KRBL LTD — Q3 FY26

KRBL Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cJVOlylva54 Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to KRBL Limited Q3 FI26 earnings 0:08 8 seconds conference call. As a reminder, all participant lines will be in the listen only mode and there will be an 0:15 15 seconds opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your Touchstone phone. 0:30 30 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 0:36 36 seconds Ashish Jen, chief financial officer of KRBL Limited. Thank you and over to you sir. 0:44 44 seconds Thank you. Thank you to all participants for joining us. Uh welcome to the Q3 FI26 earnings conference call for analysts and investors of KRB Limited. 0:54 54 seconds Today we have Mr. Anil Kumar Mittal, chairperson and managing director. Mr. 0:58 58 seconds Anuk Kumar Gupta, joint managing director and Mr. Aayush Kupta, head of the India business as key speakers on the call. To begin the call, uh Anili 1:07 1 minute, 7 seconds will share updates on the business industry and our overall strategy. 1:11 1 minute, 11 seconds Following that, Aush will provide insights into the performance and outlook of our domestic business. 1:16 1 minute, 16 seconds Finally, I will present the financial overview of the company for the third quarter and 9 months ended December 31st, 25. Once the management has 1:24 1 minute, 24 seconds concluded their opening remarks, we will open the floor for an interactive question and answer session. Please note that some of the statements made during the call may contain forward-looking 1:33 1 minute, 33 seconds information and actual results may differ from these statements. You can refer to KRB's investor presentation available on the stock exchange websites 1:41 1 minute, 41 seconds and our company's website. Uh now I would like to invite an to share his views. 1:49 1 minute, 49 seconds Yeah, good afternoon. 1:51 1 minute, 51 seconds Thank you for Thank you for joining us today for KRBL's Q3 FY 2026 investors call. I 2:01 2 minutes, 1 second sincerely appreciate your continued trust and interest in our company. I will take you through the current global 2:09 2 minutes, 9 seconds rise landscape, the outcome of the 2025 basmati crop season in India and Pakistan, price movements over the last 2:18 2 minutes, 18 seconds quarter and how these development shape our outlook. 2:22 2 minutes, 22 seconds Let me begin with the global rice outlook. According to the latest USDA rice outlook released in February 2026, 2:32 2 minutes, 32 seconds global rice production for 2526 remains around the mid 540 million metric ton 2:39 2 minutes, 39 seconds level while global consumption has strengthened and is now broadly aligned with production. 2:48 2 minutes, 48 seconds This tightening consumption production balance reflects stronger demand in Asia and Africa and a pickup in domestic 2:58 2 minutes, 58 seconds consumption in India. The global rice market therefore remains stable but the limited surplus cushion a dynamic that 3:08 3 minutes, 8 seconds supports continued export opportunities for reliable suppliers. 3:13 3 minutes, 13 seconds India continues to consolidate its position as world largest rice producer. 3:19 3 minutes, 19 seconds Production for 2526 is estimated at a record height supported by increased acreage favor 3:29 3 minutes, 29 seconds favorable farm economics and continued productivity gains. While overall 3:36 3 minutes, 36 seconds production is strong, regional weather pattern played a significant role in determining crop quality. On Vasmati, 3:45 3 minutes, 45 seconds the 2025 harvest which concluded recently can best be described as 3:52 3 minutes, 52 seconds adequate in volume but uneven in quality across regions. Acreage remained broadly 3:59 3 minutes, 59 seconds stable across Punjab, Ariana and western Uttar Pradesh, Rajasthan and parts of Madhya Pradesh. Adoption of pest 4:08 4 minutes, 8 seconds resistant and higher yield Busa varieties continued to improve agronomic resil rel resilience. However, heavy 4:18 4 minutes, 18 seconds monsoon spells and localized flooding in parts of Punjab and Ariana during the great filling stage result in higher 4:27 4 minutes, 27 seconds moisture content and in some pockets reduce head recovery. At the same time, 4:34 4 minutes, 34 seconds other producing belts experience normal condition and deliver strong grain length and aroma characteristics. 4:42 4 minutes, 42 seconds Turning to Pakistan, the basmati crop outcome has been mixed rather than severely damaged. While early flood 4:51 4 minutes, 51 seconds reports indicated potential losses, subsequent assessments suggest that impact were localized with several 5:00 5 minutes growing region delivering good grain quality and aroma. Since October 2025, 5:07 5 minutes, 7 seconds Pakistan super basmati has traded at a premium to Indian1121 5:13 5 minutes, 13 seconds with FOB offers broadly in the US dollar80 to 1220 per meter ton range higher than 5:23 5 minutes, 23 seconds comparable Indian codes. This reflected tighter premium availability in Pakistan 5:30 5 minutes, 30 seconds and India's larger overall supply and enabling more competitive pricing. 5:38 5 minutes, 38 seconds However, higher prices did not translate into stronger volumes. Pakistan export 5:45 5 minutes, 45 seconds shipment faced pressure amid India's renewed competitiveness following normalization of its state policies. 5:54 5 minutes, 54 seconds From an Indian exporter perspective, the fact that Pakistan basmati prices have trade have been trading at a premium has 6:04 6 minutes, 4 seconds reinforced India's competitiveness in several destination markets. This has had sustained export flows even amid geopolitical uncertaintity. 6:16 6 minutes, 16 seconds On the ge geopolitical front, the recent concluded US India trade understanding 6:23 6 minutes, 23 seconds which sets an important duty of 18% on Indian rice export to the United States provide greater clarity and stability 6:33 6 minutes, 33 seconds compared to the earlier reciprocal tariff uncertaintity. 6:37 6 minutes, 37 seconds While the duty remains higher than the historical levels and may influence pricing dynamics in that market, it has 6:46 6 minutes, 46 seconds brought pred predictability to trade flows and has not materially disturbed 6:53 6 minutes, 53 seconds India's overall basmati export trajectory. 6:57 6 minutes, 57 seconds Shipping disruption previously seen in the Red Sea corridor have eased compared to last year peak volatility. Although 7:06 7 minutes, 6 seconds freight markets remain sensitive to broader geopolitical developments in the Middle East. 7:13 7 minutes, 13 seconds Now turning to KRBL's performance, our export revenue for Q3 FY 2026 stood at 7:22 7 minutes, 22 seconds 357 cr compared to 563 cr in Q3 2025. 7:28 7 minutes, 28 seconds Since the volume in bulk export segment was restricted owing to geopolitical tension for the nine months and pensions 7:38 7 minutes, 38 seconds for the 9 months ended export revenue reached rupees 1,276 7:45 7 minutes, 45 seconds cr reflecting a 21% yearon-year increase consolidated revenue of Q3 was rups476 7:54 7 minutes, 54 seconds cr with aida of rups 250 cr and pat of rupees 170 cr for the quarter. These 8:03 8 minutes, 3 seconds reserves reflect strong operational momentum and strategic resilience. We are encouraged by our performance in Q3 8:12 8 minutes, 12 seconds and are excited about the opportunities ahead. Our balance sheet strength, discipline, procurement strategy and 8:22 8 minutes, 22 seconds deep sourcing network position position well to build on this performance and capture value as global demand continues to evolve. 8:33 8 minutes, 33 seconds Strategically, our focus remains clear. 8:37 8 minutes, 37 seconds First, we will continue to prioritize procurement of low moisture, high recovery petty to protect margins and 8:44 8 minutes, 44 seconds brand quality. Second, we will expand our branded and premium portfolio presence in key international market as 8:53 8 minutes, 53 seconds reflected in the third quarter. Third, we will leverage India's pricing competitiveness relative to Pakistan to deepen relationship with large global buyers. 9:04 9 minutes, 4 seconds And fourth, we remain committed to operational efficiency and discipline capital allocation including our 9:13 9 minutes, 13 seconds long-term consolidation plans at Panipat to enhance scalability and cost optimization. 9:21 9 minutes, 21 seconds In summary, the 2025 basmati season presenting regional challenges but not structural shortages. 9:29 9 minutes, 29 seconds Global rice demand remains firm and India's production stand supports export continuity. 9:36 9 minutes, 36 seconds Thank you once again for your continued trust and support. Now I hand it over to Aush who is in Colbo at the moment for 9:45 9 minutes, 45 seconds the domestic business update and detailed financial review. Thank you. 9:53 9 minutes, 53 seconds Thank you. Uh good afternoon everyone. I will walk you through the performance of our India business for quarter 3 and 9 month for financial year 2026. 10:05 10 minutes, 5 seconds For 9 month financial year 2026, domestic revenue excluding power stood at rupees 3,215 crores growing 6% 10:14 10 minutes, 14 seconds year-over-year driven largely by higher value. Branded basmati grew by 6% branded nonbasmati grew strongly at 35%. 10:24 10 minutes, 24 seconds This valueled growth validates the strategic direction we have taken in widening our portfolio and improving distribution reach. 10:33 10 minutes, 33 seconds In quarter 3 financial year 2026, our domestic revenue excluding power stood at rupees 1,14 crores staying broadly flat yearonear. 10:44 10 minutes, 44 seconds Branded basmati sales remained flat while branded non-basmati sales grew by 9%. 10:50 10 minutes, 50 seconds The quarter performance reflects stability rather than acceleration. The Basmuti category saw increased competitive intensity from R lose and 10:59 10 minutes, 59 seconds regional players specifically in general trade and modern trade channels. Low raw material prices put downward pressure on 11:06 11 minutes, 6 seconds demand and margins. However, KBL delivered robust margin expansion while maintaining volume stability. 11:15 11 minutes, 15 seconds Despite competitive intensity, we remain the clear market leaders across channels. Our market share in general trade stands at 37.8%. 11:25 11 minutes, 25 seconds In modern trade, it is at 39.3% and e-commerce we enjoy a leading market share of 41.2%. 11:34 11 minutes, 34 seconds Flat top line with strong margin reflects disciplined portfolio management and pricing power. Our 11:42 11 minutes, 42 seconds domestic strategy continues to be anchored around four clear pillars. 11:48 11 minutes, 48 seconds First, democratizing distribution. Our presence across 3.2 lakh retail outlets and reaching to 1.2 cr urban Indian 11:56 11 minutes, 56 seconds households. We are focused on strengthening presence in better quality stores and increasing penetration in urban households. Our distribution 12:05 12 minutes, 5 seconds expansion is become is becoming more granular especially in underpenetrated towns. 12:12 12 minutes, 12 seconds Second, remodeling our supply chain. We are building a more robust and healthier GTM structure. Now with 16 CNS and eight 12:22 12 minutes, 22 seconds super stockus points, we are moving towards a stronger FO model. We have a tighter governance to safeguard against 12:29 12 minutes, 29 seconds Jon infiltration and improve servicing and cost efficiency in modern trade and e-commerce. This transformation is 12:36 12 minutes, 36 seconds enabling wider and deeper supply, better serviceability and cost optimization. 12:42 12 minutes, 42 seconds This will progressively improve service discipline and operating margins over time. 12:48 12 minutes, 48 seconds Our third pillar, investing in the brand. During the Diwali festive season, we launched a high impact campaign featuring Mr. Bachan for India Gass. 12:57 12 minutes, 57 seconds Roughly 4200 GRPs, 60% reach across TV, digital and out of home. The campaign 13:04 13 minutes, 4 seconds reinforced emotional position positioning around make every moment classic and strengthened premium brand 13:11 13 minutes, 11 seconds salency. Additionally, we executed high intensity pan India activations in modern trade outlets demonstrating 13:18 13 minutes, 18 seconds category leadership and improving in store visibility. We continue to invest in our brands as we believe it supports 13:25 13 minutes, 25 seconds long-term premiumization and market share recovery. Our last pillar following following into new production 13:32 13 minutes, 32 seconds categories under the uplife brand we are expanding into value added rice for proactive health goals. 13:40 13 minutes, 40 seconds We now have brown rice for weight management, basmati brown rice for gut health and low GI everyday rice for 13:46 13 minutes, 46 seconds active health. Additionally, edible oil sales stood at rupees 9 crores in 9 month financial year 26 and we expect 13:55 13 minutes, 55 seconds this to scale further in this financial year as our distribution deepens. 14:01 14 minutes, 1 second To summarize, quarter 3 was stable domestically despite competitive pressures. 9-month growth reflects 14:08 14 minutes, 8 seconds healthy volume expansion. We remain market leaders across channels. 14:12 14 minutes, 12 seconds Structural initiative in distribution and supply chain are underway. Brand investments are reinforcing premium positioning and pricing power. Portfolio 14:21 14 minutes, 21 seconds expansion through up life and adjacencies opens new growth vectors. 14:26 14 minutes, 26 seconds Our focus remains clear. Strengthen the core, premiumize the portfolio, widen distribution and build adjacencies all 14:34 14 minutes, 34 seconds while protecting margins and long-term brand equity. Thank you. I will now hand it over to Ashish for his comments. 14:43 14 minutes, 43 seconds Thank you Aayush. I will now take you through the performance for the quarter ended 31st December 2025 and also the 9-month period ended the same date. All 14:51 14 minutes, 51 seconds figures mentioned by me would refer to consolidated financials of KRB limited. 14:56 14 minutes, 56 seconds Coming to the quarter, total income for the quarter stood at 1,52 crores, lower by 11% over the corresponding quarter 15:03 15 minutes, 3 seconds last year. Export revenue in the quarter is lower due to high private label revenue in the same quarter last year. 15:11 15 minutes, 11 seconds Export revenue, however, increased by 21% in the 9-month period ended December 2025. Domestic revenue excluding power 15:19 15 minutes, 19 seconds remained flat for reasons which Ausha has just explained. Gross margin for the quarter stood at 30.2% compared to 24% 15:26 15 minutes, 26 seconds in quarter 3 FI 25 higher due to lower average basmati cogs and higher other income during the quarter. Evida margin 15:35 15 minutes, 35 seconds for the quarter was at 16.9% versus 12% in the same period and is higher due to higher gross margin but was partially 15:43 15 minutes, 43 seconds offset by higher proportionate employee cost including a 0.6% additional graduity uh cost provision. 15:52 15 minutes, 52 seconds PAD for the quarter was at 170 crores or 11.3% in margin terms as against 133 crores or 7.8% in the corresponding 16:01 16 minutes, 1 second quarter. Let me now share a comparative analysis of Q3 visa v the preceding quarter. Revenue for operations declined 16:09 16 minutes, 9 seconds by 2% quarteron quarter. Domestic revenue increased by 6% while export revenue declined by 18% due to lower bulk export revenue during the quarter. 16:19 16 minutes, 19 seconds Branded exports increased marginally by 2% over the pre preceding quarter. Other income is lower mainly due to lower 16:27 16 minutes, 27 seconds forex gain in the current quarter. Gross profit was higher primarily due to improved sales mix uh basically higher 16:35 16 minutes, 35 seconds proportion of branded sales. EIDA followed the trend in gross profit partially impacted by higher proportionate employee cost including 16:42 16 minutes, 42 seconds the additional graduity provision I had mentioned earlier. 16:46 16 minutes, 46 seconds Coming to 9 months uh total income for the period was at 4572 crores uh higher by 10% against the 16:55 16 minutes, 55 seconds corresponding period last year. Domestic revenue in the period grew by 6% mainly driven by branded rice volume growth while export revenue increased by 21%. 17:05 17 minutes, 5 seconds Gross profit of the company stood at 28.3% in margin terms while eida and pat were at 15.8% and 10.6% respectively. 17:15 17 minutes, 15 seconds Margin improved mainly due to lower input cost. uh average basi cause declined by 9% in the 9-month period as 17:23 17 minutes, 23 seconds patty prices were lower in last procurement season and also uh the margin is higher because of higher other income. Moving to the balance sheet uh 17:33 17 minutes, 33 seconds talking about inventory first our total inventory as of December 31st 2025 stood at 3,941 crores. This includes 1,322 17:43 17 minutes, 43 seconds crores in patty inventory versus 1,239 crores as of December 31st, 24 and 2,450 17:52 17 minutes, 52 seconds crores in rice inventory versus 2,877 crores uh as of the same date last year. 17:59 17 minutes, 59 seconds on a volume basis as of December 31st 25 patty and rice inventory stood at 35 358,000 18:08 18 minutes, 8 seconds tons and four four sorry 3 lak 58,000 tons and 4 lak 111,000 tons respectively 18:16 18 minutes, 16 seconds compared to 3 lak 41,000 tons of patty and 4 lak 58,000 tons of rice in December 31st 24. The decline in 18:24 18 minutes, 24 seconds inventory value is due to both lower per unit cost and lower inventory carrying cost. Net bank borrowings net of 18:31 18 minutes, 31 seconds treasury investments were at a negative 388 crores as of December 31st 25 as against 102 crores last year. Lower 18:41 18 minutes, 41 seconds inventory coupled with higher cash profit generated in the 9-month period resulted in lower net bank debt. With that I come to an end of my prepared 18:49 18 minutes, 49 seconds remarks. I will now like to hand over to the moderator for opening the Q&A. I would just like to mention that the ET matter is subdued. So we will not be in 18:57 18 minutes, 57 seconds a position to respond to queries on this matter. Over to the moderator now. 19:03 19 minutes, 3 seconds Thank you very much. We will now begin with the question and answer session. 19:08 19 minutes, 8 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 19:16 19 minutes, 16 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use handsets while asking a question. 19:27 19 minutes, 27 seconds We requested to kindly restrict the number of questions to maximum of two questions at a time. In case you have any further questions, please rejoin the 19:36 19 minutes, 36 seconds queue. Again, ladies and gentlemen, we will wait for a moment while the question Q assembles. 19:48 19 minutes, 48 seconds We will take the first question from the line of Anubha Mukharji from Presign Capital. Please go ahead. 19:55 19 minutes, 55 seconds Uh hello. Am I audible? Yes, we can hear you. 20:00 20 minutes Yeah, we can hear you. 20:03 20 minutes, 3 seconds Uh thanks. Uh so the my first question is that uh uh both in the export and the domestic market uh what are the uh 20:11 20 minutes, 11 seconds current realizations like compared to like uh Q3 uh the past quarter? 20:20 20 minutes, 20 seconds Yeah. Uh talking about the domestic branded business, the quarter 3 realization was around 1 lak6,000 per 20:27 20 minutes, 27 seconds empty and on the export branded side it was about 1 lakh 40,000 per empty. 20:34 20 minutes, 34 seconds 1 lakh 16,000. 20:38 20 minutes, 38 seconds Okay. And follow sorry one correction. 20:44 20 minutes, 44 seconds Yeah, one correction. On the domestic side it was about 77,500 per ton and on the export side like I mentioned it was about 1 lakh 42,000. 20:55 20 minutes, 55 seconds Uh and sir just a follow up how are the uh realization currently both the markets like did did we witness any uh like uptrend or downtrend? 21:11 21 minutes, 11 seconds So your question is around post the quarter how has the prices move? Is that the question? 21:16 21 minutes, 16 seconds Currently yeah no present if you talk of present in 21:22 21 minutes, 22 seconds last 15 days the prices have gone up by practically 7 8% in last 15 days. In 21:30 21 minutes, 30 seconds last 15 days the prices have gone up quite much. 21:35 21 minutes, 35 seconds But uh if you see in the domestic market the effect effect effect will come in the first quarter of the next year. 21:44 21 minutes, 44 seconds Definitely our uh our prices will uh we will increase our prices in the first quarter of next year. 21:55 21 minutes, 55 seconds Okay. And sir uh given the uh lower uh uh cost of like uh rice inventory and 22:02 22 minutes, 2 seconds given these price hikes. So uh will uh sir will we witness further gross margin improvement for the coming financial 22:10 22 minutes, 10 seconds year? If you can uh like share some perspective on that. 22:16 22 minutes, 16 seconds Definitely definitely even uh I tell you our fourth quarter epida will definitely 22:23 22 minutes, 23 seconds grow by minimum 200 to 250 basis points more and for the next financial year since we are holding stocks for more 22:31 22 minutes, 31 seconds than one year one and a half year. So next financial year also looking at the market our rabbit data is going to be intact. 22:44 22 minutes, 44 seconds get that and sir we were trying to uh set up our own distribution setup in the Saudi market and there was some progress 22:52 22 minutes, 52 seconds in the previous quarter as well. So sir can you uh share what is the current status of that 23:01 23 minutes, 1 second Saudi business is progressing well and we are seeing consistent volume demand 23:07 23 minutes, 7 seconds with regular shipment taking place. Our current approach of working directly 23:14 23 minutes, 14 seconds with wholesaler is working effectively in the interim and helping us maintain strong market visibility. 23:25 23 minutes, 25 seconds We are still evaluating the right long-term distributor structure and have not finalized a distributor yet. 23:34 23 minutes, 34 seconds Given the strategic nature of this market, we would prefer to share further specifics through direct investor interactions. 23:49 23 minutes, 49 seconds Thank you. 23:51 23 minutes, 51 seconds We will take the next question from the line of Amita Garwal from Leeway Investments. Please go ahead. 23:58 23 minutes, 58 seconds Hello. Hello. 24:02 24 minutes, 2 seconds Yes, you're audible, sir. Go ahead. Uh uh good afternoon. Uh my question regarding Saudi Arabia and Iran. Sir, as you said uh your shipments to Saudi Arabia are doing pretty well. 24:13 24 minutes, 13 seconds So can you uh quantify the amount of uh exports you have in Saudi Arabia right now for the whole year and uh and same 24:22 24 minutes, 22 seconds uh uh uh what about Iran? So Iran currently has collapsed in last uh two months. So how do you think that uh will 24:29 24 minutes, 29 seconds be affected as a company uh regarding the Iran exports 24:41 24 minutes, 41 seconds and talk to our CFO he will yeah so see uh just to answer your first question we typically don't get into 24:50 24 minutes, 50 seconds country level revenue details right so not be able to share specific country level numbers 24:58 24 minutes, 58 seconds Yeah. Okay. That is uh this is fine. But uh can you uh uh like uh earlier told in five six years back that we we were 25:05 25 minutes, 5 seconds doing around about 1,000 products of exports to Saudi Arabia. So I just want to know how much have we uh regained the 25:12 25 minutes, 12 seconds market again and uh what about the Iran Iran currency has collapsed. So how do you think material going to affect us uh as a company in the coming quarters? 25:23 25 minutes, 23 seconds No. So I think two points. one is on Saudi like Anji had mentioned I think that business is progressing well through the distributors I think that's 25:31 25 minutes, 31 seconds what he had touched on through wholesalers and I think on Iran if you look at our revenue I mean the 25:40 25 minutes, 40 seconds bulk revenue that has shown significant growth over the last year so both markets Saudi as well as Iran are 25:46 25 minutes, 46 seconds working well for us right now uh any 25:53 25 minutes, 53 seconds contentions Sorry not your voice is not very clear. 25:59 25 minutes, 59 seconds Can you repeat? Yeah. Um my question is regarding Iran only uh any any effect about because of the Iran and USA tensions going on right now. 26:09 26 minutes, 9 seconds Tension going on. 26:10 26 minutes, 10 seconds There is a there is still tension going on and that is why we are quite uh 26:17 26 minutes, 17 seconds restrictive in uh concluding any new business in Iran. So therefore we it will take some time till some conclusion 26:26 26 minutes, 26 seconds takes place. It will be difficult for me to comment. At the moment we are also very cautious in exporting anything to Iran or getting new orders. 26:38 26 minutes, 38 seconds So how much is are exposed to Iran uh in the previous years? So that if if that tensions continue how much is that going to affect for our export business? 26:50 26 minutes, 50 seconds See I think I I clarified earlier if you look at the business conducted so far with Iran that has shown growth over the 26:57 26 minutes, 57 seconds same period last year. Now like I said future business like Anil mentioned it depends upon how the whole geopolitical 27:04 27 minutes, 4 seconds situation shapes up which we are on on a close watch of okay and my last question is regarding 27:13 27 minutes, 13 seconds oil business. Uh sir uh I have seen notice that our uh gut oil available on 27:19 27 minutes, 19 seconds e-commerce business sites. So uh how much turnover are we expected to do? 27:27 27 minutes, 27 seconds Sorry to interrupt in between. Ahmed uh your voice is not audible. I would request you to please join the queue again. 27:38 27 minutes, 38 seconds Thank you. We will take the next question from the line of Chira Single from Post Water Punch. Please go ahead. 27:46 27 minutes, 46 seconds Uh yeah, a few questions from my end. Uh first on the regional rice. So can you provide the total uh packaged or you 27:55 27 minutes, 55 seconds know branded uh regional ru market size uh you know for the varieties that we are uh selling. 28:07 28 minutes, 7 seconds Are you sure you want to take that? 28:08 28 minutes, 8 seconds Yeah, I'll take that. Yeah. Yeah. So, as I've mentioned in my earlier calls as well, you know, we entered multiple regional R varieties in the past. 28:18 28 minutes, 18 seconds However, as we've understood the market, as we, you know, operated in these markets, 28:25 28 minutes, 25 seconds we've kind of settled down with three large varieties which is Govinduh from West Bengal, Vakolum from Gujarat and Sona Musuri from Karnataka. 28:37 28 minutes, 37 seconds uh and all three varieties we primarily do aged uh rice varieties and um aged 28:44 28 minutes, 44 seconds rice segment. So um these segments independently are very large and uh the 28:51 28 minutes, 51 seconds market size if I have to estimate could be in the range of 3 to 4,000 crores. 29:00 29 minutes Okay. So this is the total. Can I answer your question? Yeah. Yeah. 29:04 29 minutes, 4 seconds Yeah. So this is Yeah. So just to confirm 3 to 4,000 cr is the total uh uh market size for uh this rise these three 29:13 29 minutes, 13 seconds and uh this would be expanding I believe as the shift happens from uh you know 29:20 29 minutes, 20 seconds the uh lose rise to package rice see in the regional r business most of 29:27 29 minutes, 27 seconds the business happens in bulk packs only 30 kg bags so there isn't uh the lose to package conversation in in regional is 29:35 29 minutes, 35 seconds the conversation rather is it's a very fragmented. There are many many brands available in the market. So it's a fragmented market but it's all a bulk pack business. 29:46 29 minutes, 46 seconds Okay. Uh got it. My second question is on the uh Gazyabad land. So any updates on the monetization plan? 29:58 29 minutes, 58 seconds At the moment we have postponed it because we calculated that the cost of uh transferring the unit to other place 30:07 30 minutes, 7 seconds is quite high. So for at least minimum 2 to 3 years we have postponed the decision. We have delayed the decision. 30:19 30 minutes, 19 seconds Okay. 30:20 30 minutes, 20 seconds Uh all right. I I'll join back in the queue. Thank you. 30:27 30 minutes, 27 seconds Thank you. We will take the next question from the line of Kushi Parik from Bugle Rock BMS. Please go ahead. 30:36 30 minutes, 36 seconds Yeah. Hi. Uh uh so if my calculations are correct, it appears that uh December 2025 30:44 30 minutes, 44 seconds inventory are a bit lower than uh the previous December I mean December 2024. 30:52 30 minutes, 52 seconds So uh how are we placing ourselves during Q4 for procurement and I'm asking especially considering that the basmati 31:00 31 minutes prices have been uh declining over last couple of years it has declined by about 20 odd percentages 31:07 31 minutes, 7 seconds so uh will we see some more procurement in terms of volumes or we are likely to 31:13 31 minutes, 13 seconds maintain at a you know steady pace as compared to the last year. 31:21 31 minutes, 21 seconds As far as our sales numbers are concerned, we are comfortable and uh our 31:29 31 minutes, 29 seconds uh our uh stock levels are uh are okay. 31:36 31 minutes, 36 seconds December 23 we are we had overstocking but now we are at level. I should not 31:43 31 minutes, 43 seconds say we are overstock but we are at level. 31:48 31 minutes, 48 seconds At these levels we cannot buy more but uh our our stock levels are okay at okay level. 31:56 31 minutes, 56 seconds Okay. So broadly flattish volumes is what we are expecting versus last year. 32:04 32 minutes, 4 seconds No we will be we'll be we'll be 10% plus 10 to 12% plus over last year. 32:12 32 minutes, 12 seconds Okay. Okay. And uh second I wish just one clarification you mentioned that uh in your opening remarks we have a retail 32:20 32 minutes, 20 seconds outlets of 3.2 lakhs now uh and if I uh you know kind of check the June uh call 32:27 32 minutes, 27 seconds we had mentioned that it is at about 3.6 lakhs. So now is it uh I mean my understanding correct or are we seeing 32:36 32 minutes, 36 seconds some kind of a strategic decision when it comes to the retail outlets consolid? I'll answer this in two. Yeah, 32:44 32 minutes, 44 seconds thank you. I'll answer this in uh two parts. So yes, our retail outlets have 32:52 32 minutes, 52 seconds kind of diminished in the past four to five months and broadly there are two reasons. 32:58 32 minutes, 58 seconds One is there's a lot of shift of branded basmati business happening from general 33:05 33 minutes, 5 seconds trade to quick commerce, right? So there are lot of outlets especially in the metro and tier one 33:12 33 minutes, 12 seconds cities which are uh you know reducing their uh position on branded basmatias 33:20 33 minutes, 20 seconds and that's one of the reasons that we've seen a reduction of outlets um um over 33:27 33 minutes, 27 seconds the course second reason is um you know we engaged in certain co-branding activities with other FMCG companies uh 33:36 33 minutes, 36 seconds in the past which had given us an uplift in retail expansion. So because those co-branding activities are now at a hold 33:45 33 minutes, 45 seconds and they have not concluded, we see a little bit of a reduction in outlet. Now however um if you you know kind of see 33:53 33 minutes, 53 seconds this data regularly, there tends to be a 10 to 15% uh volatility in the retail outlet counts uh as the year progresses. 34:03 34 minutes, 3 seconds So it's not a very big dip that we've seen. um we tend to gain back these volumes. Um also depends on the market 34:12 34 minutes, 12 seconds prices and trade prices of unbranded and the overall commodity rather. 34:20 34 minutes, 20 seconds Okay. Okay. And uh just I mean as a followup to this particular thing uh how are we uh taking when we have one of our 34:28 34 minutes, 28 seconds pillar is expanding our reach. So uh how are we looking uh at uh general trade 34:35 34 minutes, 35 seconds now versus modern trade in the overall scheme of things? 34:40 34 minutes, 40 seconds So general trade you know as I told you there's saturation in the metro and tier one markets also we see general trade 34:48 34 minutes, 48 seconds business moving to quick commerce and modern trade more in metro and tier one. 34:52 34 minutes, 52 seconds Hence our focus in the past year and it continues to be is to expand distribution in tier two and tier three cities and as India's consumption power 35:02 35 minutes, 2 seconds and purchasing power is increasing we are seeing Basmati's presence increase in tier 2 tier three cities and as a 35:09 35 minutes, 9 seconds brand as a leading brand um our distribution reach first you know will give us an first more advantage in gaining market share in those markets. 35:20 35 minutes, 20 seconds Okay, got it. Thank you. I'll join back. 35:25 35 minutes, 25 seconds Thank you. We will take the next question from the line of Koshul Sharma from Equinox Capital Venture Private Limited. Please go ahead. 35:34 35 minutes, 34 seconds Hello. Hi sir. Very good evening. I'm audible. Yes, we can hear you. Yeah. 35:40 35 minutes, 40 seconds Yeah. So uh my question is on your Gary project like you said that you have postponed your Gary property transition 35:48 35 minutes, 48 seconds but in addition to that we have a plan to uh develop a real estate project by acquiring land over there. So what is the what is the progress or what is our 35:56 35 minutes, 56 seconds plan in that regarding the paniput land parcel of 36:02 36 minutes, 2 seconds approximately 125 acre the registry process is currently underway. We are 36:09 36 minutes, 9 seconds evaluating opportunities to monetize a portion of that land at attractive valuation based on strong market 36:17 36 minutes, 17 seconds interest while retaining roughly 50 to 60 acre for future expansion of our bota operations. 36:26 36 minutes, 26 seconds This approach allows us to balance capital efficiency with long-term capacity planning. 36:36 36 minutes, 36 seconds Okay. So we'll do the real estate project in Panipat. Yeah. 36:41 36 minutes, 41 seconds It is in Somala which is in district Panipat. 36:46 36 minutes, 46 seconds It is near to our Sony plant. It is it is near to our Sony plant. We have a plant in Sony in a place called Baruta. 36:58 36 minutes, 58 seconds So what kind of uh outlay are you expecting and the revenue potential out of that? 37:05 37 minutes, 5 seconds I think you're saying what investment is expected. So that is being planned right now. 37:08 37 minutes, 8 seconds It has been planned. It has been planned but if we go through I think so that investment will be to the tune of about 37:18 37 minutes, 18 seconds around 100 acres 100 crores and the revenue potential 37:26 37 minutes, 26 seconds it is it is it is too early about revenue everything it's a packaging it will be a packaging plant that's 37:34 37 minutes, 34 seconds you talk it's your it is it is it is going to be a packaging plant directly It is whatever manufacturing and there 37:42 37 minutes, 42 seconds is some packaging. So we'll be doing packaging there at that plant. So it will increase our more packaging and it 37:51 37 minutes, 51 seconds will increase our our it will increase the packaging capacities of our units. 38:02 38 minutes, 2 seconds My question my question relating to the real estate project that in addition to Gajyat 38:10 38 minutes, 10 seconds property we are planning to develop with thousand Kores of outlay I guess in the last call you have mentioned 38:21 38 minutes, 21 seconds no but still we have done a investment of 425 crores but if we will get the opportunity if we have said that we will 38:29 38 minutes, 29 seconds be entering the real estate does not mean that we have decided that minimum we have to put it is all depends upon 38:36 38 minutes, 36 seconds the opportunity. If an as we got the opportunity in small cara let me tell you the the price at which we got this 38:46 38 minutes, 46 seconds land is much cheaper what today is in the market. So therefore we are looking at the opportunity if opportunity comes 38:55 38 minutes, 55 seconds where the prices we get a land at 50 60% of the price will definitely invest another 5 600 crores 39:05 39 minutes, 5 seconds any timeline sir that we are expecting no there is no timeline it may not be that we may not enter also we may not 39:14 39 minutes, 14 seconds also till the time the right opportunity comes where we can make a minimum of 40 50% % profit will not enter into any land part sir. 39:26 39 minutes, 26 seconds Okay. 39:27 39 minutes, 27 seconds Thank you very much for answering question. 39:32 39 minutes, 32 seconds Thank you. We will take the next question from the line of var from simple. Please go ahead. 39:39 39 minutes, 39 seconds Yeah question. So on one is on the real estate. So the monetization which we were planning you know shifting off the existing plant to another. Uh can you 39:48 39 minutes, 48 seconds just explain a little bit in detail you know what what is the reason why we have postponed for 2 3 years? 39:55 39 minutes, 55 seconds Actually we were of the opinion that it will hardly take 200 250 cr to shift the 40:02 40 minutes, 2 seconds plant from present from Gajyabad to another another site. But when we went 40:09 40 minutes, 9 seconds into detail we realized it's a very huge amount which would be spent while 40:16 40 minutes, 16 seconds shifting the present industry from Gajyabad to other place. So for the time being for minimum 2 three years we have 40:24 40 minutes, 24 seconds postponed it. We do not want to spend that type that type of a big investment. Yes, the prices will go up. 40:31 40 minutes, 31 seconds And let me add also in further two years the prices at Gyabad what they are prevailing today will further rise by minimum 20% 25%. 40:44 40 minutes, 44 seconds Okay. Second question is uh uh if you look at the cash right now what is the cash on the balance sheet? 40:52 40 minutes, 52 seconds Yeah. As of December 31st it was around 400 crores. 40:56 40 minutes, 56 seconds Right. So I think you know post this budget announcement um buyback windows 41:04 41 minutes, 4 seconds you know you know from first April. So is there any thoughts in terms of increasing payouts or maybe through buyback or similar routes? 41:14 41 minutes, 14 seconds Yeah. Yeah. In this budget it has been quite attractive. So we are thinking about it. We'll think about it. Thank you. 41:23 41 minutes, 23 seconds Thank you. 41:28 41 minutes, 28 seconds Thank you. We will take the next question from the line of Yash Danti Varia from Dante Equity. Please go ahead. 41:37 41 minutes, 37 seconds Yeah, I just wanted to clarify one statement. Did you say uh in quarter 4 the margins are going to go up by 200 to 250 basis points? 41:48 41 minutes, 48 seconds Yeah. Yeah. So I think uh what I mean yeah because I think the realization would be better how our realization per 41:57 41 minutes, 57 seconds turn because of the market it would be better so the ability is going to increase by 200% 42:06 42 minutes, 6 seconds material cost is okay thank you for clarifying um I just have uh two questions first question is 42:14 42 minutes, 14 seconds uh regarding uh what you said uh about Gajabad you said you'll sell some of the land and you'll retain 70 or 80 acres, 42:22 42 minutes, 22 seconds right? That is with relation a pani path. Pani path pani path pani path. Yeah. Yeah. 42:32 42 minutes, 32 seconds Yeah. So are you going to shift after 2 years or after 3 years or whenever it becomes more feasible. You said initially you thought it would be 250 42:41 42 minutes, 41 seconds crores to shift the plant. uh could you share the current uh uh uh number that it's coming up to shift the plant? 42:50 42 minutes, 50 seconds Let me clear you. There are two proposal. One is we have already a plant in Kazyabad and there we have around 115 43:00 43 minutes acres of land that that's valued today is around 2,500 crores. We believe in 43:07 43 minutes, 7 seconds next two three years this 2500 cr might become 3,500 crores. That's number one. 43:15 43 minutes, 15 seconds While we had decided that we will shift our plant and monetize on the Gazyabad land, we later on when we make out made 43:23 43 minutes, 23 seconds out the details we came to know it is not a question of 2 300 cr. It might be more than 5 to 600 cr in shifting a 43:32 43 minutes, 32 seconds plant. So for the time being we have postponed that uh planning of shifting Gyabad plant. As far as 43:41 43 minutes, 41 seconds Somala Panipat project is concerned the total land over there is around 125 43:48 43 minutes, 48 seconds acres out of which we want to sell half of the land because it is not a single 43:55 43 minutes, 55 seconds land there. It is in patches of 20 cr 20 acre, 10 acre, 15 acre and the other side of the land is 50 acre one patch. 44:04 44 minutes, 4 seconds On those 50 acre we want to develop and extend our BRA plant because we are 44:12 44 minutes, 12 seconds we are we are facing problem of this space and we are taking go downs and other thing 44:19 44 minutes, 19 seconds outside the factory area where we will sell 50% of the land which is around 50 44:26 44 minutes, 26 seconds 60 acres and where we will get good price that is the proposal right uh coming to My uh coming to my 44:35 44 minutes, 35 seconds second question to my second question I would really want to know the trajectory of exports from here on as you said uh during this call that your 44:44 44 minutes, 44 seconds realizations are almost 2x uh in exports versus domestic right so uh currently uh 44:52 44 minutes, 52 seconds your run rate uh the run rate that's uh there I think it's around 1,300 to 1400 cr per year in exports right so uh for 45:00 45 minutes the next financial year um where do see this trajectory sort of heading uh uh 45:07 45 minutes, 7 seconds could you throw some light on that and also your domestic numbers were sort of flat uh year on year this quarter um 45:16 45 minutes, 16 seconds where do you what kind of volume growth do you see because of regional rice and because of all the other value added uh 45:23 45 minutes, 23 seconds uh products that you're trying to sell u so I just want um basically I want to understand the trajectory of uh sales or 45:33 45 minutes, 33 seconds volumes uh uh in domestic and export market both for the next financial year. 45:43 45 minutes, 43 seconds I think you know that will probably need some explanation. Maybe we can get in touch offline. I'm happy to discuss it with you offline. I think your question 45:51 45 minutes, 51 seconds is more on a multi-year outlook. No, not multi-year uh export uh export at least on the export. If you could share it now that would be great. 46:01 46 minutes, 1 second Yeah, export. So we are doing quite fine and I believe that next financial year 46:09 46 minutes, 9 seconds it the our export should jump by minimum 15%. It should this is our idea because 46:16 46 minutes, 16 seconds the prices what we take from the market are much higher compared to our competitors. Taking a 46:25 46 minutes, 25 seconds price realization of 13 thou 14,000 rupees a 1 14,000 rupees t is I don't 46:32 46 minutes, 32 seconds think so anybody else is taking in the market these type of realization. So we do not compromise on pricing. Therefore, 46:41 46 minutes, 41 seconds we expect that minimum 15% right should be there next year. 46:47 46 minutes, 47 seconds Uh so just to conclude 15% uh rise in export volumes next financial year, right? 15 that's what you stated. 46:55 46 minutes, 55 seconds Right. Right. 46:56 46 minutes, 56 seconds Perfect. I'll I'll come I'll come back in the queue for more and we should take that domestic question offline later. Thank you so much. 47:04 47 minutes, 4 seconds Sure. No problem. 47:08 47 minutes, 8 seconds Thank you. We will take the next question from the line of Swamin Chri from Manserov Financials. Please go ahead. 47:16 47 minutes, 16 seconds Hello. Am I audible? Yeah, we can hear you. 47:20 47 minutes, 20 seconds Yeah. Uh good afternoon everyone and thank you for the opportunity. Uh I just wanted to uh come back on the domestic 47:26 47 minutes, 26 seconds uh volume issue. Uh this quarter we saw a flat uh number Y and Aush was talking 47:34 47 minutes, 34 seconds about uh some increased competition. Uh so how do we look at this uh segment uh going forward say for this uh quarter 47:43 47 minutes, 43 seconds and next year uh can we still maintain a mid-s singledigit kind of growth that we have seen over the last few years 47:52 47 minutes, 52 seconds you want to take yeah so s um see quarter 3 tends to be the 47:59 47 minutes, 59 seconds highest uh grossing quarter for the company um and uh what happened last year in bulk 48:08 48 minutes, 8 seconds pack was uh you know the the market were more bullish during the quarter quarter 3. So a lot of bulk pack business got prep um in in quarter 3 last year. 48:21 48 minutes, 21 seconds Similarly this year it has been postponed into quarter 4. So January February is when a lot of that bulk pack business which got preponed in quarter 3 48:29 48 minutes, 29 seconds last year is happening in of Jan Feb. So because of that we are seeing a little bit of a uh you know flattish growth or 48:38 48 minutes, 38 seconds maybe a zero growth in quarter three this year. That's on the bulk pack side but bulk pack demand remains very strong for us. Bulpack is actually growing very 48:46 48 minutes, 46 seconds very uh strong both on margin as well as volumes. That's point number one. Point number two on the consumer pack there 48:55 48 minutes, 55 seconds are couple of reasons. One as I told you there's a lot of uh inter channel competition happening. So general trade 49:03 49 minutes, 3 seconds business is moving to e-commerce and modern trade. So a lot of that you know disturbance in terms of price um lot of 49:12 49 minutes, 12 seconds omni channel uh demand from consumers is happening there. Added to that is 49:18 49 minutes, 18 seconds because of low prices this quarter. A lot of regional and local brands have taken the opportunity to kind of you 49:25 49 minutes, 25 seconds know enter the market at a very low price. At at TRBL we took a you know conscious call of not reducing our 49:34 49 minutes, 34 seconds prices for short-term uh volume gain because once we reduce prices to gain volume then increasing pricing you know 49:43 49 minutes, 43 seconds in the market takes couple of months and a lot of energy in terms of you know you know getting that momentum back. So yes, we 49:51 49 minutes, 51 seconds sacrificed certain volumes I would say in quarter three but to the extent that you know it was I would say a more 49:59 49 minutes, 59 seconds calibrated call of what we did we didn't want to lose market share but we didn't want to gain short-term volume at the expense of margin so we decided to 50:08 50 minutes, 8 seconds expand margin and keep volumes kind of stable. 50:12 50 minutes, 12 seconds Okay. So now that uh the since the patty prices have increased a little bit as uh you were saying so this competition should be somewhat lower now. 50:23 50 minutes, 23 seconds Yes. So in quarter 4 definitely we have taken calibrated price increases in lot of markets but I would still say in certain markets 50:31 50 minutes, 31 seconds where we still face uh stricter competition we will decide to go with an aggressive price and gain market share. 50:39 50 minutes, 39 seconds So that kind of a play will happen on a daily basis and that's more of an operational and strategic call of how we want to run the show but largely we 50:47 50 minutes, 47 seconds remain margin uh focus in terms of gaining margin and maintaining a pricing power in the market. 50:55 50 minutes, 55 seconds Okay. So so next year also uh is it will difficult to say as of now whether we can still maintain that mid-s single digit kind of growth. 51:04 51 minutes, 4 seconds I think uh we are very positive that we can maintain u single digit growth or maybe even early double digit growth 51:12 51 minutes, 12 seconds because as I said pack business continues to remain strong the good thing is e-commerce quickcommerce channel which is a brand forward channel 51:20 51 minutes, 20 seconds is gaining salience for for the category right almost 30 almost 30 35% of consumer pack business has started to 51:28 51 minutes, 28 seconds contribute from the e-commerce and quickcommerce channels so as the salience and as the number of Dark shows keep increasing our sales from this 51:35 51 minutes, 35 seconds channel increases and there we have a very you know I would say a competitive advantage compared to the overall category because there there are no loose players there are no regional 51:44 51 minutes, 44 seconds brands operating we are competing with national brands and there India Gate has a very very strong brand equity okay okay that's it from my side thank 51:53 51 minutes, 53 seconds you so much thank you we will take the next question 52:01 52 minutes, 1 second from the line of netic from NB the alpha fund please go ahead. Uh hi sir uh thanks for taking the question sir. Uh 52:08 52 minutes, 8 seconds just to hark a little bit more on on the domestic uh revenue that we are doing. 52:13 52 minutes, 13 seconds Uh you know if I look at the post past four to five quarters is sort of been stuck in the,5000 cr quart quarterly sort of number and 52:22 52 minutes, 22 seconds now given that uh you know we also losing market share in both empty and GT. So GT I understand uh you know uh 52:29 52 minutes, 29 seconds some share might be shifting to ecom but even in empty we are losing market share. So you know uh do we think now 52:36 52 minutes, 36 seconds this uh share market share loss we will be able to arrest it or to continue to fall uh you know what what are we doing 52:43 52 minutes, 43 seconds to sort of uh stop this uh loss of market share. 52:50 52 minutes, 50 seconds Thank you for that question. See December, January and Feb ongoing we have seen a good run rate in market 52:57 52 minutes, 57 seconds share regain in modern trade and as I had mentioned I think earlier also in my earlier calls that market share loss in 53:05 53 minutes, 5 seconds modern trade is primarily on the back of private label play increase at one of the major retailers in modern trade. Um 53:13 53 minutes, 13 seconds however there has been some changes again in the strategy at the uh modern retail chain end and now that private 53:21 53 minutes, 21 seconds label play is again going down. So we see a regain in market share happening in modern trade as well. 53:30 53 minutes, 30 seconds Got it. Uh got it. And and so we we do maintain that uh we might start growing at say high single digit or maybe early double digit in the domestic market. 53:40 53 minutes, 40 seconds Yes. Yes. 53:42 53 minutes, 42 seconds Right. Right. Uh so the second question is just a bookkeeping question. You know we've seen uh the employee cost rise sharply. If I look at YI or if I look at 53:50 53 minutes, 50 seconds Q I understand there might be some effect of the graduity but uh you know what's the uh sort of steady state uh employee cost that we expect uh you know 53:58 53 minutes, 58 seconds per quarter and if if you can just give clarification why is it jumped so high why even if I look at last quarter uh 54:05 54 minutes, 5 seconds you know the jump was very sharp. So uh apart from the graduity onetime provision uh if you could clarify why is 54:12 54 minutes, 12 seconds it increasing such sharply other than the graduity provision which is at about 9 and a half crores 54:20 54 minutes, 20 seconds reflecting in quarter 3 the other year increase that you see is largely on account of increase in headcount. So when we look at December 25 versus 54:29 54 minutes, 29 seconds December 24 total onroll employee headcount is up by about 160 people. 54:34 54 minutes, 34 seconds Most of this is coming from increase in capacity that we've done at Gazyabad and at Barotaa plants. Right. So it is 54:41 54 minutes, 41 seconds linked to higher production uh capacity and little bit on the sales side. 54:49 54 minutes, 49 seconds Got it. Got it. So this 5560 cror would remain inside the run for quarter. 54:57 54 minutes, 57 seconds Yeah. I think you can say that what other than the graduity provision what you see now should now only be increments related increase and not 55:06 55 minutes, 6 seconds disproportionate but sorry to have one but 60 crores will per quarter and apart from that whatever 55:14 55 minutes, 14 seconds annual improvements are there correct yeah got thank you that is 55:24 55 minutes, 24 seconds thank you take the next Question from the line of Jira Single from First Water Punch. Please go ahead. 55:36 55 minutes, 36 seconds Jak, you may proceed with your question. 55:42 55 minutes, 42 seconds Due to no response, we will take the next participant. 55:46 55 minutes, 46 seconds We have the next follow-up question from the line of Kushi Parik from Bugle Rock PMS. Please go ahead. 55:53 55 minutes, 53 seconds Yeah. Hi. Uh uh just on that real estate piece uh uh we are continuing with the development of Parispad. Uh so who from 56:02 56 minutes, 2 seconds our team is involved uh in the development of that particular land parcel and maybe even ongoing basis and 56:09 56 minutes, 9 seconds have we uh onboarded some people to look into this particular segment. 56:21 56 minutes, 21 seconds Hello You see there's no question of development as Mr. ML has said out of 56:29 56 minutes, 29 seconds 125 acres about 50 acres we are going to develop of our own we are going to build our own warehouses our own packaging and 56:38 56 minutes, 38 seconds processing unit and balance we will send sell as it is at a better price so there's no question of any development 56:46 56 minutes, 46 seconds in it okay and uh secondly on that uh distribution side itself uh for Aayush 56:56 56 minutes, 56 seconds uh are we uh you know when we are looking at the modern trade rising uh we are clearly selling it to a you know 57:04 57 minutes, 4 seconds smaller set of people versus uh when it comes to general trade. So how do you see ourselves uh you know placed in 57:12 57 minutes, 12 seconds terms of the bargaining power or the you know how competitive uh we need to be uh uh especially with regards to them 57:20 57 minutes, 20 seconds especially when we mentioned that the private brands had taken hold in one of 57:28 57 minutes, 28 seconds the uh large organized player so how do you see this thing panning out to longer term for our business 57:37 57 minutes, 37 seconds um see that's Definitely u I would say a negative when dealing with organized trade. Uh private labels do have a equal 57:47 57 minutes, 47 seconds opportunity to kind of retail and sell their brands. But however when it comes to an organized trade the biggest 57:55 57 minutes, 55 seconds advantage that comes it's a branded play and that's where all our investments all our efforts that we've been doing for all these years really come into play. 58:04 58 minutes, 4 seconds in a general trade ecosystem because it's unorganized. We we we know you fall back to competition which is unfair to a 58:12 58 minutes, 12 seconds lose to a regional which is much more driven by price than retailer advocacy on a modern trade and an e-commerce platform. It is the end consumer who's 58:20 58 minutes, 20 seconds making a decision and price often is not the you know the the supreme I would say 58:27 58 minutes, 27 seconds reason why a consumer will choose you or not choose you. There are many other factors that come into play and that's I think inherently in a modern trade and 58:37 58 minutes, 37 seconds an e e-commerce environment branded players or leading branded players have an advantage. So more and more industry 58:45 58 minutes, 45 seconds uh category as it moves to an organized trade branded players will always win and lead. 58:52 58 minutes, 52 seconds Having said that, I understand the fact on general trade of you know general trade contracts then the size of the 59:00 59 minutes category kind of shrinks but as I told you more of this plays happening in the metro and tier one cities 59:07 59 minutes, 7 seconds general trade is continuing to expand in the tier 2 tier three cities when it comes to basmati and that's a new market that is opening for us and you know we 59:16 59 minutes, 16 seconds are ahead of the curve in terms of building our distribution there and catering to the consumers 59:25 59 minutes, 25 seconds Thank you very much. We take that as the last question. 59:29 59 minutes, 29 seconds Thank you members of the management team. Ladies and gentlemen, on behalf of KRBL Limited, that concludes this conference call. Thank you all for 59:38 59 minutes, 38 seconds joining us today. And you may now disconnect your lines.