GSP Crop Science Ltd — Q3 FY26

GSP Crop Science Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=npxQq1YQi48 Published: 3 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the GSP Crop Science Limited Q3 FY26 earnings conference call hosted by Equa Securities Private Limited. 0:14 14 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:21 21 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone. 0:29 29 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Siddhhat Gekkar from Equida Securities Private Limited. 0:39 39 seconds Thank you and over to you sir. 0:43 43 seconds Good afternoon everyone and thank you for joining us today. We at Aquarius are pleased to hold the management of GSP crop science to discuss the 3QFI26 0:51 51 seconds results. We have with us today Mr. Bah Sha chairman and managing director Mr. 0:58 58 seconds Shahil Sha the CFO. I would now I would like to invite Mr. Bav Sha to initiate the proceedings for the result call. 1:07 1 minute, 7 seconds Over to you sir. 1:09 1 minute, 9 seconds Uh yeah good morning and good afternoon to all. Uh see basically uh uh welcome to the first uh call and uh see about 1:18 1 minute, 18 seconds GSP. So there are so many uh people uh who is uh joining first time. Uh so as a 1:24 1 minute, 24 seconds part of uh GSP uh GSP uh company uh who sorry to interrupt sir there is some background noise coming from your end. 1:32 1 minute, 32 seconds Okay now it's okay am I? Yes sir. 1:37 1 minute, 37 seconds Yeah see basically uh this GSP uh which is started by my father uh in 1985. So company is more than 40 years old 1:46 1 minute, 46 seconds company and our main strength is uh manufacturing, R&D and patent. Uh so in 1:54 1 minute, 54 seconds particular manufacturing uh we have two technical plants and one uh is for intermediate plants. So where we are 2:02 2 minutes, 2 seconds making uh uh many uh technical products and among these uh products uh 10 products uh in last uh 15 years uh we 2:12 2 minutes, 12 seconds have started first time uh in the in India which were imported by Madishell company uh so this is our strength. 2:20 2 minutes, 20 seconds Second, last year we have started one intermediate company where we are now making few intermediate also uh to 2:30 2 minutes, 30 seconds reduce our dependency on China. Uh it is our part of strategy and uh also in 2:36 2 minutes, 36 seconds future also it will continue. Same way uh in R&D we have two R&D one is 2:43 2 minutes, 43 seconds technical R&D and second is formulation R&D. So in technical R&D we are doing 2:50 2 minutes, 50 seconds innovative process uh so any new product where this is going on of patent in 2:57 2 minutes, 57 seconds future also so we are planning before 5 years uh to make this product viable and from basic raw metal. 3:06 3 minutes, 6 seconds in our R&D is doing the all necessary work and as a example uh one product called CTPR uh which was product patent 3:16 3 minutes, 16 seconds expired in uh 22 and process patent expired in December 25. So our R&D uh 3:22 3 minutes, 22 seconds team developed the innovative process and we launched this product in October 3:29 3 minutes, 29 seconds uh 22 and today uh GSP is one of the largest technical manufacturer company 3:35 3 minutes, 35 seconds in India. Uh same way we are we have in last few years we made few products uh 3:43 3 minutes, 43 seconds from basic growers. Second uh R&D is formation R&D where we are making a new uh formation also. Uh giving one example 3:52 3 minutes, 52 seconds SLR product uh which is SUSO immersion product. Uh in India uh GSP has started 3:59 3 minutes, 59 seconds first time this new formulations and same way there are few uh other formation also which is started first 4:06 4 minutes, 6 seconds time in India by GSP. Uh third is uh patent. So we have already received 102 4:14 4 minutes, 14 seconds patent in our basket and 108 patent is in our pipeline. Uh so from 102 patent 4:22 4 minutes, 22 seconds already we launch 12 product uh in last 3 years and this success successfully 4:30 4 minutes, 30 seconds and uh because of this success uh our uh this patented product business uh from 4:36 4 minutes, 36 seconds 3% before 3 years now it is 17%. And uh we our presences uh end 23 states and 4:45 4 minutes, 45 seconds also uh main all crops like patty uh sugar cane uh uh now new upcoming corn 4:52 4 minutes, 52 seconds uh wheat uh vegetables uh rice in everywhere and every crop we are present and we are very strong in particular 5:01 5 minutes, 1 second patty and pulses which is a future for India. So basically our main uh success 5:09 5 minutes, 9 seconds uh see basically last year because of 6 days continuous rain season was very bad for agrochemicals but as a strategy we 5:19 5 minutes, 19 seconds have three vertical one is B2P second is B2B export and third is B2C. So because of that and innovative process 5:28 5 minutes, 28 seconds patented product uh and new product uh our our this year also our 9 months results are also showing very good and 5:36 5 minutes, 36 seconds uh with the support of this uh this all vertical and patented things in future 5:42 5 minutes, 42 seconds also our growth will be uh good and it will be sustainable growth. So uh for financial I will uh share this. 5:53 5 minutes, 53 seconds So uh good afternoon everyone. Thank you for joining this call. I'll further take you through the uh strategy and the 6:01 6 minutes, 1 second thought process uh behind the company's uh growth and how do we see our company progressing. So as Bes said you know the 6:10 6 minutes, 10 seconds we are an integrated eochemical company wherein we have technical manufacturing capabilities as well as uh formulations 6:18 6 minutes, 18 seconds and we have three business verticals that is we have domestic B2B uh which is wherein we deal with almost all 6:25 6 minutes, 25 seconds agrochemicals in India uh who are our customers and uh uh we also have domestic B2C which is through our 6:34 6 minutes, 34 seconds distributor network we have almost 5,000 distrib distributors across India and we supply them material through our 24 CNF 6:42 6 minutes, 42 seconds locations which ultimately lead reaches the farmer and we have export which is also again a B2B business wherein we 6:50 6 minutes, 50 seconds export to almost 37 uh countries the split amongst our businesses is uh that that a domestic B2B constitutes almost 6:58 6 minutes, 58 seconds 40% of our revenues domestic B2C is another 40% that makes the domestic business at 80% and remaining export is uh 20%. 7:09 7 minutes, 9 seconds Uh now in terms of uh you know strategy the way we have been uh uh trying to differentiate ourselves in the market is 7:18 7 minutes, 18 seconds by introducing innovative products. So as Babed B said we started our journey uh by introducing 93 technicals uh in 7:27 7 minutes, 27 seconds 2011 being the first manufacturer in India after the innovator company and then uh since then we have uh introduced 7:36 7 minutes, 36 seconds such 10 technicals which are in which we are the first ones in India to launch. 7:41 7 minutes, 41 seconds Then uh what we have developed uh as a differentiation factor is that once we launch this off patent molecule, we try 7:50 7 minutes, 50 seconds to partner that molecule with different uh existing molecules or newer molecules and try to identify a novel combination 7:59 7 minutes, 59 seconds which is patentable and which also solves the purpose for a farmer in increasing its efficiency or to solving multiple problems by using one solution. 8:10 8 minutes, 10 seconds So that is how we have come up with this patent strategy wherein we have patented many of our such combinations. Uh 102 8:18 8 minutes, 18 seconds patents we have already received 108 are in pipeline and these combinations have been uh a success for us since last 3 8:25 8 minutes, 25 seconds years that with the increase in its contribution in our total revenue the margin profile has also increased. 8:34 8 minutes, 34 seconds uh in continuation to the strategy of uh uh launching innovative combination 8:41 8 minutes, 41 seconds products in the market for different solutions every year. We also give this uh patented molecules to our core 8:49 8 minutes, 49 seconds marketeers in B2B business. So the way we work is that we would launch a certain uh combination in our own brand 8:57 8 minutes, 57 seconds that is in our own B2C network and then once uh the product is popularized we would try to give it to other 9:04 9 minutes, 4 seconds co-arketers also for expanding the reach of this molecule. So that is how uh our strategy has been evolving around uh 9:14 9 minutes, 14 seconds bringing in new technicals which are getting off patent and once we bring those technicals we try to combine those 9:20 9 minutes, 20 seconds technicals with different uh uh partners so that at a farmer level there is better efficiency there is multiple 9:29 9 minutes, 29 seconds solutions available in one single crop and uh we are able to patent this combination and create a niche out of 9:37 9 minutes, 37 seconds this. To give you one example, you know, just 3 years back, we have uh launched a three-way combination product called PCT 9:46 9 minutes, 46 seconds 410. Now, this product is a seed treatment product which is used for coating of seeds before they are sewn. 9:53 9 minutes, 53 seconds Now, this uh product has been a blockbuster product for us wherein we are seeing that in the uh span of 2 to three years, we have scaled up the 10:01 10 minutes, 1 second volumes of this business to almost 50 to 70 cr rupees uh for this particular brand. Now this uh this product is 10:10 10 minutes, 10 seconds solving a lot of problems for farmers in terms of uh the yield or germination of the seed once it is sold. The rate at 10:18 10 minutes, 18 seconds which the germination happens is is resulting into a better yield for farmers. So by showing this advantages 10:26 10 minutes, 26 seconds and by uh putting marketing demonstrations across fields using trade demonstrations at dealer levels we have 10:33 10 minutes, 33 seconds been able to popularize this product and with the success of this product we have also been able to give this product to 10:39 10 minutes, 39 seconds co-arketing to other partners in this area. So that is how we have been focusing uh uh on our business. uh in 10:48 10 minutes, 48 seconds terms of financials if you see uh we have done uh in almost 9 months uh that that has ended December. So in that 9 10:57 10 minutes, 57 seconds months we have done revenue of almost uh 1,150 crores and in this revenue if you see uh 11:05 11 minutes, 5 seconds 1114 crores uh to be precise and this uh 114 crores we have done an AIA of 11:14 11 minutes, 14 seconds 153 crores. This 153 crores AITA is an increase uh of 32% from last year and 11:21 11 minutes, 21 seconds this uh uh has resulted into a PAT of 75 crores this year which was 59.6 crores last year. This 75 crores of PAT is also 11:31 11 minutes, 31 seconds after an exceptional item of uh adjustment due to new labor wage code effect wherein we have done additional 11:39 11 minutes, 39 seconds provisions under exceptional items for 4.5 cr rupes. So that is how the financials has panned out in the last uh 9 months. 11:48 11 minutes, 48 seconds Uh I think uh uh that is all from our side. If if you could uh uh we can open the floor for uh questions. 11:59 11 minutes, 59 seconds Thank you very much sir. 12:01 12 minutes, 1 second We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. 12:11 12 minutes, 11 seconds If you wish to withdraw yourself from the question queue, you may press star and two. 12:16 12 minutes, 16 seconds Participants are requested to use handset while asking a question. 12:21 12 minutes, 21 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 12:36 12 minutes, 36 seconds Participants to ask a question you may press star one. 12:49 12 minutes, 49 seconds Ladies and gentlemen, anyone who wishes to ask a question may press star L1 on your touchstone 13:12 13 minutes, 12 seconds participant. If you wish to ask a question, please press star L1 on your touchstone telephone. 13:29 13 minutes, 29 seconds First question is from the line of Shivanch Singh from IQA Securities. Please go ahead. 13:37 13 minutes, 37 seconds Hi. Hello sir. So my first question would be how should we think on FI27 given that IMDbs forecasted Nino for the KHI season? Your comments on that? 13:51 13 minutes, 51 seconds See basically uh yes definitely uh for Kashi's Alino uh see our as in my 13:58 13 minutes, 58 seconds earlier speech I told that we are uh more our link strong area is pett and 14:04 14 minutes, 4 seconds normally in par see 40% consumption is on paddy and par is showing where the 14:12 14 minutes, 12 seconds irrigation facility is there so we are not seeing much challenges because of uh this alum Right. 14:24 14 minutes, 24 seconds Okay sir. So also with the rising fertilizer prices do we see any impact on the farmer profitability or their ability to spend on the crop production products? 14:34 14 minutes, 34 seconds Okay. Basically uh because of this it is a huge shortage of fertilizer and uh because of that uh now uh we see that 14:43 14 minutes, 43 seconds nutrition product uh see we are the we have a few nutrition product also. So 14:50 14 minutes, 50 seconds this uh farmer is uh forced to uh to buy the this nutrition products and uh this 14:57 14 minutes, 57 seconds nutrition will uh definitely have a good scope and it will increase. 15:04 15 minutes, 4 seconds Okay sir. Uh also any sourcing challenges due to the Middle East conflict. 15:10 15 minutes, 10 seconds See normally we are sourcing from China and no doubt because of this food price it is reflected uh but there is already 15:19 15 minutes, 19 seconds pass on to the customers. So from 1st April we have increased the price from 15:25 15 minutes, 25 seconds uh 10 to 15% uh already uh to the market. So and we are not exporting any 15:33 15 minutes, 33 seconds uh product to the Middle East. Uh so we are not seeing any problem because of this. 15:42 15 minutes, 42 seconds Okay sir, understood. Thank you so much. Thank you. 15:50 15 minutes, 50 seconds Next question is from the line of Agnesh Burman from Vicaria Change LLP. Please go ahead. 15:58 15 minutes, 58 seconds Hi, good afternoon. Thanks for taking my question. Uh I just wanted to extend the last participant question a little bit. 16:05 16 minutes, 5 seconds uh because of this conflict um can you sir can you just tell us in a little bit more detail about what is the impact of 16:12 16 minutes, 12 seconds business and a little bit impact on the industry. So one is fertilizer but in terms of some of the other things like in your manufacturing what kind of 16:21 16 minutes, 21 seconds energy source you are using uh is there how has that changed how how much more you are paying for whatever energy 16:28 16 minutes, 28 seconds source you're using if you could just give a little bit more detail on the impact of business both on the supply 16:34 16 minutes, 34 seconds side and on the pricing costing side uh in in your business. Yes, definitely. 16:41 16 minutes, 41 seconds See, because of Middle East, one basic main uh concern is uh crude uh crude prices increase and because of that all 16:50 16 minutes, 50 seconds raw materal prices increase and there are few in few raw metal availability is 16:57 16 minutes, 57 seconds a concern. Uh so price has increased. So that price we have already pass on to the uh our customers. Uh and we have increased our price uh from 10% to 15%. 17:09 17 minutes, 9 seconds Number one. Number two, see basically autity of raw motor normally our strategy 17:16 17 minutes, 16 seconds we are for imported raw motor we are we are keeping 45 days inventory. So we are 17:23 17 minutes, 23 seconds not facing much challenge. No doubt there are the some very very rare raw 17:30 17 minutes, 30 seconds models are very critical but overall we we can't see any much any uh difference. 17:38 17 minutes, 38 seconds uh see basically logistic price has increased uh because of uh since their aity of ships are uh has decreased so 17:47 17 minutes, 47 seconds that from China it is already almost double and that because of that also prices increase and which is passed on 17:55 17 minutes, 55 seconds to the customers. Number three, basically uh see uh fertilizer for if you are talking about fertilizer 18:02 18 minutes, 2 seconds fertilizer because of gas price increase and even ammonia price is increased. So 18:09 18 minutes, 9 seconds fertilizer cost has been very high uh and it is availability is also very concerned. So normally in this case uh 18:18 18 minutes, 18 seconds so liquid fertilizer or nutrition product or there are the categories which are the comes in the fertilizer 18:27 18 minutes, 27 seconds act now it is like seaweed product or so many amino acid products. So these 18:34 18 minutes, 34 seconds products will definitely increase and in our case we have three four products. So we see that it is a good potential for 18:42 18 minutes, 42 seconds particular DCL and because farmer has to spray and if the fertilizer is not 18:49 18 minutes, 49 seconds available so they will go for nutrition products like uh this so I any any 18:57 18 minutes, 57 seconds questions you yeah yeah so I have a couple of followup uh I just want to divide my questions into two buckets one is on uh let's say 19:06 19 minutes, 6 seconds the cost increase and one is on the supply constraint so the cost increase uh from what I understand you have taken 19:12 19 minutes, 12 seconds a 10 15% price increase uh is it fair to say like the gross profit per kg that you were making that will kind of 19:21 19 minutes, 21 seconds sustain because of this 10% or 15% price increase or there would be some decrease in your gross profit per ton or per kilo 19:30 19 minutes, 30 seconds whichever way you want to define basically so uh so as you said you know the gross 19:38 19 minutes, 38 seconds profit uh typically would broadly be the same if you talk about per kg because whatever we are transferring uh as a 19:47 19 minutes, 47 seconds cost will be added to our profit. So that is uh uh the case when it comes to costing. Uh in B2B it is uh the prices 19:55 19 minutes, 55 seconds are very elastic so it is uh uh easier to pass on the cost. In B2C there is some lag with typically happens. So we 20:03 20 minutes, 3 seconds have started increasing our pricing on giving signals from 1st April wherein we are seeing the acceptance also coming from the market. uh in terms of uh 20:11 20 minutes, 11 seconds supply as you said there's no supply disruption per se where you know our production is currently getting impacted 20:18 20 minutes, 18 seconds but there are certain uh delays due to this shipping and logistics issue also if this get further prolonged say this 20:26 20 minutes, 26 seconds gets further prolonged by by another month or so then there could be a possibility where uh uh the supply uh 20:34 20 minutes, 34 seconds could be impacted but as of now we are fully covered in terms of our inventory and uh in terms of our uh overall production scenario. 20:44 20 minutes, 44 seconds Okay, quickly two followup questions before I get back into you. Uh the first is when you're transferring these kind of prices on a on your B2B business, 20:53 20 minutes, 53 seconds are you not facing any kind of backlash from your uh the partner because I mean typically what happens is if the cost in 21:00 21 minutes the supply chain goes up, everybody shares the pain. So what you are indicating is that you have transferred all the cost increase to the partner and 21:09 21 minutes, 9 seconds you are not getting impacted by it. All the hit is taken by the partner. Is that the right assumption? 21:14 21 minutes, 14 seconds So so what happens is that see in certain uh uh chemicals or agrochemicals while we are selling the final product. 21:23 21 minutes, 23 seconds So whatever cost increase is there typically we try to pass that increase to our B2B partners and as B2B partners are also working in the same environment 21:32 21 minutes, 32 seconds they are aware about the scenarios and they are aware about the uh situation in the global as well as the domestic market and sometimes it is also about 21:40 21 minutes, 40 seconds demand and supply where you know anticipating the uh uh the demand you know with the upcoming tariff season uh 21:48 21 minutes, 48 seconds everybody would like to have their supplies assured assurance becomes an important point while you know we are 21:55 21 minutes, 55 seconds discussing about such uncertainties. So there there is there in certain cases uh we are not able to pass as I said in B2C 22:03 22 minutes, 3 seconds wherein there is lot of channel inventory distributors are there there is lot of competition in that generic markets so there passing on that cost in 22:11 22 minutes, 11 seconds the B2C becomes difficult. Similarly in certain technicals which we procure. So there are certain technicals which we 22:18 22 minutes, 18 seconds also procure. There also we have seen that the price increase has already been passed to us. So it is a scenario where 22:25 22 minutes, 25 seconds everybody would transfer that cost but at a B2C level the price lag is there wherein after 2 to 3 months uh the price will increase. 22:35 22 minutes, 35 seconds Okay. And uh is it safe to assume that right now you're using your raw material inventory and in terms of supply of raw 22:42 22 minutes, 42 seconds materials things have not normalized uh and that is why if it extends for one more month then we can start to see some some problems. Right. 22:50 22 minutes, 50 seconds Correct. Correct. And also we have inventories at all stages be it raw material or finished goods or both. So 22:58 22 minutes, 58 seconds so this cost escalation which also happens as a company it would happen in phased manner. So we are able to pass on accordingly that way. 23:07 23 minutes, 7 seconds Thank you so much. I'll get back. Thank you. Thank you. 23:14 23 minutes, 14 seconds Move to the next question. A reminder to the participants to ask a question. You may press star and one. 23:21 23 minutes, 21 seconds Next question is from the line of Matria from Sappire Capital. Please go ahead. Yeah. Hello. I'm audible. 23:29 23 minutes, 29 seconds Yes, you're audible. Good afternoon. 23:31 23 minutes, 31 seconds Good afternoon. Uh few questions firstly firstly on the patented products. So you said we currently have 102 products that 23:39 23 minutes, 39 seconds we've patented. Uh close to how many have been commercialized? 23:44 23 minutes, 44 seconds So we have commercialized 12 patents uh till now and uh our plan is that you know we'll be coming up with such 23:52 23 minutes, 52 seconds launches one or two launches on an yearly basis where we will be adding products in our portfolio based in the segment that we are targeting for particular crops. 24:04 24 minutes, 4 seconds So a total a total of one to two launches uh annually is that what you're targeting? Correct. Correct. 24:11 24 minutes, 11 seconds Okay. And uh currently what percentage of sale comes from the 12 patented products? Um cuz we're just selling it 24:18 24 minutes, 18 seconds to the domestic market. So percentage of domestic market if you could say. 24:24 24 minutes, 24 seconds So currently if you see in the last uh uh financial year uh if you see almost 20% of our uh revenues have come from patented product. 24:35 24 minutes, 35 seconds Mhm. 24:36 24 minutes, 36 seconds And uh this year have we utilized any product in FI26? Yes, we have launched one product this year. 24:44 24 minutes, 44 seconds Okay. And how has been the kind of acceptance of that product and how are we like marketing that marketing it? 24:50 24 minutes, 50 seconds What sort of future do you see for that product going ahead? 24:53 24 minutes, 53 seconds Yes. So, so the launch product that we have it is an insecticide and a fungicide mixture uh which is into patty 25:01 25 minutes, 1 second crop. We are seeing good uh uh good results and we are seeing that uh you know this this will take say one season 25:08 25 minutes, 8 seconds for it to ramp up but it is a high potential product for us. 25:12 25 minutes, 12 seconds Okay. Um going forward um maybe two to three years down the line what sort of percentage of revenue are you targeting from your patented products? 25:23 25 minutes, 23 seconds So uh we are seeing that uh uh you know going forward in the upcoming 3 years we see that almost uh the growth rate that we are having we'll continue with that 25:32 25 minutes, 32 seconds growth rate that we are currently having. So broadly you know uh on a very high basis almost 40 to 50% revenue will be coming from this kind of products. 25:42 25 minutes, 42 seconds Okay that's amazing. Yeah. Yes. Hello. Yes. 25:50 25 minutes, 50 seconds Yeah. and uh FI 9 month FI26 what sort of revenue you had from the patented product 25:57 25 minutes, 57 seconds uh FI26 so far in I think yeah so FI26 we would almost 20% from these 26:04 26 minutes, 4 seconds patented products a similar range of them uh also these patented products might I 26:12 26 minutes, 12 seconds think create a higher margin compared to your just off patent technicals so uh what sort of margin differential you have on these products. 26:21 26 minutes, 21 seconds So, so typically yes uh it is right that the patented products have higher margin profile. So, typically the premium that 26:29 26 minutes, 29 seconds we get over generics is almost 20 to 25%. So, to give you an example, if uh if say generic product is having a 26:37 26 minutes, 37 seconds margin of say 35 to 40%, we are talking about gross profit margins from what we consume then the uh patented product 26:44 26 minutes, 44 seconds will be having say around 55 to 60% margins. Okay. 26:50 26 minutes, 50 seconds And uh all of the products are currently being manufactured in our capacity, right? Yes. Yes. 26:57 26 minutes, 57 seconds Um if you could help me out with the utilizations of our facilities, maybe the utilization of formulations and the utilization of technical. 27:07 27 minutes, 7 seconds Yes. So the utilization of formulations is typically considered at a lower side because formulations is used morely from 27:15 27 minutes, 15 seconds a seasonal perspective. It is a more simpler plant where no chemical reactions happen. It is more of mixing and grinding that happens. So there the 27:25 27 minutes, 25 seconds utilization is in the range of 30 to 40%. 27:29 27 minutes, 29 seconds Because of the seasonality the technical plants that we have which is one at near Ahmedabad and the biggest plant which is at Mandai there the capacity 27:37 27 minutes, 37 seconds utilizations are in the range of 70 to 75%. 27:42 27 minutes, 42 seconds And the peak utilization from u like the technicals and formulations close to we can like utilize close to 85 90%. 27:50 27 minutes, 50 seconds Yes. Yes, we can do around 90%. 27:53 27 minutes, 53 seconds Oh, you can go around 90%. Um at peak utilization how how much uh revenue do you expect from the total plants that we 28:01 28 minutes, 1 second have if we we running at peak utilization not on the formulations but under technicals. So with this technicals and with the kind of mix that 28:09 28 minutes, 9 seconds we have in revenues which is you know we have almost 75% of our business which is coming from formulations and 25% which 28:16 28 minutes, 16 seconds is technicals we see that with peak utilization we'll be almost reaching around 1,900 to 2,000 crores but there 28:24 28 minutes, 24 seconds is a plan or you know typically what happens is that within the same facility there is a scope for debottle necking and there is you know with the debottle 28:33 28 minutes, 33 seconds necking we can increase the capacities further in the existing uh uh plant also. Secondly, what is also happening is that all the newer 28:41 28 minutes, 41 seconds chemistries that we are introducing are all low volume high value products. So there also with minimum uh capacity we are able to do good value of business. 28:52 28 minutes, 52 seconds So we see that the plant is sufficient to cover you know almost our three years kind of uh uh strategy that we have in currently. 29:00 29 minutes That is great. uh you have any three-year kind of vision in revenue and margins you would like to uh 29:08 29 minutes, 8 seconds currently it will be difficult for us to uh uh share but you know broadly the growth rate that we have been experiencing since last 3 years we are 29:17 29 minutes, 17 seconds expecting that this or at least higher growth rate uh by another 5 7% is what we are targeting for the upcoming 3 years 29:26 29 minutes, 26 seconds that is great uh secondly on our exports are we are we planning to export our patented products uh to the B2B 29:34 29 minutes, 34 seconds businesses there or this is solely a domestic business that we're targeting? 29:39 29 minutes, 39 seconds No, we have plans. So, we have already opened a subsidiary in Brazil and uh as a part of that we are also registering 29:46 29 minutes, 46 seconds our patented products in which are established in India to other geographies specifically in Brazil. uh 29:54 29 minutes, 54 seconds where we are also trying to create a differentiated product portfolio for us to look for our uh expansion strategies 30:02 30 minutes, 2 seconds in Brazil going forward. So yes, we are in the process of registering our patented products outside India also and we are also exploring that whether in 30:11 30 minutes, 11 seconds these geographies we can patent these products also. 30:15 30 minutes, 15 seconds Okay. Um uh uh also the raw material sourcing 30:22 30 minutes, 22 seconds mostly it happens from China or are we also sourcing it from any other countries like the Middle East and what? 30:28 30 minutes, 28 seconds No, it is mostly from China. It is from China. The technical from the China? 30:33 30 minutes, 33 seconds Uh it will be all intermediates that we uh import from China for manufacturing of our technicals. 30:41 30 minutes, 41 seconds Okay. And uh have you seen a price increase on that coming in? um due to the conflict right now. 30:48 30 minutes, 48 seconds Yes, we have seen certain in certain products uh price have increased in intermediates. There are certain price increase in ancillary products also like 30:56 30 minutes, 56 seconds packing material which are plastic which are derivatives of petrochemicals. So there also we have seen certain price uh uh price increase but in our B2B 31:05 31 minutes, 5 seconds business we have been able to pass on uh majority of our cost uh to the customers whatever price increase is there. Oh, 31:13 31 minutes, 13 seconds also to the B2B clients that we are exporting to, we've been passing on the price increase. 31:18 31 minutes, 18 seconds Yes. Yes. Even to the global B2B clients because global B2B clients are also aware about the scenario and even in China they are facing this issue. So 31:27 31 minutes, 27 seconds from a competition standpoint almost every player would have increased their prices. 31:31 31 minutes, 31 seconds Correct. Okay. Uh any any reason why we are going so slow with the product launches because we have close to 102 patents and also close to 108 pipeline. 31:42 31 minutes, 42 seconds So do these launches take like 6 to 8 months? How how is the registration process? Um registration yes the registration for 31:51 31 minutes, 51 seconds one single product takes almost 5 years because it is a long drawn process. So whenever we are introducing one uh 31:58 31 minutes, 58 seconds product uh which is a patented unique combination it requires 5 years of trial and data generation before we register 32:06 32 minutes, 6 seconds this product. uh apart from registration what is important is how do we manage this product once we launched you know 32:13 32 minutes, 13 seconds so we have a team of almost 300 sales professional uh who are there along with 30 35 marketing professionals so for for 32:22 32 minutes, 22 seconds a team of this size to do generic business and also to handle new products and do marketing activities uh as per our uh business strategy we feel that 32:31 32 minutes, 31 seconds one or two launches in a year would justify the product's uh uh potential and we were able to then uh give enough new importance for us to scale it up. 32:42 32 minutes, 42 seconds Mhm. 32:44 32 minutes, 44 seconds And you also mentioned you are co-aunching some products with other marketeers. So any marketing partnership 32:51 32 minutes, 51 seconds that you could uh make a name out who are we partnering with? 32:56 32 minutes, 56 seconds Sure. So, so we do co-arket uh our patented uh products uh and there are different uh companies for different 33:04 33 minutes, 4 seconds products which we have co-arketed to give you examples like rallies has been uh one of the co-arketer uh sumitomo 33:12 33 minutes, 12 seconds chemicals uh even mankind pharma has a division of men and agree you have chumble fertilizers who are also our 33:19 33 minutes, 19 seconds co-arketing partners so the arrangement here works is more of a white labeling where it is manufactured by GSP and marketed by uh the marketing company. 33:31 33 minutes, 31 seconds That is great. Yeah. Thank you so much for answering all the questions. Thank you. Thank you. Thank you. 33:40 33 minutes, 40 seconds Participants to ask a question, you may press star and one. 33:48 33 minutes, 48 seconds Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchstone telephone. 34:03 34 minutes, 3 seconds participants to join the question queue. You may press star and watch it. 34:23 34 minutes, 23 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 34:35 34 minutes, 35 seconds As there are no further questions from the partners, I now hand the conference over to the management for the closing comments. 34:43 34 minutes, 43 seconds Yes. Uh thank you so much for your participation. Uh uh it was uh good answering your questions and hope we 34:50 34 minutes, 50 seconds were able to uh uh address your question. Thank you. Thank you for joining. Thank you sir. 34:58 34 minutes, 58 seconds On behalf of IQA Securities Private Limited, that concludes this conference. Thank you all for joining us.