My Dear Shareholders!
First and foremost please allow me to express my heartfelt gratitude for your loyaltytowards Fineotex Chemical Limited and for having placed your trust in us.
Welcome to the 12th Annual General Meeting of your Company whichisgrowingfrom strength to strength.
Our Company has completed 11 years in January this year. As I look forward I cannotforget the years gone by. They have been tremendouslyvibrant. In the launch yearofourInitial Public Offer FY 2010 our turnover was approximately Rs. 20 crores. We take pridein highlighting that today in FY 2015 our turnover is Rs.102 crores. We have thustriumphed in our endeavor to show case a spectacular rise ofover 400%inour turnover.
The Board has continued to recommend a Dividend of Rs. 0.50 per share of face valueRs.10/- each.
Our acquisition in Malaysia was a remarkable step towards elevating the reputation ofthe Company. Our standing has now been from a national company to a multinational one! Wehave also incorporated a Company is UAE this year. We will continue to find opportunitiesfor alliance/acquisitions and add value to our operations and branding andyield betterperformance as we go forward.
In today's Chemical market scenario there are several foreign Specialty chemicalproducers looking for joint ventures with Indian Companies of our stature. Our Company iscurrently reviewing some interesting proposals and opportunities to setup plants forspecialty chemical manufacturing in India. Our Company is also looking forwards to setupits office in Middle East.
Our exports were approximately 36.75 % of the topline. Every year we plan to step-upour exports to more than 25% by exploring new geographies and products. We are cautiousyet optimistic that we will take our Company to greaterheights!!!
Few of the report suggest The Global Specialty Chemical industry accounts for ~22% ofthe total global chemical market size. This is expected to grow at a CAGR of 5.4% leadingthe industry to $970 bn by FY16 majorly contributed by Asia-Pacificand Middle Easterncountries.
With having a product portfolio of over 400 products and presence in over 33 countriesover the past 35 years in Specialty Chemicals itgives us the competitive edge over in themarket.
The Indian Specialty Chemicals industry is pegged around $17.7 bn(excludingagrochemicalsand dyes & pigments). It is expected to grow at a CAGR of 17%driven by growth of end-user industry. The other factor leading the growth is increase inthe consumption intensity as compared to other countries India's per capita consumptionof specialty chemicals is low. This provides ample growth opportunities in medium tolongterm.
Government plays a pivotal role in setting standards for products in a particularcountry. With the growing economy policies for consumption standards improve as consumersbecome more aware about what they are consumingand itsimpact.
As India is a developing country it still lags behind other developed nations as faras setting high quality standards are concerned. This phenomena itself is expected to leadto stable increase in the consumption of Specialty Chemicals.
The overall industry iswitnessinga gradual shiftduetothe followingtwo keyfactors: (i)increased consumption in the emerging markets of Asia (ii) to leverage increasedmanufacturing competitiveness of emerging Asian economies.
Over the last 10 years the share of Asia in the global chemical industry hassubstantially increased with China emerging as the leader Indian Specialty Chemical is ona transition phase and is likely to reposition itself as a strategic partner for growth inknowledge based processed driven chemicals. This change is likely to widen prospects forthe industry as various global players will look out for opportunities to join handswithIndian manufactures.
We have managed to stay ahead of our peers thanks to our product quality and ourrobust Research & Development teams. Innovation remains at the crux of our products.It is our constant endeavor to deliver innovative and better products/services. Our nichetechnology creates solutions that satisfy the individual needsofall ourcustomers. We useword-class technology and promise to continue being one of the best in the Industry. TheCompany is having strong growth plans for the current year. We plan to increase theproduction by 50% in the next year catering to newer local and international needs.
Our Company enjoys healthy cash flows. Our pragmatic approach allows us to streamlineand arrest all unwanted expenses/outflows. In line with our slogan 'Where DependabilityCounts' we are sure to accelerate the growth of FCL to a greater height by merginginnovation and profitability.
As responsible citizens of our Country itis ourduty to give back to the society. Withthis view our Company has formed a CSRCommittee. Our Company has contributed a part ofits funds to various trusts which aims to render help and assistance to educationalinstitutions hospitals welfare clinics and women empowerment.
I sincerely thank all our shareholders for their continuous faith and appreciation. Ialso extend my gratitude to the Board Auditors Executives the FCL Team our AssociatesStatutory authorities our Customers and Suppliers for their trust and promise to remainwith us and reap the benefits thatCompanypromises in thefuture.
Chairman & Managing Director.