Fineotex to strengthen its business targets PAN India and Global expansion
Fineotex is one of the leading speciality chemicals producers with a market-leading position in the international textile industry
The Chemical manufacturing sector is one of India’s primordial and is among the most varied industries. Industry is essential for the industrial and agricultural development of the country. Speciality chemicals have been one of the few sectors that have been resilient to the COVID-19 slowdown and the industry is now poised to deliver growth. The speciality chemicals market has been on the increase in various applications, and the major driving factors for the market growth are growing demand from the end-user and industries such as food, textiles and automobiles. Today, there is a lot of interest in India as an alternative to China, and this demand will further grow in the coming days.
Fineotex is one of the leading speciality chemicals producer with a market leading position in the international textile industry, says Mr. Surendra Kumar Tibrewala, Chairman & Managing Director. The Company is now charting the next phase of growth by foraying into the home care, hygiene and drilling specialty chemical segments. The company’s subsidiary in Malaysia, Biotex, leads the R&D initiatives and overall product development. Fineotex and Biotex complement each other’s strengths, and customers across the globe recognise our value proposition.
Led by the versatile Mr. Sanjay Tibrewala and Ms. Aarti Jhunjhunwala, Fineotex has historically delivered robust growth across key financial parameters and has a net cash position which the company intends to deploy for achieving its expansion plans. Mr. Sanjay Tibrewala has been associated with the Company for over two decades and has been instrumental in securing international acceptance of the Company’s products and has helped the Fineotex achieve the Star Exporter credentials. Ms. Aarti Jhunjhunwala has been associated with the Company for almost a decade and is part of the promoter family. She has led various diagonals in the company over the years and has been an integral part of the growth story of Fineotex. Ms. Jhunjhunwala plays a multi-faceted role, and her functions encompass business development, sales, branding, strategy, and new growth initiatives. Under her guidance and leadership, the company has built a strong and valued reputation in large international textile markets and she has also helped the company foray into fast-growing geographies. Today Fineotex intends to leverage its core manufacturing and development expertise in textile specialties into new high growth segments such as home care and hygiene and drilling specialties.
Today, India is the sixth largest manufacturer of chemicals and has consistently been one of the leading global producers in segments like dyes and pigments, polymers and agrochemicals. The speciality chemical sector is currently valued at $32 billion and is expected to reach $65 billion by FY25, mentions Mr. Sanjay Tibrewala.
In the last couple of years, the Indian speciality chemicals sector has been on the priority list of most investors, both national and global, and it is reflected in the significant re-rating and improved fund-flow in the sector. Also, India with its large domestic consumption market, trained workforce and a government focused on improving ease of business should be a significant beneficiary of this shift. With China decreasing its market share in the Chemical sector, it is helping Indian companies with an opportunity to expand and reach out to newer demographics.
Currently, the Company’s objective is to leverage Fineotex and Biotex’s strengths to grow market share across existing and new customers in both Indian and International markets. Fineotex has a conservative approach towards funding growth plans through internal accruals and our target is to maintain a net debt neutral capital structure. The Company is leading the transition from synthetic to lower carbon footprint products and we are playing a critical role in sustainable chemistry and driving efforts towards social responsibility.
In the Home Care and Hygiene segment, Fineotex foresees significant opportunities to collaborate with leading branded detergent manufacturers for their polymer requirements. The Company’s plant has been approved by the Food and Drugs Administration (Maharashtra State) department. The license has been granted for production of disinfectant and antimicrobial hygiene and cleaning products for the Cleaning and Hygiene solutions division to be launched by the Company.
Within drilling specialties, there is significant potential for offering solutions to leading Oil and Gas Companies in India. Also, we have a unique ‘mosquito life cycle controller’ product under development at Biotex. It is a nontoxic eco-friendly solution with European technology to control mosquito life cycle. The same has been approved by Ministry of Health Malaysia, Singapore PUB, European Union, NSF and relevant authorities in Vietnam and Cambodia. This could potentially be a significant game changer in the product category and revenue driver in the future.
Fineotex has commissioned a brownfield facility at Ambernath, near Mumbai and it will be operational by the first quarter of FY22. It will be a state-of-the-art automated unit which will comply with the highest standards of sustainability and boost growth over the years to come.