Kanpur Plastipack Ltd — Q4 FY26

Kanpur Plastipack Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=8GDbi2bNcig Published: 9 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 and fullear FI26 earnings conference call of KPUR plastic pack Limited. Today we have with us Mr. 0:13 13 seconds Manoja, chairman K managing director and Mr. Shashakadaral, deputy managing director. 0:20 20 seconds We will begin with the opening remarks from the management followed by interactive Q&A session. Please note that this discussion may include certain 0:28 28 seconds forward-looking statements which which should be viewed in conjunction with the risk and the uncertainties that the company faces. As a reminder, all 0:37 37 seconds participant lines will be in the listen only mode and there'll be an opportunity for you to ask questions after the presentation concludes. Should you need 0:45 45 seconds assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:52 52 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 0:58 58 seconds Manager, chairman, come managing director for his opening remarks. Thank you and over to Mr. Garval. 1:07 1 minute, 7 seconds Good morning everyone and welcome to KTO Plus's earnings call for the fourth quarter and the full year ended 31st March 26. 1:17 1 minute, 17 seconds Thank you for joining us and for your continued engagement with the company. 1:23 1 minute, 23 seconds Financial year 26 has been a year of transition and consolidation for KUP Plastack. While the year reflects steady 1:31 1 minute, 31 seconds progress, a larger focus has been on building a stronger, more resilient and a future ready business model rather than short-term outcomes. 1:43 1 minute, 43 seconds Over the past year, our focus has been on moving beyond a purely volumedriven model towards a more balanced mix of scale and specialization. 1:54 1 minute, 54 seconds We have continued to strengthen our presence in core industrial packaging while gradually building capabilities in value added segments such as premium polyropene yarns and non-woven fabrics. 2:06 2 minutes, 6 seconds The ship is still evolving is important from a long-term perspective as it improves both margin visibility and earning quality. 2:15 2 minutes, 15 seconds The target continues to remain the foundation of our business. The strength of this segment lies not just in scale 2:22 2 minutes, 22 seconds but in the depth of longstanding relationships we have built with global customers over decades. 2:29 2 minutes, 29 seconds These relationships provide stability, repeat business, and the ability to grow sustainably over time. 2:38 2 minutes, 38 seconds At the same time, we're expanding into non-moving technical excels as a strategic growth revenue during the 2:44 2 minutes, 44 seconds year. This move is aligned with evolving demand across sectors such as automotive interiors, geoexiles, 2:54 2 minutes, 54 seconds artificial leather, carpets, and footwear. supported by India's rising GDP and increasing penetration of end use industries. 3:05 3 minutes, 5 seconds Our entry into this space also opens up opportunities in select B2C link applications over time which can further 3:13 3 minutes, 13 seconds diversify our business model and create new growth drivers. 3:19 3 minutes, 19 seconds At the same time, we have taken steps to strengthen the structural foundations of the business. Our investments in 3:26 3 minutes, 26 seconds capacity, infrastructure and capabilities are being made with a long-term perspective with a clear 3:33 3 minutes, 33 seconds emphasis on consistency, discipline and scalable growth. 3:40 3 minutes, 40 seconds A key of the journey is our approach towards partnerships. 3:44 3 minutes, 44 seconds A joint venture is aimed at bringing together global technology expertise and brand strength allowing us to leverage 3:51 3 minutes, 51 seconds India as a high growth market. This not only enhances our product capabilities but also accelerates our movement towards higher value segments. 4:02 4 minutes, 2 seconds In parallel, we are placing strong emphasis on building a more organized and future ready manufacturing ecosystem 4:09 4 minutes, 9 seconds with a focus on safety, process standardization, and increasing automation. 4:16 4 minutes, 16 seconds These are critical to improving efficiency, ensuring consistency, and supporting long-term scale. 4:24 4 minutes, 24 seconds The operating environment during the latter part of the year also saw some volatility particularly in raw metal prices driven by geopolitical 4:33 4 minutes, 33 seconds developments including the Iran conflict. This led to fluctuations in input costs and pricing dynamics across the value chain. 4:42 4 minutes, 42 seconds This created some shortterm margin movements. It also reinforced the importance of pricing discipline and operations agility areas where we continue to remain focused. 4:55 4 minutes, 55 seconds Despite these dynamics, our core business remains stable, supported by a diversified export presence and long-standing customer relationships. 5:05 5 minutes, 5 seconds We continue to see consistent demand across key geographies and our position in regulated markets provides a certain 5:14 5 minutes, 14 seconds degree of resilience in an otherwise evolving global environment. 5:18 5 minutes, 18 seconds Overall, financial year 26 reflects a year of strong strategic and disciplined progress where we have strengthened both 5:26 5 minutes, 26 seconds the strategic direction and the structural foundation of the business. 5:30 5 minutes, 30 seconds The transition towards a more diversified and value added portfolio during the next year will continue but 5:38 5 minutes, 38 seconds the direction remains clear. With this I would now like to invite our deputy managing director Mr. Sashankal 5:47 5 minutes, 47 seconds to take you through the operational and strategic developments in greater detail. 5:55 5 minutes, 55 seconds Thank you and good morning everyone. 5:57 5 minutes, 57 seconds Building on what our chairman highlighted, FYI26 has been a year defined by discipline, consistency and 6:05 6 minutes, 5 seconds steady execution across the business, our approach has been clear to grow in a calibrated manner while improving the 6:12 6 minutes, 12 seconds quality of the business. This means focusing just not on volumes but on a better product mix, stronger customer engagement and sustainable realizations. 6:24 6 minutes, 24 seconds Before I move into operation highlights, let me briefly take you through the financial performance for the quarter and the full year. This is also to just 6:31 6 minutes, 31 seconds inform you that the previous year figures have been represented pursuant to compliance with the end as 105 to 6:40 6 minutes, 40 seconds present discontinued operations separately. 6:43 6 minutes, 43 seconds This reclassification is a presentation change only and has no impact on profit or loss or total comprehensive income. 6:53 6 minutes, 53 seconds For Q4 FI26 at the standalone level, the company reported a total income of 183.1 Kores reflecting a growth of 7:02 7 minutes, 2 seconds approximately 6.16% yearonear. Abitra for the quarter stood at 25.06 crores with a margin of 13.69%. 7:14 7 minutes, 14 seconds PBT at 19.46 46 crores while PAT at 14.53 crores registering of growth of 7:23 7 minutes, 23 seconds around 14% yearonear EPS for the quarter stood at 6.04 7:32 7 minutes, 32 seconds during Q4 FI26 the manufacturing segment revenue stood at 143.62 62 crores. 7:40 7 minutes, 40 seconds This quarter was impacted by a reversal of DFIA income amounting to 3.65 crores 7:47 7 minutes, 47 seconds which led to negative other operating income of 2.9 crores. 7:53 7 minutes, 53 seconds This reversal was triggered by government's decision to suspend import duty on key petrochem chemical products 7:59 7 minutes, 59 seconds including property till 30th of June as a temporary measure in response to the Iran conflict resulting in supply chain disruptions and to control inflation. 8:12 8 minutes, 12 seconds For the fullear FR26 the total income stood at 726.67 crores representing a growth of 26.26% 26% 8:21 8 minutes, 21 seconds yearon year increased to 74.75 crores with margins improving to 10.29%. 8:29 8 minutes, 29 seconds The PAT stood at 38.19 crores reflecting a growth of approximately 58%. 8:37 8 minutes, 37 seconds This was driven by improved realizations, operating leverage and high contribution from value array products. On the debt side, 8:45 8 minutes, 45 seconds the net debt on 31st March 26 stood at 112 crores. 8:51 8 minutes, 51 seconds The breakup of which is 78 crores in short-term borrowing, 23.8 crores of 8:57 8 minutes, 57 seconds GECL loans and 9.01 of long-term uh loans. 9:09 9 minutes, 9 seconds During this year, the operating environment remained challenging. We witnessed the disruptions in key markets including tariff related uncertaintities 9:17 9 minutes, 17 seconds in the US followed by significant volatility in raw material availability and pricing towards the later part of the year due to the geopolitical developments. 9:26 9 minutes, 26 seconds Despite these challenges, we have been able to navigate the environment effectively supported by our long-term standing relationships with both 9:34 9 minutes, 34 seconds suppliers and customers. These partnerships have played a critical and pivotal role in ensuring continuity and 9:42 9 minutes, 42 seconds stability during these uncertain periods. 9:46 9 minutes, 46 seconds Exports continue to remain central to our business model and a key driver of both scale and quality. During the year, 9:54 9 minutes, 54 seconds we maintained a very diversified geographical presence. Europe accounting for 56.5% of our exports followed by 10:01 10 minutes, 1 second South America 21.8% 8% and North America at 16.9%. 10:07 10 minutes, 7 seconds The other regions contributed the balance. 10:11 10 minutes, 11 seconds Diversification helps us manage regional demand cycles, geopolitical risks and ensures consistent capacity utilization. 10:21 10 minutes, 21 seconds A key strength of our business is the depth of our customer relationships. 10:25 10 minutes, 25 seconds While a significant portion of our revenues coming from our repeat clients, many of whom have been associated with us for over 20 years. 10:34 10 minutes, 34 seconds This provides strong visibility and stability while also enabling us to expand into higher value added products with existing accounts. 10:42 10 minutes, 42 seconds From an end user perspective, our revenues are well diversified across sectors such as food and agriculture 52%, industrial packaging 23%, 10:51 10 minutes, 51 seconds construction 12%, automotive 7% and mining and building materials 6%. 10:57 10 minutes, 57 seconds Balance exposure reduces concentration risk and supports resilience across demand cycles. 11:05 11 minutes, 5 seconds From a product standpoint, FIBC continues to remain the core of our business and a key growth engine in both value and volume terms. At the same time, we are seeing increased traction 11:13 11 minutes, 13 seconds in premium polyropene yarns, special fabric solutions and other better realizations and improved margin 11:20 11 minutes, 20 seconds visibility. Transition towards value added products remain the key strategic priority for us. 11:26 11 minutes, 26 seconds We have also taken meaningful steps towards diversification through entry into technical textiles non-mobile using the needle punch technology. This will 11:34 11 minutes, 34 seconds open opportunities across segments such as automotive interiors, geoteexiles, artificial leathers, carpets and 11:41 11 minutes, 41 seconds footware industry. It expands our educible market over time. We shall commence commercial production by September. 11:50 11 minutes, 50 seconds Due to the ongoing war situation, the industry witnessed significant volatility in raw material prices, particularly in polypropane. Prices 11:58 11 minutes, 58 seconds increased sharply from $1,000 per ton to approximately $1,700 per ton. This is 12:04 12 minutes, 4 seconds almost a 65% increase driven by supply disruptions, reduced petrochemical availability and logistical constraints 12:13 12 minutes, 13 seconds from the Middle East. This was further impacted by the the need of prioritization of LPG production which affected polymer production and supply. 12:24 12 minutes, 24 seconds In this environment, our approach has been to remain disciplined and risk aligned. We follow a model of procuring 12:31 12 minutes, 31 seconds raw material largely against confirmed orders which help us to manage price risk effectively and protect margins. 12:40 12 minutes, 40 seconds Additionally, during periods of volatility, we have prioritized margin attractive segments within our portfolio, ensuring that profitability 12:48 12 minutes, 48 seconds remains protected despite external pressures. 12:52 12 minutes, 52 seconds Long-term part partnerships and relationships play a key during such times. While these factors have led to 13:00 13 minutes some moderation in short-term demand, particularly as customers adjust their inventory levels, underlying demand 13:08 13 minutes, 8 seconds demand and consumption absolutely remains intact. This is especially true for essential services such as food and 13:15 13 minutes, 15 seconds agriculture which continues to provide stability to the business owing to the largest portion of its revenue. 13:23 13 minutes, 23 seconds From an operational perspective the focus during the year has been on preparing the business for scale. As I have repeatedly mentioned the existing 13:31 13 minutes, 31 seconds capacity of FIDC is 18,000 tons peranom which we are utilizing 85%. 13:38 13 minutes, 38 seconds The FIBC expansion project at unit 3 is progress as per plan of which the building will be complete by May 26. 13:46 13 minutes, 46 seconds By end of this year, we should be able to produce about 1,800 tons of the targeted capacity 13:53 13 minutes, 53 seconds of which 6,000 tons will be reached over the next four years. 13:59 13 minutes, 59 seconds This will support the future growth. In parallel, warehouse expansion and automation initiatives aimed at improving efficiency, precision and 14:07 14 minutes, 7 seconds working capital discipline are underway expected to be completing by September. 14:13 14 minutes, 13 seconds On the strategic front, we have strengthened our global presence through the acquisition of valid sensors in the UK. Our joint venture with Esigoma continued to provide support and 14:21 14 minutes, 21 seconds technology roadmap and high performance yarns. Initiatives are aligned with objectives of moving towards specialized higher value added applications. In 14:29 14 minutes, 29 seconds terms of demand visibility, we have seen some moderation in order cycles with lead times reducing from 6 to 8 weeks to 3 to four weeks now reflecting both raw 14:38 14 minutes, 38 seconds material volatility and cautious customer procurement. However, we remain focused on maintaining supply reliability and strengthening long-term 14:46 14 minutes, 46 seconds customer relationships. This is also partly due to inventory correction in the supply chain which could potentially 14:52 14 minutes, 52 seconds lead to a demand uptick and rebound in ordering once the price stabilizes. 15:01 15 minutes, 1 second Overall, FI26 reflects a year of disciplined execution and consistent progress where we have strengthened both 15:07 15 minutes, 7 seconds our operating model and strategic positioning. As we move forward, our focus remains on improving product mix, scaling value added segments, and maintaining consistency in execution. 15:19 15 minutes, 19 seconds Thank you. We can now begin both the question and answer session. 15:24 15 minutes, 24 seconds Thank you very much. We'll now begin with the question and answer session. 15:28 15 minutes, 28 seconds Anyone who wishes to ask a question may press R and one on their stone telephone. 15:33 15 minutes, 33 seconds If you wish to remove yourself from the question Q, you may press R and two. 15:38 15 minutes, 38 seconds Participants are requested to use handsets while asking a question. 15:44 15 minutes, 44 seconds Ladies and gentlemen, we will wait for a moment while the questions. 15:50 15 minutes, 50 seconds Participants, you may press star and one to ask a question. 16:00 16 minutes The first question is from the line of Disha from Sappire Capital Partners. Please go ahead. 16:06 16 minutes, 6 seconds Hello. Am I audible sir? Yes. 16:13 16 minutes, 13 seconds Yes. Thank you so much for this opportunity and congratulations for a solid margin per performance given the raw material volatility. So couple of 16:21 16 minutes, 21 seconds questions from my side. This you mentioned that we reach 85% utilization for the FRDC capacity and this new capacity that is planned this is start 16:29 16 minutes, 29 seconds the construction will be completed in May right. So by when will we expect these commercial production to begin and what sort of contribution do we see from this new division going ahead? 16:41 16 minutes, 41 seconds Yes. So uh the uh 18,000 tons capacity and the 85% capacity utilization is at unit 2. This is coming at unit 3. It is 16:49 16 minutes, 49 seconds aimed at 6,000 tons. Uh in the interim period the construction was going on. We already started its operations in the uh 16:57 16 minutes, 57 seconds factory building where the CPP was there and we just reached our target for year 1 in the month of March where we produce 17:05 17 minutes, 5 seconds 100 tons in the month of March. That is at a run rate of 1200 tons. By end of 17:12 17 minutes, 12 seconds 2627 we should be at a run rate of 2400 tons. uh because I had uh mentioned uh previously that over the next 5 years we 17:21 17 minutes, 21 seconds will go from 1200 to 2400 to 3600 to 4,800 to 6,000 tons. So in this year we should expect about 1,800 tons and we 17:29 17 minutes, 29 seconds should end the year with a run rate of uh 2400 tons. 17:34 17 minutes, 34 seconds And this 6,000 metric t what will be the peak revenue potential at peak capacity? 17:40 17 minutes, 40 seconds So 600 uh 6,000 tons should be about uh 130 K. 17:47 17 minutes, 47 seconds The incremental revenue the the incremental revenue would be about 40 crores because this would be fabric capacity getting converted to FIBC 17:54 17 minutes, 54 seconds capacity. So the fabric would get reduced and FIBC would increased the margins margins would also increase because of this. 18:07 18 minutes, 7 seconds Okay. Okay. And so this nonwoman facility that will come in September, what sort of revenue contract 18:19 18 minutes, 19 seconds uh about 20 to 25 crores uh revenue only because the first machine would get commissioned by September and the next one by December. So we will only see 18:28 18 minutes, 28 seconds partial revenue this year. uh 27 28 we should uh be looking at a revenue of between 100 to 120 kores depending on 18:36 18 minutes, 36 seconds the raw material and the capacity utilization on a revenue of 100 to 120 kores we should look at an aberate of 15 to 16%. 18:53 18 minutes, 53 seconds Can you hear us? Is it audible now? Yeah. Yes. 19:00 19 minutes Yeah. Just on the overall, how do you see F27 panning out in terms of growth and in terms of margins? How sustainable do you think is this 11% sort of clip that we achieved in Q4? 19:12 19 minutes, 12 seconds I think um the margins will sustain. Um the year does not look bad because 19:20 19 minutes, 20 seconds overall the global economy is in a good shape. uh it is highly consumptiondriven unlike uh the disruption during COVID 19:28 19 minutes, 28 seconds where there was a dip in the consumption. This disruption has not caused a dip rather a boost in consumption. So overall uh from a global 19:38 19 minutes, 38 seconds manufacturing perspective it is a good time to be in. We do not see any lead measures uh reflecting any kind of 19:46 19 minutes, 46 seconds slowdown at the moment. There is a temporary slowdown which is because of inventory correction uh but that always results in a rebound. Uh margins should 19:56 19 minutes, 56 seconds remain under um the similar uh what it has been there should be a revenue increase because of uh the non movements 20:05 20 minutes, 5 seconds because of SAN uh and other measures that are being taken. 20:10 20 minutes, 10 seconds So this 11% sort of you to sustain right? 20:15 20 minutes, 15 seconds Yeah. Yes. Okay. And any kind of number on the growth that you'd like to put the revenue growth? 20:22 20 minutes, 22 seconds Uh it it should uh we should be able to offer steady growth. Um I mean I'm not in a position to give 20:29 20 minutes, 29 seconds exact numbers. Uh but we should look at about 10 to 15% growth. 20:36 20 minutes, 36 seconds Okay. I magnitude. Thank you so much and all the best. 20:41 20 minutes, 41 seconds Thank you. Participants you may press star and want to ask a question. 20:46 20 minutes, 46 seconds Next question is from the land of Rohan Mata and Division and Webster. Please go ahead. 20:52 20 minutes, 52 seconds Hello. Hi. Uh good morning sir and thank you for the opportunity. Uh sir, if you could just touch upon the geopolitical 20:59 20 minutes, 59 seconds tensions and the conflicts that are going on particularly in the Middle East, the impact of that on our overall business and raw material sourcing if 21:08 21 minutes, 8 seconds it's affected and how long you see the impact on our supply chains and uh logistics. 21:15 21 minutes, 15 seconds So I would like to answer it in a three different manners. Short-term, medium-term and long-term. So there is a 21:21 21 minutes, 21 seconds long-term structural change that will happen because of this uh tension where each and individual country will start 21:30 21 minutes, 30 seconds to operate on its own rather than as a group. Uh this will result in the supply being more uh competitive. 21:38 21 minutes, 38 seconds Uh that is the long-term effect. on a medium-term angle um the prices will remain high uh that is given because 21:47 21 minutes, 47 seconds there is certain capacity that has become defunct and it will not come online in the next 3 years. So because 21:55 21 minutes, 55 seconds of shortage of gas and oil and problems on the shipping routes the prices will remain high. So we should we will not 22:03 22 minutes, 3 seconds look at $1,000 in this year touching again. So the new normal could be anywhere between $1,200 and $1,350 for us as our raw material. 22:13 22 minutes, 13 seconds In the short term, uh the government of India, the kind of proactive steps that they have taken, we have not seen uh 22:21 22 minutes, 21 seconds such kind of agility in a long time uh by the government. Uh this has resulted neither in any 22:30 22 minutes, 30 seconds consumer disruption or in business disruption of any major kind. It could have be been worse but it was very well controlled. There was momentary 22:39 22 minutes, 39 seconds uh very high prices but now the prices are almost back on track and in terms of international comparison we are almost 30% cheaper than Europe at 22:48 22 minutes, 48 seconds the moment and about 10% more expensive than Far East but all these differences will uh narrow down I would say by June or July. 22:58 22 minutes, 58 seconds Okay. Okay. So we are passing on this uh price impact on to the customers also. Is that correct? 23:06 23 minutes, 6 seconds Yes, mostly. Yes. 23:09 23 minutes, 9 seconds Okay. Okay. All right sir. So any guidance that you uh might be able to give on the entire year and uh FI27 in terms of top line and profit margins. 23:23 23 minutes, 23 seconds As I said uh the margins would remain similar and we should expect about a 10% increase in the top line 23:32 23 minutes, 32 seconds sir. Okay sir that's uh that was all for the for the time being and thank you and [clears throat] all the best sir thank you 23:39 23 minutes, 39 seconds thank you next question is from the line of mahumar from MU investments please go ahead. 23:47 23 minutes, 47 seconds Uh hello thank you for the opportunity sir. Just had two questions. Uh one on the other income that we have that that 23:54 23 minutes, 54 seconds has uh you know this uh uh year jumped quite a lot. So uh this income I think 24:01 24 minutes, 1 second we we are getting from trading income mostly. So any impact on the margins from you know the other income that we 24:08 24 minutes, 8 seconds have uh and how sustainable is the margin because of that. 24:16 24 minutes, 16 seconds So their income comprises of two heads. 24:19 24 minutes, 19 seconds One is the forex earnings and the other is the trading income. Uh and uh so 24:26 24 minutes, 26 seconds trading sorry so there is interest income from the trading division and forex income. 24:33 24 minutes, 33 seconds So uh because of the volatility that has been there in the uh foreign exchange as well this uh was there how it will be in the next year it is hard to comment. 24:43 24 minutes, 43 seconds Okay. And one more question on the B2C business sir we have recently ventured into it. What is the margin profile that we are uh seeing in this business and 24:50 24 minutes, 50 seconds how how going forward margins will look like? So yes uh B2C has a much higher margin and also a higher long lifetime 25:00 25 minutes value of a customer. Uh we are also able to solve and address uh problems uh of 25:07 25 minutes, 7 seconds the customer in a much better manner. Um so there will be focus on incremental 25:14 25 minutes, 14 seconds FIBC capacity addition that will be servicing this B2C market and yes the margins there are much better. 25:21 25 minutes, 21 seconds Sure. Thank you so much for the opportunity. I wish you all the best. Thank you. 25:27 25 minutes, 27 seconds Thank you. Next question is from the line of Ketan Ma from Ma family office. Please go ahead. 25:35 25 minutes, 35 seconds Yeah. Hi. Good uh good afternoon. Thank you for the opportunity. Uh so the contribution from Europe is more than half of the I mean like more than 50%. 25:47 25 minutes, 47 seconds So what kind of challenges uh uh does this pose to the company? 25:56 25 minutes, 56 seconds Um I assume the question is uh assuming that Europe is in a bad position 26:03 26 minutes, 3 seconds a high contribution this the high dependency on this uh geographic region. 26:10 26 minutes, 10 seconds Yeah. So we have a long-term standing in relationship there and the customer base is very diversified in terms of uh the 26:19 26 minutes, 19 seconds the countries the distributor profile the industry profile and we in none of the markets we are a contributor of more 26:28 26 minutes, 28 seconds than let's say 10 15% share of business and we are at the top segment so uh we 26:36 26 minutes, 36 seconds don't see that as a very high risk Europe despite whatever we read And uh C Europe's manufacturing continues to 26:43 26 minutes, 43 seconds increase. Uh India as a country itself is only a 60% contributor to Europe's imports and FIBCs. 26:51 26 minutes, 51 seconds There is still about 20 25% that comes from Turkey and East Europe. India continues to replace their capacity. 27:01 27 minutes, 1 second Okay. Uh thank you for that. And uh what uh is the demand outlook from the Americas? So North and South America. So what are our views on that region that geography? 27:11 27 minutes, 11 seconds So demand in North and South America both remain stable. North America has been stable. It's been about 22% of exports. North America dis despite the 27:21 27 minutes, 21 seconds uh tariff disruption and the volatility that was there was 16%. The previous year to that it was 21%. So it came down 27:29 27 minutes, 29 seconds from 21 to 16. Uh the markets continue to offer good growth potential. We are actively working on expanding our 27:36 27 minutes, 36 seconds presence there. Uh market conditions as they normalize, we expect further improvement in demand and uh we should 27:45 27 minutes, 45 seconds be doing a higher contribution uh this year in North America. 27:51 27 minutes, 51 seconds Okay sir, thank you very much for those responses. Uh best wishes. Thank you. 27:57 27 minutes, 57 seconds Thank you participants. You may press R and one to ask a question. 28:03 28 minutes, 3 seconds Next question is from the line of Madurati from counter security investments. Please go ahead. So thank you for the opportunity. Sir, if I 28:11 28 minutes, 11 seconds see our gross margins uh from the manufacturing division, they have been consistently at the 45% level for the 28:18 28 minutes, 18 seconds past three quarters and we are increasing our FIBC share uh going forward. So where can we expect this to 28:25 28 minutes, 25 seconds reach 50% in FY uh 27 or 28 as FIBC share increases? 28:33 28 minutes, 33 seconds So there are two components to this. Uh one component is the raw material cost itself which has been at an average of 55% in the previous years. As the raw 28:43 28 minutes, 43 seconds material value goes up, it is not necessary that the selling price or let's say the RM percentage as a percentage will go up in the same ratio. 28:54 28 minutes, 54 seconds So I would say that if we are able to dis with the increased FIBC volume and 29:01 29 minutes, 1 second improvement in margins if we are able to still maintain 45 to 47% gross margins it would be a good move 29:10 29 minutes, 10 seconds and a good success to have though we don't have a price pass through clause in our FIBC uh orders 29:18 29 minutes, 18 seconds that we send to Europe and we do we do but that is on per kilo basis and not on a percentage basis. So 29:26 29 minutes, 26 seconds let's say if the selling price is 200 and the raw material price is 100 uh the raw material goes up by 50 rupees it 29:33 29 minutes, 33 seconds becomes 150 the selling price will become 250. So 100 divid by 200 was 50%. 29:39 29 minutes, 39 seconds But 150 divided by 250 uh would be a much larger percentage and let's say it would be about uh 60%. So as you said 29:47 29 minutes, 47 seconds converter margins correct correct I'm talking a broad business I'm talking 29:55 29 minutes, 55 seconds right um also this is what I wanted to understand regarding the brief one level of this nonwoven technical um segment 30:04 30 minutes, 4 seconds will we be operating at a loss for fi 27 when we are doing 2025 cr or re revenue levels 30:11 30 minutes, 11 seconds no we will not be operating in a loss I'm sorry if I gave that picture but uh there will not be a loss uh in this year on the non mobile. 30:21 30 minutes, 21 seconds Okay. So uh at at few like 20% also will be operating at a uh profit u but the margin will be lower 30:29 30 minutes, 29 seconds margin definitely when we start a business it will be lower uh but uh uh it is not operating at 20% the way it is 30:37 30 minutes, 37 seconds that for one machine only 6 months are available. So 50% of the time is available and for the second machine only 25% of the time is available. So if 30:45 30 minutes, 45 seconds you put it like that then only 35% of the time is available through the year. 30:50 30 minutes, 50 seconds So out of that we are saying we will utilize 70% of the capacity and that is why we will achieve 25 crores. 30:57 30 minutes, 57 seconds Got it. So there's 15 to 16% a beta margin which come in FR28 when we are operating at a steady state level. 31:04 31 minutes, 4 seconds Correct. Correct. 31:06 31 minutes, 6 seconds Got it. And sir uh have we been able have we supplied some trial uh trial orders or pilot products to some 31:14 31 minutes, 14 seconds customers uh in the segment or that is uh that is yet to begin. 31:20 31 minutes, 20 seconds Uh it has started it has been very baby steps. I would say it is nothing significant but uh seed marketing has 31:27 31 minutes, 27 seconds started. Um we have almost met all the customers that we want to service. We have understood their problems. We are 31:34 31 minutes, 34 seconds designing solutions for them. Uh there has also been a round of sampling in certain industry segments. Uh there have been trial commercial orders also where 31:43 31 minutes, 43 seconds we have imported the material where we have sourced it locally where we have added some value to it and then sold it in the market. But these are baby steps. 31:54 31 minutes, 54 seconds Got it. And so what would be our capacity in this non segment and how much of our uh captive yarn would be used in this segment. 32:06 32 minutes, 6 seconds So the capacity would be about 10,000 tons and uh yarns will never be used in this. The raw material for this is fiber 32:16 32 minutes, 16 seconds uh which we do not manufacture currently. 32:21 32 minutes, 21 seconds Okay. Got it. So that is from m. Thank you so much and all the rest. 32:27 32 minutes, 27 seconds Thank you. Particip star and one to answer question. 32:32 32 minutes, 32 seconds Next question is from the line of Oruromisha from Money Wisers. Please go ahead. Yeah. Hello. Am I audible? Yes. Go ahead. 32:41 32 minutes, 41 seconds Yes. 32:42 32 minutes, 42 seconds Sir, when you say that the RM prices will not reach 1,000 and it will be stabilizing at 1200, 1300, is this for a 32:49 32 minutes, 49 seconds medium-term once the geopolitical prices uh soften or Yes. And how do we see the order book? Because when you say that 32:57 32 minutes, 57 seconds you are you know uh I would say not changing but uh you know going cautiously on orders then how will the 33:04 33 minutes, 4 seconds order book and you know uh value in value terms look like going forward. 33:10 33 minutes, 10 seconds So uh I would say capacity contraction is not on the card right now. We do not expect that we have to reduce our 33:19 33 minutes, 19 seconds capacity. Uh having said that order book will remain a challenge in this quarter 33:26 33 minutes, 26 seconds and the next quarter. Uh but we do not see that there is a structural change in the consumption 33:34 33 minutes, 34 seconds pattern. So this is a question of only inventory adjustment and cautious purchase by the buyer because the prices are high. So if somebody needs to order 33:42 33 minutes, 42 seconds thousand pieces he will order 500 pieces right now another 500 pieces maybe in the next month instead of ordering thousand pieces together. So it will be a split you are saying. 33:52 33 minutes, 52 seconds Correct. Correct. So people start to order smaller quantities but more often. 33:58 33 minutes, 58 seconds Okay. But our lead times would be uh I mean as we are doing it currently it would be at the same levels 34:06 34 minutes, 6 seconds they would decrease because the order book is reduced. 34:08 34 minutes, 8 seconds Okay. Okay. Okay. Got it. So and my next question is uh on Japan I mean is it on the back burner now or because that 34:17 34 minutes, 17 seconds market is difficult to penetrate or you know uh because when you say in the medium term also uh how is the Japan 34:24 34 minutes, 24 seconds market and are we because our Europe market is very strong as we all know that Japan is Japan is never on the back 34:31 34 minutes, 31 seconds burner. Uh okay it is still in the focus efforts are still there. It is a market 34:37 34 minutes, 37 seconds to be very patient. It is a very uh price competitive market. Uh given this 34:44 34 minutes, 44 seconds disruption, uh China's raw material was cheaper than India's raw material. So again, the switch from China to India 34:51 34 minutes, 51 seconds couldn't happen in this uh time because it is largely serviced by China and Vietnam where the polyropene price was 35:00 35 minutes much lower than India during February, March, April. 35:04 35 minutes, 4 seconds What was the difference if you could just quantify? 35:08 35 minutes, 8 seconds So in the month of March the average Indian polyropene was 1,500. China was about 1250. Okay. Okay. 35:17 35 minutes, 17 seconds Okay. Right. Okay. But it's it's on the cards. It's not uh uh as a backbone as you are saying it's on the card. 35:26 35 minutes, 26 seconds We we are also exhibiting at Tokyo Park in September October again this year. It is in focus. Absolutely. 35:35 35 minutes, 35 seconds Okay. So that why am I asking this because I feel that once we get a strategic entry will our margins see a upward trend from the current levels 35:44 35 minutes, 44 seconds also going forward obviously it's still too early to say but it can be going upwards right I don't expect Japan to 35:52 35 minutes, 52 seconds cause a significant difference in the margin what Japan will do is it will add further diversification in the market segmentation it will allow us to 36:01 36 minutes, 1 second increase our capacity in a more aggressive manner because the volumes there are uh significantly different and also as the 36:10 36 minutes, 10 seconds first mover advantage for contraip in Japan from an Indian perspective we we will get a margin benefit for the first 36:19 36 minutes, 19 seconds 3 four years uh also the relationships that we get developed will be much more stronger than coming in later so it will 36:27 36 minutes, 27 seconds be a first mover advantage which is strategic in nature from a long-term perspective okay sir thank you sir I'll join back with Thank you. 36:37 36 minutes, 37 seconds Thank you. Participants remember star and one to answer question. 36:43 36 minutes, 43 seconds Next question is from the line of shan Modi from synicate family office. Please go ahead. 36:49 36 minutes, 49 seconds Yeah. Hi. Uh so in terms of uh 36:55 36 minutes, 55 seconds hello yeah sorry so there have hello we can't hear you sorry so how's 37:05 37 minutes, 5 seconds the yeah so my question is how is the company edging against future geopolitical risks of 37:14 37 minutes, 14 seconds sorry could you please uh explain the question a little Yeah. So I'm asking you how is the 37:21 37 minutes, 21 seconds company hedging against future geopolitical risk? How's the uh in terms of geopolitical impact? 37:29 37 minutes, 29 seconds So if we um see the past right so every time there has been a disruption the company has been able to uh very in 37:38 37 minutes, 38 seconds great agility and flexibility been able to handle the situation. That is because of the long-term relationships and partnerships that we have on the 37:47 37 minutes, 47 seconds supplies side and the customer side both. So we have multiple suppliers in India, multiple across the globe and uh 37:55 37 minutes, 55 seconds similarly diversification in the customer base. U where will the next geopolitical 38:02 38 minutes, 2 seconds disruption happen? We do not have an answer. Uh can we influence that disruption? I think the answer is no. So 38:11 38 minutes, 11 seconds the only thing that we can do is to build a stronger foundation in terms of relationships, network have a have it diversified and divided uh supply and 38:20 38 minutes, 20 seconds customer base. Uh be able to act reduce the risk in those moments. Uh those are 38:27 38 minutes, 27 seconds the steps which we are repeatedly doing every time there is something that happens. There was the Red Sea crisis that happened. There were uh there was 38:35 38 minutes, 35 seconds the Russia Ukraine war which shot up the gas crisis in Europe. uh there was the covid uh lockdown that happened. So 38:45 38 minutes, 45 seconds multiple challenges uh but agility and flexibility with long-term permissions is the key. 38:53 38 minutes, 53 seconds Right. Thank you. Uh just one more question. Uh just want to ask about this. Why is Asia's uh contribution quite relatively low despite it being a very large market for you guys? 39:06 39 minutes, 6 seconds So Asia's contribution is relatively low due to the combination of competitive intensity and also our strategic market focus. Region is highly price 39:14 39 minutes, 14 seconds competitive. Um there is strong presence of local manufacturers with a lesser leap than um 39:23 39 minutes, 23 seconds this impacts margins as well. Also in the past we have focused highly on Europe and America where realizations 39:30 39 minutes, 30 seconds and value opportunities are better and local manufacturing base is not there. 39:35 39 minutes, 35 seconds So in the past it was a strategic choice. Today it is a situation of price competitiveness. Um and within Asia we 39:42 39 minutes, 42 seconds should see Japan and South Korea separately and places like Indonesia, Thailand separately and Philippines, Cambodia, China separately. 39:54 39 minutes, 54 seconds That's thanks so much for your uh feedback and I'll just join the back and yeah. 40:00 40 minutes Thank you participants star and want to ask the question. 40:06 40 minutes, 6 seconds Next question is from the line of an from an partners. Please go ahead 40:13 40 minutes, 13 seconds hi an sorry there's a lot of background noise from your Hello. Am I audible? 40:22 40 minutes, 22 seconds Yeah go ahead. 40:24 40 minutes, 24 seconds Uh yeah uh uh first of all I had a few questions. The first question was that you said that in Europe we have I'm sorry to interrupt you. Can you please move to a different location? 40:33 40 minutes, 33 seconds Uh yeah, just give me a minute. Yeah, just uh hi. 40:46 40 minutes, 46 seconds Go ahead. Uh yeah so you said that uh um majority of our exports are to Europe and around 40% come from Eastern Europe 40:56 40 minutes, 56 seconds and other Asian markets. So are we actively planning to uh take some more shares from the European market or 41:07 41 minutes, 7 seconds sorry um I mean the question is are we increasing our focus on Europe is that the question? Uh yeah like actively is 41:16 41 minutes, 16 seconds like are we actively trying to get more uh what do you say exports to Europe or is that like a passive plan we have? No, 41:25 41 minutes, 25 seconds no, it's completely active. We are a very strong uh presence in Europe. 41:29 41 minutes, 29 seconds Almost 45% revenues are there. So, it's No, I'm asking like do we want are we actively trying to increase it to 60 62 65% with it? 41:38 41 minutes, 38 seconds No, I think 55 to where we are is a very comfortable situation. Uh the growth will be coming from North America, South America, Japan. 41:50 41 minutes, 50 seconds Correct. And I think the last time I spoke to the CFO uh he was mentioning something about the artificial leather or just leather upholstery that you guys 41:59 41 minutes, 59 seconds might be starting. So can I have some clarity on that? Um could be clarity that is required. 42:07 42 minutes, 7 seconds Uh like has the production started? Are we in line or I haven't really had an update. 42:12 42 minutes, 12 seconds So this is Yeah. Yeah. All right. So this is the nonov technical tech sales. 42:16 42 minutes, 16 seconds The first machine will start its production September and the second machine in December. 42:21 42 minutes, 21 seconds Um this will be the commercial production. 42:24 42 minutes, 24 seconds We will have 25 crores north of revenue this year. Next year we should be looking at between 100 to 125 crores um next year. 42:33 42 minutes, 33 seconds Correct. And what sort of margins are we looking at in that business? 15 to 16% return next year. 42:42 42 minutes, 42 seconds Okay. And do we have like uh let's say 5 years or 10 years down the line, how much do you think that will contribute to the top line? 42:52 42 minutes, 52 seconds next 10 years you say yeah next uh let's say next uh the next five or 10 years how much would do you think that would be contributing to the 43:00 43 minutes I would say that this would become this would become an equal contributor compared to Rafia so this will become a significant portion of the business 43:08 43 minutes, 8 seconds oh okay all right this would also this would also uh so as we will continue to increase our 43:16 43 minutes, 16 seconds business profile and the non-movven technical textile area. Um but obviously this will get decided once we start our 43:23 43 minutes, 23 seconds commercial production and once we start getting OEM approvals u it might also lead to the need of a backward integration in this area. 43:34 43 minutes, 34 seconds So would that also uh lead to an increase in margins right? Yes. 43:41 43 minutes, 41 seconds Okay. Got it. Thank you so much. 43:44 43 minutes, 44 seconds Thank you participants. You may press star and one to ask a question. 43:50 43 minutes, 50 seconds Next question is from the line of Sakit Kapoor from Kapoor and Company. Please go ahead. Namaskar. Hello. 44:01 44 minutes, 1 second Yes. Uh Namaskar. Thank you firstly for the opportunity. 44:06 44 minutes, 6 seconds Uh sir in in your presentation you have alluded to uh uh precisely that we are 44:13 44 minutes, 13 seconds eyeing for capability aligned diversification and capital allocation uh in in the in the conversation that we 44:20 44 minutes, 20 seconds are having currently. You did alluded to the fact that we are looking to to to take the next leap uh forward in terms 44:29 44 minutes, 29 seconds of this non-woman part of the story. So if you could just spare a few more minute of what kind of opportunity the 44:35 44 minutes, 35 seconds nonwoven segment is offering and uh can you give us some any uh any comparables where we can look into who 44:44 44 minutes, 44 seconds who are already operating in the segment uh uh in the country or any any clear comparison that will give us some more understanding of what exactly are we eyeing in this space. 44:56 44 minutes, 56 seconds So uh there are three things right broadly let us see there are three things. The first is the B2C part of it which is val ventures uh in UK. 45:09 45 minutes, 9 seconds We have not got an immediate success yet but we have to keep trying though. So we will try different business models. What 45:18 45 minutes, 18 seconds will work when it will work? How it will work? We have to continue trying. Uh so there is certain capital allocation there. Second, it is the performance yan 45:26 45 minutes, 26 seconds that is a joint venture with uh where uh we do see in the long-term 45:33 45 minutes, 33 seconds medium-term very high margin business uh good good growth maybe not rapid but 45:40 45 minutes, 40 seconds good growth and uh something very difficult to copy for our competition because of the technology in 45:48 45 minutes, 48 seconds the machine in the knowhow in the making of it. It is also protected by patents with acid. 45:56 45 minutes, 56 seconds Uh that is the second growth engine. The third one is the non-woven technical textiles. That is the area of hyper growth where we are in our country today 46:06 46 minutes, 6 seconds with a very low capita consumption of this non-woven technical textile. U compared to other developing countries. 46:15 46 minutes, 15 seconds We will see much more demand, much more need of this particular product. Much many more applications. It is industry 46:22 46 minutes, 22 seconds agnostic. It the consumption of this is across industries from automotive to geodextiles, infrastructure, uh luxury, 46:31 46 minutes, 31 seconds leather, footwear. Um there's also filter fabric. There is also uh it's used in retail, it is used 46:39 46 minutes, 39 seconds in exhibitions, it's used in houses. So there are many reasons. Now what we have 46:46 46 minutes, 46 seconds started off with is two extremely flexible and agile machines which will be capable of manufacturing a lot of 46:54 46 minutes, 54 seconds these products. We will find our niche going over the next 3 to 12 months. We will see what fits in best for our 47:02 47 minutes, 2 seconds portfolio, our capability, our comfort where we see the maximum growth and that is where we will expand. 47:13 47 minutes, 13 seconds This also brings us to an opportunity to enter uh this world of recyclability where uh the raw material is polyister fiber. 47:23 47 minutes, 23 seconds So um the next obvious step after reaching a certain scale in nonwoven technical textiles will be to do backward integration. 47:35 47 minutes, 35 seconds So uh in this nonwoven segment what is the end product? Uh correctly that it will be the yarn part of the fabric. 47:41 47 minutes, 41 seconds What are we going to sell directly to make a product? 47:45 47 minutes, 45 seconds Nonwoven nonwoven by definition means a non-woven fabric which is made out of fiber. The end markets will be 47:54 47 minutes, 54 seconds automotive. So the headliners in the cars, the artificial leather for furniture, for automotive cars, uh for 48:02 48 minutes, 2 seconds office chairs for example. Uh then geo textiles for uh roads, railways, flood 48:10 48 minutes, 10 seconds control. Uh then exhibition mats. Then it is also heavily used in the footwear 48:16 48 minutes, 16 seconds industry for sole u for anti-static uh applications. There are also carpet and 48:24 48 minutes, 24 seconds rub rug applications. Then there are there is also lining for filter fabrics. 48:29 48 minutes, 29 seconds So the applications are across industries and different types. The capability is in the machine and the knowhow of it. 48:39 48 minutes, 39 seconds The team that we've built will get the knowhow and the machines that we have ordered are flexible enough to do this entire range. 48:51 48 minutes, 51 seconds Correct sir? Okay. Coming for back to again our core product today FIBC. You mentioned in your opening remark about 48:58 48 minutes, 58 seconds the the 18,000 uh metric as the uh install capacity. uh our sales for uh 49:05 49 minutes, 5 seconds this year correct me here was 14,352 so that translates into sub 80% 49:12 49 minutes, 12 seconds developer so correct me here like you mentioned I think 85% as the number or is there any uh mismatch in my 49:20 49 minutes, 20 seconds understanding your numbers are correct uh what we have dispatched this year is 14,351 [clears throat] tons but what we produce 49:28 49 minutes, 28 seconds is about 15,000 tons so 15,000 divided by 18,000 is about 83%. So yes, we utilize about 83%. 49:38 49 minutes, 38 seconds Okay. 49:38 49 minutes, 38 seconds And the next I would so there is something I would also like to clarify the way this is measured is we tell you 49:48 49 minutes, 48 seconds 10 figures because it's easy to understand but 1 kilo of FIBC can be produced in 10 minutes or it can be 49:55 49 minutes, 55 seconds produced in 5 minutes. So the real capacity is based on the stitching time that is available by the tailor and not 50:02 50 minutes, 2 seconds by per kilo. So sometimes we see different figures in per kg but it is more about utilization of stitching capacity. 50:14 50 minutes, 14 seconds Correct. 50:15 50 minutes, 15 seconds That defines our margins. Our margins are our margins are not defined on per kg but on per stitching minute of the tailor. 50:23 50 minutes, 23 seconds So in that case a lot of investment is to be done on the manpower part. So we our preparation should also be aligned 50:30 50 minutes, 30 seconds uh to adding more uh skilled labor uh which will add to the margin since we are now looking to up our capacity significantly going ahead. 50:41 50 minutes, 41 seconds Yes. So the easiest uh thing is to add a building and machines. The most difficult thing is to get uh people to work and to train them for quality and consistency. 50:52 50 minutes, 52 seconds uh the entire focus of the company is there. We are working extremely hard even in the new unit, even in the 50:58 50 minutes, 58 seconds existing unit. uh we might uh we are also working on different models on how we can probably uh decentralize the 51:07 51 minutes, 7 seconds production. Um but this is the key challenge and it is also the key capability of the company. Also 51:16 51 minutes, 16 seconds geographically we are located at Kpur which is also a very big advantage. 51:21 51 minutes, 21 seconds Correct. So two small points. One in the opening remarks you mentioned about the the reversal part of 3.1 K. Uh that if 51:30 51 minutes, 30 seconds you could just explain to the benefits of uh how that how has that worked and uh then our AITA margin would be much 51:37 51 minutes, 37 seconds higher than what we have reported since it's a notional entry what I could understood from your opening remark. 51:46 51 minutes, 46 seconds Notional increase or not decrease. 51:49 51 minutes, 49 seconds No, it's not decrease but it's an only it's only a book entry that that was my my point 51:55 51 minutes, 55 seconds and allows book so basically what so we use a scheme of the uh ministry of 52:03 52 minutes, 3 seconds commerce which is DFIA so it allows us to buy domestic material and then we avail the license which is 52:13 52 minutes, 13 seconds then sold in the market which is almost equivalent to the customs duty of the import. 52:18 52 minutes, 18 seconds Now when the custom duty has been suspended by the government for 3 months, the value of that license has become zero. 52:26 52 minutes, 26 seconds We are unable to sell it in the license uh in the market. Whenever this reversal of the government will happen, this revival will also happen. 52:38 52 minutes, 38 seconds So this was the closing balance for a transaction up to uh 31st March or up to 30th December. 52:46 52 minutes, 46 seconds This value that that reversal we took uh what this reversal is for what? 31st December. This this reversal was for 31st December up to 31st December. 52:59 52 minutes, 59 seconds Up to 31st December N1 number if we can define it for FI25 or if you have the number for the 9 months. 53:15 53 minutes, 15 seconds So that's already realized number 53:38 53 minutes, 38 seconds I don't have the figure right away but it is also a very complex and complicated thing because the percentage of DFI exports to advanced author ization also changes from quarter to 53:47 53 minutes, 47 seconds quarter u and it also depends on the percentage of product mix from fibc fabric the pricing of raw material so it 53:54 53 minutes, 54 seconds is a little more complex than this but uh to answer in short we should say that 3 to three and a half cr per quarter is a 54:03 54 minutes, 3 seconds maybe an number okay and last point was about the margin 54:11 54 minutes, 11 seconds trajectory if we take uh in your presentation It is mentioned that X of trading we did 12.17%. 54:19 54 minutes, 19 seconds So go going ahead and the the current environment uh we will be able to better this or 54:28 54 minutes, 28 seconds match this number of 12.1 purely for the manufacturing segment. Yeah. Yeah. 54:36 54 minutes, 36 seconds I would say that you would maintain a similar number. 54:41 54 minutes, 41 seconds Okay. And the bookkeeping question I have about the non-current effect part. So can I ask here or should I nail it? 54:48 54 minutes, 48 seconds Uh yeah no no. So uh there is an increase of uh capital advances by about 12. So 54:55 54 minutes, 55 seconds it's basically capital advances of 12.3 crores. Uh the non-over machinery that is there the FIBC building that is being 55:02 55 minutes, 2 seconds made other machinery that is coming. So there is a total increase of 13 there is the increase is from 1.46 crores to 13.75 crores. 55:14 55 minutes, 14 seconds Okay. 55:16 55 minutes, 16 seconds Thank you sir for uh all all the explanations provided to the team and we hope for continued interaction and best 55:23 55 minutes, 23 seconds best of luck to the team sir. Hope to interact. 55:26 55 minutes, 26 seconds Thank you. Thank you. Thank you question. 55:35 55 minutes, 35 seconds Next question is from the line of Madurati from Cyclical Investments. Please go ahead. 55:42 55 minutes, 42 seconds So thank you for the opportunity once again. Sir, what is the volume expectation for this nonwoven fabric in FI28? 55:51 55 minutes, 51 seconds Uh about uh 8,000 9,000 tons. 55:55 55 minutes, 55 seconds Okay. Got the optimal level. So, so I also wanted to understand that we are uh we are going to manufacture something called artificial leather in this 56:03 56 minutes, 3 seconds segment and uh there are companies and uh like my uni who manufactures this PVC leather for automotive segment. So how 56:12 56 minutes, 12 seconds is our product different from theirs I'm just trying to understand the market and we will be making the backing for the 56:21 56 minutes, 21 seconds artificial leather. So manure uni quarters typically would be a customer 56:28 56 minutes, 28 seconds Got it. Got it. And just one final question. So on this premium polyropene we are uh expecting a 22 to 25 cr 56:36 56 minutes, 36 seconds revenue in FI27. Uh so what kind of margin profile uh are we expecting in this and sir what is our capacity and capex in this segment. 56:47 56 minutes, 47 seconds So we're talking about SAM which is a joint venture between KU Pacific and SAMA. We should expect about 20 to 25 56:54 56 minutes, 54 seconds crores. the there is no significant capex because it's a marketing company the manufacturing capabilities in 57:00 57 minutes plastic pack right so uh so so our current equipment will be 57:09 57 minutes, 9 seconds sufficient for us to manufacture this we already have installed we already have installed additional equipment uh in 57:17 57 minutes, 17 seconds FI2627 oh sorry in 2526 okay and what would be that I'm also There is no particular amount of capex 57:26 57 minutes, 26 seconds that we have done particularly uh for the JV that we are getting in the capex is about 3 cr 57:34 57 minutes, 34 seconds okay 3 cr and so this 25 crores is the revenue share that kur plastic park will get or this is the combined revenue and 57:42 57 minutes, 42 seconds 12 and a half cr will be for ku kur plastic park 57:48 57 minutes, 48 seconds 23 25 crores is what the sean will sell the entire manufacturing of that will be done by KPU plastic pack. So Kur plastic 57:56 57 minutes, 56 seconds pack will be selling to at a lower value let's say at a markdown of 20%. So Kur 58:04 58 minutes, 4 seconds plastic pack will sell to Sakan at 20 crores and then Sakan will sell the product at 25 crores. 58:10 58 minutes, 10 seconds Right. So on uh what would be the aeta for us on overall basis? Uh so for the marketing JB as well as for the 58:19 58 minutes, 19 seconds production what kind of aa margin are we marketing JB? we should look at 15% and for manufacturing also we should look at 15%. 58:29 58 minutes, 29 seconds Got it. So just final question sir this product the product is highly technologydriven 58:38 58 minutes, 38 seconds right so this product looks very interesting uh is there a possibility for kur to move from yarn to fabric for 58:45 58 minutes, 45 seconds this uh as the demand or as the uh JV or as our relationship strengthens can we move into fabric manufacturing as well for this product? 58:56 58 minutes, 56 seconds So can we the answer is yes. Uh do we want to uh currently I would say the answer is no because the uh the 59:05 59 minutes, 5 seconds technology is in manufacturing the yarn not the fabric. 59:12 59 minutes, 12 seconds Right. Got it. Uh so that was from my thank you so much and all the best. Thank you. 59:18 59 minutes, 18 seconds Thank you very much. As there are no further questions I'll now hand the conference over to the management for closing comments. 59:26 59 minutes, 26 seconds Uh thank you for your time and um um looking forward to see you next quarter. 59:35 59 minutes, 35 seconds Thank you very much on behalf of Kore Plastic Back Limited. That concludes this conference. Thank you for joining us and we may now. 59:43 59 minutes, 43 seconds Thank you.