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Fineotex Chemicals

  • Writer: Dhruv Meisheri
    Dhruv Meisheri
  • Jun 3
  • 3 min read

Company Overview

  1. One of the leading manufacturers of chemicals for the textiles, construction, water treatment, fertilizer, leather and paint industries. 

  2. Provides entire range of products for the pretreatment, dyeing, printing, and finishing of textile processing to customers globally

  3. Also offers cleaning and hygiene products like floor cleaners, hand-washes, sanitizers, dishwashers and toilet bowl cleaners. 

  4. Portfolio of 470+ products in 70+ countries

  5. Partnerships

    1. Collaborated with Eurodye-CTC, Belgium, to commercialize specialty chemicals for the Indian market.

    2. JV with HealthGuard, Australia to become the exclusive global marketing and sales channel partner with joint operations from Malaysia

    3. R&D center in collaboration with Sasmira Institute, one of India’s premier textile institutes

  6. Operates 3 manufacturing facilities in Mumbai and Malaysia with combined capacity of 1L MTPA. Capacity utilization around 65%


Business Segments (4 verticals)

  1. Textile Chemicals (75%)

    1. Speciality chemicals producers with a focus on textiles chemicals (Example)

    2. Offers tailor-made solutions to customers

    3. Biotex Malaysia spearheads the R&D solutions, application research and development

  2. FMCG, Cleaning & Hygiene

    1. Leveraged existing technical expertise and knowledge to gain competitive advantage

    2. Products include floor cleaners, hand-washes, sanitizers, dishwashers, and toilet bowl cleaners 

  3. Oil & Gas

    1. Produces chemicals which play an important role in improving the efficiency, safety and environmental sustainability of O&G production

    2. Helps to reduce maintenance costs and increases lifespan of equipment

    3. Chemicals produced - Demulsifiers, Corrosion inhibitors, Biocides, Surfactants

    4. Lot of potential here for offering effective products used for drilling in oil exploratory processes. Sizeable orders coming in from leading companies in India

  4. Water treatment

    1. Manufacturing polymers to prevent scale deposits allowing higher flow rates and efficiency for water treatment


Textile Processing Workflow 

  1. Weaving - Threads are woven into fabric. Polymers are used to help strengthen the yarn before weaving and softeners make the yarn easier to handle

  2. Pre-treatment - The raw fabric is cleaned and prepared. De-sizing removes old agents, Scouring removes oils and waxes and Bleaching whitens the fabric

  3. Dyeing - Color is added to the fabric, followed by washing and fixing the dye so it stays

  4. Printing - Patterns or designs are printed onto the fabric

  5. Finishing - Final touches to give texture, feel and durability. Chemicals are used to provide softness, shine and wrinkle resistance


Fineotex provides chemicals for each of these stages, making them a one-stop solution. 


Growth Drivers

  • Constantly adding more customers (25 added in Q4FY25)

  • Developed new product “AquaStrike Premium” 

    • Biotechnology-based, non-toxic, eco-friendly mosquito control solution

    • Disrupts the mosquito lifecycle more efficiently than conventional methods and contributes to water preservation

    • Already sold in Asia but once WHO approves, growth could be robust

  • New plant (targeted commissioning in Q2FY26) to add ~10% capacity 

  • India-UK FTA expected to benefit Indian chemical exporters

  • US oil & gas companies diverting procurement to India; Russia seeking Indian chemical suppliers due to Western sanctions.


Management Guidance

  • FY25 was a subpar year, but "We have not lost any customer... this quarter has been more of a transitional quarter where things are shaping up."

  • Volume decline in recent quarters in FMCG due to inflated input costs

  • Water and O&G had significant volume + value growth due to shift towards eco-friendly, water-based formulations.

  • Confident that EBITDA margins will return back to previous levels (~24%)

  • Healthy order book; some Q4 deliveries postponed due to geopolitical tensions (notably Bangladesh) and trade disruptions. These are expected to be executed in FY26.


Valuation


Key Risks

  1. Bangladesh - One of the largest textile and garment processing countries in the world

  2. Input costs - could lead to muted growth for a few more quarters going forward

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