I am delighted to present Fineotex Chemical Limited's Annual
Report for the year
2022-23. On behalf of Fineotex, I extend my heartfelt gratitude to all
of you for your unwavering support and trust in our organization.
Past Year Performance:
I am happy to announce that Fineotex has achieved remarkable milestones
during the current fiscal year. We are honoured to be included in the prestigious Nifty
Microcap Index, which serves as a recognition of our impressive performance and signifies
market presence in the microcap segment. Additionally, we have successfully entered the
prestigious 'A' group category of listed companies, which underlines our
financial stability, transparency, and adherence to regulatory standards. This
reclassification not only enhances our visibility among investors but also underscores our
commitment to sound corporate governance practices.
Furthermore, our credit ratings had significant upgrades from renowned
rating agencies. ICRA has upgraded our ratings to A (Long Term) and A1 (Short Term),
indicating our enhanced creditworthiness. Similarly, CRISIL has upgraded our ratings to
A/Stable (Long Term) and A1 (Short Term), affirming our strong financial position and
stability. These rating upgrades validate our ability to meet financial obligations and
instil confidence in ourstakeholders. We are preferred suppliers and solution providers to
top 100 textile and FMCG Companies in India and abroad.
Financial Performance:
Our financial performance for the FY2022-23 has been the best ever till
date. I am proud to announce a staggering year-on-year revenue increase of 40.4%,
reaching Rs. 5,170 million. This remarkable growth sets a new benchmark for us and is
a testament to the dedication and hard work of our talented team. The strong demand for
our products and services in the market has been a key driver of this success.
In addition, our EBITDA was INR. 1,126 million, a substantial
year-on-year growth of 58.1%. This underscores our strategic endeavours, effective
cost control measures, and steadfast dedication to operational excellence. By maintaining
an EBITDA margin of 21.8%, we have proven our capacity to consistently generate
profitable outcomes and deliver value to our stakeholders.
These results serve as a foundation for us to actively pursue new
opportunities. I extend my heartfelt gratitude to our shareholders, long standing
customers, trusted partners and dedicated employees who have played an instrumental role
in our success. As we navigate the ever-changing business landscape, we remain steadfast
in our commitment to innovation, customer satisfaction, and operational excellence. With
our strong financial performance as a catalyst, we are confident in driving sustainable
growth.
Business Strategy:
Fineotex has strategically expanded into the cleaning and hygiene
industry, leveraging our core strengths in the textile chemical sector. This strategic
move enables us to diversify our business operations and generate additional sources of
revenue, leveraging our extensive expertise. Our expansion into the cleaning and hygiene
industry aligns with the increased focus on cleanliness, particularly in the post-pandemic
era. The growing demand for hygiene products presents significant growth opportunities for
Fineotex. We are committed to maintaining the same high standards of quality and
performance that have defined our textile chemicals. Our goal is to deliver effective and
sustainable solutions in the cleaning and hygiene sector, meeting customer expectations
while minimizing our environmental footprint.
The Indian Home Care market is currently valued at INR 35,000 Crores
and is expected to grow at good pace the next 5 years. At FCL we are at the forefront to
capitalise on the emerging opportunities by developing a newer range of products that will
serve the ever changing customer needs. We have recently introduced five (5) innovative
solutions including few in newer liquid format. These solutions offer safety and
convenience to the consumers while optimising the cost and increasing the customer
delight.
<
p >We take pride in our extensive manufacturing capabilities across
multi-locations including our strategically platform positioned at Ambernath, Mahape and
Selangor in Malaysia. These manufacturing platforms serves as an essential hub providing
us with necessary flexibility and capacity to oversee the expanding requirements of our
product diversification. By leveraging these advanced facilities Fineotex maintains
agility in adapting to market needs, ensuring efficient production and timely delivery of
our wide range of innovative solutions.
Research and Development:
Our Research & Development Team works hard to create innovative
products that are eco-friendly, bio-degradable and cost effective solutions for our value
added coustomers.
Road ahead:
At Fineotex, we have a clear vision for the future. We will continue to
prioritize innovation and sustainability, leveraging our core strengths to seize new
opportunities. Through research and development, strategic partnerships, and a steadfast
commitment to responsible practices, we aim to lead the way in the evolving chemical
industry. Our agile approach and unwavering focus on customer needs will ensure sustained
growth and create a positive impact.
We are focusing on expanding our market by developing new products,
entering new territories and offering new value added products through our technological
solutions of customized customer solution experiences.
We have grown 40% in revenue and 58% in EBITDA in
financial year 2022 - 2023. We are targeting for higher benchmark in coming years.
Sustainability:
Fineotex's sustainability strategy is firmly grounded in our commitment
to meeting the expectations of our stakeholders and aligning our practices with
well-established environmental standards. We adopt a proactive approach in anticipating
forthcoming regulations and proactive implement measurs to prevent any adverse
environmental effects. Our foremost priority lies in developing processes and products
that are ecologically sustainable, posing no harm to the natural environment or living
organisms. Furthermore, we place significant emphasis on safeguarding consumers by
carefully considering the intended and anticipated usage of our products.
As responsible stewards of the central effluent treatment plant (CETP),
we uphold our commitment to environmentally compliant wastewater discharge practices. By
operating our own effluent treatment plant, we adhere to regulatory standards while
minimizing our ecological footprint. Our unwavering focus is on the development of
specialty products that foster sustainability, enhance operational processes, optimize
efficiency, and effectively reduce costs by curbing water and energy usage.
We maintained a vigilant focus on monitoring our energy consumption,
and implemented measures to optimize energy costs, and adopted effective energy
conservation practices. For the fiscal year 2023-24, we are preparing to operationalize
our solar panel initiative. By leveraging the potential of renewable energy sources,
specifically solar power, we intend to reduce our dependence on non-renewable energy.
In our efforts to uplift the underprivileged sections of society and to
create a positive impact on their lives, we consider Corporate Social Responsibility as a
key focus area. In this regard, we have associated with well-known organizations who help
us to in initiatives dedicated to improving social infrastructure like education,
sanitation, nutrition, and access to clean drinking water for the
marginalized communities.
We remain fully committed to uphold the highest standards of excellence
by actively promoting innovations and catalysing positive societal
transformations. As we steadfastly advance on our path, our unwavering
dedication to achieving excellence, embracing innovative advancements, and making
meaningful contributions to a brighter future remains a part of paramount importance. With
the invaluable support of our stakeholders, we feel confident to leave an indelible legacy
that benefits future generations.
Surendrakumar Tibrewala
Chairman & Managing Director