Corporate Presentation
History & Evolution More than doubled Capacity to 131k TPA Expand into new products like food 2017 – Amalgamation of Fine premixes and feed nutrition additives Research and Development Centre Pvt Ltd and Fine Specialty Surfactants Pvt Ltd with Fine Organics 2014 – JV signed with Netherlands based bakery Going premix manufacturer, Forward Zeelandia International 2018 2006 – Fatty acid esters facility commissioned in first Ambernath facility 2017 2008 to 2012 – Stage-wise 2018 – JV signed with commissioning of polymer additives 2015 Adcotec, Germany for food facility in first Ambernath facility additives 2014 2015 – Capacity expansion for food and polymer additives commissioned in first Ambernath facility 2006-2012 1995 - Incorporated Oleofine Organics (India) Private Limited for expanding the capacity for polymer additives 1995-2005 2002 – Incorporated the Company under name of Fine One of the leading Organic Industries (Mumbai) Private Limited players that developed 2005 – R&D Center established in Navi Mumbai proprietary technologies to 1970 – Late Ramesh Shah and Prakash Kamat founded ‘Fine manufacture green Organic Industries ’, a partnership firm, in Mumbai 1970-1988 additives 1 1973 – The partnership firm commissioned its first food additives facility in Dombivli 1988 – Partnership firm set up second Ambernath facility Note 1 1. As per CRISIL Research
Company & Business Highlights
Diversified Product Portfolio for High Growth Industries Plastics Additives Food & Other Additives Emulsifiers Extracts desired aesthetic structure and texture Slip Agents Friction reducing additives Preservatives Preventing food from spoilage or toxic Anti-Stats Mitigates build-up of electrical charges Food & Used in biscuits, voluminous sponge, chewing Beverage gums, etc. Cosmetic & Lubricants Flow improvers and mould release agents Added to creams, gels, lotions, varnishes, etc. Pharmaceutical Additives for elastomers to reduce dampening / Rubber abrasion Processing Helps in melting high molecular weight polymers Aids Anti-settling agents, emulsifiers, anti-sagging Paint & Coating agents Converts water droplets formed on plastic films Anti-Fogging Replace harmful antibiotics & improve feed into a continuous transparent water layer Feed Nutrition nutrition Portfolio of Revenues (INR Mn) Revenues (INR Mn) 387 Products 2,095.87 5,686.15 1,963.22 26.93 1,837.60 % 4,561.69 FY2017 4,230.47 4,178.36 73.07 1,631.36 % FY15 FY16 FY17 9M FY18 FY15 FY16 FY17 9M FY18 Note 3 CAGR: Compounded Annual Growth Rate. Formula: (Last Year Value/First Year Value)^(1/N)-1
Key Speciality Additives PE 1 Applications Slip Additives Anti-Stats Anti-Fogging Additives Emulsifiers and Anti- Anti-Block Additives Cloudifiers Emollients Fungal Additives 4 1. PE – Polyethylene
Favourable Competitive Landscape Fine Organics Well Positioned to Benefit from Favourable Industry Dynamics 1 Key Players 1 Limited • Few large players competing globally Food Palsgaard, Danisco, Kerry Group, Riken Additives Vitamin, Taiyo Players • Highly fragmented market in India Plastic Croda, Emery, PMC Biogenix, Peter Greven Additives • Eco-friendly Green Oleo-derived additives a key 2 Key Regulatory Agencies 2 focus area Food Plastic Highly • Stringent quality parameters & regulations India BIS FSSAI BIS • • governing the industry Regulated • Toxic Substances FDA (US) • • Human health and environmental concerns are Global Control and FDA (US) • FSA (EU) REACH (EU) • key factors 3 • Complex technology & manufacturing processes create multiple entry barriers – mostly proprietary Very High • Product formulations, innovation and process technology – time & capital intensive process to generate Entry business Barriers • Established players enjoy premium positioning with customers due to consistent quality and product delivery 4 Significant • Customers value long term trust built over the years with existing suppliers Customer • Lengthy and expensive product approval processes lead to high switching costs for customers Stickiness • Customers rely on established suppliers as performance ingredients are very critical to their end products 1. As per CRISIL Research. 2. BIS FSSAI: Bureau of Indian Standards, Food Safety and Standards Authority of India (India), FDA: US Food and Drug Administration; FSA: Food Safety Authority; REACH: 5 Registration, Evaluation, Authorization and Restriction of Chemicals.
Strategically Located Manufacturing Facilities Capacity Plant Remarks India plants located in close proximity to Nhava Sheva Port – Ideal for Exports (TPA) Current Operational Facilities 1st Ambernath 49,500 NA 1 Facility Ambernath Badlapur 6,400 NA 6 1 2 3 Facility 4 Dombivli 2 Badlapur Dombivli Acquired on 8,400 3 Facility Nov 30, 2017 Patalganga Total Capacity 64,300 TPA 5 8 Proposed Expansion Plans 2nd Ambernath Contract 5,000 4 Facility 1 Manufacturing Fine Zeelandia 10,000 Q1 FY19 5 (Patalganga) 3rd Ambernath 32,000 Q4 FY19 6 Facility 7 German 10,000 Q3 FY20 7 Facility Leipzig, Germany Patalganga Yet to be 8 10,000 Facility Finalized Total Capacity 67,000 TPA Operating Plants Under Construction Plants Contract Manufacturing Facility Fine Organics’ Reputed Industry Certifications Note: 6 1. Contract manufacturing conducted at the Second Ambernath Facility by Olefine Organics on a job-work basis since 2014.
Sales & Marketing Network Across the Globe Extensive Distribution Network Catering to Over 5,000 end users in 69 Countries Direct Products 1 Customers 1 Distributors 1 387 631 127 Geographic Revenue Mix FY 2015 FY 2016 FY 2017 Domestic Domestic Domestic INR INR INR 38.09% 46.21% 40.86% 6,525.91 7,782.01 6,068.07 Exports mn Exports mn mn Exports 53.79% 59.14% 61.91% Note 7 1. In the 12 months ended March 31, 2018.
Focus on Innovation backed by Strong R&D Capabilities • Infrastructure spread over area of 5,000 sq. mts. Strong R&D • Dedicated team of 9 scientists and 6 technicians Capabilities • Developed and launched 46 new products since April 1, 2014 • Feed nutrition additives – derived from natural vegetable oils New Product • Additive to increase milk yield from cows and buffaloes Development (pending full commercialization) • On-going R&D efforts for new product development • Company has developed in-house capabilities for plant In-House Design designing and engineering and Engineering Capabilities • Lowers capital expenditures & quicker commissioning Patents Held by the Company PCT (worldwide patent Title Priority Filing USA application) Bio-based plasticizer with improved properties and Feb-15 Feb-16 Aug-17 processing characteristics of polymers Natural monoglyceride with improved odour and flavour Nov-15 Nov-16 Not obtained Applications of an ester additive from bio-derived raw Sep-16 Dec-17 Not obtained materials Glycerol derivative for polymer applications Apr-17 Not Filed Not obtained Polypropylene cap or film composition May-15 May-16 Nov-17 8
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