Fineotex Chemical Limited management talks about their competitive advantages

“Chemicals is a vast industry, and specialty chemicals, in particular, are a niche segment that will be driven not only by increased domestic consumption but also by strong demand from international markets,” said Aarti Jhunjhunwala, Executive Director of Fineotex Chemical Limited (FCL), a prominent player in the business that manufactures specialty chemicals and enzymes for an assortment of industries like textile and garment industry, water treatment industry, leather industry, construction industry, fertilizer, paint, agrochemicals, adhesives and others. Our diversification into the health and hygiene segment at the right moment has been successful. An indicator of this initiative is that FCL has been able to gain good traction in the detergent market. FCL is soon confident to evolve the detergent line as one of its top product lines.

Sustainable development and cleaner manufacturing are two essential pillars for India’s economy to commit to in order to secure a better global future. “Companies in this business should strive for development via sustainability and quality through excellence. FCL has not only been at the vanguard of this shift, but has also been a pathfinder in accomplishing this objective. Obtaining several ISO certificates and FDA clearances was made possible by using environmentally-friendly raw material sourcing strategies, adhering to strict ESG’s high standards, reducing the amount of chemicals used in processes, and a variety of other improvements and innovations. We have embarked upon a series of factory audits from reputed and well-known audit institutes such as Blue Sign, ISOs, OEKO-Tex, GOTS etc. This will give a strong goodwill advantage for our products, processes and people and will thus help to gain the leadership position.” said Surendra Tibrewala, chairman and managing director of FCL.

A higher capacity / production of specialty chemicals will create more job opportunities, a higher export, and self-reliance on imported raw materials and finished goods. This will encourage greater foreign investment in the sector. Surendra Tibrewala reiterates from his personal experience, “After going public in 2007 as Fineotex Chemical Ltd, I envisioned becoming a domestic and global leader in specialty textile chemicals. To that end, we established a wholly owned subsidiary in Malaysia, Fineotex Malaysia Limited, and acquired a controlling stake in Malaysian manufacturing company Biotex, which is taking care of R&D initiatives.”

The chemical industry, on the other hand, is complex; the emphasis here is not just on manufacturing, but also on R&D, which is the sector’s backbone. It must be implemented in a consistent and synergized manner with day-to-day activities. Global collaboration and reciprocal sharing of intellectual and operational resources are usually the keys to success. As a part of our strategy to create a niche customer base, we are engaged in serious R&D activities in developing customer centric solutions. This strategy will soon herald us into a new charter of business growth. In this regard, we have many existing customers, approaching us for technical solutions. This relationship will be the backbone of our premium business opportunity.

“We have state-of-the-art plants in Navi-Mumbai, Ambernath, and Selagnor, Malaysia, and we have also signed an MOU with Synthetic & Art Silk Mills’ Research Association (Sasmira) to establish a R&D Centre in India, a global marketing and sales channel partnership with HealthGuard Australia, and a partnership with Eurodye-CTC, a textile chemical company based in Belgium,” mentions Sanjay Tibrewala, ED & CFO, FCL.

He further adds, “Our diverse range of chemical products caters to the demand of over 60 countries. Following the Covid-19 pandemic, we have expanded into food processing, home care, and hygiene segments to meet the nascent and rising demand. In addition, we provide high-end technical solutions to our customers by sensing the market’s pulse for the emerging demand for antimicrobial, dust and water repellent, and perspiration-reducing textiles, among other things.”

On the stock market, brokerages have been bullish on specialty chemical stocks, seeking outperformance over industry standards. “For the fiscal year ended 31/3/21, our three-year return was 335.6 %, compared to the Nifty Small Cap 100s’ 70.93 %; we outperformed a five-year average of 16.12 % by delivering a RoE of 20.34 %; our virtually debt-free, healthy interest coverage ratio and liquidity position, strong degree of operating leverage, and effective average operating margin are the added attraction for FCL in the market; Q3 FY 2022 was the first quarter where we achieved Rs. 100 crores plus sales at consolidated levels,” Sanjay Tibrewala remarks.

Disclaimer: This content is distributed by Digpu News Network. No HT journalist is involved in creation of this content.