEOTEX

14

Strong Client Relationships

FINEOTEX

15

Water
Treatment

Agro
Chemical

Leather

Adhesives for
Wood
&
Handicraft

Textile & Garment

Paper
&
Paint

06 Varied Products for Multiple Industries

FINEOTEX

16

Dyeing

Fibre

Finishing

Bleaching

Pre-Treatment

Yarn

Multi-Stage Textile Applications...

FINEOTEX

Printing

Knits/Hosiery

Woven Fabric

17

Wetting Agent

Core Alkali Neutraliser

Anti-back Staining Agent

Neautralizer

Silicone Defoamer

Demineralising Agent

Sequestering Agent

Dyeing Process

Anti Crease Lubricant

Acid Buffers
Soda Ash Substitute for Reactive Dyeing
Leveling Agent
Washing Off Agent
Reduction Clearing Agents
Sequestering Agents
Silicon Defoamer
Anti Crease Lubricants

Thickeners

Softeners
Water Repellants

Wax Finishing Agent

Yarn Lubricant

Antistatic Agent

Polyurethane Finishing Agent

Stiffeners
Silicone Emulsions

Binders-Acrylic, Self-Thickening for Gold & Flock

Fixers in Pigment Printing

White Inks

Fixation Accelerators in Polyester

Printing Process

...with Multiple Product Offering

Penetrating Agents

Pre-Treatment Process

Desizing Agent

FINEOTEX

Finishing Process
18

Water & Oil Repellent

Towel Silicones

Acetic Acid Substitute

Highly Concentrated Silicone

Soda Ash Substitute

Zero Formaldehyde Resin

Multifunctional Auxiliary for

Pretreatment

Low Temperature Bleaching

Process

Sodium Alginate Substitute

07 Innovating Products...

FINEOTEX

19

 Environmentally Conscious approach

Replacement of Chemicals with Sulphate,
Chloride, Formate etc
Appropriate Acid Value

Reduce in Effluent Load

03

Products with higher efficiency

Suits all types of Substrates, Processes and
Machines
Improves properties of the Final Product

02

Innovation - Better Efficacy Products

...with Value Proposition

FINEOTEX

04

01

New Generation Products

Reduce Consumption of Energy
Improved Productivity

Process Improvement

Higher Yield Products

Better Productivity leading to reduction of
Time and Energy
Lower generation of Effluent

Lower Per Unit Cost

20

Packaging

Customers needs and demands right from the

product utilization to trouble shooting are met by
online assistance

On Line Solutions

Special focus is given by the team to ensure an on

time delivery

On Time Delivery

Fineotex provides the right packaging as per

Seaworthy International Standards, taking utmost
care & safety to prevent hazards

Modifying the products as per customer needs is

one of our core competencies

Customized Products

The philosophy of every person working at

Fineotex is Customer Comes First

Customer Centric Workforce

08 Product Customization

FINEOTEX

21

ISO 14001:2004

Star Export
House

ISO 9001:2008

OHSAS
18001:2007

09 Certifications

FINEOTEX

GOTS
Version 4.0

22

Zero Debt Company

Bonus Issued in 1:1 ratio

4 years PAT CAGR of 29%

Promoter Stake up from
62.5% to ~72%
Proposed Dividend
Payout Doubled

01

02
03

04
05

10 Strengthening Stakeholders Value

FINEOTEX

23

Rs. in Millions

Q2 FY15

27.6

+9%

Q2 FY16

30.1

Q2 FY16

Q2 FY15

PAT

173.8

Q2 FY16

48.1

Q2 FY15

16.4%

21.7%

EBITDA %

Q2 FY16

17.4%

27.7%

PAT %

EBITDA & PAT Margin

Q2 FY15

36.6

+31%

+3%

168.4

EBITDA

Total Income

Standalone Quarter Financial Performance

FINEOTEX

24

Rs. in Millions

H1 FY15

44.2

H1 FY15

327.0

+35%

PAT

H1 FY16

59.6

H1 FY16

H1 FY16

94.6

H1 FY15

13.5%

19.1%

EBITDA %

H1 FY16

17.5%

27.7%

PAT %

EBITDA & PAT Margin

H1 FY15

62.6

+51%

+4%

341.4

EBITDA

Total Income

Standalone Half Year Financial Performance

FINEOTEX

25

46.4
16.3
30.1
17.4%

Tax

PAT

PAT Margin

27.7%

EBITDA Margin

PBT

48.1

EBITDA

0.0

3.1

Other Income

Exceptional Items

22.2

Other Expenses

0.5

5.0

Employee Cost

Finance Cost

101.6

Raw Material

1.2

173.8

Total Income

Depreciation

Q2 FY16

Rs. In Millions

16.4%

27.6

7.3

34.9

0.0

0.6

1.1

21.7%

36.6

15.8

19.2

5.7

122.7

168.4

Q2 FY15

9%

33%

31%

3%

Y-O-Y

Standalone Profit & Loss account

FINEOTEX

17.5%

59.6

31.1

90.8

0.0

1.4

2.4

27.7%

94.6

7.5

44.5

10.5

199.2

341.4

H1 FY16

13.5%

44.2

14.9

59.1

0.0

1.3

2.2

19.1%

62.6

21.3

42.5

8.8

234.4

327.0

H1 FY15

35%

54%

51%

4%

Y-O-Y

26

Rs. in Millions

2013

2012

2014

58

2015

2012

15.4%

23.8%

79

2014

88

2013

13.3%

19.5%

2014

10.9%

16.4%

PAT %

EBITDA & PAT Margin

+27%

EBITDA

2013

EBITDA %

54

+30%

112

51

PAT

2012

2013

2012

2015

79

2014

535

650

333

407

+25%

Total Income

Standalone Financial Performance

FINEOTEX

2015

17.2%

24.7%

2015

161

27

160.8
24.7%

EBITDA

EBITDA Margin

154.1
42.1
112.0
17.2%

PBT

Tax

PAT

PAT Margin

0.0

48.1

Other Income

Exceptional Items

81.0

Other Expenses

2.2

21.8

Employee Cost

Finance Cost

434.5

Raw Material

4.4

649.9

Total Income

Depreciation

FY15

Rs. In Millions

10.9%

58.1

22.2

80.3

2.0

3.4

2.1

16.4%

87.8

37.5

67.5

21.8

395.1

534.6

FY14

Standalone Profit & Loss account

FINEOTEX

13.3%

54.3

19.1

73.4

0.0

4.0

2.0

19.5%

79.4

25.0

38.0

18.0

296.4

406.9

FY13

15.4%

51.4

23.3

74.6

0.0

2.9

1.7

23.8%

79.3

22.1

29.4

13.6

233.0

333.2

FY12

28

848.1

898.7

Total Liabilities

23.1

9.5

Short Term Provisions

11.6

4.6

95.9

10.2

140.7

0.0

0.0

482.7

Other current liabilities

100.7

Trade payables

0.0

Long term borrowings

16.3

0.0

Non-current liabilities

Short term borrowings

543.0

Reserves & Surplus

131.1

224.6

Share capital

Current liabilities

707.3

767.6

Shareholders Fund
224.6

Mar-15

Sep-15

Rs. In Millions
120.9
400.9

Fixed assets (inc. CWIP)

Non Current Investments

49.2
173.0
14.6

Inventories
Trade receivables
Cash and bank balances

Total Assets

Other current assets

898.8

2.1

2.3

37.9

Current Investments

Short term loan & advances

279.1

92.8

Current assets

Long Term Loans & Adv.

5.1

619.7

Non-current assets

Deferred Tax Assets (net)

Sep-15

Rs. In Millions

Standalone Balance Sheet

FINEOTEX

848.1

9.2

20.0

27.1

168.5

47.5

251.2

523.5

80.2

4.9

134.0

105.5

324.6

Mar-15

29

Rs. in Millions

Q2 FY15

29.4

Q2 FY15

289.1

+50%

PAT after MI

Q2 FY16

44.0

Q2 FY16

Q2 FY16

68.9

Q2 FY15

10.2%

13.8%

EBITDA %

PAT %

Q2 FY16

14.0%

21.9%

EBITDA & PAT Margin after MI

Q2 FY15

39.8

+73%

+9%

314.2

EBITDA after MI

Total Income

Consolidated Quarter Financial Performance

FINEOTEX

30

Rs. in Millions

H1 FY15

51.3

H1 FY15

544.9

+57%

PAT after MI

H1 FY16

80.5

H1 FY16

H1 FY16

H1 FY15

9.4%

13.7%

EBITDA %

PAT %

H1 FY16

14.2%

22.4%

EBITDA & PAT Margin after MI

H1 FY15

74.4

127.4

+71%

+4%

567.7

EBITDA after MI

Total Income

Consolidated Half Year Financial Performance

FINEOTEX

31

74.5
22.8
51.7
7.7
44.0
14.0%

Tax

PAT

Minority Interest

PAT After MI

PAT Margin

24.4%

EBITDA Margin

PBT

76.6

EBITDA

0.0

7.8

Other Income

Exceptional Items

39.4

Other Expenses

0.8

8.1

Employee Cost

Finance Cost

198.1

Raw Material

1.3

314.2

Total Income

Depreciation

Q2 FY16

Rs. In Millions

10.2%

29.4

1.3

30.7

8.4

39.0

0.0

0.8

1.2

14.2%

41.1

15.3

37.2

6.5

219.6

289.1

Q2 FY15

50%

68%

91%

86%

9%

Y-O-Y

14.2%

80.5

13.0

93.4

42.2

135.7

0.0

2.1

2.6

24.7%

140.4

14.2

77.4

17.0

347.1

567.7

H1 FY16

Consolidated Profit & Loss account

FINEOTEX

9.4%

51.3

4.8

56.1

18.9

75.0

0.0

1.7

2.5

14.5%

79.3

20.6

75.3

14.6

396.3

544.9

H1 FY15

57%

67%

81%

77%

4%

Y-O-Y

32

Rs. in Millions

2012

60.0

2012

798.1

2013

70.4

2013

958.5

+29%

2014

65.0

2014

866.7

PAT

+9%

Total Income

2015

129.1

2015

1,019.8

2012

7.5%

12.1%

2013

119.5

+29%

2014

120.3

EBITDA

2013

7.3%

12.5%

PAT %

2014

7.5%

13.9%

EBITDA & PAT Margin

EBITDA %

2012

96.9

Consolidated Financial Performance

FINEOTEX

2015

12.7%

20.6%

2015

210.3

33

210.3
20.6%

EBITDA

EBITDA Margin

202.0
56.0

145.9
16.8
129.1
12.7%

PBT

Tax

PAT

Minority Interest

PAT After MI

PAT Margin

0.0

45.4

Other Income

Exceptional Items

135.6

Other Expenses

3.3

37.0

Employee Cost

Finance Cost

682.3

Raw Material

5.0

1,019.8

Total Income

Depreciation

FY2015

Rs. In Millions

7.5%

65.0

13.2

78.2

33.5

111.6

2.0

4.0

2.6

13.9%

120.3

27.9

122.9

35.4

616.2

866.7

FY2014

7.3%

70.4

10.8

81.1

30.2

111.3

0.0

5.2

3.0

12.5%

119.5

25.2

128.1

42.8

693.2

958.5

FY2013

Consolidated Profit & Loss account

FINEOTEX

7.5%

60.0

2.8

62.8

24.8

87.7

1.8

4.7

2.9

12.1%

96.9

22.5

93.3

35.5

594.8

798.1

FY2012

34

1,060.4

19.3

Short Term Provisions

Total Liabilities

7.6

Other current liabilities

123.9

0.0

Long term borrowings

Trade payables

0.0

Non-current liabilities

30.2

53.9

Minority Interest

Short term borrowings

53.7

600.9

Reserves & Surplus

181.0

538.6

224.6

Share capital

Current liabilities

763.2

825.5

Shareholders Fund

1,007.7

28.2

14.9

137.6

10.2

190.8

0.0

0.0

224.6

Mar-15

Sep-15

Rs. In Millions

126.7
61.4

Fixed assets (inc. Goodwill)

Goodwill on Consolidation

106.3
200.7
101.9

Inventories
Trade receivables
Cash and bank balances

Total Assets

Other current assets

1,060.4

6.1

15.5

37.9

Current Investments

Short term loan & advances

468.3

92.1

4.8

Current assets

Long Term Loans & Adv.

Deferred Tax Assets (net)

307.0

592.0

Non-current assets

Non Current Investments

Sep-15

Rs. In Millions

Consolidated Balance Sheet

FINEOTEX

1,007.7

9.2

21.2

100.1

217.3

104.1

37.9

489.8

80.2

4.7

255.2

61.4

116.5

518.0

Mar-15

35

FINEOTEX

Investor Relations Advisors :

Strategic Growth Advisors Pvt. Ltd.

CIN: U74140MH2010PTC204285
Mr. Sudeep Chatterjee/ Mr. Jigar Kavaiya
csudeep@sgapl.net / kjigar@sgapl.net
+91-9870449436 / +91-9920602034
www.sgapl.net

Company :

Fineotex Chemical Ltd.

CIN: L24100MH2004PLC144295
Ms. Raina DSilva
raina@fineotex.com
+91-22-26559174
www.fineotex.com/

For further information, please contact:

36