Business
Economics
Finance
Investing
Investment
Stock Market
manufacturing
Financial Analysis
Food Industry
Additives
Oleochemicals
Plastic Industry
Industry Analysis
About -
Fine Organics Industries is the largest manufacturer of oleochemical-based additives in India & one of the few large players in global oleochemical-based additives industry. It is one of 6 global players in the food additives industry & one of 5 global players in the
Fine Organics Industries is the largest manufacturer of oleochemical-based additives in India & one of the few large players in global oleochemical-based additives industry. It is one of 6 global players in the food additives industry & one of 5 global players in the
plastic additives industry. It manufactures a wide range oleochemical-based additives in India.
Financial Summary -
FY 2022 (YoY)
Revenue at ₹ 1858 Cr vs ₹ 1121 Cr
EBITDA at ₹ 349 Cr vs ₹ 192 Cr
PAT at ₹ 251 Cr vs ₹ 115 Cr
Financial Summary -
FY 2022 (YoY)
Revenue at ₹ 1858 Cr vs ₹ 1121 Cr
EBITDA at ₹ 349 Cr vs ₹ 192 Cr
PAT at ₹ 251 Cr vs ₹ 115 Cr
Demand for oleochemical derived additives is increasing -
~ FINE additives are majorly bio-based, safe to
use & bio-degradable, they can offer
the most effective benefits through
‘Sustainability’ combined with excellence in
functionality & safety.
~ FINE additives are majorly bio-based, safe to
use & bio-degradable, they can offer
the most effective benefits through
‘Sustainability’ combined with excellence in
functionality & safety.
~ FINE green additives have been effectively replacing potentially hazardous chemicals in wide range of
industries such as plastics, packaging, foods, cosmetics, rubbers, coatings etc. without compromising on the performance.
industries such as plastics, packaging, foods, cosmetics, rubbers, coatings etc. without compromising on the performance.
Product Portfolio :
~ Food Additives -
FINE produces additives for maintaining the quality and freshness of the food products, impart better product structure integrity and helps in increasing the shelf life of food products.
~ Food Additives -
FINE produces additives for maintaining the quality and freshness of the food products, impart better product structure integrity and helps in increasing the shelf life of food products.
~ Polymer Additives -
Used for various functionalities in wide range of plastic products made from various polymers.
~ Additives for Coatings -
Used as anti-settling agents, emulsifiers, thickening/anti-sagging agents, wetting & dispersing
agents, defoamers, biocides &
Used for various functionalities in wide range of plastic products made from various polymers.
~ Additives for Coatings -
Used as anti-settling agents, emulsifiers, thickening/anti-sagging agents, wetting & dispersing
agents, defoamers, biocides &
anti-mar waxes for use in coating applications. Capable of improving the appearance and durability of a coating.
~ Emollients for Cosmetics -
Enables manufacturing of products with different
structures like creams, gels, pastes, lotions etc. Aids
in achieving long term
~ Emollients for Cosmetics -
Enables manufacturing of products with different
structures like creams, gels, pastes, lotions etc. Aids
in achieving long term
physical stability for transport & storage. Increases sensory perception & the chemical stability of the sensitive active agents.
~ Feed Nutrition Additives -
Replaces harmful antibiotics and improves feed
efficiency & imparts several technical advantages to
the end products.
~ Feed Nutrition Additives -
Replaces harmful antibiotics and improves feed
efficiency & imparts several technical advantages to
the end products.
Research & Development -
~ FINE has independent R&D Centre spread over 5000 sq mtrs in Navi Mumbai.
~ It is equipped with sophisticated analytical & application laboratories.
~ Custom designed solutions for demanding application.
~ FINE has independent R&D Centre spread over 5000 sq mtrs in Navi Mumbai.
~ It is equipped with sophisticated analytical & application laboratories.
~ Custom designed solutions for demanding application.
~ Pilot plant equipped with ultra modern distillation & reaction facilities.
Global & Indian Food Additives market size :
Global & Indian Food Additives market size :
Global & Indian Polymer Additives market size :
Key Risks :
~ Raw material cost fluctuation -
The co’s primary raw materials are derived from vegetable oils, including rapeseed oil, palm oil, palm kernel oil, sunflower oil, castor oil, soybean oil, rice bran oil. The co does not enter into supply contracts that are longer
~ Raw material cost fluctuation -
The co’s primary raw materials are derived from vegetable oils, including rapeseed oil, palm oil, palm kernel oil, sunflower oil, castor oil, soybean oil, rice bran oil. The co does not enter into supply contracts that are longer
than six months & are subject to the risk of increases in the costs of raw materials.
~ Failure to comply with quality standards -
Oleochemical based additives even though makes up only a small part of the end products, however,
they have a significant impact at the molecular
~ Failure to comply with quality standards -
Oleochemical based additives even though makes up only a small part of the end products, however,
they have a significant impact at the molecular
level in the end product. Any defect in the co’s products would result in a disproportionately large amount of finished products being defective.
Conclusion -
Co is operating in an industry which has multiple entry barriers protecting the existing players from
competition &
Conclusion -
Co is operating in an industry which has multiple entry barriers protecting the existing players from
competition &
fragmentation. Base oleochemicals are produced from splitting, distillation & fraction process which is a simple process having many players globally. Technology for producing base chemicals is also easily available which makes this sub-segment non specialized & more of a
commoditized product. However, what FINE does is a step further which requires proprietary technology, specialized skills and processes to manufacture green additives from these base chemicals. Being a complex manufacturing process requiring years of R&D in making is very
difficult to replicate giving the established players an added advantage over the new entrants. This subsegment of oleochemical enjoys premium margins with only few players dominating the industry globally including FINE.
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