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Finolex Industries

Current Market price on the date of suggestion-: 131 Rs

Finolex Industries Limited (FIL) parts of Finolex Group an Indian conglomerate based in Pune, India is a leading manufacturer of PVC Resin and the largest producer of PVC Pipes & Fittings in India. The Company offers the latest range of superior quality and durable PVC-U pipes and fittings used in agriculture, construction and industrial operations. Its product portfolio consists of two major divisions: PVC Resin & PVC Pipes and Fittings .

Incorporated in 1981 the Company offer a wide range of PVC pipes and fittings suitable for diverse applications in agriculture, housing, and telecommunication. They are having their manufacturing facilities Pune and Ratnagiri in Maharashtra and Masar in Gujarat. 

The company has a widespread presence throughout the country, with a wide network of over 18,000 retail outlets ably supported by more than 850 dealers and sub-dealers. The Company is engaged in business of manufacturing PVC pipes & fittings, manufacturing of PVC resin and power generation.

The Company is in the business of manufacturing of PVC resin and PVC pipes & fittings. 

PVC – engaged in producing and distributing PVC resin

Pipes and fittings – engaged in producing and distributing pipes and fittings required principally in the agriculture and construction industries .

Robust Distribution Network – It has an established wide distribution network of 900 dealers and 21,000+ retailers that cater to customers across the country.


PVC resin is the third largest polymer in terms of production and consumption. It is derived from the polymerisation of vinyl chloride and is custom-made for utilization as a common plastic material in the agriculture and construction sector. It is used in pipes and fittings, window frames and shutters, wires and cables, etc. It is also a preferred plastic material for application in flooring, films and sheets. Of the total resin production in India, approx. 73% is consumed by pipe manufacturers. With the increase in demand for pipes, the consumption of PVC resin is estimated to grow at a consistent rate. 

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Demand for PVC

The demand for PVC in India is projected to grow at a CAGR of 6.81% between CY 2019 and 2030 to reach 6,779 KTPA by 2030. A growing agriculture sector, infrastructure development, rapid industrialization, favourable government policies, rising urbanization and growing usage of PVC in flooring applications across private, commercial and industrial premises are expected to contribute to the growing demand for PVC resin.  FIL has a state-of-the-art resin manufacturing plant in Ratnagiri, spread across 650 acres.


PVC pipes are commonly used for irrigation, building and construction, water supply and sewage management etc. Extremely durable, PVC pipes are easy to install, lightweight, strong and recyclable making them a cost-efficient and sustainable choice. The Indian PVC pipe market is categorised into chlorinated, plasticized and un-plasticized varieties. PVC pipes and fittings are also widely used for building and construction, irrigation, water supply and other purposes. The Company serves customers in agricultural and housing, construction and infrastructure sectors, through its network of over 22,000 direct and indirect retail outlets.


The demand for PVC pipes and fittings in India currently stands at 20 Lakh MT and is projected to grow at a CAGR of 14.7% between FY 2018-26. This growth is primarily driven by government investments in irrigation, housing and sanitation, through various government schemes.

Agricultural Pipes and Fittings

  • PVC-U Selfit Pipes – These pipes have a unique design with a plain end and a self-socketed end which enables a perfect fit without the use of couplers. Its strong solvent cement joint is durable, permanent and eliminates the inconvenience of loose couplers, making it economical and efficient.
  • PVC-U Ringfit Pipes – FIL is the first player in India to offer a unique range of PVC-U pipes that are specially designed for higher diameter requirements and which eliminate the need for solvent cement. The sealing ring ensures leak- proof joints and easy installation. The entire range consists of sizes ranging from 63 mm to 400 mm in diameter, with 4,6,8 and 10 kgf/cm2 working pressure. 
  • Casing Pipes – Casing pipes are manufactured using a unique PVC-U compound which makes them ideal for the transportation of hard, salty, sandy or chemically aggressive water. These pipes are also anti-corrosive, preventing the damage of pipes due to chemicals present in the soil. The pipes are easy to install and the threaded ends can be screwed to each other without the use of cement or adhesives. Moreover, the pipes are durable, maintenance-free & economical in comparison to conventional.
  • Column Pipes – Column pipes are uniquely designed and manufactured using state-of-the- art CNC machines. These pipes have a square threaded profile with an optimal load- holding capacity. The pipes are easy to install and have anti-abrasion and anti- • corrosion properties that ensure durability. Additionally, the smooth internal surface of the pipe reduces energy consumption due to friction-free water flow, increasing the life of the pump.
  • Solvent Cement – Solvent Cement is primarily used to join two or more pipes or fittings. FIL offers high quality Solvent Cement that is easy to apply and is environmentally friendly. The Company markets solvent cement for diverse applications ranging from agriculture and sanitation to plumbing.

Finolex Group

Finolex Group is an Indian conglomerate company based in Pune, India . The Finolex Group comprises Finolex Cables Ltd., Finolex Industries Ltd., Finolex J-Power Systems Ltd. and Finolex Plasson Industries Ltd. The group was founded in 1958 by P. P. Chhabria and K. P. Chhabria.


It all started in 1945 by both the brothers,  when in search of livelihood a small shop selling electrical cables was set up which later became quite successful. Breakthrough happen when it received a sizeable order in the mid 1950’s from the Defence Department for wire harnesses for trucks and tanks. Upon receiving such huge order from the defence their confidence was boosted which lead them to take up manufacturing cables themselves by setting a small-scale industrial unit in 1956.

The name Finolex brand has been derived from “Fine” & “Flexibles” and “O” with an electric arc across it – signifying the electrical cable business the company was in. 

Finolex Industries Limited (FIL) was established in 1981. In the early nineties Finolex Group was seen expanding into new business domains to manufacture Optic Fibre Cables and Copper Rods.

Investment of Finolex Industries

Finolex Plasson Industries Private Ltd 
Shares Held by Finolex Industries – 46,35,000 Shares
Value of Shares – Rs 7.5 Crores

FINOLEX PLASSON INDUSTRIES PVT. LTD. (FPIPL – finolexdrip.com) is a Joint Venture between Finolex Group – India (finolex.com) and Plasson Ltd. – Israel (plasson.com). 

Established in 1992 and based near Pune, FPIPL, an ISO 9001:2008 company, is today a leader in the field of Micro Irrigation in India. FPIPL offers a wide range of products and solutions in the field of precise irrigation and intensive agriculture cultivation. 

Its solutions include complete tailored Drip and Sprinkler Irrigation Systems and Turn-key projects for all Agriculture sectors such as Row Crops, Horticulture, Green Houses, Plantations, Orchards, Nurseries and more. 

FPIPL’s services include Survey, Planning and Design facilities for Drip, Mini & Micro Sprinklers, Foggers, Misters, Fertigation Equipments, HDPE Sprinkler Pipes, etc. for various field crops, horticulture crops, plantations, landscape, Greenhouse and Poly-house Irrigation systems, etc. Along with its advanced systems, FPIPL also provides comprehensive Agronomic Guidance and Knowledge Transfer Programs on Irrrigation, Fertigation and all parts of cultivation.

FPIPL has successfully executed irrigation system over 7,50,000 acres area on various crops. The Company has over 500 qualified professionals, which include, Surveyors, Application Engineers, Agronomists, Soil Scientists, and Sales Engineers to meet the growing marketing requirement. FPIPL has a widespread network of over 1,200 distributors all over India for the sales & services of all products and projects. FPIPL is well-known for its quality products and quality services and is a truly leading micro irrigation, drip irrigation company in India.

Finolex Cables Ltd
Shares Held by Finolex Industries – 2,21,87,075 Shares
Value of Shares – Rs 887 Crores

Finolex Cables Ltd is India’s largest and leading manufacturer of electrical and telecommunication cables with a turnover in excess of  ₹26 Billion (about US$ 400 million). The company started its operation with the manufacture of PVC insulated electrical cables for the automobile industry. Since then, the Company has constantly endeavored to augment its product range to include PVC Insulated Industrial Cables , FR-LSH PVC Insulated Industrial Cables, PVC Insulated Single Core and Multicore Flexible Industrial Cables, Rodent Repellent Multicore Flexible Industrial Cables, PVC Insulated Winding Wires and 3 Core Flat Cables, XLPE 3 Core Flat Cables, Power and Control Cables, High Voltage Power Cables (Up to 33 kV), Polyethylene Insulated Jelly Filled Telephone Cables, Auto & Battery Cables, Co-axial and CATV cables, LAN Cables, Switchboard Cables, Fibre Optic Cables, Solar Cables and others.

Besides a wide variety of Wires & Cables, the Company is also manufacturing lighting products, electrical accessories, switchgear, fans and water heaters. 

The company has received the IS/ISO 9001 Quality Management Systems Certification across all product lines and plants. Also IS/ISO 14001 -Environmental Management Systems Certification has been accorded to its plants in Urse and Goa. Every cable is manufactured using bright annealed electrolytic grade copper – 99.97% pure manufactured in-house and is insulated with virgin grade PVC. That is formulated in-house. The company has received several honours such as Harvard Business School Association of India – Economic Times award for “corporate excellence”; IIM – LIC award for ‘marketing’ and the Engineering Export Promotion Council’s ‘export performance certificate’. The company was awarded the Export House status by the Directorate General of Foreign Trade.

Its plants produces Electrical & Telecommunication cables, LT & HT Power & Control Cables, Electrical Switches, Compact Fluorescent Lamps (CFL’s), PVC Sheets & Copper Rods.


  • Revenue grew 52.6% Year on Year basis to INR1,067cr.
  • EBITDA grew 152% Year on Year basis to INR347cr.
  • PAT grew 186% Year on Year basis to INR256cr.
  • The company posted record high revenue (over the past several quarters), driven by the strong resin business, which grew 69.6% owing to higher realisations (up 48% YoY). 
  • The pipes and fittings segment reported heathy sales growth of 31.1%.
  • Gross margin expanded by 580bps to 45%. 
  • EBITDA margins expanded by 1,285bps to 32.5%.
  • PAT margins expanded 1,120bps YoY to 24%.
For the Year Ended March 2020
  • The total capacity of PVC pipes & fittings stands at 3,70,000 MT p.a .
  • The sales volume for PVC pipes & fittings was 2,54,958.25 MT for the financial year ended 31st March, 2020 as against 2,62,858.00 MT for the financial year ended 31st March, 2019.
  • Total standalone income from operations was at H 3,016.82 Crores for the financial year ended 31st March.
  • Profit after tax was at H 324.20 Crores for the financial year ended 31st March, 2020 

Peer Competition

Source – Edelweiss
Source – Edelweiss
Source – Edelweiss

Management’s Actions/Plans

In the coming years, Management will be consolidating its Pipes and Fittings business, more so in the plumbing range, and will continue to expand the product portfolio and  distribution network. They have also intend to promote brand and quality consciousness amongst consumers. Banking on key strategic efforts, Finolex Industries is expected to achieve more success in the coming years. Further Capex plans stand at Rs 1.5bn-2bn for FY22 with pipe capacity to increase by ~30,000t. The company remains net debt-free. 

Future Outlook


The demand for new homes (and proper toilets everywhere) is growing strongly, partly driven by government policy. Finolex Industries not only makes the pipes and fittings that are going into this modernisation and acceleration of India’s agricultural and construction sectors, it also produces the polyvinyl chloride (PVC) resin that those pipes and fittings are made from. Unlike its peers, FI is India’s only PVC company with such backward integration and that means it is doubly well-placed to benefit from the country’s transformation.

Further Government has announced multiple initiatives for both the agricultural and non- agricultural sectors. A budget of Rs 2.83 lakh crore has been allocated for the Agriculture and Allied Activities sector. The Jal Jeevan Mission, which aims to ensure access to piped water in rural areas, was one of these initiatives. These initiatives will eventually improve demand for pipes and fittings as upcoming projects in these sectors gain prominence and thereby enable a promising future for our industry.

Government Schemes -: ’Housing for All’, ‘Atal Mission for Rejuvenation and Urban Transformation’ (AMRUT) and ‘Pradhan Mantri Krishi Sinchayee Yojana’ (Prime Minister’s Agriculture Irrigation Scheme). 


Finolex Industries is one of the major PVC pipe players in India with 18,000 dealers and sub-dealers spread across the country. The company has a strong presence in the agricultural pipe market and plans to build a significant footprint in the plumbing market following its recent foray into CPVC pipes. Further government’s keen focus on the rural sector and thrust in allocation of funds to the agriculture puts it in the sweet spot for the coming period. Thus Finolex Industries is worth exploring for long term because of it having higher exposure to the rural market, which is performing better, and expected traction in market share gains in the pipes and fittings segment on account of increasing share of organised segments.

Finolex Industries was previously suggested on darkhorsestocks on 9 June 2019 when the stock was trading at 489Rs . Since then the stock has delivered 43% returns and has declared 100% dividends twice.

Please note that above expressed are our own views. Users are requested to take their own decision regarding investments. No member of DARKHORSESTOCKS would be responsible for any loss.


Essel Propack Established in 1982 is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Essel Propack Ltd was promoted by Essel Group until 2019 when Blackstone Group bought a majority of 51% stake for about Rs 3,200 crore which further triggered an open offer for Blackstone group to acquire another 26% stake through open market at 139Rs per share. Currently Blackstone Group through its company EPSILON BIDCO PTE.LTD holds more than 50% stake in the company.

4 thoughts on “Finolex Industries

  1. Your exhaustive analysis really help us to understand working of companies and its competence and thereby enable us to make a decision about our investment .we are really indebted to you.

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