The Tibrewala family's debt-free business continues to remain resilient and has ambitious growth plans
With a vision to be a leader in specialty textile chemicals in domestic as well as in the International market, the Fineotex Chemical group was set up in 1979 by Mr. Surendra Tibrewala. Fineotex Chemical Limited (FCL) is one of the leading manufacturers of chemicals for textiles, construction, water treatment, fertilizer, leather, and paint industry. FCL manufactures and provides an entire range of products for pre-treatment Process, Dyeing Process, Printing Process, and Finishing Process for the textile processing in a well-diversified business across key international textile hubs such as Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Thailand, USA, and Vietnam. In 2011, FCL had a technical collaboration with a well-known European founded specialty chemical manufacturing company, Biotex. Since the acquisition, the company has grown multi-fold and turned around the capital structure which has helped to make it debt-free. Both companies complement each other’s strengths and customers across the globe recognize the true value proposition. With Biotex leading the research and development initiatives and overall product development, the company leverages its industry insights and long-standing customer relationships with Biotex’s high-end product expertise and regional positioning to serve global customers. The company also has strong in-house development capabilities to grow market share across existing and new customers in both Indian and International markets and aims to continue to develop direct customer relationships and expand the distribution network. Fineotex chemical is one of the prominent names in the Indian stock exchanges, especially in the specialty chemical segment. Keeping the shareholder value as the key interest, the company has consistently delivered more than 20% CAGR growth in the past 10 years. Despite C-19 concerns the company continues to maintain a strong EBITDA margin profile as per the industry benchmark led by its cost rationalization efforts in a difficult business environment. The chemical company believes in keeping a conservative approach to funding acquisitions, capacity expansions, and greenfield/brownfield developments through internal accruals. Capital structure is targeted to be net debt neutral. Despite such robust fundamentals, the Company continues to trade at compelling valuations when compared to its peers in the speciality chemicals space.