Rattibha

#FINE ORGANICS LIMITED
1-CMP 1875 , MCAP 5745 Cr , LAST 5 yrs OPM> 20% , DEBT 125 Cr , ROCE> 30% , RONW>20% PROMOTERS HOLDING 75% , MF 12.5% , PUBLIC Holding 3.86%

2-Company is the largest manufacturer of oleochemical-based additives in India and one of the few large players in global oleochemical-based additives industry.

3-Oleochemicals are chemicals derived from vegetable oil and animal oil & fat. In the case of Fine Organics Industries, they use only vegetable oil to derive their end product

4- The additives are derived from palm oil, castor oil, rapeseed and sunflower oil. It is the first company in India to introduce slip additives which reduces friction in polymers and is now the largest producer of slip additive globally.

5-Demand for oleochemical derived additives is increasing because
(a)As Green additives have been replacing potentially harmful synthetic chemicals in several industries like plastics, foods, cosmetics, rubber, paint etc.

b)In recent times, preference for consumer/environment friendliness products vs. petroleum-derived chemicals (huge carbon emission) is increasing. (C)Because of its bio-degradability, especially given implementation of stricter environmental norms

(d)Being compounds derived from natural raw material, waste disposal/ effluent treatment costs are lower. 6-More then 400 products and more then 650 direct customers and no customer accounts for more then 5% of overall sell .

7- 80% of raw material procurement from domestic suppliers with long standing relationships with suppliers .

8-Diversified portfolio with multiple end users like food additives, polymer additives, additives for rubber, additives for coating , feed nutrition and cosmetics.

9- entery barriers and limited players and highly regulated
10-Constantly enhancing the capacity because of full utilisation of existing capacity.

11- Total capacity at present is 101300 TPA and capex is going on for Patalganga facility for 10000 TPA and German Facility ( JV) for 10000 TPA

12 - Polymer additives Globar CAGR 6.4% and Indian CAGR 9.2% ( Polymer means packaging, consumer and construction) - Here additives reduces friction with other surface

13-FOOD Additives CAGR global 5.4% and India 7.36% , here additives are added to maintain quality and freshness of food products and increase shelf life

14-Feed nutrition additives-Indian CAGR 11-13% - to improve feed efficiency and technical advantage to end products

14- Costmetic additives Enables manufacturing of products with different structures like creams, gels, pastes, lotions Aids in achieving long term physical stability for transport and storage. Increases sensory perception and the chemical stability of the sensitive active agents.

15- Additives for coating -indian CAGR 8-10% ,additives are used anti-settling agents, emulsifiers, thickening/anti-sagging agents, wetting and dispersing agents, defoamers.Capable of improving the appearance and durability of a coating

16-Rubber industry Indian CAGR 6-7% Added to improve compounding & processing of rubber. Used in various types of rubbers for applications such as tyres, conveyor belts, dock fenders, automotive parts, hoses, shoe soles etc

17- Revenue 55% export and 45% domestic.I added Fine organics to my portfolio because of excellent growth ,excellent promoter holding, constantly increasing capacity by mangagement , highly regulated market , entry barriers, experienced promoters.

@threadreaderapp unroll

Fine organics decent results, good balance sheet , expanding , reducing debt , improving cash flow , better cash in hand , promoters 75% what else you want , it will continue to trade with premium valuations.