Fineotex Chemical conducted their conference call for Q1: FY 2022 today at 5:00 PM

Here are the conference call highlights.

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Business Updates:

• Focusing to expand the portfolio in textile and homecare.
• Phase 1 of Ambarnath plant is expected to commission in Sept 2021.
• Appointed Arindam Choudhuri as new CEO. He has 2 decades of experience from the global textile chemical industry.
Partnership:

• Recently done JV with HealthGuard, for expanding in the Malaysia segment. This will provide scope in metal-free sustainable chemistry solutions that are anti-microbial and anti-viral.
• Tied up with Sasmira for R&D, where even Mr. Sanjay was alumini as welll.
Cleaning and Hygiene Business:

• Got FDA approval for disinfectant, and has also hired 10 sales team. There will addition of 16 more team members this quarter.
• This segment will be targeted to institutional segment targeting to corporate office, hospitals.
• With market opening up this segment is expected to grow well.
• Healthguard Guard is Billion $ opportunity and FCL is targeting 7-8% of market share. This is expected to generate revenue from the next quarter.
• HAIQ, DOW is the competitor for HealthGuard.
Industry:

• Unorganized market is currently struggling as recent norms of government is not feasible for small players.
• This has led to increase in the share of organized player.
• Foreign players are looking for China+1 which is benefiting India.
Raw Material:

• There was temporary shortage of raw material due to supply related issue. Post which there was sharp increase in Raw Material Price as well.
• These increased Raw Material price has also been passed on to customer.
Acquisition:

• Company is not looking for any big sort of acquisition, and mgmt would be disciplined in acquiring business.
• Acquisition won't be in new segment.
• Criteria of company would be looking at FCL, in terms of Margins, Debt and sales growth potential.
Sustainability:

• China + policy is leading to increasing customer for India and FCL as well.
• FCL has not looses any of its customers till now.
• Focus is not on big becoming bigger; but Fast becoming bigger. Hence strengthening the sales channel is the focus of the company
• Optimum utilization of business is around 75% and FCL currently stands at around 50-55% of utilization.

• Mgmt target Q4 of FY 2021 as the base scenario and expects to grow over that base unless there is risk covid.
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