Dear Esteemed Shareholders
We are pleased to present to you the Annual Report for the Financial Year 2019-20.During the year we embarked upon various strategic initiatives to set the foundation forprofitable growth in the coming years. Our aim is to focus on consolidating our leadingposition in the textile specialty chemicals industry and leverage core manufacturing anddevelopment expertise into new high growth areas such as home care and hygiene anddrilling specialties.
Your Company's Operating Income increased 20% during the year. Despite many challengesin the year gone by your Company came out as a winner and posted an Operating Cash Flow ofRs. 2832 lakhs which is 83% of EBIDTA. Our subsidiary in Malaysia Biotex is performingwell led by a portfolio of novel products and their application across diverseindustries.
Converting the pandemic crisis into an opportunity
By the last week of March 2020 there was a total lockdown enforced across locationswhere our primary business operations are present. Fineotex responded by venturing intonew business avenues that emerged. Your Company forayed into health and hygienespecialities to tap into the large market opportunities for health and hygiene productswhich emerged after the outbreak of COVID-19.
The products meet the quality requirements of civic authorities as well as privatehospitals. We have also branched out into sanitization and home care products. We are inearly stage dialogue with select FMCG companies for chemical solutions for brandeddetergents which we envisage is a large addressable business opportunity
COVID-19 has also brought up opportunities for textile and garments to feature moretechnical chemistries like stain release water repellents antimicrobials etc. which arestrengths of BioTex Malaysia. We are optimistic that strong demand will be created forchemical application in textiles and other allied industries
Adapt or perish. With our track record of adapting to changing requirements we aresure that we will be able to adapt to the new business environment. Since June 2020 ouroperations have resumed. We have diversified our product range and our outlook for thefuture is promising. We continue to leverage Fineotex industry insights and long-standingcustomer relationships with Biotex's high-end product expertise and regional positioning.We aim to build on our strong in house development capabilities to grow market shareacross existing and new customers in Indian and International markets. Your Company has aconservative approach towards funding greenfield developments through internal accrualsand is in process of laying the foundation for the next phase of growth. The state andcentral government have shown positive dispensation by offering incentives to MSMEs likeus which will provide a boost to our growth trajectory.
Corporate Social Responsibility (CSR)
Your Company is concerned about Corporate Social Responsibility (CSR) for theupliftment of elders and society. Your Company has spent a sum of Rs. 49 Lakhs in theFinancial Year 2019 2020. We will continue to invest our time and resources in these areasand contribute towards making a real difference in the world around us.
In the last few years your Company has enhanced its core capabilities with atransformed and rejuvenated team committed towards robust growth. Our strength lies insuch people our versatile product portfolio our technical competence our thoughtleadership in the industry and our agility in adapting to the fast-changing world. Ourmajor focus is on generating free cash flows which can be utilized in building large scaleprojects and we are committed towards increasing shareholder value.
We will continue to address challenges with innovative and sustainable solutions andour customers lie at the heart of our progress. Your encouragement and confidence willdrive us forward in our journey towards becoming a leading Speciality Chemicals Company.
Chairman & Managing Director.