Snapshot
About Company
Felix Industries Private Limited, established in 2012 in Ahmedabad, Gujarat, is an environmental conservation company focused on “Recycle-Reuse-Recover-Reduce.” Led by Mr. Ritesh Vinay Patel and Mr. Sagar Samir Shah, it operates in sectors like Water and Waste Water Recycling, Industrial Piping, Nano Products, and E-waste Recycling.
The company provides water treatment solutions across various industries and is a significant player in industrial piping and e-waste recycling, with one of India’s largest processing capacities. As a government-approved e-waste handler, Felix manages all aspects of e-waste recycling at its Gandhinagar facility. The company aims to expand its reach in waste-water and e-waste recycling both domestically and internationally.
Product Portfolio
Water & Waste Water Engineering: The company specializes in Water Cycle Management Solutions. This encompasses the entire spectrum from producing and supplying drinking water to the collection, treatment, recovery, and recycling of wastewater.
Industrial Piping Division: This division is focused on Anti Corrosion and Thermoplastic Pipes, Fittings & Accessories. The products are manufactured by Astral Poly Technik Ltd and include a range of materials like C-PVC, U-PVC, PVDF, PP-H, HDPE.
E-waste Recycling: The company undertakes the management of e-waste throughout its entire life cycle. This includes activities from collection to recycling and material recovery, ensuring sustainable disposal and processing of electronic waste.
Spec-Chem Division: The company provides advanced solutions in the form of Nano Membrane Technologies. These technologies areinvolved in specialized chemical processes or treatments.
Clients
Management
Mr. Ritesh Vinay Patel: He is a Chemical Engineer with six years of experience in the Water & Waste Water Industry. His expertise includes project management, government approvals for water and waste water management, and business development in this sector.
Mr. Vinay Patel: Has over 40 years of experience in environmental work. He has been a Senior Administrator, handling environmental rules, research, and making sure industries and government reduce their impact on the environment. He has worked with the Gujarat Pollution Control Board (GPCB) and has experience in dealing with water and hazardous waste issues. His work has helped industries and the government follow environmental laws better. Mr. Patel has also worked on international and national projects in this field.
Mr. Sagar Samir Shah: Holding an MSc in Sustainable Waste Management, he has two years of entrepreneurial experience in the E-waste Industry. His skills include sustainability, strategic planning, finance management, and business leadership focused on waste and environment conservation.
Mrs. Shweta Samir Shah: She has a Bachelors of Commerce degree. Her experience and qualifications have not been specified beyond her academic degree.
Mr. Janesh Kundanlal Vyas: With a Bachelor of Engineering (Chemical) degree, he has over 30 years of experience in the Water and Chemical Industry. His areas of expertise include corporate and division management, business and market development, project and engineering management, and technology development.
Mr. Kashyap Hasmukhlal Shah: He holds an MSC in Applied Chemistry and an MBA in Marketing, with over 20 years of experience in the Chemicals sector. His experience extends to the manufacturing of basic metals and chemical products.
Mr. Raxesh Chandravandan Satia: With a Bachelor of Commerce degree, he has over 15 years of experience in the Textile Industry. His roles include directorships in various clubs and partnerships in business ventures.
Growth Triggers
- Increasing pressures on industries to reduce wastewater discharge and promote reuse after treatment.
- Growing awareness of waste treatment and stricter pollution regulatory norms.
- Demand from multinational companies for on-site wastewater treatment plants for their suppliers.
- Revenue generation through operation, management, and maintenance of treatment plants.
- Expansion into the Oman market to pursue opportunities in the waste water sector due to global concerns about water pollution.
Strengths
Recycling and Recovery Rates: Of the total e-waste generated, only about 12.5% (approximately 6.5 million tons) is officially documented and recycled to the highest standards. This low percentage indicates a significant gap in e-waste processing and recycling, representing a substantial opportunity for companies in this sector.
Regional Variability in Waste Management Systems: The effectiveness of e-waste management systems varies significantly by region. In India, where Felix Industries Limited operates, 65 cities generate more than 60% of the country’s e-waste, and ten states contribute 70% of it, with Maharashtra leading. Such specific data can guide strategic decisions regarding service locations and targeted marketing.
Potential for Innovation and Expansion: The need for tailored e-waste management systems in different regions opens avenues for innovative solutions. Felix Industries Limited can leverage this need to develop customized approaches, potentially expanding its services to various regions, especially within India where e-waste generation is significant.
Challenges
Working Capital Requirement: The company faces a significant risk due to its high dependency on working capital for daily operations. If it struggles to secure adequate working capital promptly and on favorable terms, there could be a detrimental impact on its operations, profitability, and growth. The risk intensifies if the company experiences insufficient cash flows, delays in funding, or challenges in obtaining funds from alternative sources under favorable conditions.
Accounts Receivable Cycle: The company’s long accounts receivable collection period increases its vulnerability to client credit risks and market fluctuations. This situation could lead to potential write-offs, increased provisions for receivables, and higher working capital needs, adversely affecting the company’s financial stability and operational results.
Regulatory Approval Risk for E-Waste Facility Relocation: The company’s expansion and relocation of its E-Waste facility hinges on securing necessary regulatory approvals. Any delay or failure in obtaining these permissions, particularly the Consent to Operate (CCA), could adversely impact the company’s business plans and financial stability, as part of its funding is dedicated to this project.
Customer Dependency: A substantial portion of the company’s income is derived from a limited number of large clients, with the top five clients being particularly significant. This client concentration poses a risk, as their decisions, influenced by factors beyond the company’s control such as management changes, mergers, economic shifts, or government funding variations, could impact the business.
Recent Updates
30st Oct 2023: The company has entered into a Joint Venture Agreement (JVA) with Mr. Divyanshu Varma to form a new Joint Venture Company (JVC) named M/s. Rivita Solutions Private Limited. Felix acquired 50% stake in JV company.
8th Nov 2023: The company has acquired an additional 1% stake in M/s. Rivita Solutions Private Limited, a JV Company, in accordance with the conditions set by ONGC for bidding in a project. The total stake now is 51%.
For H1FY24,
Sales were up 11.8 cr in Sept 2023 v/s 9.5 cr in Sept 2022.
OPM contracted from 14.84% to 12.29% during the same period.
EBIT increased from 1.32 Cr to 1.63 Cr during the same period.
PAT was up from .81 Cr to .97 Cr, however EPS contracted from 1.59 to 1.31 during the same period.
Both the Sales and Profit have grown north of 25% over the last 5 years.
Total Addressable Market
India water and wastewater treatment market size was estimated at USD 1.56 billion in 2022. During the forecast period between 2023 and 2029, the size of India water and wastewater treatment market is projected to grow at a CAGR of 10.05% reaching a value of USD 3.03 billion by 2029.
It seems like an interesting idea to study if the mgmt can walk the talk.
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Ayush Agrawal
Research Analyst
SEBI Registration No. INH000013013
First Floor, B.P. Complex, Baldeobagh, Jabalpur, Madhya Pradesh, 482002
Email: themicrocapinvestor@gmail.com
Number: +91 9425412028
