Fineotex Chemical Limited (FCL.NS) Earnings Call Transcript & Summary

Good afternoon, and welcome to Fineotex Chemicals Limited conference call to discuss the strategic acquisition of CrudeChem Technologies, a leading U.S.-based specialty oilfield chemicals group. Before we begin, please note that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. On the call today, we have with us Ms. Aarti Jhunjhunwala, Executive Director; Mr. Sachin Bandodkar, Business Head, Oilfield Specialty Chemicals; and Mr. Sanjay Tibrewala, Executive Director and CFO. The management will take us through the strategic rationale and the operational alignment. [Operator Instructions] Please note that this conference is being recorded. With that, I would now like to hand the call over to Ms. Aarti Jhunjhunwala. Please go ahead.

Thanks a lot. Good afternoon, everyone. It is always a pleasure to connect with our investors, analysts and stakeholders. We deeply appreciate your time and your trust in Fineotex Chemical Limited. Fineotex is not just a specialty chemicals company. We are a solutions-driven organization, built on innovation, customer centricity and sustainable value creation. Our integrated product range, strong global presence and deep industry relationships positions us to cater to the evolving needs of a wide spectrum of industries. Staying true to our values, today, we are here to discuss a truly landmark development in our company's strategic growth journey. The acquisition of a leading U.S.-based specialty oilfield chemicals group, CrudeChem Technologies through our subsidiary, Fineotex Biotex Healthguard FZE. This acquisition marks a transformational journey for us as the penetration of CCT in key U.S. oilfield hubs, including Midland and Brookshire in Texas, enhances our market presence, especially on the international front. Technical lab ecosystem brings scientific depth and R&D trend accelerating our innovation road map. Environmentally responsible oilfield chemistry with solutions designed for full cycle of oil and gas well bodes our core beliefs. CrudeChem's robust R&D infrastructure in Texas, combined with Fineotex's expertise in formulation chemistry will accelerate technology transfer, co-development of advanced chemistries and faster product innovation delivered to a global oilfield needs. The North American oilfield chemicals market alone represents a $11.5 billion opportunity in 2025, with strong growth expected across refining, midstream production chemicals and water treatment. This marks one of the most significant steps we have taken towards building a powerful global platform in high performance and sustainable chemical solutions. Sachin ji will take us through the strategic development of the company. Over to you, Sachin ji.

Thank you, Aarti ji, and good afternoon, everyone. I will now present a strategic overview of this acquisition, which we believe is a major milestone in Fineotex Chemical Limited global growth journey. This acquisition significantly strengthened our position in Specialty Oilfield Chemicals segment, especially in international markets. The CrudeChem ecosystem brings several strong advantages. I will tell you, first, advanced fluid additives that position us as a provider of mission-critical, high-performance solutions that improve operational efficiency and reduce costs for global energy producer. Second, higher performance chemical technology that are essential for maximizing reservoir output and ensuring reliability in challenging environments. Third, ESG-compliant solution, which align with our core values. Fourth, a world-class technical ability that enable fast formulation development, real-world testing, on-site troubleshooting and customized solution based on customer needs. Fifth and last, long-standing relationship with leading global energy producers and oilfield service companies, giving us immediate access to Tier 1 customers, long-term contracts and trusted partnership built over many years. So by combining CrudeChem's technical strength and global customer network with Fineotex's manufacturing capabilities and customer-focused approach, we aim to play a much larger role in this growing market. Now finally, I would like to hand over the call to our Executive Director, Mr. Sanjay Tibrewala ji, who will provide further details on the acquisition. Thank you.

Thank you, Sachin ji. Good afternoon, everyone. We connected from Houston USA right now while taking this call. So Fineotex through its subsidiary has entered into a definitive agreement to acquire equity interest in 4 U.S.-based specialty chemical companies forming the CCT Technologies Group, the CrudeChem Technologies Group ecosystem with a combined annual revenue of USD 68 million. Across these entities, Fineotex will acquire 53.3% controlling stake with a combined acquisition value of approximate $11.5 million, making this acquisition EPS accretive. This acquisition unlocks significant synergies for Fineotex Group. The complementary product portfolio of Fineotex and CrudeChem creates strong opportunities for cross-selling high-value solution across both customer bases, enabling us to expand our reach in India, Asia and North America. CrudeChem's robust R&D infrastructure in Texas, combined with Fineotex expertise in formulation chemistry will accelerate technology transfers, co-developments for advanced chemistries and faster product innovation tailored to global oilfield needs. Additionally, the complementary range of performance chemicals across production, stimulation and water treatment segment strengthens our ability to offer end-to-end solutions. By integrating CCT's capabilities with Fineotex global customer network and manufacturing expertise, we aim to meaningfully participate in this expanding market. We remain committed to scaling operations, enhancing capacity and driving cross-portfolio integration. This acquisition directly aligned with our strategic objective to build a $200 million business in oilfield specialty chemicals within the coming years. This step reinforces our commitment to building a diversified future-ready and innovative-led specialty chemical franchise and portfolio. We now look forward to taking your questions. Over to you, please, the host.

[Operator Instructions] The first question comes from the line of Kautuk Yemdey with AXA.

I had a couple of questions. The first one being, if we look at the valuation of the acquiree company $11.5 million for a 53.33% stake, it comes to around $21 million.

Around $22 million.

And the last annual sales is $68 million. So my question is since the price to sales ratio is very less, like it's 0.3, so is this a distressed asset that you have bought?

So it is not at all like this. Firstly, in the last 2 years, they have done almost -- in the last year, as you might have seen in the stock, the reporting, which we have done, it is above $50 million -- even in the one of the companies, $50 million and the others have combined to the remaining ones. So it is not at all distressed. It's a profitable company, and there is a lot of value, which we are bringing to the company. We have, in fact, also out of the $11.2 million -- $11.5 million, almost $25 million to $30 million has been going not -- has been -- will be introduced in the company as a primary issue, which will help further growth of the company. Right now, the group has a lot of very huge orders in pipeline, and it is requiring capital to grow it up. Fineotex is the right match for us. And for the last maybe at least 2 or 3 quarters, we have been discussing with this group on strategic alliances. We have already started doing some business with the company even before, and we have understood the potential of each other working together in a synergy. So it's not at all a distressed asset at all. And we are already planning a lot of executions of orders going forward.

Yes, understood. But I'm just not getting how you're buying this company so cheaply. I mean can you explain?

Well, I would not be able to answer subjective questions to it. The situation here where we are today -- the PE or the EBITDA to EV ratios, it's like above 5 at the moment. It's a debt-free company. We have a lot of technologies which we are bringing on the table to them, a lot of formulations and technologies, which also has a value to it. Fineotex itself has been very strong and the developments which we have done, the kind of participation and the kind of approvals which we have got, if it's in the Middle East and also the exhibitions, which we have been attending in the last couple of years has been remarkably good. We were discussing with this company since a very long time. And it apparently looks there is a lot of investments which Fineotex will be doing in U.S.A. for the plant and machinery also. So yes, that's the way it is.

Okay. Great. And just one last accounting or bookkeeping question. So if we convert the cost here in rupee terms, it comes to around like INR 100 crores, close to INR 100 crores. So like in the year-end, will we see a goodwill or a capital reserve on the balance sheet? Like is this a bargain purchase? What is the net asset of the acquiring company?

We will give back -- give those -- like -- I mean, it is this visit -- I mean this call is more on the kind of the business alliances and what is the plan for the future. Regarding the accountancy and how the entries will be done, we still have enough of time to get on to that. Yes, we will surely get back to you on that answers also on the accountancy of it. But if you would like to ask us anything about -- yeah, okay, thank you so much.

[Operator Instructions] Next question comes from the line of Ankit Kumar with Equitas Investment.

Hello?

Yes, Mr. Ankit, yes, you're audible.

Sir, my question, sir, the company -- 4 companies that you have acquired, are the other companies best suited for our company's profile? And will it enhance the company's overall market position? Any comment?

Yes, certainly. I mean, CrudeChem has its own -- let me tell you then in a different way. The biggest oil serving companies in U.S.A. are customers of CrudeChem. That's the way it is. In the press release, we have been able to highlight certain background of the company, the kind of product lines, which it is also on. So that's fitting our product line totally. And this company needs a lot of investments. It's a debt-free company. It's run by 3 strong stewards of the industry. They are the founders. They need a strong company like Fineotex for planning for the long-term investments, and there is also investments planned for more than $10 million going forward in the plant and machineries, which will be happening in the coming years, and Fineotex will be the investor for that as well. So there is a lot of action which is going to be taken up. At the same time, Fineotex brings on the table a lot of product efficiencies, product technologies, et cetera, and there will be a lot of cross-selling opportunities also. So yes, this is the right match, and we are totally excited about it. And yes, we have -- this is something which we have been looking for, for the last 3 quarters. I guess most of your -- I mean, most of you participants were always asking us what's the next and how is it going to shape up? And here we are. So yes, so that's to answer your questions, Ankit Kumar ji.

Mr. Kumar, please rejoin the queue for more questions. Next question comes from the line of Anupam Agarwal from Lucky Investments.

Congratulations, Sanjay and team Fineotex on this acquisition. My first question would be, so since we've consummated the agreement already by when will we consolidate the numbers in the P&L?

We are right now in Houston only for the last couple of days. And in fact, we have already done the -- all the documentations today. So possibly, if you ask us from the beginning, I think, let's say, from 15th December would be a good -- so let's say, half of December would be in the consol.

Understood.

But if you see the real picture, I think the real picture, if you want to look at, I think the 1st January will be the most important thing because it's the year-end, U.S. is always a little bit in a different mode on the -- as it goes towards the Christmas and the New Year. And so I think 1st January would be the best way to begin the -- to see the differences in the consolidation.

Understood. Second question, you already mentioned that there were customers of us, and we were doing business with them prior to the acquisition. And because of the oilfield business that we were already there before the acquisition, what sort of synergy or cross-selling can happen either with them or globally in the U.S. and Europe market?

So yes, perfect. So this is a very important question actually, and thanks for bringing this up. So like CrudeChem is in Houston. Houston is the -- they say the Mecca of the oil industry on planet is Houston. All the things, all the biggest planning and all the biggest oil serving companies are all placed in Houston, all the decisions are made in Houston. So this company has been growing rapidly, and it's in the proper place with the right kind of customers. I mean there are companies, which have almost $0.5 trillion business up to $20 billion, $30 billion business also, and all of them are the biggest customers for CrudeChem. At the same time, CrudeChem has their own portfolios and these companies are too much satisfied with the performance, with the services of CrudeChem, and they are looking forward for further alliances with CrudeChem for which they need more product lines. Fineotex is one of the best synergistic partners for CrudeChem because the products and the technology that Fineotex has is complementary to the range of CrudeChem. Now this is helping us instantly rather, and that's what we have, in fact, began already about cross-selling and bringing our products to them. And so also their products to our customers of Fineotex, which we have been regularly participating in Oman Show, in OTC, Houston, in ADIPEC last month, we were there. So yes, so these are the kinds of synergies and advantages we could see. As you know, financially, Fineotex is very, very strong when it comes to ready cash balance and other things. CrudeChem appreciate this. They need a partner and a growing company like Fineotex, and they have seen the performance of Fineotex of almost -- we have done a CAGR growth of 45% in the last 5 years, and there has been 30% growth of Fineotex in the last 14, 15 years, CAGR. And of course, they can also understand the strengths of the funds and the backup we have. So they were very excited and that they need this kind of company, which has the technology, which has the right strategy in place at the same time, finance. And that's why to answer one of the question of the participants, yes, that's the reason they chose us and we chose them. That's the way it worked.

Right. I'll just maybe rephrase my question in a better way. So $68 million to $70 million revenue annually done by the group, sitting in December today, because of the nature of how U.S. orders are placed, they are kind of given by November, December. What sort of order book are they sitting on for the next year or the couple of next years?

See, there were some fluctuations in the past. They have done almost $60 million also, $66 million, also $50 million. So in the last 1 year was not great enough for the oil industry per se, even if you see the numbers of Schlumberger or other companies, all of them have not been doing good. The crude oil prices are also quite on the softer level in the last 1 year. So what we are having plans, I mean, how do we touch a massive figure in the next 3, 4 years, and we have proper planning for that. There are a lot of orders and a lot of companies which have opened up with their own -- with the requirement of the portfolios which we have. So I think going forward, this is a number which will be definitely out passed. There's no doubt about it, going forward for, yes.

Okay. So this business as of today, so let's say, oil and field oil drilling as a percentage of sales for Fineotex is about 10%. With this acquisition, with the numbers that you're talking about, the growth, the order book, what sort of revenue can we see from this piece going ahead, let's say, 2 years, 3 years down the line?

Well, I mean, down the line, there is a mission we have $200 million going forward. That's the plan which CCT has, very clearly and detailed planning also. And so whether it -- we expect this to happen in the next 4 years or something like that. So let's see how we take it up as soon as possible. And yes, so that's something which we have been working upon and expecting.

Got it, and we have acquired 53.3% stake. Is there a possibility that we have an option in the agreement to acquire the balance stake? Or is it going to stay as is?

No. Rather, we have got a commitment from them that at 2028, January, let's say, 2 years from now, something like that, we will be having to get another 25% of it. So it will become 78.33%.

At the valuation today or at a decided valuation?

No, no. It would be the future valuation, future -- everything on that time.

Next question comes from the line of Rohit Sinha with Sunidhi Securities.

Congratulations for this acquisition. So some of my questions are already asked, but a few from my side was, first is in terms of capacity, I mean, obviously, for us also, it was like multipurpose project plant for us. So we have an option for different, different products. From here, what we can consider what is the capacity right now for CrudeChem? And as we are looking for investment there, how the capacity would be spending in next, let's say, 2 years?

So as such, we have good capacities in Fineotex India to cater as we know, we have just started -- commissioned a new factory, new plant a couple of quarters before -- last quarter actually. And when it comes to CrudeChem, we have to expand very quickly here because the area and speed of the businesses and the kind of orders which are lined up is not able to handle in the same facilities. So by -- in the coming week or this week or something, there is another -- we are going to finalize to shift in a couple of months to a new premises. And so yes, that's the plan going on now, and there will be a good amount of investments in the future for the plant and machinery and land and other activities, not only in the U.S., but we are targeting also to have some facilities in the Middle East. We are getting good opportunities and business commitments from our partners in Middle East also. So that's also in the cards. So we will be -- as you know, Fineotex is quite strong financially on cash and bank is very strong at the moment also. So this is something which is the perfect match for us, and we are excited about it.

Any specific number on the capacity side for CrudeChem? Or maybe at what utilization level right now they are operating?

I mean, yes, I mean, we don't have exact numbers about it, but the point is that there is a lot of big areas, which are required to handle the future businesses. The customers have insisted us to move bigger volumes. And hence, to get the bigger volumes, we will have to have more speed of production and capacity. So that's about it in a nutshell. So that's what is the key giveaway -- takeaway from this.

Okay. Okay. Secondly, in terms of -- I mean, funding, I mean we have raised fund for this acquisition only some time back. Finally, it is done now as we are also saying that there would be further investment required. So how the fund situation is right now for us? Would there be any further requirement of fundraising or it will be sufficient from the current business only with the balance which we have?

Yes. So Rohit ji, as you might have seen, we have more than INR 300 crores plus in cash and bank at the moment -- not at the moment, I mean, in the couple of quarters before. I mean, in the September results also, it must be around INR 340 crores, if I'm not wrong. So yes, that is sufficient enough to cater and we will not have to go to raise any debt for the requirement of working capital or investments to be done in CrudeChem. So that's about it. So everything will be done with internal accruals and cash on bank and it's much, much sufficient than -- and in fact, we are geared for more further investments in CCT or anything like that. We already have enough of cash in bank for that.

Okay. And in terms of -- I mean, obviously, we -- this is basically on the oil side. But any other scope we have also to consider in terms of industry serving? Currently, this is all into the oil and gas space. Any other scope do we have?

Rohit ji, I mean -- so Rohit ji, this is not our first acquisition actually. We have done the same in 2011 after raising the funds. So this is not our first acquisition. This is would say, yes, the first in the last 5 years or something like this or 10 years. We are always open. We are very disciplined in deployment of cash. We look for synergistic partners. We look for companies, which require growth capital. CCT was one of it. It's not about the funds being given to the erstwhile founders or something like that. It's also the capital is invested in the company, which will be used for the growth of the company. So we are always open for such acquisitions. Right now, as we all understand, in the last 1 year, the specialty chemical markets, a lot of opportunities are coming in. And Fineotex is in the sweet spot with good sufficient amount of cash on hand. Opportunities are coming day in, day out. And we -- that also doesn't mean that we just enter anything and everything until it makes sense for us. So yes, if we get something, why not? I mean we are always open, and we will keep doing the best.

Mr. Sinha, please rejoin the queue for more questions. Next question comes from the line of Pratik Oza with Systematix.

Congratulations on this deal. So sir, the press release highlights that CrudeChem was founded by 3 industry veterans with a strong background. So post acquisition, what specific roles will these founders have -- or will they move into advisory roles?

No, they are still the partners. Nobody is exiting out. We have acquired from each of them and equally. And also we have acquired -- the company has also issued the shares. So it's something like that. So all of them will still be there. We are also there, and we'll collectively be contributing the business -- our best for the business.

Okay. And secondly, regarding the technical strength, could you give us a sense of the headcount for this company between technical people and operational staff?

We can get back in our next upcoming call in the coming few weeks about it and more intense details can be provided. But this company is founded based on the technologies and the R&D benefit -- this thing. One of them is also a PhD holder in technology, one of the promoters. So that has also helped to develop the chemistries and product lines. So yes, and all of them will be participating and are equally the shareholders with each other.

Next question comes from the line of Vinay Nadkarni with Hathway Investments.

Congratulations, Sanjay ji. I think this one I told you, and you must be very happy to get into what you wanted.

Yes. Thank you, Vinay ji. Thank you.

Just couple of questions. This is a $68 million company. So even if I take 53%, they would be kind of contributing a larger share in your next year's profits -- next year's top line, right, given if they maintain the same $68 million. Then coming to EBITDA...

Well, yes.

What is the current EBITDA? How much are they making?

So if you -- we go to the last 3, 4 years figures, they had a great time also when the oil industry was doing very well. I think if I'm not wrong, this year will be almost -- EBITDA of almost $4 million or something like that. I'm not exactly -- it can be $4 million, it can be $4.5 million or something like that. Let's see how it shapes up, yes.

Okay. And is it a free cash flow generating company?

Yes, there is no loans in it right now.

Okay. Lastly, is there a possibility of you releasing your investor presentation on this particular deal? Or would you like to cover it only in the next call?

I mean, we'll cover it on the next call. We are right now very busy in integrations and a lot of actions, a lot of planning is going on. I think that's -- I mean, this call is based or to just give a flavor about what we are doing, although we have tried to explain a lot in the press release, but this is an add-on to that. And yes, here we are. And yes, so this industry will be shaping up very well in the coming years. Right now, oil and gas in the last 1 year was not in the right shape, as we all know. But this is the right time for us to invest in such industries when it's around at the right levels.

Yes. Just one last question. In terms of order book, you have not specified what order book they have at present. But I presume that with U.S. going very strong on oil exports, or drilling of oil there, you see next couple of years would be a good growth phase for them? What kind of growth are you looking at from here onwards only in CCT?

In CCT, I'm very sure that we should be looking at, at least 25% CAGR growth. Definitely, there's no doubt about it. So that's something which we should be expecting as what we are also expecting. And of course, there are a lot of geopolitical situations, which plays an important role in such kinds of businesses as we all witness it also. And yes, so there's a lot of exciting order lined up and approvals and transitions going up, trials, et cetera. So yes, in a couple of quarters, a lot of things will be cleared up. And then we'll be in the right position to have much accurate estimations.

Next question comes from the line of Abdul Syed with Smart Sync.

I'm new for this company as such. So sorry if I missed something. But I have one question only on this, like we acquired 4 companies. So I just wanted to know apart from CCT, like we acquired this company called Lonestar Technoboost. So their sales is very nice, like around $1 million or $10 million around sales -- amount is their sales, if I'm not wrong. But you acquired them at just $5,000. So can you please explain like why we get this much discount for a company like...

As per the group belongs to the same promoters in the same percentages, and that's the way it is. The allocations of every company is done on the basis of the profitability, as you know much about it. And so that's the way the way to look at it is not individually. The way to look at it is the basket of the same group with the same promoters of the same equity percentages at the same locations. So that's the way to look at it. Maybe if you want some more understanding on how it should be done or I mean, so that's all what we can answer to that on that point.

Okay. And sir, can you throw some light on like do you have a goal vision to achieve $200 million level, right? So can you please give us a sense on when we expect to achieve $200 million vision, like...

So I will be the most happiest person, if I could answer precisely the question. But as you know, we work in an ecosystem where geopolitical situations and a lot of things move in and out, even the crude oil price changes a lot. Last 1 year was not great enough for the oil industry. Going forward looks better. We are trying our best. This is the mission we have. Let's see how we can do as soon as possible. But if your point is coming to like what's going to happen in the next quarter or next to next quarter or next over or next to next over, we don't have any such ideas. We are a long-term company, as you might have studied. If not, maybe if once you study about Fineotex, you will understand the kind of company we are from. It's a long sustainable growth story here we have, proven history, and we will be doing our level best to make it a grand success. That's all I can tell you, but I cannot tell you exactly when does the figure touches. So that's about it, Mr. Syed.

Mr. Syed, please rejoin the queue for more questions. Next question comes from the line of Siddharth Lakhanpal with Darsh Capital.

Sanjay, congratulations for the acquisition. I just have one question. Given that we've acquired this company at a 5x multiple, the margins seem especially low and we currently operate between 15% to 20% kind of PAT margins. So are there any operational efficiencies that we bring to the table to improve their margins? And apart from that, what kind of benefits and what kind of effect will this have on our ROCEs on a consolidated level and our margins for Fineotex as a consolidated group?

So I mean, there is a lot of operational benefits Fineotex will keep bringing in regularly. That's one. The overhead in such U.S. companies are generally higher than the way we are operating efficiencies, which you can see in India in Fineotex. I mean, Fineotex is a perfect example of the best operations going on, and that's the reason you can see the gross margins to EBITDA margins are quite close. I mean it's quite respectable. I mean, it's operated very well in terms of expenses. In U.S., as you know, things are expensive here. There's a lot of expense on the manpower, et cetera. Going forward, the more and more businesses we will keep adding on will help us to have a better bottom line as well. And so regarding ROCEs, ROE right now, the company has no loans. That also because of the -- I mean, the working capitals are also very tight in that way. So Fineotex support on the working capital and investments in the growth are going to be a good bargaining power to procure the raw materials at a lower price, support the customers for longer consignment-based businesses, attract some more orders on that line. So there is going to be a lot of business attraction, which will be happening, also the EBITDA attractions because of the investments coming in. That will also, of course, help the better ROCE in the CCT Group. Now talking about the combined entities and other things, yes, of course, when you have certain divisions where these businesses are on a higher value, there has -- there is a lower percentage, but then that's not the only goal which we have. Our goal is also on how much scalable our business gets to, which is in this business, it's very high scalable. And with the scale, you will always have a better absolute EBITDA number. And that's what we are looking at now. So Siddharth ji, that is the way we think about the business, and that's the way we always think when we get a new opportunity on the table. That's about it.

Mr. Lakhanpal, please rejoin the queue for more questions. Next question comes from the line of Devender Singh from Devender Capital.

Hello?

Yes, please. We can hear you, Mr. Devender ji.

Sir, after hearing all your comments, my best -- just one question. Sir, if crude oil prices increase is benefit for the company or it's a decline? Just a simple one question this.

So generally, what we have experienced most of the times, all the suppliers of oil will have more businesses. When the crude price goes up, the drilling, the oil recovery production, the Aramco's of the world globally, they have higher targets to produce more and more because the sales price are higher. That's the way it is. So generally, whenever such -- oil price goes up, the businesses are much better in terms of volume.

So chemistries will be used more and more?

I mean the overall consumption of the customers will increase because there will be more production happening, everything will be on a different level. And so that's good for the economy.

[Operator Instructions] Ladies and gentlemen, as there are no further questions, we have reached the end of question-and-answer session. I would now like to hand the conference over to Mr. Sanjay Tibrewala for closing comments.

Thank you, participants for the trust. And like what we always say, promise made, promise delivered. This is what we have been telling all our investors always that we will be doing something which is shaping up Fineotex into a different strong direction. This is where we are now. We are very much excited where we are right now, and we look forward for further long-term expansions by improved technology capabilities, value creations for all -- one and all. I'd like to thank you, everyone, for hearing us, our investors, for their continuous trust and support. Have a good afternoon. Thank you. Over to you.

Thank you. On behalf of Fineotex Chemical Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.