Freshara Agro Exports Ltd — Q4 FY26

Freshara Agro Exports Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=SjNCc6hnhBQ Published: 11 days ago

0:00 Good afternoon everyone and thank you. 0:02 2 seconds I'm Vaynava. On behalf of Atwood Strategic Advisor, I welcome you all to the H2 FY26 and FY26 earnings conference called Fresher Agro Exports Limited. 0:12 12 seconds Today we are joined by Mr. Janed, chairman and managing director. Welcome sir. So with this now I would like to 0:20 20 seconds hand over this call to Janetsa to introduce further. Over to you sir. Thank you. 0:25 25 seconds Thank you. Uh good evening ladies and gentlemen. On behalf of the board of directors and the management team of Prashara Agro Exports Limited, I extend 0:34 34 seconds a warm welcome to all our shareholders, analysts, investors, and bankers joining us today. Thank you for taking the time 0:41 41 seconds to participate in our H2 financial year 26 earnings call. Financial year 26 has been one of the most important years in 0:48 48 seconds Prashara's journey. It is a year that not only delivered strong financial performance, but also fundamentally changed the scale, scope, and future 0:56 56 seconds potential of our business. Over the last decade, Preara has built a reputation as one of India's most trusted exporters of processed vegetables from India. 1:05 1 minute, 5 seconds Starting with contract farming, we created an integrated value chain connecting thousands of farmers to customers across the globe. Today, we 1:12 1 minute, 12 seconds export to more than 40 countries, have supported over 4,000 contract farmers and have exported more than 200,000 metric tons of products since inception. 1:21 1 minute, 21 seconds The results of this model are reflected in our financial year 26 performance. 1:25 1 minute, 25 seconds For financial year 26, our consolidated total income was about 353 crores with a bit of 61 crores and a profit after tax 1:33 1 minute, 33 seconds of about 37.51 crores. During H2 alone, the revenue reached 212 crores with a bit of 36.7 and a B of about 22.6 cr 1:42 1 minute, 42 seconds demonstrating continuous momentum in both growth and profitability. Our flagship business continues to perform 1:49 1 minute, 49 seconds strongly with exports exceeding 43,600 metric tons during financial year 26 and contributing nearly 268 crores in 1:56 1 minute, 56 seconds revenue. At the same time, we continue to diversify our product portfolio through baby, chilies, jalapenos, bandelas and other vegetables. While 2:05 2 minutes, 5 seconds these achievements are significant, I believe the most important development during financial year 26 lies beyond the numbers. 2:13 2 minutes, 13 seconds We achieved a strategic milestone during the year. Fresh successfully completed the acquisition of Spanish operations conser comprising of conservas select 2:21 2 minutes, 21 seconds Espanolas and Gian Invest. This acquisition is not simply the purchase of a company. It represents Prashara's entry into a global specialty foods 2:30 2 minutes, 30 seconds industry and marks a transition from being primarily an exporter of pickle vegetables to becoming an integrated international food platform. For 2:38 2 minutes, 38 seconds decades, Spain has been one of the world's most important centers for oil cultivation, processing, branding, and exports. Through this transaction, 2:46 2 minutes, 46 seconds Freshara gains immediate access to premier premium Spanish olive sourcing, established food processing operations, 2:54 2 minutes, 54 seconds European manufacturing infrastructure, longstanding customer relationships, a portfolio of heritage branch built over generation, and an established export 3:02 3 minutes, 2 seconds network serving markets across the world. Most importantly, we are acquiring a business founded in 1968 with decades of trust, customer relationships and market credibility. 3:13 3 minutes, 13 seconds Why why SAS has a transformational acquisition? Many many investors have asked us why we chose an acquisition rather than building our own European 3:20 3 minutes, 20 seconds operation from scratch. Our answer is straightforward. Building a comparable platform independently would require years of investment, regulatory 3:28 3 minutes, 28 seconds approval, certification, customer acquisition efforts, and substantial capital expenditure. Through Sarasa, we acquire in one transaction what would 3:36 3 minutes, 36 seconds otherwise take a decade to build. The acquisition provides instead entry into a premium category. The global 3:43 3 minutes, 43 seconds specialtity foods market exceeds two two lakh cr while the global olive category alone represents a market exceeding 3:50 3 minutes, 50 seconds 67,000 cr. By entering olives, pressure gains exposure to significantly large addressable market than our traditional categories. 4:00 4 minutes It it gives us strong brands and market access. Sarasa owns multiple established brands with significant recognition in international markets. These brands 4:09 4 minutes, 9 seconds provide immediate market access and customer trust that would otherwise require years of investment to create. 4:15 4 minutes, 15 seconds We also get along with higher margin opportunities by combining India's agriculture and pro cross pro cross pro 4:20 4 minutes, 20 seconds cross pro cross pro cross pro cross pro 4:28 4 minutes, 28 seconds efficiencies, product mix improvement and supply chain optimization. We will also have an assetbacked European presence. Russia against both 4:36 4 minutes, 36 seconds operational control and strategic ownership linked infrastructure. This provides long-term stability, reduces future occupancy risk and creates a 4:45 4 minutes, 45 seconds valuable asset base within Europe. We also get powerful cross-selling opportunities. Pashara's girkens and other products can now access new 4:53 4 minutes, 53 seconds customers through the Spanish distribution network while olive products can be introduced to our existing global customer base. This creates a unique platform effect that 5:02 5 minutes, 2 seconds can accelerate growth across multiple product categories. 5:06 5 minutes, 6 seconds We look forward to building a global specialtity foods platform. Our long-term vision is clear. We are not building a single product company 5:14 5 minutes, 14 seconds anymore. We are building a diversified global specialtity foods platform that combines contract farming capabilities in India. Cost efficient manufacturing, 5:23 5 minutes, 23 seconds international brands, global distribution, deep customer relationship, strong governance and public market discipline. The 5:30 5 minutes, 30 seconds combination of Freshara and Sarasa creates a business that is stronger than the sum of its individual parts. 5:37 5 minutes, 37 seconds Looking ahead as we enter financial year 27, Pressara is positioned at the beginning of a new phase of growth. We have a strong growing core business, a 5:45 5 minutes, 45 seconds healthy order book, a diversified product portfolio, a strategic European platform, established international 5:52 5 minutes, 52 seconds brands, access to the rapidly growing global oil market, and a clear road map to scaling into a global specialty foods 6:00 6 minutes company. Our objective remains simple to create sustainable long-term value for shareholders while building one of world's most respected specialty food 6:08 6 minutes, 8 seconds business originating from India. I would like to thank all our shareholders, employees, customers, farmers and bankers and partners for their 6:16 6 minutes, 16 seconds continuous trust and support. We are excited about our opportunities ahead and I look forward to sharing this journey with all of you. 6:41 6 minutes, 41 seconds Thank you gentlemen. Uh I'm here with sharing the uh investor presentation with you. It it has an overall outlook 6:48 6 minutes, 48 seconds of what Freshara is doing and its acquisition of the Spanish entity, what market opportunities and what positioning we gain by this acquisition, 6:57 6 minutes, 57 seconds how we make this an integrated platform and how we decide our next phase of growth and also how we are going to manage our integrated business of the Spanish unit. 7:08 7 minutes, 8 seconds As you know, Fresh is a decade old company. We've achieved a great milestone last year completing our decade. We were listed two years back 7:17 7 minutes, 17 seconds and uh the current year we have been successfully we successfully acquired a Spanish company with deals with this our product portfolio expand from work to all from India to Europe. 7:30 7 minutes, 30 seconds As you know we our our strength is our contract farming where we procure the uh the crop uh the inputs from our farmers. 7:38 7 minutes, 38 seconds We uh we produce them at a factory and we do end to end logistics for it. We have a we have a great processing 7:45 7 minutes, 45 seconds network and we and we enhance our customers you know delivery experience. 7:50 7 minutes, 50 seconds We deal with more than 4,000 plus farmers who we've have a 90% retention year on year. We are spread across three different states. Our successful model 8:00 8 minutes is mainly dependent on our contract farming and our farmers. 8:05 8 minutes, 5 seconds Our infrastructure facilities we have two plants in Tamil Nadu located in the same district. Uh the new plant started 8:11 8 minutes, 11 seconds last year 2025 and was both the plants capable together about you know we can cross about 150 metric tons. We have 8:20 8 minutes, 20 seconds more than 500 plus uh people working for us. We have a great headroom to expand this uh business close to uh you know to to a greater height. 8:31 8 minutes, 31 seconds We have we have multiple reinforcing modes. One is our deep farmer integration where our raw material is very well secured. We have good infrastructure, a compliant 8:39 8 minutes, 39 seconds infrastructure where we are able to produce global quality foods. We are well certified in the food industry. We have the highest certifications which 8:47 8 minutes, 47 seconds enables us to sell in the European market and the US market. We have we are spread across 40 countries more than 100 8:54 8 minutes, 54 seconds plus customers. uh it it clearly defined that you know we are very strong in our distribution network and we have consistently delivered over the years 9:03 9 minutes, 3 seconds with a good track record on a consolidated scale we have achieved about 353 crores last year uh this is 9:11 9 minutes, 11 seconds with combining with the Spanish entity so 324 was from India and about 28 plus crores was from the Spanish entity 9:21 9 minutes, 21 seconds these are some of the numbers which you would have already seen the standalone number as for the for the Indian unit is about 325 crores in revenue. The EITA 9:30 9 minutes, 30 seconds was about 58 58 crores. EITA margin was about 18.5 crores. A PA of about 36 crores and we were able to achieve a PAT margin of about 11.55 crores. 9:43 9 minutes, 43 seconds This is our country wise export analysis. As you see we are very strong in countries like Russia and in Spain 9:50 9 minutes, 50 seconds where uh in fact in Russia we almost hold about 354% of the market share. In fact India's market share to Russia is 9:58 9 minutes, 58 seconds about 34 35%. So we are one of the leading exporters to Russia. Uh when you compare us in Europe Spain is our Spain 10:06 10 minutes, 6 seconds is a market where we are very strong. We have more than 60 customers in the entire Spanish region. So you can say we are probably the number one exporter to 10:14 10 minutes, 14 seconds Spain alone. And now with our strategic uh establishment in uh Spain, we are looking forward to have a know better 10:22 10 minutes, 22 seconds reach and achieve 100 plus customers in Spain. 10:28 10 minutes, 28 seconds These are some of our products which you already know. Gerkins, bandas, jalapenos and a funny 10:36 10 minutes, 36 seconds a division of how much we able to sell across the year. Gerkins happens to be about 80 85% or 86% of our sales 10:43 10 minutes, 43 seconds turnover. Baby corn, bandelas, jalapenos com combined give us about 15% of revenue. Uh all three cate all four 10:51 10 minutes, 51 seconds categories are growing in their own sense. There is a higher revenue done every year. Uh but girkin remains a higher volume product from India as we are one of the leading manufacturers. 11:01 11 minutes, 1 second India happens to be the leading manufacturer. So we are able to capitalize this and you know continuously consistently increase the 11:09 11 minutes, 9 seconds volume of shipments we are doing. 71% of our packaging is industrial packaging where we act as a raw material supplier 11:16 11 minutes, 16 seconds to the bottlers as available globally where they repack the products and white label it and then distribute it. We also 11:25 11 minutes, 25 seconds do 16% of our retail packaging which is which has been possible more from establishing of the new unit which is uh 11:32 11 minutes, 32 seconds which was done a to expand the retail packaging. In fact, food service packaging also has increased it share. 11:39 11 minutes, 39 seconds So if you compare us to the last year, there's a there's more contribution from retail packaging and food service packaging. And this is a fast growing uh 11:47 11 minutes, 47 seconds uh uh packing uh distribution channel for us and it'll help us reach more customers, customers like uh the top 11:56 11 minutes, 56 seconds supermarkets of the world. So this is where the entry entry is. The industrial packaging does not go to the top supermarkets but the retail packaging goes to supermarkets like Walmart, Aldi, Little etc. 12:09 12 minutes, 9 seconds just about little bit of our acquisition part where we acquired the Spanish brand Sarasa. Similar to this there are about eight brands. Uh this is a very a brand 12:18 12 minutes, 18 seconds from 1968 very well known in Spain for its olives. Uh the the company used to buy girkens from India reprocess it in 12:27 12 minutes, 27 seconds Spain and rebrand it and sell it as sarata. Most of the other sales is into olives and some other local vegetables like chilies etc. 12:37 12 minutes, 37 seconds uh the the idea of the acquisition is to uh use make use of the brand and also become a B2C B2C company in Europe. Till 12:46 12 minutes, 46 seconds till the acquisition we were a B2B company. Now we have direct access to the European supermarket chains where Sarasa is already performing well. 12:56 12 minutes, 56 seconds The Spanish unit has uh actually three unit three uh three places of business in which uh two are where the one is 13:04 13 minutes, 4 seconds where the production is done and one is where the logistics is carried out and one is where the olive is processing is done which has a capacity of about 13:11 13 minutes, 11 seconds 10,000 kilos per day. Uh we we had two months of more than two months of business uh in the last financial year 13:18 13 minutes, 18 seconds and we achieve we were achieve we were able to achieve 28.75 crores of revenue. 13:24 13 minutes, 24 seconds There's a great demand for olives. In fact, Spanish olives and branded olives or Sarasa and we are looking forward to, 13:32 13 minutes, 32 seconds you know, to produce as much as possible in Spain and achieve a good sales level in the coming years. 13:39 13 minutes, 39 seconds Sarasa has a great European credibility. 13:42 13 minutes, 42 seconds I mean, if you go online, if you look for this brand, you'll know that they've been present for a very long time. They spent decades trying to establish their 13:50 13 minutes, 50 seconds brand. There's a particular variety of olives pitos where they are uh you can see the number one in Spain. 13:57 13 minutes, 57 seconds They have an exclusive farmer network where they're able to source these products and they're able to sell a good 14:04 14 minutes, 4 seconds volume to to all the supermarkets in this particular variety alone. So there are many varieties of Spanish olives where uh they are very strong and uh 14:13 14 minutes, 13 seconds going forward I we will be able to use their platform to you know enhance our growth as well. 14:20 14 minutes, 20 seconds Why it fits us? U it it was a very uh uh valid option for us to take over Sarasa. 14:28 14 minutes, 28 seconds Sarasa used to be our one of our customers. They were they were buying from many companies from India and we had an opportunity to buy them and 14:36 14 minutes, 36 seconds thereby arresting a lot of sales from India you know partnering the sales to us. So this helps us achieve ship more 14:43 14 minutes, 43 seconds of Birkens from India achieve more of a market share in Spain. at the same time use Sarasa's platform use its brand and 14:51 14 minutes, 51 seconds when you manage when they were actually repacking in Spain and they were uh expending a lot of money their products were expensive today a lot of their 15:00 15 minutes products I am trying to pack in India especially the gerkins where the cost of the production has come down to them for 15:06 15 minutes, 6 seconds about 20% and they are highly profitable in these lines so combined with our Indian production capacity and Sarah's 15:15 15 minutes, 15 seconds branding value we'll be able to achieve good margins and good sales going forward. 15:22 15 minutes, 22 seconds We look forward to achieving about 12 to 14% of a vita from the operations of Spain and a bad margin of about 8 to 10%. At the moment they're at around 4 15:31 15 minutes, 31 seconds 5% by substituting 30% of the production to from India and 15:38 15 minutes, 38 seconds uh achieving cost benefits by producing in India we we'll be able to substitute at least 30% of the products at a very 15:46 15 minutes, 46 seconds very high margin. they will become very high margin product and thereby able to you know balance the cost when we have 15:53 15 minutes, 53 seconds acquired the company we have acquired at a good cost and with no you know long-term overheads we have a now we 16:02 16 minutes, 2 seconds have a very efficient team the cost are very much in control and we look forward to achieving 200 plus stores in the the 16:09 16 minutes, 9 seconds coming year and by by bringing in Indian products we have a very good we are freeing up their product production capacity 16:17 16 minutes, 17 seconds And that will help us you know scale at least towards 500 course in a couple of years from Spain alone. This if you had tried to establish oursel would have 16:25 16 minutes, 25 seconds taken us years years of marketing years of construction building you know regulatory approvals. It would have easily taken us 5 years or 6 years. So 16:34 16 minutes, 34 seconds what we were we were able to uh use this to our benefit and you know uh turn and and uh it all depends on us to turn around the business. 16:44 16 minutes, 44 seconds These are some of products of Sarasa. Uh these are as I mentioned the Cheetos brand. This these are very famous in Spain. They are these are the cocktail 16:53 16 minutes, 53 seconds brands and these are the pickles which are very similar to girkens in which you can see girkin is one of the products. 16:58 16 minutes, 58 seconds They have white onions. They have low spiced chilies. They have other vegetables and also Spanish vegetables whichever are available like beets and 17:06 17 minutes, 6 seconds everything. So we we are we at least 70% of these original pickles can be produced from India with the in the 17:13 17 minutes, 13 seconds brand of Sarasa the ownership of Vashara we'll be able to achieve you know good scale and good price point and good 17:21 17 minutes, 21 seconds margin these are another set of products which are very famous in Spain one is all the olives all the different types of olives 17:29 17 minutes, 29 seconds which they produce mozzarella Spanish olives is the most known and a famous one uh I mean this is required by 17:36 17 minutes, 36 seconds customers. I mean there's a great demand for this product and it's produced by us as well. These are ready to quick cook options. 17:45 17 minutes, 45 seconds We have more than 32 SKUs which are produced by Sarasa and sold in the supermarkets of Spain. 17:53 17 minutes, 53 seconds What market opportunities we have by you know associating with Sasa combining gerkins and olives. The global specialy 18:01 18 minutes, 1 second foods market has crossed more than about 200,000 crores. In which the global olives market is around 67,000 crores plus as gerkins we we try to service 40 18:10 18 minutes, 10 seconds plus countries but as olives they are already present olives are already present in 90 plus countries. So you know it helps combine olives and gerkins 18:18 18 minutes, 18 seconds and gives us a a great space to go to more countries combination of 90 plus 40 we'll be able 18:27 18 minutes, 27 seconds we'll be globally present in the coming years. 18:31 18 minutes, 31 seconds India's the working market the last two years has uh scaled about 40% of growth when we uh in the last year we were 18:39 18 minutes, 39 seconds having data of about 200,000 crores but this year sorry 2,000 crores this year the market has reached 3,000 crores 18:46 18 minutes, 46 seconds India is able to c supply 3,000 plus crores of girins from India um the the 18:54 18 minutes, 54 seconds growth has got scaled up at 40% which is very encouraging previous years it was only about 9% % uh combined two years 19:00 19 minutes it's gone up by 40% and uh there's very high demand last year a lot of countries like Germany Turkey are failing because 19:09 19 minutes, 9 seconds they are unable to match our prices and unable to match our consistent deliveries over the years. So most of 19:16 19 minutes, 16 seconds the production now is being outsourced to India. I expect similar growth in the coming years and this will help us uh really scale our business as well. 19:27 19 minutes, 27 seconds These are the the different countries which are uh dominating the working market. You see Russia is at the highest 19:34 19 minutes, 34 seconds about 33 34%. Our our revenue share to Russia is also close to 33%. Spain is the second market. We are we are the 19:42 19 minutes, 42 seconds leading we are the leading supplies to both these countries. Germany is somewhere we are looking forward to establish our control. France we are 19:50 19 minutes, 50 seconds really doing well and US yes our I think close to 10% is our business share to US alone 20:00 20 minutes you would have heard of the EU uh uh treaty where the free trade agreement which is 20:06 20 minutes, 6 seconds expected to come up in the early 2027 uh which will reduce the duties of products exported from India uh we are 20:14 20 minutes, 14 seconds highly anticipating this uh trade agreement to be beneficial for us because it brings down the duties from 7 20:23 20 minutes, 23 seconds and 14% to I think less than 5%. Today to today when we produce circuits in 20:29 20 minutes, 29 seconds India and when we supply to Sarasa they have to pay duties close to four and 7%. 20:35 20 minutes, 35 seconds So this will bring down the cost to a great extent. Uh the industrial packaging suffers the lowest duty and the retail packaging suffers the highest 20:43 20 minutes, 43 seconds duty that's about 14%. The 14% duty has always been a barrier because the I mean Turkey and other countries which had 20:50 20 minutes, 50 seconds inland routes to Europe were much cheaper. Today in 20 to 27 if this duty is 100% enabled for our products we will 20:59 20 minutes, 59 seconds have a straightaway cost benefit between 7 and 14%. Which will also help our Spanish operations because most of the production will be happening from India. 21:10 21 minutes, 10 seconds So uh in the coming year we are really looking forward to this uh trade agreement to enhance our margins and the 21:17 21 minutes, 17 seconds reach of Indian products. So we hope that the 40% growth should continue. 21:25 21 minutes, 25 seconds As I mentioned when when we combine together we will have a retail and a supermarket chain supply where Sarasa is already supplying to about 30 different 21:33 21 minutes, 33 seconds brand 30 different companies and more than 14,000 retail outlets are having this brand present. Uh this is only in 21:41 21 minutes, 41 seconds Spain and there's a lot of opportunity in rest of the Europe where the same brands have supermarket. So as as a 21:48 21 minutes, 48 seconds company we are trying to enable this to ensure that they follow a distribution model which we are already doing by you know trying to 21:57 21 minutes, 57 seconds export trying to get into ora trying to get into white labeling so we are just trying to replicate our success model with them so that you know more we'll be 22:05 22 minutes, 5 seconds able to penetrate the European markets better this is a combined business as I mentioned to you we will have I mean the 22:14 22 minutes, 14 seconds platform will be shared the a shared platform is always beneficial than an individual platform for both products. 22:20 22 minutes, 20 seconds Both products will reciprocally help each other's presence because in retail market, you know, the shelf space really matters. As Sarasa's 22:29 22 minutes, 29 seconds product portfolio grows, we we get a we get a premium presence in in in the supermarkets. Thereby, we will not be 22:37 22 minutes, 37 seconds selling in our brand. We will we will be selling the Saras brand. But at the same time, Sarasa's output and outlook will really change when when we when we partner with them. 22:46 22 minutes, 46 seconds The there are several there are eight brands of Sarasa and these eight brands are already present and Indian gerkins 22:53 22 minutes, 53 seconds Indian girkin suppliers had their own share of raw material to these brand but today since we have acquired the brand 23:00 23 minutes and the company we will be able to uh make our raw materials present everywhere. 23:09 23 minutes, 9 seconds We'll become a multi category global specialy foods platform with this because we will be entering a two 200,000 two lakh cr plus market. Our 23:18 23 minutes, 18 seconds margin will be better as we go ahead because we are going to deal with products like olives where the selling prices are higher the revenue is higher 23:26 23 minutes, 26 seconds and if at all the production is localized very well in India then we'll be having a you know better margin share going forward. This will be 23:34 23 minutes, 34 seconds comparatively better than any other Spanish company. So the we'll be able to scale them compete with them much better than any other Spanish company. 23:47 23 minutes, 47 seconds So we as I mentioned to you earlier previously they were operating I know they were producing everything in Spain. 23:53 23 minutes, 53 seconds They were taking from India and repacking them or reproducing them in Spain into their own jars where the cost was very high. Uh today what we plan to 24:02 24 minutes, 2 seconds do is we want to bring you know produce all the the white labeling to be done the branding to be done in India. They will be concentrating more on olives so 24:10 24 minutes, 10 seconds that they are able to enhance the production capacity for olives and try to scale uh more growth in olives because the global demand of olives is 24:19 24 minutes, 19 seconds also very high now it's catching up and scaling up. So once we free them of you know the pressure of gerkins which we 24:27 24 minutes, 27 seconds will handle the other company would would concentrate on growing on olives and pressure would take the responsibility of growing in gerkins. So 24:34 24 minutes, 34 seconds we expect more than 35% of growth in the production of olives itself from the Spanish company. 24:42 24 minutes, 42 seconds These are some of our numbers where we anticipating that you know we should scale to these levels. Current year we achieved about know 354 crores combined 24:50 24 minutes, 50 seconds with the Spanish company. So next year we we want to continue the same growth momentum momentum of about 25% from the 24:57 24 minutes, 57 seconds Indian entity and uh reach the minimum sales level of the Sarasa which they already doing more than I think 200 they 25:05 25 minutes, 5 seconds were already doing. We want to reach that first milestone and thereby scale ahead 25:13 25 minutes, 13 seconds while fresh again we we are we are our optimization model is a little different than any other company in the industry. 25:20 25 minutes, 20 seconds We are one we are uh combining with the farmers then we have a a multi multi-country production platform 25:29 25 minutes, 29 seconds multi-country distribution platform localization of uh vegetables at this scale has never been done or possible 25:36 25 minutes, 36 seconds before. uh since we have our own brand uh this will be intrinsic intrinsically possible and uh it gives us a very good 25:44 25 minutes, 44 seconds uh platform for uh you know expansion again it allows us to become a B2C company which which would take us four 25:53 25 minutes, 53 seconds to five years if at all we have to try our own self by using Saras's presence we are trying to get into more European 26:00 26 minutes brands both with the names of fresh as well as Sarasa as it's a very highly trusted brand there's very good 26:08 26 minutes, 8 seconds attention from the market. Uh there's a lot of demand. Previous years they were not present as much as possible. Today there's a lot of demand and we are 26:15 26 minutes, 15 seconds trying to push as much sales as possible to these uh supermarket. They the synergy potential with fresh is is at at 26:24 26 minutes, 24 seconds 100% because we've known them for years now. Uh we we know their strength and they know our strength. So combining 26:32 26 minutes, 32 seconds this we want to give a a very good uh you know result again from from Europe we we will be able to export a lot of 26:40 26 minutes, 40 seconds products to supermarket chains which we've not been able to done do do before because we will have a localized presence we will have a localized 26:48 26 minutes, 48 seconds production unit a localized business unit uh in Europe in countries like Netherlands Poland they they they prefer 26:55 26 minutes, 55 seconds European products so so we are crossing that barrier uh which Indian exporter generally have now we have a very good 27:03 27 minutes, 3 seconds leeway and an entry point to go and uh enhance our sales. 27:10 27 minutes, 10 seconds The the Spanish company uh management uh we we have appointed a very seasoned management. We've recruited quality specialists uh we've 27:19 27 minutes, 19 seconds retained uh the best people and we've let go the uh people whom we didn't want to retain. We we had an option of doing 27:27 27 minutes, 27 seconds this which is which was very very unique. We took over a workforce which was slim uh and we were we were allowed 27:36 27 minutes, 36 seconds to pick and choose whom we wanted. So through the through the last four five months I've been actively participating in uh uh setting up a good management 27:45 27 minutes, 45 seconds team there. Uh we we want to have them as a Spanish company. We don't want to substitute Indians. We want to maintain 27:53 27 minutes, 53 seconds the the Spanish legacy. uh and you know we want to encourage them to perform well instead of you know saying that we 28:01 28 minutes, 1 second will come and uh monitor you. So it's it's it's working out really well and uh we'll be continuing to support them with 28:09 28 minutes, 9 seconds whatever infrastructure from India as much as possible. 28:14 28 minutes, 14 seconds As I mentioned, we we've appointed professional teams to handle our financial oversight, our capital allocation, our uh export strategies is 28:23 28 minutes, 23 seconds majorly decided by me as to which countries and which customers we will initially target. Uh on the purchase 28:30 28 minutes, 30 seconds side, uh since I have a very good global uh connect, I am able to source very uh 28:37 28 minutes, 37 seconds efficiently for them. I'm able to introduce them to all the historical contacts friends where we which we made 28:44 28 minutes, 44 seconds in the working industry. They were pretty much used to only consuming domestic products, domestic raw material 28:51 28 minutes, 51 seconds of all. Today uh because of our network of being present in a different country they are able to uh you know bring in 28:59 28 minutes, 59 seconds raw materials which are much cheaper so that they can avoid seasonality. they can buy from Egypt when Spain doesn't have olives because Egypt also 29:07 29 minutes, 7 seconds cultivates Spanish olives. So this expertise I have lent to them and on a on a regular basis we have on a weekly 29:14 29 minutes, 14 seconds basis we have reviews and we monitor our sales and we understand you know try to understand what can be done to achieve 29:22 29 minutes, 22 seconds efficiency as well as improve profitability and how we can you know as two brands combined uh try to you know 29:30 29 minutes, 30 seconds scale up in a better fashion and and you know compete with the top three four companies which are already having a 29:37 29 minutes, 37 seconds very good role. The only way possible uh would be on the uh on the numbers again 29:44 29 minutes, 44 seconds where we see a very good future. It's majorly possible because of our uh cost effective strategies of sourcing the 29:51 29 minutes, 51 seconds products and localizing the manufacturing. So whichever whichever company competing in Spain does not have 29:58 29 minutes, 58 seconds their Indian production facility which is a very big advantage for us and wherever they were trying to be you know 30:05 30 minutes, 5 seconds very economical we are now economic floor our costs are much cheaper than them. So there's no reason why we should 30:13 30 minutes, 13 seconds not be you know the top two or three companies in Spain. In India we're already in the top two or top three. uh we want to reach the top one spot and in 30:21 30 minutes, 21 seconds Spain also hopefully in in in a couple of years we should be able to scale to that level. 30:28 30 minutes, 28 seconds Yeah. Some of the brand supermarket chains where Sarasa is already present. 30:32 30 minutes, 32 seconds Uh for example macro in English is metro. So we using them we are trying to participate in metro of Europe. Uh 30:41 30 minutes, 41 seconds they're already in spa and aeroski where from India to participate in this branch you have to go through middleman. 30:48 30 minutes, 48 seconds There's no direct uh handling of these brands because Europeans prefer a domestic company which can bring in 30:55 30 minutes, 55 seconds another product because they have for compliance purpose, for logistics purpose and everything. By partnering 31:02 31 minutes, 2 seconds with Sarasa, we will be automatically eligible to uh sell directly. So this will help us go through so many brands 31:10 31 minutes, 10 seconds which we have not been able to reach them so easily. Today we have access and we are trying to work try to you know penetrate all these brands. 31:20 31 minutes, 20 seconds That's it. Uh I open the floor for questions from them. Thank you Janet sir. 31:28 31 minutes, 28 seconds Investors the floor is now open for Q&A session. Before that I would like to request everyone to limit their questions to two and get back in the 31:35 31 minutes, 35 seconds queue again. Thank you. So we have first question from Mr. Deepakar. 31:42 31 minutes, 42 seconds Deepak sir you can go ahead and ask the question. 31:46 31 minutes, 46 seconds Yeah sir go ahead please. 31:50 31 minutes, 50 seconds Yeah yeah yeah thank you very much for this opportunity. So just first I wanted to understand now FI 27 will be the first year of full consolidation of our 31:59 31 minutes, 59 seconds Spain entity right uh so so so we expected gross revenue from Spain entity in FI27. 32:06 32 minutes, 6 seconds Oh yes we are anticipating that. and and and what sort of blended margins and it's the first year of our full 32:14 32 minutes, 14 seconds consolidation. So what's the blended margin sustainable margin we should be looking at somewhere around 10 to 11%. 32:21 32 minutes, 21 seconds Abita margin or pat margin? Pat margin. 32:27 32 minutes, 27 seconds Okay. And and in terms of your because of this global scenario any logistic challenges we are facing in exports how we are looking there. 32:36 32 minutes, 36 seconds See war brings challenges some roads are affected your state of hormones is affected but uh you know business always 32:45 32 minutes, 45 seconds finds it way. You know we are now transiting to through red sea because previously red sea was blocked. Today hormones is blocked. Red C is 32:52 32 minutes, 52 seconds functional. So shipments are going via Red Sea and via Cape Good. Only one or two countries in the Middle East are uh kind of blocked or you know expensive 33:01 33 minutes, 1 second but rest of the world is functioning normally. 33:04 33 minutes, 4 seconds Okay. And but where we are traveling from I mean what's the alternative would you imagine? 33:09 33 minutes, 9 seconds See the straight of hormones is majorly catering to know the Middle East countries right? So the Middle East 33:16 33 minutes, 16 seconds business is not so big for us. our European business they are going via Cape of Good and even Red Sea is being possible now I think we are okay we 33:26 33 minutes, 26 seconds don't have much of exposure to this particular route understood and just one last thing from my side on your B2C versus B2B mix how 33:35 33 minutes, 35 seconds should we repeat I mean I understand Spain is completely a B2C right whereas your India complete business is B2B so 33:42 33 minutes, 42 seconds how should we see this mix going forward uh it'll eventually equal up uh because scaling up all is uh going to be much 33:51 33 minutes, 51 seconds faster at doing one/ird of my volume they can uh reach my turnover actually because 33:58 33 minutes, 58 seconds the cost of olives and selling price of olives is almost 3x the times of gerkins so that way uh we will be even in a 34:06 34 minutes, 6 seconds couple of years where the B2B and the B2C share will be equal but having said that uh the Spanish company is not doing 34:15 34 minutes, 15 seconds B2B business and we want to introduce them to B2B business as well because that's a volume business where they can cater to many customers whom you know 34:23 34 minutes, 23 seconds who are very close to them but they don't even know about it. So our strength is B2B we'll try to push it in their strength is B2C where we'll try to 34:31 34 minutes, 31 seconds you know try to captate as much as possible. 34:35 34 minutes, 35 seconds So so basically 50/50% B2C and B2B that's what that will be the mix. Yes. 34:40 34 minutes, 40 seconds and and and and and what sort of pat margin at this level one can inad I mean or or a better margin because the B2C 34:47 34 minutes, 47 seconds margins will be better no our target is to bring the Spanish company to the Indian levels and to try to make it 34:55 34 minutes, 55 seconds better so that is what our short-term target is we are not looking uh at a 15 16% margin because we are there's a lot 35:03 35 minutes, 3 seconds of new unexplored territory for us as well we want to stabilize them in the first year and uh you know then push them to achieve volume as well as 35:11 35 minutes, 11 seconds margin. Since we are going to manufacturing manufacture a part of it in India, it helps us uh to be very you 35:18 35 minutes, 18 seconds know to bring them to our levels pretty quickly because in Europe you know the cost of manufacturing is higher but the products are of the of you know superior 35:26 35 minutes, 26 seconds quality. So we are trying to uh take over the weaker point and strengthen it and then reinfuse it to them. 35:34 35 minutes, 34 seconds That's very helpful sir. I mean would like to wish you all the that's it from mine. Thank you sir. Thank you. Next question is from Mr. 35:43 35 minutes, 43 seconds Suyesh Mandi. Mr. Suresh you can go ahead and ask the question. 35:53 35 minutes, 53 seconds Mr. Suresh you can unmute your line and ask the question. 36:02 36 minutes, 2 seconds Hello am I audible? Yes please. Yes sir. 36:06 36 minutes, 6 seconds First of all, congratulations on the strategic acquisition of the Spain company. Thank you. 36:11 36 minutes, 11 seconds Yeah sir, my first question was like we are competitors with Global Green and Ridzel and so I wanted to know where 36:19 36 minutes, 19 seconds does the FRA Fresh company stands in terms of cost advantages in procurement and competitive sales pricing in B2B as 36:27 36 minutes, 27 seconds well as retail in international markets with these companies. 36:31 36 minutes, 31 seconds uh we I I feel we are now head-to-head with global greens and uh rael has kind of 36:39 36 minutes, 39 seconds dropped compared to us. Uh Rael predominantly manufactures at least 70% for its own self and only 30% for the 36:47 36 minutes, 47 seconds rest of the world. uh our margins are much better because our cost cost control and our I mean our cost costs 36:55 36 minutes, 55 seconds are any day better than them because they have a European management in India and uh they have a very high cost outgo. 37:02 37 minutes, 2 seconds Uh we we on the other hand have a very lean cost output. So I mean you can easily say we have a 6 7% difference of 37:09 37 minutes, 9 seconds margin between us and them because our operating style model infrastructure everything is very lean when you compare with them. With global it's a different 37:18 37 minutes, 18 seconds scenario. It's a it's a larger company dealing with multiple products and not necessarily girins and their method of 37:26 37 minutes, 26 seconds operation also is a little uh you know expensive. So when you compare with these two companies we are highly 37:34 37 minutes, 34 seconds efficient. Uh probably they are older entrance in the industry. So they are at those levels. Probably if we had that time then you would have scaled to much 37:42 37 minutes, 42 seconds greater heights. But on a competition basis, our prices will be cheaper compared to that. 37:49 37 minutes, 49 seconds Okay. So that that sounds helpful. Sir, I have another question. Uh sir, so the 200 crores guidance that you have given 37:57 37 minutes, 57 seconds for the Spanish company, I wanted to know how much it is from the B2C uh and how much it is from the exports that we are looking to do. 38:07 38 minutes, 7 seconds uh they are they are already uh with no great effort they should do this turnover in B2C itself uh the B2B 38:16 38 minutes, 16 seconds addition which will come is going to be value addition I wouldn't want to speak about it now it will it should giving it should be giving us a bonus number when 38:24 38 minutes, 24 seconds we finish okay okay sir that was from my side thank you thank you thank you next question is from Mr. 38:33 38 minutes, 33 seconds Bharat Kumar Mr. M you can go ahead and ask the question. 38:44 38 minutes, 44 seconds Hello sir. Uh yeah uh good afternoon. Thank you for the opportunity. Uh congrats on good numbers sir. Uh just two questions from 38:53 38 minutes, 53 seconds my side. First is on your uh growth guide trajectory guidance. What do you say? uh know you you've seen you've 39:00 39 minutes reported about 320 uh 325 crores in your standalone business and and the growth rate over there you did mentioned that it has been quite strong over the last 2 39:08 39 minutes, 8 seconds years and you expect that momentum to continue and SAS of course is going to contribute another 200 crores so FI27 39:16 39 minutes, 16 seconds uh revenue guidance of about 575 looks conservative in that sense uh any any specific reasons why you feel that it'll 39:23 39 minutes, 23 seconds be lower this year uh I would want to be conservative uh and try to give a better number when the 39:31 39 minutes, 31 seconds result come out. So that's been my strategy throughout and I wouldn't want to throw big number because see I'm also 39:38 39 minutes, 38 seconds entering a new country. Uh I'm trying to make good out of it. The the scale of the European unit is they're capable of 39:47 39 minutes, 47 seconds doing 500 crores but uh I'm trying to do it in a very uh profitable way. That's the reason I would want to stick to this 39:54 39 minutes, 54 seconds number and try to come out with a better number when we finish. 39:58 39 minutes, 58 seconds Understood, sir. Understood. Uh the second one is on the uh working capital. 40:03 40 minutes, 3 seconds I I I could see that the inventory levels have gone up quite materially. Um any any uh light you want to throw on this and anything uh which is a year end 40:12 40 minutes, 12 seconds phenomenon which will normalize over the period something on those lines please. 40:15 40 minutes, 15 seconds Basically uh the Q4 is when all of the 4,000 plus farmers contribute to us. I mean they the Tamaladu circle the the 40:24 40 minutes, 24 seconds Karnataka and the Andra all three have crops at the same time. So in the last year what has happened is our yields 40:31 40 minutes, 31 seconds have kind of doubled. Uh and this three month crop is used to service the next six seven months. So we we welcome any 40:39 40 minutes, 39 seconds crop which is available because we know that the next crop is going to be in June. It's a seasonal phenomena. uh so if you take the inventory in March it is 40:47 40 minutes, 47 seconds very high because that's when the all the crop arrives Jan to March and in April and May most of it gets sold and and like 8 to 9 months of the year we'll 40:56 40 minutes, 56 seconds have probably 30% lesser inventory and uh uh the the two peak seasons one which ends in July September is one season and 41:06 41 minutes, 6 seconds the Jan March season these two are the crop arrival periods so this is the period when we try to accumulate the most and try to sell the most because a 41:14 41 minutes, 14 seconds lot traction happens here. So it's it's a it's a kind of a seasonal phenomenon and it which usually evens out through the year. 41:23 41 minutes, 23 seconds So no one off or anything relating to uh no no oneoff is we also try to accumulate a little more inventory 41:30 41 minutes, 30 seconds because we know one that the elino effect will take place. Second we were also anticipating the the war to kind of you know blow out on our face sometime. 41:40 41 minutes, 40 seconds uh a lot of uh plastic uh manufacturing companies uh glass manufacturing companies all of them had told an 41:47 41 minutes, 47 seconds escalation will happen. We had open contracts with us with them and we tried to buy out everything which they had it 41:55 41 minutes, 55 seconds gave us about 15% 20% of savings on the raw material and that we are using it now because our contracts were closed in 42:02 42 minutes, 2 seconds Jan March with our customers whom we have to supply in April May June and July. So if we don't go all out and source those raw material and packing 42:10 42 minutes, 10 seconds material, we may lose out on our margins. So uh the cost of funds is a little lesser for us. So we decided 42:18 42 minutes, 18 seconds preemptively to you know buy whatever stock these distributors had. Uh in fact one of the jar manufacturing companies has shut down they are shut they've shut 42:27 42 minutes, 27 seconds down their furnaces until July and the other one has straight away said that the price are up by 30%. So all this was 42:34 42 minutes, 34 seconds communicated to us in uh February and March and we work to together with the suppliers and source as much as material 42:41 42 minutes, 41 seconds possible which we are consuming it now and we don't have to go back to our customers saying that you know you have to increase the prices which customers eventually would not do immediately and 42:50 42 minutes, 50 seconds it will take some time. So it's given us a a breathing space of four five months where we can negotiate our contracts better for the next time and uh yes it 42:57 42 minutes, 57 seconds was a strategic uh uh thing to do. I think uh we've seen wars before u the Russian war happened same timeline until 43:06 43 minutes, 6 seconds 2022 uh then the the Palestine problem happened the same time so these Feb marches if you we have to we we try to 43:14 43 minutes, 14 seconds be a little cautious because we want to be selling daily we don't want to say that we are seasonal we want we want to have customers products off the shelf we 43:23 43 minutes, 23 seconds want to be ready to supply anytime so that strategy we adopt uh adopt through the years and yes it works well for us 43:30 43 minutes, 30 seconds to you know that way we'll make better marches. 43:34 43 minutes, 34 seconds All right sir. Thank you very much and the best wishes. Thank you. Thank you. Next question is from Mr. 43:40 43 minutes, 40 seconds Shoubam Gupta. Mr. Shoubam, you can go ahead and ask the question. 43:49 43 minutes, 49 seconds Hello. Am I audible? Yes. Yes. 43:52 43 minutes, 52 seconds Okay sir. So you previously told that uh if uh this Iran US war gets solved then 43:59 43 minutes, 59 seconds Iran was your earlier the like major customer. So if this sanctions gets reduced then uh or it gets removed. Will 44:08 44 minutes, 8 seconds it uh will there be any jump in your revenue? Iran uh Iran was never our customer. 44:15 44 minutes, 15 seconds We've never supplied to Iran because of the challenges in the banking circuit. No bank could accept payments from Iran. 44:22 44 minutes, 22 seconds So we keep away from Iran. But what we understand is Iran is a rich country. 44:26 44 minutes, 26 seconds They don't have supply of global products. Uh yes, if everything goes well, we have an additional country. It 44:33 44 minutes, 33 seconds is as large as probably Iraq, right? So there's a huge consumption there which has been curtailed because of sanctions. 44:41 44 minutes, 41 seconds A lot of businesses will benefit. Not only are every business from India, we have very good trade relationships, right? Iran. So that way yes, it's a 44:48 44 minutes, 48 seconds bonus country. Through the wars a lot of countries which come and go like M&M, Syria, all the Middle East countries are good consumers of food products 44:56 44 minutes, 56 seconds especially mango puri, mangoes and everything. Today a lot of them are gone. Um yes yes if Iran comes back it's going to be good for business for everybody. 45:05 45 minutes, 5 seconds Okay. And sir uh the margins in the current business and the Spain business they are almost same around 11%. Right. 45:12 45 minutes, 12 seconds Pat margins. No, at the moment the Indian margins are around 11 12% but Spanish margins are close to that is 45:19 45 minutes, 19 seconds about four 5% because we just had two two months of business. We expect to reach about 8 to 10% and try to you know improve it from there. 45:30 45 minutes, 30 seconds Okay sir. Okay. Thank you. Thank you. Next question is from Mr. Gita Tandal. 45:38 45 minutes, 38 seconds So please go ahead and ask the question. Am I audible? Yes. 45:44 45 minutes, 44 seconds Yeah sir. So you have mentioned in your PPT that there is a 150 crores of planned capeex for capacity addition and 45:51 45 minutes, 51 seconds also you previously guided that by the end of this financial year we will be utilizing our unit to capacity to 100%. 45:58 45 minutes, 58 seconds Right? So there is no 150 plus capex addition. 46:04 46 minutes, 4 seconds It is the slide states that if we had done the Spanish entity all by ourself we would have costed 150 cr. So there 46:12 46 minutes, 12 seconds are no yeah thanks for hearing that and also sir there is a report from IMD that 46:18 46 minutes, 18 seconds there will be a monsoon impact. So have you had a word with any farmers related to this like will be having any impact 46:26 46 minutes, 26 seconds in future regarding the crops or the raw material supply coming into the factories. 46:31 46 minutes, 31 seconds See El Nino repeats itself over a period of I think 3 four years. So this is not the first Elnino we've seen. uh anticipating Elnino we've procured a lot 46:40 46 minutes, 40 seconds of uh crop uh in the months of Jan Feb March uh the yields have doubled compared to the last Elino years when 46:48 46 minutes, 48 seconds the average yields were 3 four tons per acre today we are 8 to 10 tons per acre so I I don't think climate plays a very 46:56 46 minutes, 56 seconds major role for us our growth has been consistent over a decade so you would have we've gone through the years of 47:03 47 minutes, 3 seconds very you know hot years or very wet years or elino years It's it's a it's it's a it's a part of the process. Only 47:10 47 minutes, 10 seconds thing the heat will be very high. There may not be any excess crop. So when there's no excess crop, the benefit will be on the pricing because eventually uh 47:19 47 minutes, 19 seconds the customer understands the climatic pattern, right? So he tends to uh pay better or pay more or pay earlier and 47:26 47 minutes, 26 seconds try to get source more. So it's a it's a very good time for us where we don't need to you know bargain. So the 47:33 47 minutes, 33 seconds customer we know that the customer is understanding this situation and uh he's going to pay us better the coming year. 47:42 47 minutes, 42 seconds Got it. Got it. Great. Then sir, lastly I just wanted to understand like you previously mentioned that we were planning to launch some domestic 47:50 47 minutes, 50 seconds products here in India. So currently where are we on that? If you could please at the moment at the moment uh the only 47:58 47 minutes, 58 seconds only launching gins we have we've done some research. it is not going to be so much volumes and it is going to be 48:05 48 minutes, 5 seconds expensive to establish the brand. So the advantage what we are looking at now is the EU FDA treaty which makes exports 48:13 48 minutes, 13 seconds and imports kind of duty-free. So today uh the olives from Egypt uh sorry from Spain are already entering India paying 48:21 48 minutes, 21 seconds at about 30% duty. So they are very expensive olive olive oil and everything. So when this duty uh free 48:28 48 minutes, 28 seconds structure comes out, we'll be able to import olives which are you know a branded a branded uh uh uh set of olives 48:37 48 minutes, 37 seconds which are already being distributed in Europe. So that will give us a bigger basket and also a cost advantage where uh we'll have very good pricing. You know it'll make sense to do business. 48:48 48 minutes, 48 seconds Today we are dealing in volumes. when we get into B2C we want to have similar volumes otherwise it is not going to be greatly profitable. So we are working a 48:57 48 minutes, 57 seconds strategy on it. We are also discussing with our Spanish counterpart on how to bring their products to India. But yes we are at the moment very busy on 49:06 49 minutes, 6 seconds scaling global operations and you know since we've brought out Sarasa we want to take them to the level where we are 49:15 49 minutes, 15 seconds globally in B2B. So that that becomes our first priority and this becomes our next Okay sir, understood. But just wanted to 49:23 49 minutes, 23 seconds understand like when could we expect some products launching in India like by next FI or like could it is not going to be so soon. It is not 49:31 49 minutes, 31 seconds going to be so soon because launching a brand in India is not so easy. Today we still have un it's an unorganized 49:38 49 minutes, 38 seconds market. A lot of imports come in through various circles making good brands uh you know weak. So unless it becomes an 49:47 49 minutes, 47 seconds even playing even playing field right when when duties are gone it becomes an even playing field. So everybody can bring in products without duties. So 49:54 49 minutes, 54 seconds that that way a,000,000 rupee olive oil will become 600 or 700 rupees which will become more affordable. So we we need to 50:02 50 minutes, 2 seconds wait and watch uh what kind of reaction Indian market gives and keep our ourselves ready because we already have the product. It's just about you know 50:11 50 minutes, 11 seconds launching with distributors. So uh it's it's in a preliminary discussion stage. 50:15 50 minutes, 15 seconds I wouldn't want to name uh a brand whom we are talking to. It's leading Indian brand which is already distributing 500 course worth of products in India. So I 50:25 50 minutes, 25 seconds mean trying to find we trying to find out channels where we can use it and you know write piggy back on it but it's it's it's not we don't have a timeline 50:33 50 minutes, 33 seconds for it and our clear priorities are to do the global market first. 50:40 50 minutes, 40 seconds Thank you. Before we move forward to the next question, I request all the participants to limit their questions to one each. Thank you. Next question is from Mr. Akashi. 50:53 50 minutes, 53 seconds Can you hear me? Yes. Yes. Yes. Uh very good set of numbers sir. 50:58 50 minutes, 58 seconds Congratulations on that front. So I have uh three questions. So uh first on the capacity side I think in the BPD it's mentioned first one is already full. 51:07 51 minutes, 7 seconds Second is let's say 60% right? So on a go forward basis uh maybe it will get uh soon consumed up right. So any plans on 51:16 51 minutes, 16 seconds how we are kind of maybe expanding or how it would we go about and we have is is quite a large unit 51:24 51 minutes, 24 seconds when you see on the industry perspective uh the capacity which we have mentioned it uh it it shows only for one or 51:34 51 minutes, 34 seconds probably two production lines. We have space for more production lines. uh we want to scale it up uh gradually. We don't want to put everything together and uh try to hit it at the same time. 51:45 51 minutes, 45 seconds So by the time I mean the the unit itself is capable of doing close to 500 cr. So we we don't really require a large capex or anything but yes as we 51:54 51 minutes, 54 seconds bring in premium customer the requirement of capex are there here and there. So we we try to add it on to accommodate customer and with years you 52:04 52 minutes, 4 seconds can see that you know intrinsic expansion of production capacity will happen and no major capex would be required. 52:10 52 minutes, 10 seconds Okay. Okay. And uh for uh this Sarasa acquisition so how did we fund it uh like internal accur I'm not sure like 52:19 52 minutes, 19 seconds how it was around. So I I actually joined it. So I think I messed on Frank. 52:25 52 minutes, 25 seconds No. Uh Sarasa's uh funding we we purchased 34 crores plus worth of raw material in the in the acquisition about 52:34 52 minutes, 34 seconds 7 and a half crores uh to the company to take the brands and assets and we've taken over a mortgage liability. So we've not paid for it. We are servicing 52:43 52 minutes, 43 seconds it. Uh a part of it you know 25% of the acquisition cost was funded with internal ac. We've gone ahead with 52:50 52 minutes, 50 seconds warrant about the warrant. uh remaining was bank funded for the stock where we 52:57 52 minutes, 57 seconds got a uh 2930 cr limit to buy the stocks and it'll be going forward used in the working capital. 53:06 53 minutes, 6 seconds Next question is from Mr. Mit Sha. Mr. 53:09 53 minutes, 9 seconds Min, you can go ahead and ask the question. 53:18 53 minutes, 18 seconds Hello. Am I audible? Yes. 53:22 53 minutes, 22 seconds Yeah. Thanks a lot for giving me the opportunity and heartiest congratulations on setting good set of numbers. uh first request uh you know uh 53:30 53 minutes, 30 seconds you know if you can finish presentation you know at least a day advance so know we can just go through it and then uh 53:38 53 minutes, 38 seconds yeah yeah yeah so that's fine fine and and and really appreciate that I can see that we have a two-hour call you know as 53:45 53 minutes, 45 seconds as compared to you know we attend all the companies call it is restricted to 1 hour so really appreciate for that for conducting for 2 hours so okay my first 53:54 53 minutes, 54 seconds question you know is that uh I can see you So if you see the cash flow uh it looks uh still negative. So is that what 54:03 54 minutes, 3 seconds is the way ahead? I mean what is the thought on that you know to improve the cash flows and preferably to turn it into positive. If if you can give 54:10 54 minutes, 10 seconds thought on that the cash flow depends on too many geographical uh situations which we are going through. Uh and we 54:19 54 minutes, 19 seconds being uh we are trying to be attractive to customers. We are trying to sell more. So for example the current year we 54:27 54 minutes, 27 seconds are looking to scale up close to 400 crores of sales. So our next crop is only in June and July. So April May we 54:34 54 minutes, 34 seconds don't have crop. So it makes sense for us to purchase more because we have the buying capacity when the crop is available rather than allow different 54:44 54 minutes, 44 seconds factors to affect the cost of the product. Our priority is to maintain profitability. So that way buying up stocks more or early helps us in retain 54:53 54 minutes, 53 seconds the profitability and uh fortunately or unfortunately the the year end for us falls on March end and the crop end also 55:01 55 minutes, 1 second falls on March end. So if you see on the European standard December to December it would be probably a even spot because it completed a full crop season in in 55:10 55 minutes, 10 seconds April and May I become cash positive in probably in July or September I may be cash negative and similar situation 55:17 55 minutes, 17 seconds happens in March. Uh also we are now going forward you know we are treating inventory with more uh uh optimize we 55:24 55 minutes, 24 seconds are trying to optimize it. Uh since we have two units now previously was only one unit. When you you know when where when a new unit comes in you have to 55:31 55 minutes, 31 seconds stock it up right from the start. Every every packing material has to be replicated for both units. Previously it was only one unit. Today everything has 55:39 55 minutes, 39 seconds to be duplicated kept extra because you have production lines in both factories running. So when we reach a scale of a 55:46 55 minutes, 46 seconds certain probably maybe 400 500 crores we should be uh you know you know more utilizing it in a in a in a better 55:55 55 minutes, 55 seconds fashion. So that way I think we'll turn cash positive and if at all these wars don't have a psychological impact on you know on numbers. So so basically we 56:04 56 minutes, 4 seconds don't want to we want to have good sales right so without without good packing material good arrival of raw material we cannot do it. 56:12 56 minutes, 12 seconds that constantly I've seen years where things go haphazard when wars start Palestine war, Russian war. So as a 56:20 56 minutes, 20 seconds promoter I try to ensure that nobody should say that you know we don't have stock we should always have stock irrespective of what the global pattern 56:28 56 minutes, 28 seconds is. Yes when when the world becomes more stable it will become very easy for us but yes going forward I'm also trying to optimize it in a better scale so that 56:37 56 minutes, 37 seconds you know we are cash faster in the coming year. 56:41 56 minutes, 41 seconds Noted. Understood. Thanks for that. And secondly, next question is from Mr. Kushel Sari. 56:49 56 minutes, 49 seconds Mr. Kusher, you can go ahead. Hello. Am I audible? 56:58 56 minutes, 58 seconds Yes. 57:00 57 minutes So, uh talking about Sarasa capacity, how much uh utilization currently we have? 57:07 57 minutes, 7 seconds It's roughly around less than 50%. less less than 50%. And on the peak utilization uh what will be 57:15 57 minutes, 15 seconds the maximum we can uh make it in a turnover? It should easily do about 500 crores. 57:24 57 minutes, 24 seconds 500 cr from Sarasa cap alone existing capacity. 57:28 57 minutes, 28 seconds Okay. And my second question was on uh if we can add some more valuated products like olive oils. Are we 57:36 57 minutes, 36 seconds planning to add uh those in our portfolio? Olive oil see oil goes into commodities. 57:42 57 minutes, 42 seconds We generally don't want to deal with products which have fluctuating margins. 57:47 57 minutes, 47 seconds We are currently dealing with products with very stable margins and we want to position oursel as a fine foods uh exporter or importer. That way it's not 57:56 57 minutes, 56 seconds in our portfolio. you would want to add more products like the cocktail olives which I had showed in the presentation like we need to put fruits vegetables 58:04 58 minutes, 4 seconds which I also showed in the presentation there are a lot of opportunities there we we have to capitalize it first and as I mentioned it's a very large it's a 58:12 58 minutes, 12 seconds 63,000 cr market it's a very large market cap and we're very small in it will take time for us to utilize the entire market 58:21 58 minutes, 21 seconds okay thank you that's it from my side thank you next question is from Mr. Mr. 58:27 58 minutes, 27 seconds Bala Kumar. Mr. Bala, you can go ahead and ask the question. Yeah. Hello sir. Good afternoon. 58:40 58 minutes, 40 seconds I cannot hear you. 58:40 58 minutes, 40 seconds So I increase you. [snorts] Hello. Is it audible now? 58:50 58 minutes, 50 seconds Yeah. So first question is regarding the INR depreciation. I understand you have packing credit which will take care of the uh you know currency fluctuation to 58:59 58 minutes, 59 seconds a large part but the reset orders what uh you know is coming from the customers 59:05 59 minutes, 5 seconds should be uh in INR terms uh higher per turn or per kg basis right 59:14 59 minutes, 14 seconds we will have forex gains we have a lot of forex gains so that will reflect in which quarter sir 59:21 59 minutes, 21 seconds we already uh having See here on year using the currency depreciation INR depreciation 59:29 59 minutes, 29 seconds every every export it is getting affected that you know we are getting better receivables. So at some particular time 59:38 59 minutes, 38 seconds customers also start pricing it because you know 25% of representation of euro alone the customers is going to say okay give me a particular price right but yes 59:46 59 minutes, 46 seconds it's already reflecting in all in the last quarter itself it started reflecting right okay so even without that uh you 59:54 59 minutes, 54 seconds are confident of achieving the 10% margin is it actually it gives us a very good cushion 1:00:01 1 hour, 1 second and bonus because we have a lot of receivables in Europe uh we borrow also in euro. So the interest cost is very 1:00:09 1 hour, 9 seconds comparatively low the INR. So if you see our interest cost compared to last year though our sales has grown the interest 1:00:16 1 hour, 16 seconds cost hasn't gone up much. So that way we try to utilize the currency to its full potential and now we are in both trades. 1:00:23 1 hour, 23 seconds We are we are supplying to our own subsidiary. I mean Sarasa Sarasa also 1:00:30 1 hour, 30 seconds the the sales turnover on Sarasa will look better for us here as well because of the conversion rate. So it's it's a win-win situation for all I think most exporters if they use it properly. 1:00:41 1 hour, 41 seconds Okay. Got it. So second question is on the uh acquisition. So uh the when we acquired the company had uh you know got 1:00:50 1 hour, 50 seconds into bankruptcy. Now uh we have if we if we look at the numbers on 28 crores we have made profits on the Sarasa 1:00:59 1 hour, 59 seconds uh operations as well for the last two months. So how this turnaround happened from bankruptcy to you know losses one and second one uh you have mentioned 1:01:08 1 hour, 1 minute, 8 seconds that uh you know the long-term plan is to achieve 1,000 cr on a consolidated basis. So including Sarasa and the 1:01:15 1 hour, 1 minute, 15 seconds Indian operations how do we expect to fund the working capital I understand that's the know major kind of funding you would require. 1:01:23 1 hour, 1 minute, 23 seconds So these are the questions. 1:01:24 1 hour, 1 minute, 24 seconds Sarasa before last year they were actually profitable. 1:01:29 1 hour, 1 minute, 29 seconds the company weathered out due to a family problem. So you know it was a very it was a leading business. If you you read about the company you will see 1:01:37 1 hour, 1 minute, 37 seconds that they have uh been kind of a market leaders for so many years and when the year that the family disintegrated uh 1:01:44 1 hour, 1 minute, 44 seconds they I mean each of them split basically so nobody wanted to participate in the business and so vice versa I don't I 1:01:51 1 hour, 1 minute, 51 seconds don't want to go into their family legacy. uh the olives business rest of the company if you see the top five 1:01:58 1 hour, 1 minute, 58 seconds companies are all a bit and bad pat positive so European olive market is actually bad positive so why wouldn't a 1:02:05 1 hour, 2 minutes, 5 seconds company like Sarasa do you know make money it was nothing but operationally not well uh and they had legacy issues they had people who had worked for years 1:02:13 1 hour, 2 minutes, 13 seconds and you know in European labor law everything's expensive and exit is expensive uh maintenance is expensive so 1:02:20 1 hour, 2 minutes, 20 seconds the bankruptcy gave an option to us that we could pick and choose whom we wanted. 1:02:24 1 hour, 2 minutes, 24 seconds So we we we picked up we removed all the legacy costs. We removed about 35. We didn't choose to take about 35 people 1:02:32 1 hour, 2 minutes, 32 seconds who were you know uh the company was servicing them without any uh revenue. So we were able to do that. Now 1:02:39 1 hour, 2 minutes, 39 seconds we have a very thin force. Uh we removed some SKUs which were not profitable. 1:02:45 1 hour, 2 minutes, 45 seconds They were just doing for the brand name and they they never sourced out of Spain. They I mean for olives for India 1:02:52 1 hour, 2 minutes, 52 seconds from India they ser they source birkkins but whatever product they ser service in Spain mean bought in Spain they bought 1:03:00 1 hour, 3 minutes it very high cost so we've been able to change all of it it was very very simple task it wasn't a very great uh thing to 1:03:08 1 hour, 3 minutes, 8 seconds do there were companies who are willing to buy Sarasa but uh you can say that you know our pitch and approach at the right time really worked 1:03:16 1 hour, 3 minutes, 16 seconds for us so it's going to be a very very good advantage for us we can put it in the top two top three bracket and all 1:03:23 1 hour, 3 minutes, 23 seconds the top five companies are highly profitable. I think we should be we also there we should be in establishing and for regarding the funding part of it uh 1:03:32 1 hour, 3 minutes, 32 seconds uh I think we may not require much for this year probably from next year we may require to when we want to scale it to 1:03:39 1 hour, 3 minutes, 39 seconds 500 cr we may require uh fund but we we should we should be able to use the banks because they have they've had a 1:03:47 1 hour, 3 minutes, 47 seconds very good track record in the past and the profitable balance sheet we should be able to uh raise working capital 1:03:55 1 hour, 3 minutes, 55 seconds secured or unsecured working capital in Spain and be able to run the show and probably will see next what's come. 1:04:05 1 hour, 4 minutes, 5 seconds Okay, next question is from Mr. Amit Bhatt. Mr. Amit you can go ahead and ask the question. 1:04:17 1 hour, 4 minutes, 17 seconds Mr. Rammit you can unmute yourself and ask the question. 1:04:25 1 hour, 4 minutes, 25 seconds Okay, we'll move forward to the next one. Mr. You can go ahead and ask the question. 1:04:50 1 hour, 4 minutes, 50 seconds Okay, we'll take next question from Mr. 1:04:52 1 hour, 4 minutes, 52 seconds Dhulkani. Mr. Desh, you can unmute your line and ask the question. Uh hello sir am I audible? Yes sir. Yes. 1:05:00 1 hour, 5 minutes Okay. Uh thank you for taking my question and really great set of numbers as well as uh know congratulations on this uh acquisition strategic acquisition. So my simple question is 1:05:08 1 hour, 5 minutes, 8 seconds are we facing any challenges or risks do you see in terms of integration there either from local farmers regulations customers any sort of or everything is going smooth? 1:05:19 1 hour, 5 minutes, 19 seconds We've started off really well. U it's now all about scaling it. uh we've uh integrated uh different agencies who are 1:05:28 1 hour, 5 minutes, 28 seconds uh very supportive and since we bought a a company out of zero we we didn't have we didn't carry forward any of the legacy issues the previous company uh 1:05:37 1 hour, 5 minutes, 37 seconds has to I mean we we didn't buy the company we just bought the assets right so it's a it's a zero it's a zero start uh but comes with an advantage of a 1:05:45 1 hour, 5 minutes, 45 seconds brand and a large olive market so that way we are very uh lucky and you know grateful to 1:05:53 1 hour, 5 minutes, 53 seconds god that you we've got a platform where we can straight away uh start producing well and excelling from there. 1:06:00 1 hour, 6 minutes Okay, that's great to hear sir. Uh just one last point. Uh so the 14% debita margin on 200 cr revenues from sus you 1:06:08 1 hour, 6 minutes, 8 seconds you know you expect that only from olives right because you are moving out of the girkkins from the business they will continue to sell gerkins right 1:06:17 1 hour, 6 minutes, 17 seconds only the production will be outsourced they will continue to sell the gerkins and their production cost will be very low uh and olives they'll be able to 1:06:26 1 hour, 6 minutes, 26 seconds scale more instead of just instead of concentrating on gerkins they'll be able to scale more of olives and uh Yes, they 1:06:34 1 hour, 6 minutes, 34 seconds should be able to get good margins in the coming year. 1:06:36 1 hour, 6 minutes, 36 seconds Yes. And this 200 crores is 50% of the capacity we're still saying because you're saying we can go up to 50% they have opportunity because the 1:06:44 1 hour, 6 minutes, 44 seconds cost of all is the selling price of all is you know today we are talking in Indian rupees right so euros at 110 cr 1:06:52 1 hour, 6 minutes, 52 seconds it's already 25% higher uh plus even at one/ird of the quantity what we are doing their their numbers can still look 1:07:00 1 hour, 7 minutes very good because of the the pricing of the products in Europe. Okay, just last point like maybe I missed out but what's 1:07:08 1 hour, 7 minutes, 8 seconds the plan or strategy here to scale it to say 80% or 100% of the capacity utilization when do you think that would 1:07:15 1 hour, 7 minutes, 15 seconds happen and what's the likely you know uh see this year this year they will be at 50 60% uh and they should be able to do 1:07:23 1 hour, 7 minutes, 23 seconds the 200 core mark easily uh and then next year is when we'll be trying to stretch them to you know 75 80% that's 1:07:32 1 hour, 7 minutes, 32 seconds where we want them to finish somewhere close to 350 400 crores and from there go to 500 crores. So this year will be 1:07:39 1 hour, 7 minutes, 39 seconds more of optimization cost management and you know come to stable margins and then next year we'll be uh trying to expand or you know push forward for capacities. 1:07:50 1 hour, 7 minutes, 50 seconds So within so within 3 years we can hit almost 100% we can say within 3 years time we should much 1:07:57 1 hour, 7 minutes, 57 seconds okay sounds really great sir. Thank you and all the best. I'll join the queue if I have any question. Yep. Thank you. Next question is from Mr. An. 1:08:05 1 hour, 8 minutes, 5 seconds Mr. An, you can go ahead and ask the question. Hello. Am I audible? Yes. Yes, please. 1:08:12 1 hour, 8 minutes, 12 seconds Uh, thank you for the opportunity to ask like the key bottleneck for us would be the sourcing for raw materials. 1:08:20 1 hour, 8 minutes, 20 seconds So uh when we are targeting 400 cr revenue for this year from from and around 200 K from Saras like how many 1:08:30 1 hour, 8 minutes, 30 seconds farmers are we trying to integrate in our ecosystem and secondly you mentioned sourcing from Egypt when there is nonseasonal 1:08:39 1 hour, 8 minutes, 39 seconds for olives in Spain. So what would be the first benefit for us for sarasa unit? So could you just let me know 1:08:46 1 hour, 8 minutes, 46 seconds that? Okay. See, uh, India has 90,000 90,000 plus farmers who are doing workings and we are sourcing from more 1:08:54 1 hour, 8 minutes, 54 seconds than 4,000 or 5,000 farmers. So, the the scope of uh sourcing is very good in India. Uh, previously we used to chase 1:09:02 1 hour, 9 minutes, 2 seconds the farmer number. Today all of us I mean the industry is chasing on yields. 1:09:06 1 hour, 9 minutes, 6 seconds As I mentioned, we've got two times higher yield compared to last year because we are now p practicing a lot of sustainable methods where the the output 1:09:15 1 hour, 9 minutes, 15 seconds is better, the yields are better. Today we are able to get about 10 metric tons which was actually possible 25 years back in the in the last few years we've 1:09:23 1 hour, 9 minutes, 23 seconds lost on the yields because uh a lot of uh you know you know what happens to farming when you keep doing it again and again. So now we've since we started 1:09:31 1 hour, 9 minutes, 31 seconds using drip and mulching and other method which are you know keeping the plant healthy consuming less water consuming 1:09:38 1 hour, 9 minutes, 38 seconds less effort from the farmer uh the farmer is also getting better returns going forward so the yields have gone up and uh as I mentioned we are only 1:09:47 1 hour, 9 minutes, 47 seconds tapping about 5,000 farmers there's a lot of scope to reach to other farmers to uh uh get our crop so there is no 1:09:54 1 hour, 9 minutes, 54 seconds challenge on sourcing as any such in India for the Spanish entity uh olives olives are are expensive. So so compared 1:10:02 1 hour, 10 minutes, 2 seconds to Egypt, Spanish olives are expens they're more premium. So they have one or two varieties which are not available in Egypt and vice versa. Uh but they 1:10:10 1 hour, 10 minutes, 10 seconds taste almost similar. So we also source olives from Egypt to prepare our abroad called Bandela. So we have a very good 1:10:18 1 hour, 10 minutes, 18 seconds network of olive suppliers in Egypt. We are trying to use the same supply network to cater to Sarasa and have the 1:10:24 1 hour, 10 minutes, 24 seconds backup of you know cheaper cheaper olives so that uh they have better margins where they continue 1:10:33 1 hour, 10 minutes, 33 seconds to do more of Spanish olive as well as substitute with the Egyptian olives. So this this is a very uh interesting uh part which I personally get involved 1:10:42 1 hour, 10 minutes, 42 seconds into and the nuances of understanding it you know uh this can really help to scale down your cost price. The cost 1:10:50 1 hour, 10 minutes, 50 seconds price really changes changes when you deal with multiple countries for the same raw material. So we are open to countries which we can which we which we 1:10:58 1 hour, 10 minutes, 58 seconds can you know use to substitute our products. That way it is helpful for the Spain. They were not using it well before. Now yes since our uh since we've taken up we are using it better way. 1:11:10 1 hour, 11 minutes, 10 seconds Thank you for the answer. So secondly uh I just want to ask we are we going to crossell both the products uh for sadasa 1:11:18 1 hour, 11 minutes, 18 seconds and fresher. So on regard to that uh you said you going to it's going to open up a European supermarkets for us and for 1:11:27 1 hour, 11 minutes, 27 seconds Sarasa they will be getting our customers. So on that so how you see the synergy working out for this year and 1:11:35 1 hour, 11 minutes, 35 seconds what kind of targets you are pushing for that see uh as I mentioned the current year it'll be more of uh you know 1:11:43 1 hour, 11 minutes, 43 seconds stabilizing the the Spanish operation with the existing network of more than 30 brands which they are already catering to I think more than 15,000 1:11:51 1 hour, 11 minutes, 51 seconds outlets in Spain and Europe. So this is where they can easily achieve the 200 plus cr and uh it is like their own 1:12:00 1 hour, 12 minutes brand. So it's very easy for them to manufacture. They don't have to source multiple packing materials and no different materials for different 1:12:07 1 hour, 12 minutes, 7 seconds countries matter right. So we are trying to bring in our large customers who who are already buying from Spain from a 1:12:14 1 hour, 12 minutes, 14 seconds different company the top five again. So these companies would are very happy with us. So we are inviting them to the Spanish plant introducing to them the 1:12:22 1 hour, 12 minutes, 22 seconds Spanish team the quality what we keep there and the brands what we have there and we've already started our sampling and you know the pricing is going to and 1:12:30 1 hour, 12 minutes, 30 seconds so the Spanish company would easily become a B2B company without much of effort. It is we plan to have an export team for 1:12:39 1 hour, 12 minutes, 39 seconds them and that will give us bonus sale and uh will really help us uh scale up numbers in the the coming year. 1:12:49 1 hour, 12 minutes, 49 seconds Next question is from Mr. Rushiri. Mr. 1:12:52 1 hour, 12 minutes, 52 seconds Rushi, you can go ahead and ask the question. 1:13:04 1 hour, 13 minutes, 4 seconds Okay, we'll move forward to the next one. Mr. Shah, you can unmute yourself and ask a question. Uh, sorry actually. Uh, Rushel here. 1:13:12 1 hour, 13 minutes, 12 seconds Hello. Yes. 1:13:13 1 hour, 13 minutes, 13 seconds Yeah. Yes, sir. My question is that you know you have guided for,000 cr revenue in FI aspiration till FI30 and if we see 1:13:22 1 hour, 13 minutes, 22 seconds that you know next year we'll go around 69% which you have guided 5 75 cr sales and after that like we are guiding 1:13:29 1 hour, 13 minutes, 29 seconds for,000 crores till FI30. So like FI 20 like 20 29 30 are we seeing like uh slowdown in growth basically around 20%, 1:13:38 1 hour, 13 minutes, 38 seconds it is just we have been very conservative. 1:13:41 1 hour, 13 minutes, 41 seconds See it's it's good to be conservative uh and uh you know come out with numbers which are better than what they are on 1:13:49 1 hour, 13 minutes, 49 seconds the screen right so yeah this is this is what I I I don't want to speculate too far at the same time I I would also want 1:13:56 1 hour, 13 minutes, 56 seconds to show you an aspiration of what the company is looking forward to so the next year's number would be shown to you next year only 1:14:05 1 hour, 14 minutes, 5 seconds okay and sir uh since about the Spain acquisition so since you said that ging will be supplied in India uh and and 1:14:12 1 hour, 14 minutes, 12 seconds we'll only focus all of there for the production. So I wanted to understand on the [clears throat] packaging part you know it will be really expensive for us 1:14:20 1 hour, 14 minutes, 20 seconds to do in the euro packaging part. So how we'll do that you know so in India so basically just wanted to understand for 1:14:28 1 hour, 14 minutes, 28 seconds olive packaging once we made the primary aim is to make girkin packaging in India olive will be a 1:14:36 1 hour, 14 minutes, 36 seconds secondary task at the moment the 30% of girkkins which they are selling we want to increase it first and we want to 1:14:43 1 hour, 14 minutes, 43 seconds domestically produce it in India they are producing it in Spain at a very expensive price so they are fighting for margins among the top brands like and 1:14:52 1 hour, 14 minutes, 52 seconds our fighting each other in India. So we don't want them to be in that fight. We want to be at a at a different level where the masses are much beautiful and 1:15:00 1 hour, 15 minutes help them achieve Indian standards of profitability rather than European standards of and about the packaging basically like 1:15:08 1 hour, 15 minutes, 8 seconds jar packaging the same see the same caps the same jars the same label carton everything which is in Europe India is already doing it 1:15:16 1 hour, 15 minutes, 16 seconds and most of the products in India in Europe and USA are manufactured from India it's just that we uh do not I mean the labels don't say too much on it but 1:15:25 1 hour, 15 minutes, 25 seconds that is already happening in India. In our industry, it is maybe at 5 10% there's no I mean there's no great penetration but I would want to take it 1:15:33 1 hour, 15 minutes, 33 seconds a different scale and uh help Sarasa you know become more of a two two product uh brand than only an olive product brand. 1:15:43 1 hour, 15 minutes, 43 seconds So as a scope for volume okay so for Sarasa for olive packaging would it be expensive we do it in Europe 1:15:51 1 hour, 15 minutes, 51 seconds that is what my question is. Oh that see saras olive packaging at the moment we see we want to we don't want to take 1:15:58 1 hour, 15 minutes, 58 seconds everything to India we don't want to be doctors overnight see it's a good product right so what we are trying to do is first year is going to be our 1:16:07 1 hour, 16 minutes, 7 seconds strength we are trying to measure our strength we are trying to improve our capability and capacity maintain get to the Spanish st because Spanish ingredients are a little different so we 1:16:16 1 hour, 16 minutes, 16 seconds are importing some of the ingredients from Spain and we are trying to be a Spanish brand being an Indian Indian brand in Spain is not going to work. 1:16:23 1 hour, 16 minutes, 23 seconds It's the same for every product from India. So first we try we want to achieve that taste reliability and a successful uh chain of you know supply. 1:16:34 1 hour, 16 minutes, 34 seconds So that will become we want to master on one product eventually opportunities are going to come the preservation methods are same. So if it works I think we'll 1:16:42 1 hour, 16 minutes, 42 seconds be bringing all production also to India but again only when they achieve at least 60 70 or 80% of their capacity. We 1:16:50 1 hour, 16 minutes, 50 seconds don't we want them to maintain their individuality. We don't want to know overnight turn things around. 1:16:56 1 hour, 16 minutes, 56 seconds And so right now we are focusing only in uh for this acquisition or any plans to add capacity in India also. 1:17:03 1 hour, 17 minutes, 3 seconds See progressive plans are there aspirational plans are there some are in progress some are in works. So as and 1:17:10 1 hour, 17 minutes, 10 seconds when they come forward I'll surely when they concrete I'll surely we'll take one last question from Mr. 1:17:19 1 hour, 17 minutes, 19 seconds Kelbal Mr. Mly you can go ahead and ask the question 1:17:34 1 hour, 17 minutes, 34 seconds Mr. Miy you can unmute yourself and ask the question okay we'll move to the next one Mr. 1:17:48 1 hour, 17 minutes, 48 seconds Shhat you can you unmute yourselves? 1:17:54 1 hour, 17 minutes, 54 seconds Yeah thanks for the opportunity. Uh I have one question uh you know do you see any impact of elino or the enhanced 1:18:01 1 hour, 18 minutes, 1 second fertilizer prices on the profitability of the business. 1:18:05 1 hour, 18 minutes, 5 seconds Uh the cost of the uh of the product which we get from the farmer it is onto the farmer only. uh what we do is uh we 1:18:14 1 hour, 18 minutes, 14 seconds try to uh have a little bit of a a beneficial price from for the farmer otherwise it is not really passed on to 1:18:21 1 hour, 18 minutes, 21 seconds the the exporter as such. El Nino is a repetitive for formula. It's happened I 1:18:28 1 hour, 18 minutes, 28 seconds think three times in our history. Hasn't caused any great uh effect or you know great change in demand structure or 1:18:37 1 hour, 18 minutes, 37 seconds anything because we don't uh we always flow after the rain. So rains are not bad. They probably 2 3% lesser the 1:18:44 1 hour, 18 minutes, 44 seconds chance of rain but they still rained. So we uh and also yeah as I mentioned we are using sustainable method like drip. 1:18:51 1 hour, 18 minutes, 51 seconds So when you when you have drip you really don't require a lot of water compared to previous years when we are completely depending on bore wells and 1:18:58 1 hour, 18 minutes, 58 seconds the farmers and we are helping them to source water today we don't uh there's no such need another advantage is our 1:19:05 1 hour, 19 minutes, 5 seconds yields have I mean kind of doubled so I don't think elino will elo is kind of a benefit to the agri 1:19:14 1 hour, 19 minutes, 14 seconds community because it it doesn't allow prices to go down it allows prices to scale up. So profitability during Elino actually should be better. 1:19:26 1 hour, 19 minutes, 26 seconds Yeah. Thank you. 1:19:30 1 hour, 19 minutes, 30 seconds Uh yes, Mr. Gad, you can ask one last question before we conclude. 1:19:36 1 hour, 19 minutes, 36 seconds Sir, I just wanted to understand one thing from the past like when we we got listed back in FI24, right? FI25, sorry. 1:19:46 1 hour, 19 minutes, 46 seconds And in FI24 our working capital cash conversion cycle days were somewhere odd around 400 plus days which suddenly 1:19:53 1 hour, 19 minutes, 53 seconds dropped to around 180 days around in FI26. Now again it jumped to 260 odd days. So what's the catch here? What am 1:20:01 1 hour, 20 minutes, 1 second I missing over here? Could you please throw some light? 1:20:04 1 hour, 20 minutes, 4 seconds We went public in on 24th October. Uh before that uh we we had only I think 3 1:20:11 1 hour, 20 minutes, 11 seconds months of uh public limited balance sheet. Previously we were I think we were we were a 1:20:18 1 hour, 20 minutes, 18 seconds partnership firm. So I think the data which you may have seen may maybe you know somewhere fixated between this. The cash cycle is usually nothing but most 1:20:27 1 hour, 20 minutes, 27 seconds of our arrivals are so phased that you know the quarter fours and the quarter two is when the crop comes entire south 1:20:35 1 hour, 20 minutes, 35 seconds India it's when the climate is an agriarian agriculture climate where the yields are expected the crop is also very high during those periods and rest 1:20:44 1 hour, 20 minutes, 44 seconds of the year there's not much of crop so yes the the financial closure of the year if the crop comes early it's a little different if the crop comes late 1:20:52 1 hour, 20 minutes, 52 seconds it's a little different otherwise It's it's not much of a difference and it averages out throughout the when you see it in in a 12 month period. 1:21:02 1 hour, 21 minutes, 2 seconds Oh, sure sir. Thank you. 1:21:08 1 hour, 21 minutes, 8 seconds Thank you. Janet will take like few two three questions from the chat box. Please. 1:21:14 1 hour, 21 minutes, 14 seconds It's from Mr. John. Have we entered any new countries in H2, FYI 26 and FY27? 1:21:21 1 hour, 21 minutes, 21 seconds In in uh we are in 40 40 or 42 countries. Ma'am, wherever Girkin is coming, we are already there. We are not 1:21:28 1 hour, 21 minutes, 28 seconds there in a country, it purely says that Girkin is not concerned. So I think I think the Gerkin market is around 40 to 45 country. We are not there in China 1:21:37 1 hour, 21 minutes, 37 seconds and Japan. Uh but that's a conscious decision. We don't want to have competition with Chinese or Japanese boys. 1:21:44 1 hour, 21 minutes, 44 seconds Okay. And his next question is has Sarasa acquisition opened any new markets for us and can you name them? 1:21:53 1 hour, 21 minutes, 53 seconds Acquisition has opened the world for us. 1:21:57 1 hour, 21 minutes, 57 seconds Almost all 120 plus countries are now in the range of fresh. It's not necessarily that we supply only girkin. We are going 1:22:05 1 hour, 22 minutes, 5 seconds to be a combined product supplier. So wherever olive is uh can go I think can piggy bank on it. Uh we will we will I 1:22:13 1 hour, 22 minutes, 13 seconds think we will come to know that you know there there will be more markets which we haven't explored. So using uh olive network I think we should be able to uh 1:22:23 1 hour, 22 minutes, 23 seconds enter Europe in a very uh broader fashion get into more of distribution into Europe as well as countries which are consumed olives. 1:22:34 1 hour, 22 minutes, 34 seconds Okay. And has the fertilizer price increase affected margins and how is the current market scenario in regards to fertilizer program went. 1:22:42 1 hour, 22 minutes, 42 seconds See the cost of fertilizer I mean the in on the whole crop uh the the cost of input of fertilizer I don't think is 1:22:50 1 hour, 22 minutes, 50 seconds more than 10%. Uh there are other chemicals fertilized other materials which are also used for growing the crop 1:22:58 1 hour, 22 minutes, 58 seconds like taking materials and mulching sheets. These are more expensive than today compared to fertilizer. There was a time when only fertilizers were used 1:23:06 1 hour, 23 minutes, 6 seconds but today we use a lot of other materials to sustain growth and you know uh get better yield. So a 10% increase 1:23:15 1 hour, 23 minutes, 15 seconds in fertilizer cost for a 10% input cost I it's not much of a variation and it's mostly cost calculated. 1:23:25 1 hour, 23 minutes, 25 seconds Okay. And Mr. from wanted to know revenue increased by about rupees 64 cr during FY26 but trade receivables and 1:23:34 1 hour, 23 minutes, 34 seconds inventory have also increased significantly could management explain the reason for this rise is it purely growth related 1:23:43 1 hour, 23 minutes, 43 seconds it is see we we are trying to scale up uh our operations we are trying to achieve 400 crores this year so when you 1:23:51 1 hour, 23 minutes, 51 seconds see 400 crores the the average stock we we usually hold 90 days stock So if you if you calculate on a monthly basis next 1:23:58 1 hour, 23 minutes, 58 seconds the next 3 months stock should be about uh you know it should be equivalent to what we have today. It is not the stock of the past but it's a stock of the 1:24:07 1 hour, 24 minutes, 7 seconds future because that produced stock is going to get sold in these months. And uh as I mentioned the Q4 is when our 1:24:14 1 hour, 24 minutes, 14 seconds sales are more about 60% or 65% of sales happen in Q4. our sales of uh in 1:24:21 1 hour, 24 minutes, 21 seconds December to March alone were 140 plus 140 crores and all of them are at a 90-day credit. So it's just that the the 1:24:29 1 hour, 24 minutes, 29 seconds seasonality of the of the product makes numbers look like this. But on an average if you see we are I think uh 1:24:36 1 hour, 24 minutes, 36 seconds majorly eight at 8 months or 7 months cash positive and probably rest of the time a bit here and there. 1:24:44 1 hour, 24 minutes, 44 seconds Okay. So investors due to time restrictions we will have to conclude this call. If you have any further queries you can write to us at info@mailadvises.com. 1:24:54 1 hour, 24 minutes, 54 seconds Thank you everyone. Thank you Janet sir. Thank you. Thank you. Thank you.