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Fine Organic Industries Ltd.

BSE: 541557 Sector: Industrials
NSE: FINEORG ISIN Code: INE686Y01026
BSE 00:00 | 24 Jan 3592.85 -176.55
(-4.68%)
OPEN

3800.00

HIGH

3830.10

LOW

3504.65

NSE 00:00 | 24 Jan 3576.15 -195.15
(-5.17%)
OPEN

3790.20

HIGH

3829.85

LOW

3500.65

OPEN 3800.00
PREVIOUS CLOSE 3769.40
VOLUME 3930
52-Week high 4040.00
52-Week low 2130.00
P/E 77.68
Mkt Cap.(Rs cr) 11,016
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3800.00
CLOSE 3769.40
VOLUME 3930
52-Week high 4040.00
52-Week low 2130.00
P/E 77.68
Mkt Cap.(Rs cr) 11,016
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Fine Organic Industries Ltd. (FINEORG) - Chairman Speech

Company chairman speech

Dear shareholders

The year 2020 was the one that tested all assumptions: about how markets and supplychains function in an age of global interdependency; about what it means to deliver forcustomers employees and communities truly; and about how companies can and should operatein a crisis.

In such a challenging environment we have anchored ourselves to our purpose and ourvalues. Fundamentally we believe in enhancing our products in a safer responsible andsustainable way. We focused on people who worked tirelessly through unprecedentedcircumstances and ensured the uninterrupted delivery of our products. The year 2020 wasabout the countless ways we powered through everything that came our way while taking careof people who depend on us. It was an exceptional year not just from the covid-19standpoint; but also from the company's presence in the industry. While we continuedconcentrating on our prime focus – delivering on our commitments;– we alsocompleted 50 years of our existence. We had always aspired to see this blissful day andyet this is only a part of the journey we wish to cover. We have taken the right stridesin the right direction of innovation driven by passion. This approach has helped us createan extensive and potentially one of the widest product portfolios for variousapplications. Even as we continue strengthening our o_erings we will keep exploring newerapplication base and industries to venture.

Financial highlights

During the fiscal year 2020-21 we saw a year-on-year growth in revenue of 9.3%however profit before tax and ebitda was declined by 28% and 18.6% respectively. Ouroperating margin is a_ected mainly due to unprecedented and steep rise in prices of allmajor vegetable oils which are our basic raw materials. The increase in domestic prices isbasically a reflection of international prices. The rise in prices of vegetable oils areattributable to many factors such as shifting of demand from food basket to fuel basketincrease in buying by china labour issues due to lockdowns in indonesia and malaysiaclimatical impact on soya producing areas and imposing of import duties on palm oil inindia etc. Despite these challenges your company is focused on maintaining the growthmomentum and delivering value.

Operational highlights

The year started on a low note with pandemic-led lockdowns. The first two quarters tooka hit in overall demand due to the temporary closure of economic activities resulting inlow sales. The phased unlocking played its role in uplifting the consumer spirit andboosting their confidence. And thus it revived the demand across industries and helped ingradually resuming the sales.

The pandemic impacted our expansion plans; however we could manage to operationalisethe first phase of patalganga facility that caters to the growing demand from foodindustry. We have also formed joint venture company in thailand which will help us inexpanding our product basket and further strengthening of our global presence.

India's chemical growth story

The production of sustainable bio-based chemicals has increased as consumers havebecome well-versed with the environmental and cost benefits that oleochemicals can provideover the other chemical classes with numerous concerns. Although in india the awarenessand acceptance of oleochemical-based green additives is in preliminary state it willpromisingly continue to grow over the years driven by an increasing shift from otherharmful chemistries to more benign and safe chemistry. Green additives being 100% safeand plant-derived are catching up across diverse industries such as food & beveragesfeed nutrition polymers cosmetics pharmaceuticals personal care and coatings amongothers. We continue to remain optimistic about the global opportunities and are confidentof capturing the same with the help of r&d expertise in-house manufacturingcapabilities and well-nurtured customer relationships. Our sustainable business operationsand green approach remarkably add to these trust factors appealing the customers toconsider us as a preferred additive supplier.

Environmental social governance (esg)

The year was one-of-its-kind; yet it helped in establishing us as a company ofcommitments. As a responsible corporate citizen we have always had a sharp focus on theesg. We are convinced that companies which act responsibly and create value for thesociety can be truly successful in the long term. Our products and solutions help ourcustomers meet their sustainability goals and position themselves for the future demandingthe relevant sustainable solutions. Our employees continued fulfilling their dutydiligently and we ensured to appreciate their hard work with no salary cuts or reductionin the workforce. We extended our health and insurance policies along with the financialassistance to build a sense of security and belonging to the fine organics family. Weearnestly recognise our role in uplifting the lives of communities which we operate inand we will continue to do so in the inspiring future times as well. We understand ourduty towards these key parameters which encompasse all the tenets of our business.

Closing note

We are ready to enter our next phase of growth with an innate sense of gratitude forthe ‘fine'tastic 50 years we have had so far. These past decades have taught us thatwe can always achieve more tomorrow than we can today through consistent e_orts anddedication to improvement. Last year was one such year when we were re-introduced to thesignificance of resilience. We faced the adversities head on and proud to say that we notjust survived but thrived based on the strength we received from our core values andbelief; more importantly from the trust along with the kind support of our stakeholderscustomers and associates. We are grateful to our employees customers and otherstakeholders who have enriched us helped us to excel and achieve more. Together withtheir undeterred support we are confident to take on the challenge of our future journeyfocusing on areas that matter the most.

Best wishes

Prakash kamat

Chairman and executive director

.