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Fine Organic Industries Ltd.

BSE: 541557 Sector: Industrials
NSE: FINEORG ISIN Code: INE686Y01026
BSE 14:35 | 02 Jul 1873.25 13.95
(0.75%)
OPEN

1868.55

HIGH

1898.90

LOW

1868.55

NSE 14:29 | 02 Jul 1872.00 11.55
(0.62%)
OPEN

1863.00

HIGH

1899.45

LOW

1863.00

OPEN 1868.55
PREVIOUS CLOSE 1859.30
VOLUME 142
52-Week high 2548.30
52-Week low 1310.00
P/E 34.49
Mkt Cap.(Rs cr) 5,743
Buy Price 1870.00
Buy Qty 1.00
Sell Price 1872.35
Sell Qty 7.00
OPEN 1868.55
CLOSE 1859.30
VOLUME 142
52-Week high 2548.30
52-Week low 1310.00
P/E 34.49
Mkt Cap.(Rs cr) 5,743
Buy Price 1870.00
Buy Qty 1.00
Sell Price 1872.35
Sell Qty 7.00

Fine Organic Industries Ltd. (FINEORG) - Chairman Speech

Company chairman speech

Dear Shareholders

We believe that every company should remember their source of inspiration - what makesthem tick what sparks their creativity and what motivates them to make a difference.During the last four decades Fine Organics has undergone a remarkable evolution inunderstanding the needs and expectations of our customers and end consumers. They serve asour source of inspiration in our mission to make everyday life better.

Built around our strong commitments to customers communities employees shareholdersand the environment our leadership vision brings together what we believe are theessential prerequisites for maintaining the long- term health and growth of the company.

Continuous focus on innovation and solutions

We continue our relentless focus on delivering products that adds value to ourcustomers' products. Our constant focus on diversifying into new verticals with asolution-centric approach led by innovation-driven mindset has helped us in developing arobust business model. Our Oleo-chemistry expertise has allowed us to serve some of thehigh entry barrier industries which is a testimony of our long-term commitment andbusiness sustainability. During 2018-19 we further introduced 30 new specialty additivesthat would cater to the niche requirements of our end user segments.

Strong fundamentals drove financial performance

Our financial performance in 2018-19 has shown a remarkable growth. Our net revenueshave grown 22% to र 104397 lakhs up from र 85629 lakhs EBITDA improved 35%to र 22225 lakhs in 2018-19 as against र 16398 lakhs in 2017-18 and our PATimproved 27% to र 12901 lakhs in 2018-19 as against र 10134 lakhs in 2017- 18.The strong performance is an outcome of round-the-year demand from our end user industriesacross geographies.

This year we saw an upward movement in terms of value as well as volumes. Our plantcapacity utilisation continued to operate at maximum levels.

Expansion updates

In our last year's communication we had mentioned about acquiring an existing facilityat Ambernath on sublease basis having an installed capacity of 5000 TPA the same hasbeen done during the last year. This adds to a total of 69300 TPA of operational capacityas on March 31 2019.

The construction ofproposed third facility at Ambernath with a capacity of 32000 TPAwas completed as per the schedule in the month ofjune 2019. The production at thisfacility is planned in a phased manner and it will be fully operational by October 2019.This expansion reflects our endeavour to remain future ready to ride the next wave ofgrowth.

Another 10000 TPA facility is planned at Patalganga and is dedicated to food additivesfor export and growing domestic markets. This project is expected to be completed by Q2FY21 (subject to necessary regulatory approvals). In relation to our joint venture FineZeelandia Private Fimited it has commenced commercial production in the last year. Inorder to expand our footprints globally we have entered into JV with Adcotec to set up'Fine Add Ingredients GmbH' which will operate a 10000 TPA facility in Germany and sellFood additives in European markets. The facility is expected to commence operations inFY22 (subject to necessary regulatory approvals).

Growing with the industry

We also grow when the end user industry blooms. Our key user industries include highgrowth packaging industry polymers and food additives. Apart from this other consumersof our products include cosmetics coatings lubricants and other specialty applications.

Over the next few years we see high potential of plastic penetration in India as percapita usage stands at ~11 kg compared with the global average of 30 kg. With the changinglifestyles and hectic work schedules the food processing and packaging industry in Indiais expected to witness enormous growth.

This presents an unprecedented opportunity for us to spread our wings while creatingenhanced value for all of our stakeholders.

The softer aspect

At Fine Organics we believe that our people are our biggest assets who consistentlyfuel our growth. We nurture talent and provide learning and development opportunities toensure capability building. We have a very good work life balance culture.

Concluding remarks

Going ahead we continue to remain optimistic about the global and domesticopportunities and are confident of capturing the same with the help of R&D prowessin-house process designing and manufacturing capabilities and long-standing vendor andcustomer relationships. We are looking forward towards exploring opportunities indeveloping feed nutrition additives and other specialty additives with a strong focus onvalue added products.

As we take important steps towards visibility of our commitments and integrating itthroughout the business I would like to acknowledge the trust and respect of ourstakeholders customers employees and communities. We will always respect and never losesight of the same. I am also thankful to our Board members for bringing in their insightsand guiding the organisation as per the set priorities. We look forward to create moresuch milestones going ahead.

Best wishes

Prakash Kamat

Chairman and Executive Director