Q1 2027 Insecticides (India) Ltd Earnings Call

August 11, 2026

Speaker #4: Ladies and gentlemen, the conference will begin shortly. Please stay connected. Ladies and gentlemen, the conference will begin shortly. Please stay connected. Ladies and gentlemen, good day and welcome to Insecticides (India) Limited Q1 FY27 Earnings Conference Call.

Operator 2: Ladies and gentlemen, good day and welcome to Insecticides (India) Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing * then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Tejal Bhatt from MMFG Intime. Thank you and over to you, ma'am.

Operator: Ladies and gentlemen, good day and welcome to Insecticides India Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sejal Bhatt from MMFG Intime. Thank you and over to you, ma'am.

Speaker #4: As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #4: Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #4: I now hand the conference over to Ms. Sejal Vattar from MUFG. Thank you, and over to you, ma'am.

Speaker #2: Thank you, and welcome to the Q1 and three months FY27 earnings call of Insecticides (India) Limited. Today on this call, we have with us Mr. Rajesh Kumar Agrawal, Managing Director.

Sejal Bhattar: Thank you and welcome to Q1 and three months FY27 earnings call of Insecticides (India) Limited. Today on this call we have with us Mr. Rajesh Kumar Aggarwal, Managing Director, Mr. Sandeep Aggarwal, Chief Financial Officer, Mr. Devendra Kumar Ray, Chief Operating Officer and Mr. Dushyant Sood, Chief Marketing Officer. Before we proceed with the call, I would like to give a small disclaimer that this conference may contain certain forward-looking statements which are based on beliefs, opinions and expectations of the company as on date. These statements are not guarantee of future performance and involve risks and uncertainties which are difficult to predict. A detailed disclaimer has been given in the company's invested presentation which is uploaded on the stock exchange. Now I would like to hand over the conference to the management for the opening remarks. Thank you and over to you, sir.

Speaker #2: Mr. Sandeep Agrawal, Chief Financial Officer; Mr. Devendra Kumar Ray, Chief Operating Officer; and Mr. Dushan Sood, Chief Marketing Officer. Before we proceed with the call, I would like to give a small disclaimer that this conference may contain certain forward-looking statements, which are based on beliefs, opinions, and expectations of the company as a lead.

Speaker #2: These statements are not guarantees of future performance and involve risks and uncertainties which are difficult to predict. A detailed disclaimer has been provided in the company's investor presentation, which is uploaded on the Stock Exchange.

Speaker #2: Now, I would like to hand over the conference to the management for the opening remarks. Thank you, and over to you.

Speaker #5: Thank you. This is Rajesh Agrawal. Good evening, everyone, and thank you for joining us for this Q1 FY27 earnings call. The first quarter of FY27 was shaped by an unusual start to the agricultural season.

Rajesh Kumar Aggarwal ): Thank you. This is Rajesh Aggarwal. Good evening everyone and thank you for joining us for the Q1 FY27 earnings call. The first quarter of FY27 was shaped by an unusual start of the agricultural season. Channel activity started in March ahead of the anticipated front rise. A delayed and unknown monsoon coupled with high temperatures across several regions impacted sow activity and delayed demand for crop protection products. While this affected industry performance during the quarter, we believe there are still several opportunities to recover. With rainfall improving and temperatures picking up, we expect agricultural activity to gain momentum in the coming months. Talking about IIL. IIL has established itself as a potential fully integrated agrochemical company. Even in slower environments, the quarter highlighted the importance of building a business that is not dependent on single crop or product category.

Rajesh Aggarwal: Thank you. This is Rajesh Aggarwal. Good evening everyone and thank you for joining us for the Q1 FY27 earnings call. The first quarter of FY27 was shaped by an unusual start of the agricultural season. Channel activity started in March ahead of the anticipated front rise. A delayed and unknown monsoon coupled with high temperatures across several regions impacted sow activity and delayed demand for crop protection products. While this affected industry performance during the quarter, we believe there are still several opportunities to recover. With rainfall improving and temperatures picking up, we expect agricultural activity to gain momentum in the coming months. Talking about IIL. IIL has established itself as a potential fully integrated agrochemical company. Even in slower environments, the quarter highlighted the importance of building a business that is not dependent on single crop or product category.

Speaker #5: Channel activity started in March ahead of the anticipated downtime. A delayed and uneven monsoon, coupled with high temperatures across several regions, impacted swing activity and delayed demand for crop protection products.

Speaker #5: While this affected industry performance during the quarter, we believe that still, when timely opportunities to recover, with rainfall improving, and agri-picking up, we expect agriculture activity to gain momentum in the coming months.

Speaker #5: Talking about oil, Oil has established itself as a potential fully integrated agro-chemical company. Even in slower environments, the quarter highlighted the importance of building a business that is not dependent on a single crop or product category.

Speaker #5: Over the last few years, we have focused on creating multiple growth drivers through premium products, R&D, technology partnerships, cargo research, and international markets. These investments are helping us build a stronger and more diversified growth platform for the future.

Rajesh Kumar Aggarwal ): Over the last few years, we have focused on creating multiple growth drivers through premium products, R&D, technology partnerships, crop research, and international markets. These investments are helping us build a stronger and more diversified growth platform for the future. Within the core business, formalization continues to gain traction with our Maharatna and Focus Maharatna portfolio contributing around 64% of the business. During the quarter, we further strengthened this portfolio through new product launches and collaborations. GRANUVIA and Spinoace, both launched in collaboration with Corteva Agriscience, were introduced through extensive engagement with dealers, distributors, retailers, and farmers across the country. We see these products as multi-year opportunities where increasing farmer acceptance can make meaningful contributions over the coming years. These launches are supported by our continued focus on R&D and technology partnerships. During the quarter, we continued working with Corteva, Nissan, and OAT.

Rajesh Aggarwal: Over the last few years, we have focused on creating multiple growth drivers through premium products, R&D, technology partnerships, crop research, and international markets. These investments are helping us build a stronger and more diversified growth platform for the future. Within the core business, formalization continues to gain traction with our Maharatna and Focus Maharatna portfolio contributing around 64% of the business. During the quarter, we further strengthened this portfolio through new product launches and collaborations. GRANUVIA and Spinoace, both launched in collaboration with Corteva Agriscience, were introduced through extensive engagement with dealers, distributors, retailers, and farmers across the country. We see these products as multi-year opportunities where increasing farmer acceptance can make meaningful contributions over the coming years. These launches are supported by our continued focus on R&D and technology partnerships. During the quarter, we continued working with Corteva, Nissan, and OAT.

Speaker #5: Within the core business, premiumization continues to gain traction, with our Maharatma and Focus Maharatma portfolio contributing around 64% of the business. During the quarter, we further strengthened this portfolio through new product launches and collaborations.

Speaker #5: Revenue Granovia and Stanois, both launched in collaboration with Corteva Agriculture, were introduced through extensive engagement with dealers, distributors, retailers, and farmers across the country.

Speaker #5: We see these products as multi-year opportunities, where increasing farmer acceptance can build meaningful contribution over the coming years. These launches are supported by our continued focus on R&D and technology partnerships.

Speaker #5: During the quarter, we continued working with Corteva, Nissan, and OT Agrio to assess differentiated technologies and molecules. While our internal R&D teams remain focused on developing products suited to the Indian market, our work with OT Agrio on a new molecule discovery is also progressing, helping strengthen the pipeline for the coming years.

Rajesh Kumar Aggarwal ): Agrio to access differentiated technologies and molecules while our internal R&D teams remain focused on developing products suited to the Indian market. Our work with OAT Agrio on a new molecule discovery is also progressing, helping strengthen the pipeline for the coming years. The next step is to translate this product pipeline into wider farmer adoption, and this is where our distribution and field engagement become important. During Q1, we conducted more than 3,600 farmer meetings, 600 field days were organized, 1,400 demonstrations, and over 15,000 farmer visits were made by the team of IIL, and these were all supported by more than 8,500 distributors and 17,000 retail touchpoints. These engagements helped us to maintain a strong farmer connect even as the season started later than normal. Talking about our IIL crop solution program.

Rajesh Aggarwal: Agrio to access differentiated technologies and molecules while our internal R&D teams remain focused on developing products suited to the Indian market. Our work with OAT Agrio on a new molecule discovery is also progressing, helping strengthen the pipeline for the coming years. The next step is to translate this product pipeline into wider farmer adoption, and this is where our distribution and field engagement become important. During Q1, we conducted more than 3,600 farmer meetings, 600 field days were organized, 1,400 demonstrations, and over 15,000 farmer visits were made by the team of IIL, and these were all supported by more than 8,500 distributors and 17,000 retail touchpoints. These engagements helped us to maintain a strong farmer connect even as the season started later than normal. Talking about our IIL crop solution program.

Speaker #5: The next step is to translate this product pipeline into wider farmer adoption, and this is where our distribution and field engagement become important. During Q1, we conducted more than 3,600 farmer meetings, 600 field days, organized 1,400 demonstrations, and over 15,000 farmer visits were made by the team. These were all supported by more than 8,500 distributors and 70,000 retail customers.

Speaker #5: These engagements help us to maintain strong farmer connect even as the field has started later than normal. Talking about our IL Crop Solution program, it is an important extension of this approach as it demonstrates complete crop solutions and their economics directly in the farmer field.

Rajesh Kumar Aggarwal ): It is an important extension of this approach as it demonstrates complete crop solutions and their economics directly in the farmer field. Following strong farmer acceptance and demonstrated ROI from the existing 30 plots, we are now planning to double the number of plots while expanding its presence across 15 states and four crops. Now rice, cotton, chili, and soybean will be included in these four crops. The objective is to demonstrate efficacy and economics at the field level and create a stronger product pull for the differentiated portfolio. Along with the core business, crop research contributed to make progress during the quarter. More than 40 products are already commercialized. We are expanding this portfolio and distribution footprint while developing B2B and tech-to-tech opportunities. Our focus remains on scaling Taro into a meaningful, second growth platform over the medium term.

Rajesh Aggarwal: It is an important extension of this approach as it demonstrates complete crop solutions and their economics directly in the farmer field. Following strong farmer acceptance and demonstrated ROI from the existing 30 plots, we are now planning to double the number of plots while expanding its presence across 15 states and four crops. Now rice, cotton, chili, and soybean will be included in these four crops. The objective is to demonstrate efficacy and economics at the field level and create a stronger product pull for the differentiated portfolio. Along with the core business, crop research contributed to make progress during the quarter. More than 40 products are already commercialized. We are expanding this portfolio and distribution footprint while developing B2B and tech-to-tech opportunities. Our focus remains on scaling Taro into a meaningful, second growth platform over the medium term.

Speaker #5: Following strong farmer acceptance and demonstrated ROI from the existing 36 plots, we are now planning to double the number of plots while expanding our presence across 14 states and 4 crops—namely rice, cotton, chili, and soybean. We will be using these 4 farms with the objective to demonstrate efficacy and economics at the field level and create a stronger product pool for the differentiated portfolio.

Speaker #5: Along with the core business, cargo research contributed to its progress during the quarter. More than 40 products are already commercialized. We are expanding its portfolio and distribution footprint while developing B2B and step-to-step opportunities.

Speaker #5: The focus remains on scaling cargo into a meaningful second growth platform over the medium term. Our international business also continues to gain momentum during the quarter, with registrations, partnerships, and customer opportunities being developed across Latin America, Europe, and Asia. With this opportunity progressing, including in France, we are taking a calibrated approach to establish these relationships before scaling them, with the expectation that successful engagement can develop into meaningful medium-term opportunities.

Rajesh Kumar Aggarwal ): Our international business also continued to gain momentum during the quarter, with registrations, partnerships, and customer opportunities continuing to be developed across Latin America, Europe, and Asia. With this opportunity progressing, as we are taking a calibrated approach to establish these relationships before distribution, with the expectation that successful engagement can develop into meaningful medium-term opportunities. Now the case of the technicals is setting up and getting good acceptance of these technicals across the world wherever we are going. We believe that along with the wide ranging, our business of technicals is going to flourish in the international market, and that will support us in increasing the sales volumes and the sales numbers. On the operating side, crude and petroleum-linked raw material prices remain an area of pressure during the quarter, impacting parts of crop protection value chain.

Rajesh Aggarwal: Our international business also continued to gain momentum during the quarter, with registrations, partnerships, and customer opportunities continuing to be developed across Latin America, Europe, and Asia. With this opportunity progressing, as we are taking a calibrated approach to establish these relationships before distribution, with the expectation that successful engagement can develop into meaningful medium-term opportunities. Now the case of the technicals is setting up and getting good acceptance of these technicals across the world wherever we are going. We believe that along with the wide ranging, our business of technicals is going to flourish in the international market, and that will support us in increasing the sales volumes and the sales numbers. On the operating side, crude and petroleum-linked raw material prices remain an area of pressure during the quarter, impacting parts of crop protection value chain.

Speaker #5: Now, the phase of the technicals is catching up and there is good acceptance of these technicals across the world wherever we are going, and we believe that, along with the white labeling, our business of technicals is going to flourish in the international market. That will support us in increasing the sales volumes and the sales numbers.

Speaker #5: On the operating side, crude and petroleum-based raw material costs remain an area of pressure during the quarter, impacting part of growth. Protection will be changed. We continue to address this through calibrated pricing, better product mix, and increasing contribution from differentiated products while remaining competitive.

Rajesh Kumar Aggarwal ): We continue to address this through calibrated pricing, better product mix, and increasing contribution from the differentiated products while remaining competitive. Working capital discipline also remained a priority. Deal inventory was slightly elevated due to the slower start of the agricultural season, and we are focused on improving inventory turns, collection, and alignment between the placement and underlying demand. Our objective remains to reduce working capital cycles as the season normalizes. Our manufacturing with the Dahej facility is providing additional capacity and flexibility while the Chopanki project is progressing as planned. The formulation facility at Chopanki is expected to commence around April, May next year, followed by seasonal product production by Diwali, subject to the project schedule. Importantly, the investments made over the past several years are already supporting the business.

Rajesh Aggarwal: We continue to address this through calibrated pricing, better product mix, and increasing contribution from the differentiated products while remaining competitive. Working capital discipline also remained a priority. Deal inventory was slightly elevated due to the slower start of the agricultural season, and we are focused on improving inventory turns, collection, and alignment between the placement and underlying demand. Our objective remains to reduce working capital cycles as the season normalizes. Our manufacturing with the Dahej facility is providing additional capacity and flexibility while the Chopanki project is progressing as planned. The formulation facility at Chopanki is expected to commence around April, May next year, followed by seasonal product production by Diwali, subject to the project schedule. Importantly, the investments made over the past several years are already supporting the business.

Speaker #5: Working capital discipline also remained a priority. Inventory was slightly elevated due to the slower start of the agriculture season, and we are focused on improving inventory turns, collections, and alignment between the placement and underlying demand. Our objective remains to reduce the working capital cycle as the season is normalizing.

Speaker #5: Our manufacturing with the Hedgege facility is providing additional capacity and flexibility, while the Sotanala project is progressing as planned. The formulation facility at Sotanala is expected to commence around April-May next year, followed by diffusion product production by Diwali, subject to the project schedule.

Speaker #5: Importantly, the investment made over the past several years is already supporting the business. Investments in manufacturing capacity, premiumization, R&D, and technology have strengthened our product pipeline, improved our ability to serve customers, and created the capacity required for the next phase of growth.

Rajesh Kumar Aggarwal ): Investments in manufacturing capacity, stream normalization, R&D, and technology have strengthened our product pipeline, improved our ability to serve customers and created the capacity required for the next phase of growth. We are now seeing these investments progressively translate into business opportunities, and as utilization improves, we expect their contribution to become increasingly visible in our operating performance. At the same time, we are approaching the end of this investment cycle. Once the current projects are completed, we expect annual CapEx to normalize around 30 to 40 crores of maintenance CapEx. Along that, we increasingly focus on utilization, price realization, and mix. As utilization improves, we expect operating leverage and efficiency initiatives to support improvement of ROS and ROE with renewal initiatives, lower electricity and fuel consumption, and increasing use of AI and other advanced technologies provide additional efficiency benefits from Q3 onwards. I will say from September, October.

Rajesh Aggarwal: Investments in manufacturing capacity, stream normalization, R&D, and technology have strengthened our product pipeline, improved our ability to serve customers and created the capacity required for the next phase of growth. We are now seeing these investments progressively translate into business opportunities, and as utilization improves, we expect their contribution to become increasingly visible in our operating performance. At the same time, we are approaching the end of this investment cycle. Once the current projects are completed, we expect annual CapEx to normalize around 30 to 40 crores of maintenance CapEx. Along that, we increasingly focus on utilization, price realization, and mix. As utilization improves, we expect operating leverage and efficiency initiatives to support improvement of ROS and ROE with renewal initiatives, lower electricity and fuel consumption, and increasing use of AI and other advanced technologies provide additional efficiency benefits from Q3 onwards. I will say from September, October.

Speaker #5: We are now seeing these investments progressively translate into business opportunities, and as utilization improves, we expect their contribution to become increasingly visible in our operating performance. At the same time, we are approaching the end of this investment cycle.

Speaker #5: Once the current projects are completed, we expect annual capex to normalize around ₹30 to ₹40 crores of maintenance capex. Along with that, we will increasingly focus on utilization, cash generation, and returns.

Speaker #5: As utilization improves, we expect operating leverage and efficiency initiatives to support the improvement of growth and ROE. With renewal initiatives, lower electricity and fuel consumption, and increasing use of AI and other advanced technologies, we expect to see additional efficiency benefits from Q3 numbers.

Speaker #5: I can say from September–October. Looking ahead, while delayed launches impacted the first quarter, we believe the agriculture cycle has largely been benefited rather than lost.

Rajesh Kumar Aggarwal ): Looking ahead, while delayed monsoons impacted the Q1, we believe the agricultural cycle has largely been preserved rather than lost. With rainfall improving, sowing progressing, and crop protection activity normalizing, we expect stronger execution over the remaining three quarters. Our focus for Agro Industries remains on converting the opportunities created through our product launches.

Rajesh Aggarwal: Looking ahead, while delayed monsoons impacted the Q1, we believe the agricultural cycle has largely been preserved rather than lost. With rainfall improving, sowing progressing, and crop protection activity normalizing, we expect stronger execution over the remaining three quarters. Our focus for Agro Industries remains on converting the opportunities created through our product launches.

Speaker #5: With rainfall improving, soil progressing, and crop protection activity normalizing, we expect stronger execution over the remaining three quarters. Our focus and effort in summer remain on converting these opportunities—created through our product launches, farmer engagement, cargo interaction, business, and investment in capacity—into stronger growth.

Rajesh Kumar Aggarwal ): Farmer engagement, carriage, international business, and investing in capabilities is our goal while maintaining discipline on costs, working capital, and capital allocation. We believe the investment made in earlier years are now providing the foundation for the next phase of growth, and our objective is to convert the foundation into sustainable growth through strong execution and improving capital efficiency. With that, I would like to hand over the call over to Mr. Sandeep Aggarwal, who will take you through the financial performance. Thank you.

Rajesh Aggarwal: Farmer engagement, carriage, international business, and investing in capabilities is our goal while maintaining discipline on costs, working capital, and capital allocation. We believe the investment made in earlier years are now providing the foundation for the next phase of growth, and our objective is to convert the foundation into sustainable growth through strong execution and improving capital efficiency. With that, I would like to hand over the call over to Mr. Sandeep Aggarwal, who will take you through the financial performance. Thank you.

Speaker #5: While maintaining discipline across working capital and capital allocation, we believe the investments made in earlier years are now providing the foundation for the next phase of growth. Our objective is to convert this foundation into sustainable growth, stronger cash generation, and improved capital efficiency.

Speaker #5: With that, I would like to hand over the call to Mr. Sanjit, who will take you through the financial performance. Thank you.

Operator 2: Sanjeev.

Sandeep Aggarwal ): Mr. Sandeep Aggarwal here from the company. Welcome everyone. We can get started. This is regarding the performance of Q1. If you compare the Q1 year-on-year growth, the revenue from operations has decreased by 10%, from INR 791 crore to INR 719 crore, and the gross profit has increased by 8% from INR 193 crore to INR 211.93 crore, though the gross profit percentage has increased from 29% to 31.6%. If you see the EBITDA, there is a de-growth of around 33%, and for percentage it has come down from 12.2% to 9.1%. The PAT margin has also come down from 8.4% to 7.3%. If you see some mixture, then the premium product sales has increased during this quarter. Last year it was 58% of total B2C contribution. This year, first quarter is 64% of total B2C contribution.

Sandeep Aggarwal: Mr. Sandeep Aggarwal here from the company. Welcome everyone. We can get started. This is regarding the performance of Q1. If you compare the Q1 year-on-year growth, the revenue from operations has decreased by 10%, from INR 791 crore to INR 719 crore, and the gross profit has increased by 8% from INR 193 crore to INR 211.93 crore, though the gross profit percentage has increased from 29% to 31.6%. If you see the EBITDA, there is a de-growth of around 33%, and for percentage it has come down from 12.2% to 9.1%. The PAT margin has also come down from 8.4% to 7.3%. If you see some mixture, then the premium product sales has increased during this quarter. Last year it was 58% of total B2C contribution. This year, first quarter is 64% of total B2C contribution.

Speaker #2: Hi, Sanjit here from the company. Welcome you all to the semester call. So, this is regarding the performance of Q1. Can you compare and see the year-on-year results? The revenue from operations of Q1 is up by 10%. The profit has increased from ₹91 crore to ₹610 crore, and gross profit has improved by 10%, from ₹190 crore to ₹193 crore, though the gross profit percentage has increased from 29% to 31.6%. If you look at the EBITDA, there is a decrease of around 20%, and the percentage has come down from 12.2% to 9.1%. The PAT margin has also come down from 8.4% to 7.3%.

Speaker #2: And if you see some next year, then the premium product sales have improved during this quarter. Last year, it was 58% of total GPC contribution.

Speaker #2: This year, gross quantity is 64% of the total GPC contribution. You will see the segmented sales: the B2C sales in this quarter are 64%, B2B is 34%, and export is 3%. Whereas last year, B2C was 75%, B2B was 23%, and export was 2%.

Sandeep Aggarwal ): If you see the segment-wise sales, the B2C sales in this quarter is 54%, B2B is 34%, and export is 3%. Whereas last year B2C was 75%, B2B was 17%, export was 3%. If you see the performance of the newly launched products during this quarter, the sales from these new products during the quarter was INR 5.50 crore. If you see the products which we launched last year, the purchases of those products last year, first quarter was around INR 77 crore. This year it is INR 3.29 crore. Revenue from essential products last year, first quarter it was around INR 36 crore. This year first quarter it is around INR 36 crore. Revenue from protected products has come down from INR 97 crore to INR 70 crore, which has mainly happened due to the reduction in sales of Subshilan.

Sandeep Aggarwal: If you see the segment-wise sales, the B2C sales in this quarter is 54%, B2B is 34%, and export is 3%. Whereas last year B2C was 75%, B2B was 17%, export was 3%. If you see the performance of the newly launched products during this quarter, the sales from these new products during the quarter was INR 5.50 crore. If you see the products which we launched last year, the purchases of those products last year, first quarter was around INR 77 crore. This year it is INR 3.29 crore. Revenue from essential products last year, first quarter it was around INR 36 crore. This year first quarter it is around INR 36 crore. Revenue from protected products has come down from INR 97 crore to INR 70 crore, which has mainly happened due to the reduction in sales of Subshilan.

Speaker #2: You will see the performance of the newly launched products. So during this quarter, you got two products; the sales from these two products during the quarter was ₹5.50 crores.

Speaker #2: You will see the products which we launched last year, so the total sales of those products last year was—first quarter, ₹1.67 crores.

Speaker #2: This year, it is ₹2.29 crores. Revenue from full licensing products last year, first quarter, was around ₹46 crores. This year, first quarter, it is around ₹46 crores.

Speaker #2: Revenue from patented products has come down from ₹97 crore to ₹70 crore. This has mainly happened due to the reduction in sales of 49.

Speaker #2: And then the contribution from combination products has come down from ₹124 crores to ₹98 crores. So these are some financial statistics. Now, we can open the house for questions and answers.

Sandeep Aggarwal ): Contribution from formulation products has come down from INR 124 crore to INR 98 crore. These are the changes which have happened this year. Now we can open the house for questions and answers. Thank you.

Sandeep Aggarwal: Contribution from formulation products has come down from INR 124 crore to INR 98 crore. These are the changes which have happened this year. Now we can open the house for questions and answers. Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone.

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prashant Bhayani from Elara Securities. Please go ahead.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prashant Biani from Elara Securities.

Operator: The first question is from the line of Prashant Bhayani from Elara Securities. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Yeah. Hi, Rajesh ji. Sir, on the Sultanala formulation and technical plant, how much are we investing separately for formulation and technical? What is the total investment, and how much have we invested till date?

Prashant Bhayani: Yeah. Hi, Rajeshji. Sir, on the Sohna formulation and technical plant, how much are we investing separately for formulation and technical? What is the total investment, and how much have we invested till date?

Prashant Biyani: Yeah. Hi, Rajeshji. Sir, on the Sohna formulation and technical plant, how much are we investing separately for formulation and technical? What is the total investment, and how much have we invested till date?

Speaker #2: It will be a project total investment. The total investment will go roughly about 200 crores, out of which I think about 50 crores will be going into formulation and 150 will be for technical.

Sandeep Aggarwal ): It will be a project. Total investment will go roughly about INR 200 crores. Out of which, I think about INR 50 crores will be going into formulations and INR 150 million for the technical. The total investment made so far is to the tune of about INR 70 crores.

Rajesh Aggarwal: It will be a project. Total investment will go roughly about INR 200 crores. Out of which, I think about INR 50 crores will be going into formulations and INR 150 million for the technical. The total investment made so far is to the tune of about INR 70 crores.

Speaker #2: And the total investment made so far is to the tune of about ₹70 crore.

Speaker #3: Okay. And sir, in technicals, which molecules do we plan to manufacture here?

Prashant Bhayani: Okay. Sir, in technicals, which molecules do we plan to manufacture here?

Prashant Biyani: Okay. Sir, in technicals, which molecules do we plan to manufacture here?

Sandeep Aggarwal ): If you talk specifically of Sohna, we are going for a DCS plant, which is fully automatic plant. Some of the insecticides and fungicides where we have the expertise, they will be transferred to Sohna from Chopanki, and Chopanki will be handling the new AI-based products. We have identified five, six products which will be going in first phase, and then there will be additions of new technical products in the second phase.

Rajesh Aggarwal: If you talk specifically of Sohna, we are going for a DCS plant, which is fully automatic plant. Some of the insecticides and fungicides where we have the expertise, they will be transferred to Sohna from Chopanki, and Chopanki will be handling the new AI-based products. We have identified five, six products which will be going in first phase, and then there will be additions of new technical products in the second phase.

Speaker #2: Is it something specific to Sultanala? We are going for a DPS plant, which is a fully automatic plant. So for some of the pesticides and fungicides there, we have the expertise.

Speaker #2: They will be transferred to Sultanala from KYC, and so the function will be handling the new AI, basically. We have identified five to six projects which will be going in the first phase.

Speaker #2: And then there will be additions of new AI technologies here in the second phase.

Speaker #3: Okay. Okay, sir. Thank you so much.

Prashant Bhayani: Okay. Okay, sir. Thank you so much.

Prashant Biyani: Okay. Okay, sir. Thank you so much.

Rajesh Aggarwal: Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you. The next question is from the line of Ramesh from SJ Investments. Please go ahead.

Operator 2: Thank you. The next question is from the line of Ramesh from SJ Investments. Please go ahead.

Sandeep Aggarwal: Thank you. The next question is from the line of Ramesh from SJ Investments. Please go ahead.

Speaker #4: Hi sir. I'm audible.

[Analyst] (SJ Investments): Hi, sir. Am I audible?

Ramesh J. Vekaria: Hi, sir. Am I audible?

Speaker #2: Yes sir. Clearly.

Sandeep Aggarwal ): Yes, sir. Clear.

Sandeep Aggarwal: Yes, sir. Clear.

Speaker #4: Yes, sir. Nothing. Sir, I just wanted to understand, in terms of the ground and range having been uneven and everything, and, you know, the overhang with us.

[Analyst] (SJ Investments): Yes, sir. Sir, I just wanted to understand in terms of the ground. I am sure rains have been uneven and everything and overhang with us. Sales also translated to that. How do you see the demand environment right now going forward?

Ramesh J. Vekaria: Yes, sir. Sir, I just wanted to understand in terms of the ground. I am sure rains have been uneven and everything and overhang with us. Sales also translated to that. How do you see the demand environment right now going forward?

Speaker #4: So, and sales also translated to that. How do you see the demand environment right now, going forward?

Sandeep Aggarwal ): If you talk about August and till mid-rain across the country, the reservoir situation is improving and the crops are very healthy. The only we have what we see is majorly in the South India, where the rice sowing is usually delayed in many parts where the dams are not filled. But the dam situation is improving now. 40 odd percent of rice is ready or getting sown in Karnataka, Andhra, and Tamil Nadu.

Rajesh Aggarwal: If you talk about August and till mid-rain across the country, the reservoir situation is improving and the crops are very healthy. The only we have what we see is majorly in the South India, where the rice sowing is usually delayed in many parts where the dams are not filled. But the dam situation is improving now. 40 odd percent of rice is ready or getting sown in Karnataka, Andhra, and Tamil Nadu.

Speaker #2: If you talk about August and June, you see that across the country the reservoir situation is improving and the crops are very healthy. The only area where we see issues is mainly in the southern region, where the rice sowing is delayed in many parts because the dams are not filled, but the dam situation is improving.

Speaker #2: Now, shortly, your percent of rice spendings are very sore in Karnataka, Andhra, and Tamil Nadu. Let me draw—environment is NP and some services, broadly things are okay.

Rajesh Kumar Aggarwal ): Little dry environment is LP and some incentives. Broadly, things are okay. This year we have also seen the reduction in cotton and wheat crops, but other dry crops are doing. We will see a good traction in oilseeds, pulses, I would say groundnut, and also chilies. Chilies are going to be the major crop for South this year. Those were all the big states, Andhra, Telangana, and Karnataka. It should show a good increase in the chili crop, which will be very good for the industry.

Rajesh Aggarwal: Little dry environment is LP and some incentives. Broadly, things are okay. This year we have also seen the reduction in cotton and wheat crops, but other dry crops are doing. We will see a good traction in oilseeds, pulses, I would say groundnut, and also chilies. Chilies are going to be the major crop for South this year. Those were all the big states, Andhra, Telangana, and Karnataka. It should show a good increase in the chili crop, which will be very good for the industry.

Speaker #2: This year, we have also seen a reduction in cotton and base crops, but other dry crops are improving. So, we have seen increased attraction in oil seeds purchase—I would say groundnut, and also chana.

Speaker #2: Chickpeas are going to be the major crop for the South this year—in all the states: Andhra, Telangana, and Karnataka. So, a good increase in these chickpea crops, which should be very good for the industry.

[Analyst] (SJ Investments): Got it, sir. So overall basis, South is a little compared affected, and right now over the year, where do you think you will end up in terms of sales growth, sir?

Ramesh J. Vekaria: Got it, sir. So overall basis, South is a little compared affected, and right now over the year, where do you think you will end up in terms of sales growth, sir?

Speaker #4: Got it, sir. So, on an overall basis, the South is a little comparatively affected, and right now, over the year, where do you think you'll end up in terms of sales growth, sir?

Speaker #2: It's difficult to give the exact number, but we should be positive, and I believe that positive impact should be visible in the future itself.

Rajesh Kumar Aggarwal ): Difficult to give the number, but we should be positive, and that positive impact should be visible from Q2 itself, I believe.

Rajesh Aggarwal: Difficult to give the number, but we should be positive, and that positive impact should be visible from Q2 itself, I believe.

Speaker #4: Got it, sir. And one question in regards to just understanding the final customer—the farmer. So, we have co-planner products which are more expensive and Marathma products compared to our other generic products.

[Analyst] (SJ Investments): Got it, sir. One question in regards to just understanding the final customer, the farmer. So we have co-branded products which are more expensive and Maharatna products compared to our other generic products. Could you explain how the farmer is different from our new brand segment, co-branded segment versus Maharatna? Could you just give a broad perspective on which bucket of farmer fits for each type of brand?

Ramesh J. Vekaria: Got it, sir. One question in regards to just understanding the final customer, the farmer. So we have co-branded products which are more expensive and Maharatna products compared to our other generic products. Could you explain how the farmer is different from our new brand segment, co-branded segment versus Maharatna? Could you just give a broad perspective on which bucket of farmer fits for each type of brand?

Speaker #4: Could you explain how the farmer is different for our new brand segment, co-planner segment, versus Marathma? Could you just give a broad perspective on which bucket of farmer fits for each type of brand?

Speaker #2: Like, it is a matter of awareness. What we are doing is we are connecting with a lot of farmers. We are developing the QA communication system with the farmers.

Rajesh Kumar Aggarwal ): It is a matter of awareness. What we are doing is we are connecting with a lot of farmers. We are developing the two-way communication system with the farmer. We have developed farmer apps, retailer apps. We are trying to take the technology to them. So we have to show the ROI. The farmer is not different. He has to believe that he will receive 100% more income than he used to get. If we are able to show him the benefits, even the small farmer sometimes agrees to buy the expensive products. Generally, it is believed that the expensive products will be bought only by the progressive farmer who has large base of land. Yes, that is true to an extent.

Rajesh Aggarwal: It is a matter of awareness. What we are doing is we are connecting with a lot of farmers. We are developing the two-way communication system with the farmer. We have developed farmer apps, retailer apps. We are trying to take the technology to them. So we have to show the ROI. The farmer is not different. He has to believe that he will receive 100% more income than he used to get. If we are able to show him the benefits, even the small farmer sometimes agrees to buy the expensive products. Generally, it is believed that the expensive products will be bought only by the progressive farmer who has large base of land. Yes, that is true to an extent.

Speaker #2: We have developed a farmer app and a retailer app. We are trying to get the technology to them, so we have to show the ROI. The farmer is not different.

Speaker #2: He has to believe that he is investing 100 crores. What type of benefit? If we are able to show him the benefit, even the small farmer sometimes agrees to buy the expensive products.

Speaker #2: Generally it is believed that the expensive products will be bought only by the progressive farmers who have large base of land. Yes that is true to an extent but even the smaller farmers they have so good interest with the technology and we have seen that all type of farmers have expected accepted the technology in the past because if I see my retail that we launches which has happened in last five six years so they are contributing about one third of the sales in totality which means that yes the interest of the farmer is going up for the new technology products.

Rajesh Kumar Aggarwal ): Even the smaller farmers, they are so good in trust with the technology, and we have seen that all types of farmers have accepted this technology really fast. Because if I see my intake or the launches which has happened in last five, six years, they are contributing about 25% of the sales in totality, which means that yes, the interest of the farmer is more now for the new technology products. It is the sentiment of the retailer and the network which is important, and of course, the efforts of our team. If we are able to take the technology, yes, it is the acceptance is very high.

Rajesh Aggarwal: Even the smaller farmers, they are so good in trust with the technology, and we have seen that all types of farmers have accepted this technology really fast. Because if I see my intake or the launches which has happened in last five, six years, they are contributing about 25% of the sales in totality, which means that yes, the interest of the farmer is more now for the new technology products. It is the sentiment of the retailer and the network which is important, and of course, the efforts of our team. If we are able to take the technology, yes, it is the acceptance is very high.

Speaker #2: And it is the sentiment of the retailer and the network which is important, and of course the efforts of our team. If we are able to take the technology, yes, the acceptance is very high.

[Analyst] (SJ Investments): Sir, could you give a broad perspective on how each brand is segmented, just to understand how the value track is for the company and what they want each brand to expand into, the ideal vision?

Ramesh J. Vekaria: Sir, could you give a broad perspective on how each brand is segmented, just to understand how the value track is for the company and what they want each brand to expand into, the ideal vision?

Speaker #4: Sir, could you give a broad perspective on how each brand is segmented, just to understand how the value chart is for the company and what they want each brand to turn into, like expand into the ideal vision?

Speaker #2: It's difficult to talk about brand value, but here I can mention that one year back we had started this exercise when the contribution from premium products was 48%.

Rajesh Kumar Aggarwal ): Difficult to talk brand wise, but here I can talk that five years back, we had started this exercise when the contribution from the premium products was 48%. Now we have reached to 60%+ already, and the target is to reach to 70% in next three years to four years' time. So 62% we achieved in this quarter, which was a difficult quarter. In the last fiscal also, the achievement was 62%+ from the premium products, which means that company's overall energy is going towards promoting these premium products and their acceptance is also very good. So we are developing these products across segments. We have subsidized segments and also the subsidized-

Rajesh Aggarwal: Difficult to talk brand wise, but here I can talk that five years back, we had started this exercise when the contribution from the premium products was 48%. Now we have reached to 60%+ already, and the target is to reach to 70% in next three years to four years' time. So 62% we achieved in this quarter, which was a difficult quarter. In the last fiscal also, the achievement was 62%+ from the premium products, which means that company's overall energy is going towards promoting these premium products and their acceptance is also very good. So we are developing these products across segments. We have subsidized segments and also the subsidized-

Speaker #2: Now we have reached over 60% already, and the target is to reach 70% in the next three to four years.

Speaker #2: So, 64% is achieved in this quarter, which was a difficult quarter, and in the last fiscal also, the achievement was 62% plus from the premium products. This means that the company's overall energy is going towards promoting these premium products within their segment.

Speaker #2: So, we are developing these products across segments. We have highly high-end products, and we are also testing among certain areas in India in this segment.

Operator 2: Hello.

Operator: Hello.

Rajesh Kumar Aggarwal ): We are also fixing up certain PD apps in this segment.

Rajesh Aggarwal: We are also fixing up certain PD apps in this segment.

Speaker #1: Hello, sorry to interrupt, sir. Your voice is a bit muffled.

Operator 2: Hello, sorry to interrupt, sir. Your voice is a bit muffled.

Operator: Hello, sorry to interrupt, sir. Your voice is a bit muffled.

Rajesh Kumar Aggarwal ): I will keep my mouth closer. Do you want me to repeat the answer?

Rajesh Aggarwal: I will keep my mouth closer. Do you want me to repeat the answer?

Speaker #2: I'll keep my hand. No worries. So, do I need to repeat the answer?

Speaker #1: No sir. Now it's clear.

Operator 2: No, sir. Now it is clear.

Operator: No, sir. Now it is clear.

Speaker #2: No, and I replied here. Or do you need me to repeat?

Rajesh Kumar Aggarwal ): Am I clear or you need me to repeat?

Rajesh Aggarwal: Am I clear or you need me to repeat?

Speaker #1: No sir, your voice was audible, but it was a bit muffled.

Operator 2: No, sir. Your voice was audible, but it was a bit muffled.

Operator: No, sir. Your voice was audible, but it was a bit muffled.

Speaker #2: Okay.

Rajesh Kumar Aggarwal ): Okay.

Rajesh Aggarwal: Okay.

Speaker #4: Yes, sir. So, just one last question, sir. You mentioned that depending on awareness, the farmer chooses the brand, right? So, just trying to understand—during the initial stages when you’re trying to make them try and innovate with a product, what do they trust more? Is it usually a Marathma brand, or is it the foreign brand with our co-branding on it?

[Analyst] (SJ Investments): Yes, sir. So just one last question, sir. Sir, you mentioned the fact that depending on awareness, the farmer chooses the brand, right? So just trying to understand, during the initial stages when you are trying to make them try an innovative product, what do they trust more? Is it usually a Maharatna brand or is the foreign brand with our co-branding on it?

Ramesh J. Vekaria: Yes, sir. So just one last question, sir. Sir, you mentioned the fact that depending on awareness, the farmer chooses the brand, right? So just trying to understand, during the initial stages when you are trying to make them try an innovative product, what do they trust more? Is it usually a Maharatna brand or is the foreign brand with our co-branding on it?

Speaker #2: Please come back again.

Rajesh Kumar Aggarwal ): Please come back again.

Rajesh Aggarwal: Please come back again.

Speaker #4: Sorry sir. Am I audible?

[Analyst] (SJ Investments): Sorry, sir. Am I audible?

Ramesh J. Vekaria: Sorry, sir. Am I audible?

Speaker #2: Yes yes.

Rajesh Kumar Aggarwal ): Yes, please.

Rajesh Aggarwal: Yes, please.

Speaker #4: Yes, sir. So basically, I was asking—you mentioned that the farmer chooses the brand based on the awareness generated in the market. So, just trying to understand, during the first phase when there was no Insecticides India product used by the farmer, do they start with the international brand, the co-branded brand that we sell with Nissan and Gowan, or would it be the Maharathna brand the first time they take something?

[Analyst] (SJ Investments): Yes, sir. I was asking, you mentioned that the farmer chooses the brand based on the awareness generated in the market. Just trying to understand, during the first phase when there was no Insecticides product used by the farmer, do they start with the international brand, co-branded brand that we sell with Nissan and OAT, or would it be Maharatna brand the first time they take something?

Ramesh J. Vekaria: Yes, sir. I was asking, you mentioned that the farmer chooses the brand based on the awareness generated in the market. Just trying to understand, during the first phase when there was no Insecticides product used by the farmer, do they start with the international brand, co-branded brand that we sell with Nissan and OAT, or would it be Maharatna brand the first time they take something?

Speaker #2: It all depends on what solutions we are giving, and they come by route only by the usage pattern and the awareness level of the farmer. Because if it is a herbicide, generally it is used fast, so it can be from my own R&D or from imported products.

Rajesh Kumar Aggarwal ): It all depends on what solutions are we giving, and they come by the usage pattern and the awareness level of the farmer. Because if it is a herbicide, generally it is used first. So it can be from my own R&D or the imported products. Both have their acceptance. Then the farmer also knows that the imported products or the collaboration products are little expensive than the normal products. Sometimes, the earlier question you asked that if it is very expensive product, then of course, the traction comes from the big-sized farmers or the progressive farmers. But if it is reasonable, reasonably, generally it costs INR 200 to INR 300 for an acre. If your product is in the range of INR 500-1,000, then even a small farmer can afford it. But if it crosses INR 3,000, then definitely the attention is more on the larger partner.

Rajesh Aggarwal: It all depends on what solutions are we giving, and they come by the usage pattern and the awareness level of the farmer. Because if it is a herbicide, generally it is used first. So it can be from my own R&D or the imported products. Both have their acceptance. Then the farmer also knows that the imported products or the collaboration products are little expensive than the normal products. Sometimes, the earlier question you asked that if it is very expensive product, then of course, the traction comes from the big-sized farmers or the progressive farmers. But if it is reasonable, reasonably, generally it costs INR 200 to INR 300 for an acre. If your product is in the range of INR 500-1,000, then even a small farmer can afford it. But if it crosses INR 3,000, then definitely the attention is more on the larger partner.

Speaker #2: So, on both sides, we have exercise. Generally, the farmer also knows that the imported products, or the collaboration products, are a little more expensive than the normal products.

Speaker #2: So, sometimes, regarding the earlier question you asked—if it is a very expensive product, then of course the traction comes from the big-size farmers, from the progressive farmers.

Speaker #2: But if it is reasonable, then reasonable means generally our generation cost is ₹200 to ₹300 per acre. If your product is in the range of ₹500 to ₹600, then even a small farmer can afford it.

Speaker #2: But if it crosses three bids, then definitely the traction is more from the larger farmer. But again, it depends on the awareness and the cost-benefit ratio.

Rajesh Kumar Aggarwal ): Again, it depends on the partner and the cost configuration. We are able to convince the partner, definitely the small partner also should get success and the larger ones also, and there is interest for everything actually. So market for everything, and that is one reason we are increasing our collaborations continuously. That does not mean that if I am increasing my collaboration, that I am not launching the products through my own R&D. We are continuously working in our own R&D. We are making more AIs and also launching new formulations. At this moment, you might be finding our speed is slow, but I can tell you that there are more than 30 products which are in pipeline to be launched in next two years. Our pipeline is very, very strong actually. We are already working. There are mixtures, there are new AIs, everything is there.

Rajesh Aggarwal: Again, it depends on the partner and the cost configuration. We are able to convince the partner, definitely the small partner also should get success and the larger ones also, and there is interest for everything actually. So market for everything, and that is one reason we are increasing our collaborations continuously. That does not mean that if I am increasing my collaboration, that I am not launching the products through my own R&D. We are continuously working in our own R&D. We are making more AIs and also launching new formulations. At this moment, you might be finding our speed is slow, but I can tell you that there are more than 30 products which are in pipeline to be launched in next two years. Our pipeline is very, very strong actually. We are already working. There are mixtures, there are new AIs, everything is there.

Speaker #2: So, we are able to convince the farmer. Definitely, the small farmer also should be accepted, and the larger ones also, and there is interest for everything.

Speaker #2: So, there is a market for everything, and that is one reason we are increasing our collaboration continuously. That does not mean that if I'm increasing my collaboration, I'm not launching the products from my own R&D.

Speaker #2: So we are continuously working in our own R&D. We are making more AI and also launching new formulations at this moment you might be finding or experiencing it is slow but I can tell you that slower than there are more than 30 products which are in pipeline to be launched in next two years.

Speaker #2: So our pipeline is very, very strong, actually, for which we are already working. There are mixtures, there are new AIs, everything is there. So the investments are very, very high in this because we are developing a huge range of products to be launched in the future.

Rajesh Kumar Aggarwal ): The investments are very, very high in this because we are developing a huge range of products actually to be launched in future.

Rajesh Aggarwal: The investments are very, very high in this because we are developing a huge range of products actually to be launched in future.

Speaker #4: Understood, sir. So just one last question with regards to capacity. We mentioned that we are putting up a new facility. So I'm just trying to understand, without the new capacity, what would be the maximum sales you'll be able to generate? And with the new capacity, how much more sales can we generate at peak utilization?

[Analyst] (SJ Investments): Understood, sir. Just one last question with regards to our capacity. We mentioned that we are putting up a new facility. It's just trying to understand, without that capacity, what can be the maximum sales we will be able to generate, and with the new capacity, how much more sales can we generate at peak utilization? Just trying to understand the capacity.

Ramesh J. Vekaria: Understood, sir. Just one last question with regards to our capacity. We mentioned that we are putting up a new facility. It's just trying to understand, without that capacity, what can be the maximum sales we will be able to generate, and with the new capacity, how much more sales can we generate at peak utilization? Just trying to understand the capacity.

Speaker #4: Just trying to understand the capacity.

Speaker #2: The ideal effort that we are putting to develop the capacities and to develop the sales—the idea is to double our surge. In the past, we used to double in three to four years.

Rajesh Kumar Aggarwal ): It's a continuous effort what we are putting to develop the capacities and to develop the sales. The idea is to double ourselves. In the past, we used to double in 3 to 4 years. Now, I believe that we should be able to double in 4 to 5 years. So the product mix is important. The technical manufacturing is important to take care of the investor. Investment is also important. Looking at that, we are developing our production capabilities. So we try to increase certain AIs, we try to backward integrate at certain places. Everything is a mix. So very difficult to tell exactly, but broadly you can say that we wish to double ourselves in next 4 to 5 years.

Rajesh Aggarwal: It's a continuous effort what we are putting to develop the capacities and to develop the sales. The idea is to double ourselves. In the past, we used to double in 3 to 4 years. Now, I believe that we should be able to double in 4 to 5 years. So the product mix is important. The technical manufacturing is important to take care of the investor. Investment is also important. Looking at that, we are developing our production capabilities. So we try to increase certain AIs, we try to backward integrate at certain places. Everything is a mix. So very difficult to tell exactly, but broadly you can say that we wish to double ourselves in next 4 to 5 years.

Speaker #2: Now, I believe that we should be able to double in four to five years. So, the product mix is important, and technical manufacturing is important. To take care of the interests of the business is also important.

Speaker #2: So looking at that, we are developing our production capability. So, we try to increase certain AIs, we try to backward integrate in certain cases.

Speaker #2: So everything is a mix. So, very important to tell that the product you can sell next, we wish to double our search in the next four to five years.

Speaker #4: And just one plant would be sufficient to add the capacity we need?

[Analyst] (SJ Investments): This one plant would be sufficient to add the capacity we need?

Ramesh J. Vekaria: This one plant would be sufficient to add the capacity we need?

Speaker #2: The expansion today if I talk about today's expansion we are just completed Chopardi expansion. The age is on its way for completion. More than 70% we have already commercialized or we have and another 20 30% whatever is pending will be commercialized soon.

Rajesh Kumar Aggarwal ): The expansion today, if I talk about today's expansion, we have just completed Chota Nangal expansion. Dahej is on its way for completion. More than 70% we have already commercialized, and another 20%, 30%, whatever is pending, will be commercialized soon. Next year, we are going to build Chota Lala. Chota Lala again is going to be in two phases. Phase 1 will be complete, I already told you, by Diwali, and then there will be one big H2 also for which we are actively building now, but not putting up the equipment because we have to decide on the products which we are going to manufacture there in the initial stage. The formulation capabilities we are building into Dahej also, and that is in the final stages, Dahej extension, where we are doing one big ground and also the formulation facility.

Rajesh Aggarwal: The expansion today, if I talk about today's expansion, we have just completed Chota Nangal expansion. Dahej is on its way for completion. More than 70% we have already commercialized, and another 20%, 30%, whatever is pending, will be commercialized soon. Next year, we are going to build Chota Lala. Chota Lala again is going to be in two phases. Phase 1 will be complete, I already told you, by Diwali, and then there will be one big H2 also for which we are actively building now, but not putting up the equipment because we have to decide on the products which we are going to manufacture there in the initial stage. The formulation capabilities we are building into Dahej also, and that is in the final stages, Dahej extension, where we are doing one big ground and also the formulation facility.

Speaker #2: Next year we are going to bring Sotana. Sotana, again, is going to bring 230. Phase one will be complete. I already told you by dividing, and then there will be multiple phase twos also, for which we are collecting the building now but not putting up the equipment, because you have to decide on the products which we are going to manufacture there in the technical plant.

Speaker #2: The formulation capability we are going to increase in the age also, and that is in the final phases—the head expansion where we have made one big ground and also one formulation facility.

Speaker #2: Then we have also invested a little in the achievement where we are differentiating between the herbicide and the insecticide plant. So some investments are going to go there also, which we are going to complete within this year.

Rajesh Kumar Aggarwal ): Then we have also invested a little in Vapi where we are differentiating between Vapi and Dahej right now. So some investments are going to go there also, which also we are going to complete within this year. I mean to say that expansion is a continuous process. I do not say that I will not have any expansion after this, but yes, I have enough space now in Chopanki, also in Dahej, so this can take care of further expansions also if we are going to do there. Planning today that what expansions I am going to have after 2 years is difficult. But it is a continuous exercise. Once you complete one phase, then you start working in the next phase.

Rajesh Aggarwal: Then we have also invested a little in Vapi where we are differentiating between Vapi and Dahej right now. So some investments are going to go there also, which also we are going to complete within this year. I mean to say that expansion is a continuous process. I do not say that I will not have any expansion after this, but yes, I have enough space now in Chopanki, also in Dahej, so this can take care of further expansions also if we are going to do there. Planning today that what expansions I am going to have after 2 years is difficult. But it is a continuous exercise. Once you complete one phase, then you start working in the next phase.

Speaker #2: So, I mean to say that expansion is a continuous process. I don't say that I've not had any extension after this, but yes, I have enough experience now in Sotana also.

Speaker #2: So, we can take care of further expansions also, if they are going to be there. So, planning today for what expansions I'm going to have up to two years is difficult, but it's a continuous exercise: once we complete one thing, then we stretch for the next step.

Speaker #2: So, at this moment, since there were many projects in place, I want to complete them one by one. After I complete a few, then I plan the new ones.

Rajesh Kumar Aggarwal ): At this moment, since there were many projects in place, I want to complete them one by one, and after I complete a few, then our plans will be formed.

Rajesh Aggarwal: At this moment, since there were many projects in place, I want to complete them one by one, and after I complete a few, then our plans will be formed.

Speaker #4: Understood, sir. Got it. Just one last technical question—I was trying to understand. So, when we are partnering with...

[Analyst] (SJ Investments): Understood, sir. Got it. Just one last technical. I was trying to understand. So when we are partnering with company.

Ramesh J. Vekaria: Understood, sir. Got it. Just one last technical. I was trying to understand. So when we are partnering with company.

Speaker #2: Yeah.

Rajesh Kumar Aggarwal ): Yeah, please.

Rajesh Aggarwal: Yeah, please.

Speaker #4: Okay sir. Got it. Yes sir. Just asking about so when we partner with Red Castle collaborators so when we get the the product is it that the that they will send the formulation we have to repack it here or if I do do we directly get the packaged product here and then we just stamp a logo how does it work?

[Analyst] (SJ Investments): Yes, I am just asking about when we partner with our international collaborators, when we get the product, is it that they will send the formulation and we have to repack it here? Or do we directly get the packaged product here and then we just stamp our logo? How does it work?

Ramesh J. Vekaria: Yes, I am just asking about when we partner with our international collaborators, when we get the product, is it that they will send the formulation and we have to repack it here? Or do we directly get the packaged product here and then we just stamp our logo? How does it work?

Speaker #2: Today, when we are partnering with different companies, the major interest is to develop the mixtures for this, because if you look at the world today, the farmer needs the one-shot solutions.

Rajesh Kumar Aggarwal ): Today, when we are partnering with different companies and we are interested to develop some mixtures, because if you look at the world, today the partner needs the one-stop solutions. We are able to mix one of our products with their product and launch the mixture. That is our capability which we have developed and that is the expertise. Very recently we have signed two collaborations in last one year, I would say. We are developing various products with these companies. I will not name them even if you ask because they are still confidential. As I launch the product, you will know that. Even with our older partners like Nissan Chemical Corporation and some others, we are doing good things.

Rajesh Aggarwal: Today, when we are partnering with different companies and we are interested to develop some mixtures, because if you look at the world, today the partner needs the one-stop solutions. We are able to mix one of our products with their product and launch the mixture. That is our capability which we have developed and that is the expertise. Very recently we have signed two collaborations in last one year, I would say. We are developing various products with these companies. I will not name them even if you ask because they are still confidential. As I launch the product, you will know that. Even with our older partners like Nissan Chemical Corporation and some others, we are doing good things.

Speaker #2: So, we are able to mix one of our products with their product and launch a mixture. That is our capability, which we have developed, and that is the expertise.

Speaker #2: So, very recently, we have signed two collaborations in the last one year, I would say, and we are developing various products with these companies, and not mainly human to us.

Speaker #2: Because they are still confidential, as I launch the product you will know that. And even with our older partners like Nissan and some others, we are doing the same.

Speaker #2: So, we are not only developing their single management, but also giving them the facility to develop mixtures, which will have more traction in the market and better results than the single-stage product.

Rajesh Kumar Aggarwal ): We are not only developing their single molecules, but also giving them the facility of developing the mixture, which will have more fraction in the market and better results than the single stakeholder. Partner also wants the multiple solutions at one time in that one medicine with better control for whatever disease or whatever infestation we see in the market. That is the demand of the day and we are working accordingly. We are developing both two-product mixture and also three-product mixture in these markets. Yes, we are manufacturing some of the formulations by ourselves. Sometimes, yes, when we work with Nissan Chemical Corporation, we get some readymade formulations, but we also manufacture some products by ourselves, and we are giving the facilities for the manufacturing and we are signing the CDMO business also with some of our partners. That is also in pipeline.

Rajesh Aggarwal: We are not only developing their single molecules, but also giving them the facility of developing the mixture, which will have more fraction in the market and better results than the single stakeholder. Partner also wants the multiple solutions at one time in that one medicine with better control for whatever disease or whatever infestation we see in the market. That is the demand of the day and we are working accordingly. We are developing both two-product mixture and also three-product mixture in these markets. Yes, we are manufacturing some of the formulations by ourselves. Sometimes, yes, when we work with Nissan Chemical Corporation, we get some readymade formulations, but we also manufacture some products by ourselves, and we are giving the facilities for the manufacturing and we are signing the CDMO business also with some of our partners. That is also in pipeline.

Speaker #2: And the farmer also wants multiple solutions at one time—one medicine with better control for whatever disease or whatever infestation is in the market.

Speaker #2: So that is the demand of the day and we are working at. So we are developing both two product mixtures and also three product mixtures in the market.

Speaker #2: And yes we are manufacturing all these formulations by ourselves. Sometimes yes when we work with Nissan we get some readiness formulation but we also manufacture some some products by ourselves and we are building the facilities for the manufacturing and we are I'm the CDMO business also with some of our partners.

Speaker #2: So that is also in that.

Speaker #4: Understood, sir. That's all from my side. Thank you so much for your patient answers, sir.

[Analyst] (SJ Investments): Understood, sir. That is all from my side. Thank you so much for your patient answers, sir.

Ramesh J. Vekaria: Understood, sir. That is all from my side. Thank you so much for your patient answers, sir.

Speaker #2: Thank you. Thanks for the active interest.

Rajesh Kumar Aggarwal ): Thank you. Thanks for the excellent questions.

Rajesh Aggarwal: Thank you. Thanks for the excellent questions.

Speaker #1: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touch-tone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touch-tone telephone.

Operator 2: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touchtone telephone. The next question is from the line of Madhur Rathi from Counter Cyclical Investments. Please go ahead.

Operator: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touchtone telephone.

Speaker #1: The next question is from the line of Madhur Rati from counter cyclical investments. Please go ahead.

Operator: The next question is from the line of Madhur Rathi from Counter Cyclical Investments. Please go ahead.

Speaker #3: Sir, thank you for the opportunity. Sir, I see that our B2B business has grown by about 10% this quarter, right? So, was there any inventory gain, or was there any inventory gain because of the price increase due to this war?

Madhur Rathi: Sir, thank you for the opportunity. Sir, I see that our B2B business has grown by 10% this quarter, I think. Sir, what all the inventory gains, or was there any inventory gain because of the pricing increase because of this war?

Speaker #2: There was a good opportunity, but what war brought is, there was an unexpected increase in the price of metal, plastic, solvent, emulsifier, and also some of the chemicals, and there was a complete supply chain disruption because the time taken from China for travel was even more, and because of the capital of containers and the freight increase.

Rajesh Kumar Aggarwal ): There was a real opportunity, but what war brought is, there was an unexpected increase in the price of metal, plastic, solvent, emulsifier, and also some of the chemicals. There was a complete supply chain disruption because the time taking from China for travel was even more, and because of the cyclical sustenance and the freight increased. So that complete disrupted the thing. There might be some advantage we would have taken, not because of the high inventory. But yes, still at the end of this quarter, we are sitting on inventories. There was an increase in the gross profitability of the company. So we sometimes say it has happened due to our traction for the new generation formulas. We can say that some portion might be because we were having some older inventories.

Rajesh Aggarwal: There was a real opportunity, but what war brought is, there was an unexpected increase in the price of metal, plastic, solvent, emulsifier, and also some of the chemicals. There was a complete supply chain disruption because the time taking from China for travel was even more, and because of the cyclical sustenance and the freight increased. So that complete disrupted the thing. There might be some advantage we would have taken, not because of the high inventory. But yes, still at the end of this quarter, we are sitting on inventories. There was an increase in the gross profitability of the company. So we sometimes say it has happened due to our traction for the new generation formulas. We can say that some portion might be because we were having some older inventories.

Speaker #2: So that completely disrupted the thing. There might be some advantage we would have taken, not because of the high inventory, but yes, still, at the end of this quarter, we were sitting on inventory.

Speaker #2: There was—there is an increase in the gross profitability of the company. So, we sometimes say it has happened due to our traction for the new generation volumes. You can say that some portion might be because we were having some older inventories, but yes, it was a mixed bag actually, because some codes were coming expensive, some were cheaper, and the market is very, very fluctuating at the moment. So, difficult to comment exactly how much was the contribution from the increase in price.

Rajesh Kumar Aggarwal ): But yes, it was a mixed bag actually, because some quotes are coming expensive, some were cheaper, and market is very fluctuating at the moment. So difficult to comment exactly how much was the contribution from the increase.

Rajesh Aggarwal: But yes, it was a mixed bag actually, because some quotes are coming expensive, some were cheaper, and market is very fluctuating at the moment. So difficult to comment exactly how much was the contribution from the increase.

Speaker #3: Right. And sir, for our B2B and B2C business, what kind of price ads have we taken for the Focus Maharatma and Maharatma products, and for the commodity or the generic products?

Madhur Rathi: Right. And sir, for our B2C business, sir, what kind of price hike have we taken for the Focus Maharatna and Maharatna products and for the commodity or the generic products?

Speaker #2: The price, like as I told you, there was a big expectation of a price hike in the month of March. Let's say, one hike in March, two hikes in April, and I believe in May also we tried to take one hike, but somehow we had to roll it back because the market was very much delayed and the sentiment of the network was very weak.

Rajesh Kumar Aggarwal ): These price, like as I told you that there was a big expectation of price hike in the month of March. We had taken one hike in March, two hikes in April, and I believe in May also we tried to take one hike, but somehow we had to roll it back because the market was very much delayed and the sentiment of the network was very weak. So there were some rollbacks until, okay, till the month of July. And after that, the market has settled and now the demand is there. So apparently, the impact will understand later. But I can say that there was no much price hike, only the strategic, whatever was there in the cost increase that we could take, and that is visible in the results also.

Rajesh Aggarwal: These price, like as I told you that there was a big expectation of price hike in the month of March. We had taken one hike in March, two hikes in April, and I believe in May also we tried to take one hike, but somehow we had to roll it back because the market was very much delayed and the sentiment of the network was very weak. So there were some rollbacks until, okay, till the month of July. And after that, the market has settled and now the demand is there. So apparently, the impact will understand later. But I can say that there was no much price hike, only the strategic, whatever was there in the cost increase that we could take, and that is visible in the results also.

Speaker #2: So, there were some rollbacks continuously till the month of July, and after that the market has settled and now the demand is there. So, apparently the impact, we will understand from the data, but I can say that there was not much price hike, only the strategic cost increase that you could say, and that is visible in the results also.

Speaker #2: But extraordinary hike could not be taken in this market because the demand pattern was low. So it could not be taken.

Rajesh Kumar Aggarwal ): But extraordinary hike could not be taken in this market because the demand pattern was low, so it could not be taken.

Rajesh Aggarwal: But extraordinary hike could not be taken in this market because the demand pattern was low, so it could not be taken.

Speaker #3: Got it. And sir, for the coming quarter, so Q2, because all of the raw material pricing increased, sir, is it the industry—so apart, not only insecticides—or is the industry throughout not taking any price hikes, and that might affect our margins for the B2C business going forward? Or do we expect to at least maintain that, or do we have sufficient inventories? If you could help us understand on that front.

Madhur Rathi: Got it. And sir, for the coming quarters, Q2, because all of the raw material pricing increased, sir, is the industry. So not only Insecticides (India), or is the industry throughout not taking any price hikes and that might affect our margins for the B2C business going forward? Or we expect to at least maintain that, or we have sufficient inventories? If you could help us understand on that front.

Speaker #2: I mean it's a mixed but very difficult to say like the variations are very very high like solvents are like there are fluctuations of 25 30% in the solvent prices B2B day to day.

Rajesh Kumar Aggarwal ): Again, it’s a mixed bag, very difficult to say. The variations are very high. Like solvents, there are fluctuations of 25% to 30% in the solvent prices, week to week, day to day. So very difficult talking about individual companies. But these things are focusing around a lot of interesting products, actually the premium products. So I don't think that our profitability is going to get impacted in this difficult time also.

Rajesh Aggarwal: Again, it’s a mixed bag, very difficult to say. The variations are very high. Like solvents, there are fluctuations of 25% to 30% in the solvent prices, week to week, day to day. So very difficult talking about individual companies. But these things are focusing around a lot of interesting products, actually the premium products. So I don't think that our profitability is going to get impacted in this difficult time also.

Speaker #2: So, it is very difficult to talk about individual companies. But since we are focusing on a lot of interesting products, actually the premium products, I don't think that our profitability is going to get impacted in this difficult time also.

Speaker #3: Got it. Sir, just a final question from my side. Whenever we take a price hike, sir, how is the pricing friction between focus Maharatma and Maharatma products and generic products? So if you could help us understand, are we able to pass on whatever raw material cost increases we get for the focus Maharatma and Maharatma products, or is even that facing some kind of friction from the market?

Madhur Rathi: Got it. Sir, just a final question from my end, sir. Whenever we take a price hike, sir, how is the pricing friction between Focus Maharatna and Maharatna products and generic products? If you could help us understand, are we able to pass on whatever raw material cost increases we get for the Focus Maharatna and Maharatna products, or even that is facing some kind of friction from the market?

Speaker #2: It depends on product to product, because if something is not doing well, then yes, there can be issues. Or, if there is a competitive product which comes into the market and puts pressure on your money, then it varies from product to product.

Rajesh Kumar Aggarwal ): It depends from product to product, because if something is not doing well, then yes, there can be issues, or if there is a competitive product which comes into the market and puts pressure in your margin. It varies from product to product. But generally, I understand that FMs are the products which have higher profitability. Maharatna has a reasonable profitability in between, and generics are sensitive, low profitability. If you have the price advantage over any generic, you can make some good profit than the normal because normally generic, we end up selling the generic at 10% to 15% gross margins. So there can be cases where you make 20% to 25%. Maharatna, we sell at around 30-odd percent. Sometimes, the profit can go down to 20% to 25%. In the same manner, FMs are something which are 35% plus type of margin. So special case, we can generate 40% plus.

Rajesh Aggarwal: It depends from product to product, because if something is not doing well, then yes, there can be issues, or if there is a competitive product which comes into the market and puts pressure in your margin. It varies from product to product. But generally, I understand that FMs are the products which have higher profitability. Maharatna has a reasonable profitability in between, and generics are sensitive, low profitability. If you have the price advantage over any generic, you can make some good profit than the normal because normally generic, we end up selling the generic at 10% to 15% gross margins. So there can be cases where you make 20% to 25%. Maharatna, we sell at around 30-odd percent. Sometimes, the profit can go down to 20% to 25%. In the same manner, FMs are something which are 35% plus type of margin. So special case, we can generate 40% plus.

Speaker #2: But generally, I always tell that FMs are the products which have higher profitability. Maharatma is at a reasonable profitability in between, and generics sell better but with low profitability.

Speaker #2: If you have the price advantage over any generics, you can use it. A good profit can be normal, because normally, generally, you end up selling the generic at 10 to 15% gross margins.

Speaker #2: So there can be cases where you make 20–25%. Maharatma, you sell at around 30-odd percent. Sometimes, the profit can go down to 20–25%.

Speaker #2: In the same manner FMs are something which attracts 35% plus type of margin. So special case you can sell at 40% plus in a low case you can it can be 30%.

Rajesh Kumar Aggarwal ): In a low case, it can be 30%. Since there are multiple products in all these ranges, because I have 18 Focus Maharatna, about 16 PAOs, and Maharatnas are also 14. In one word, I cannot explain the complete range. But yes, it varies from product to product and the range functions as I put.

Rajesh Aggarwal: In a low case, it can be 30%. Since there are multiple products in all these ranges, because I have 18 Focus Maharatna, about 16 PAOs, and Maharatnas are also 14. In one word, I cannot explain the complete range. But yes, it varies from product to product and the range functions as I put.

Speaker #2: So since there are multiple products in all these ranges because I have 18 focus Maharatma about 16 to 18 Maharatmas are also 14. So in one word I can explain the complete range but yes it varies from product to product and the range functions as I have told.

Speaker #3: Got it. And sir are there any plans for a buyback because I think this is a down cycle and we can reduce the equity base for our company so any plans on buyback?

Madhur Rathi: Got it. And sir, are there any plans for a buyback? Because I think this is a down cycle, and we can reduce the equity base for our company. Any plans on buyback?

Rajesh Kumar Aggarwal ): There is just a usual process of the company. We buyback after every two, three years, not every year. It depends. We have to reward the investor. It can be in the form of dividends, it can be in the form of buyback. That we decide after we complete this quarter.

Rajesh Aggarwal: There is just a usual process of the company. We buyback after every two, three years, not every year. It depends. We have to reward the investor. It can be in the form of dividends, it can be in the form of buyback. That we decide after we complete this quarter.

Speaker #2: There is let's say usual process of the company. The buyback after every two three years not every year. So it depends. So we have to reward the investor.

Speaker #2: It can be in the form of a dividend. It can be in the form of a buyback. So, that will be decided after we complete this process.

Speaker #3: Got it, sir. That was from my end. Thank you so much, and all the best.

Madhur Rathi: Got it. Sir, that was from my end. Thank you so much, and all the best.

Speaker #2: Thank you.

Speaker #1: Thank you. The next question is from the line of Kunal from Fair Value Capital. Please go ahead.

Rajesh Kumar Aggarwal ): Thank you.

Rajesh Aggarwal: Thank you.

Operator 2: Thank you. The next question is from the line of Kunal from Fair Value Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Kunal from Fair Value Capital. Please go ahead.

Speaker #2: Hello sir. Am I audible?

[Analyst] (Fair Value Capital): Hello, sir. Am I audible?

Kunal Tokas: Hello, sir. Am I audible?

Speaker #1: Yes.

Operator 2: Yes.

Operator: Yes.

Speaker #2: Yes. Am I clear? Yeah. Yeah. I can hear you, Kunal. Okay. Okay. Okay. Thank you very much for meeting us today. No, no, please go ahead.

Rajesh Kumar Aggarwal ): Yeah.

Rajesh Aggarwal: Yeah.

[Analyst] (Fair Value Capital): Am I clear?

Kunal Tokas: Am I clear?

Rajesh Kumar Aggarwal ): Yeah. I can hear you, Kunal.

Rajesh Aggarwal: Yeah. I can hear you, Kunal.

[Analyst] (Fair Value Capital): Okay. Thank you very much for meeting us today.

Kunal Tokas: Okay. Thank you very much for meeting us today.

Rajesh Kumar Aggarwal ): No, please go ahead, please.

Rajesh Aggarwal: No, please go ahead, please.

Speaker #2: Go ahead, please. Yes, the first question is: given that the monsoons will be delayed this time, are we expecting any situation where we will have returns like last time, when we had about ₹200 crore of sales returns?

[Analyst] (Fair Value Capital): Yes. The first question is, given the monsoon delayed this time, are you expecting any situation like sales return, like last time we had about INR 200 crore of sales return?

Kunal Tokas: Yes. The first question is, given the monsoon delayed this time, are you expecting any situation like sales return, like last time we had about INR 200 crore of sales return?

Speaker #2: Yes, sales return possibilities are definitely there. But this year, I see only one or two herbicides selling, not many—number one. Number two, you are very, very cautious.

Rajesh Kumar Aggarwal ): Yes, sales return possibilities are definitely there. This year I see only one or two herbicides selling, not many. We were very cautious since the end of last year, so the placement was not that strong, what we did in the last year. It was a strategic call for the applicant to place lower. Otherwise, I could have also achieved the sales funnel by placing more. We did place very aggressively this year because we were aware. Annual announcements were there from the month of February and March, so it was all pre-decided. We also, as a strategy, placed generic products and lead generation products in a way so that they are better stocked with us. We placed a variety over single product actually in our target.

Rajesh Aggarwal: Yes, sales return possibilities are definitely there. This year I see only one or two herbicides selling, not many. We were very cautious since the end of last year, so the placement was not that strong, what we did in the last year. It was a strategic call for the applicant to place lower. Otherwise, I could have also achieved the sales funnel by placing more. We did place very aggressively this year because we were aware. Annual announcements were there from the month of February and March, so it was all pre-decided. We also, as a strategy, placed generic products and lead generation products in a way so that they are better stocked with us. We placed a variety over single product actually in our target.

Speaker #2: UPNB last year put a placement for not that strong, what we did in the last year. It was a strategic call that we had taken to place lower.

Speaker #2: Otherwise, I could have also achieved the sales somewhere by placing more. But we did place very aggressively this year because we were aware, because annual announcements were there from the month of February and March.

Speaker #2: So it was all pre-decided, and we also, as a strategy, placed generic products and new generation products in a way so that there are better stock returns.

Speaker #2: And we placed the variety over single products, actually, in a target. So I think that we should be able to reduce the sales return numbers to at least half of what they were in the previous year.

Rajesh Kumar Aggarwal ): I think that we should be able to reduce this sales return much to at least half what was there in previous years.

Rajesh Aggarwal: I think that we should be able to reduce this sales return much to at least half what was there in previous years.

Speaker #3: Okay. And sir, can you help us with the remedies from the pyros, and what are its expectations for this year and for the next, for pyros specifically?

[Analyst] (Fair Value Capital): Okay. Sir, can you help us with the revenue from Taro and what are its expectations for this year and for the next, for Taro specifically?

Kunal Tokas: Okay. Sir, can you help us with the revenue from Taro and what are its expectations for this year and for the next, for Taro specifically?

Rajesh Kumar Aggarwal ): Taro is a new company which we have launched, and the target is to grow at a CAGR of 100% initially, and then it will come down to 50%, 60%. At this juncture, I can say it is on the path of growing by at a CAGR of 100%.

Rajesh Aggarwal: Taro is a new company which we have launched, and the target is to grow at a CAGR of 100% initially, and then it will come down to 50%, 60%. At this juncture, I can say it is on the path of growing by at a CAGR of 100%.

Speaker #2: Pyros Pyros is a new company which we have launched, and the target is to grow at a rate of 100% initially, and then it will come down to 50–60%.

Speaker #2: So at this venture I can say it is on the path of growing by at a major of 100%.

Speaker #3: In the margins sir what are the expectations for margins relative to IIM?

[Analyst] (Fair Value Capital): And the margins, sir, what are the expectations for margins relative to IIL?

Kunal Tokas: And the margins, sir, what are the expectations for margins relative to IIL?

Speaker #2: Margins are visible in front of you. The margins won't cross IIM at this venture because the expenses are too much. Like already, if I see in the first quarter, I have had about 100 people in the company.

Rajesh Kumar Aggarwal ): Margins are visible in front of you. Margins won't cross IIL at this juncture because the expenses are too much. Already if I see the first quarter, I've hired about 100 people in the company, so the salary expense is already very high. The sales team are in initial stages, so expenses will be high. It depends, if we start selling the more Maharatna or Focus Maharatna products then definitely. We are just, after completing this current fiscal, we'll review our product portfolio because initially I might have given certain generic products also in the portfolio and might not have integrated the specialty products because I had the fear that I might need many sales partners. Already 60, 100 people are on roll and there are also third party role people in the market. So I'll review again and it can improve in future.

Rajesh Aggarwal: Margins are visible in front of you. Margins won't cross IIL at this juncture because the expenses are too much. Already if I see the first quarter, I've hired about 100 people in the company, so the salary expense is already very high. The sales team are in initial stages, so expenses will be high. It depends, if we start selling the more Maharatna or Focus Maharatna products then definitely. We are just, after completing this current fiscal, we'll review our product portfolio because initially I might have given certain generic products also in the portfolio and might not have integrated the specialty products because I had the fear that I might need many sales partners. Already 60, 100 people are on roll and there are also third party role people in the market. So I'll review again and it can improve in future.

Speaker #2: So the salary expense is already very high. So these are the initial stages so expenses will be high. It depends if we start selling the more Maharatma or focus Maharatma products then definitely so we are just after completing this hari season we will reduce our product portfolio because initially I might have given certain generic products for 20 portfolio and might not have introduced the specialty product because I had the fear that I might need many sales personnel but already since the 100 people are on on roll and there are also third party role people in the market so I reviewed again and it can improve in future but at this moment I believe I believe it will have single digit price margin.

Rajesh Kumar Aggarwal ): But at this moment I believe it will have single-digit margins.

Rajesh Aggarwal: But at this moment I believe it will have single-digit margins.

Speaker #3: And the normalized margins would they be lower than IIM? The normalized margin I'm talking about.

[Analyst] (Fair Value Capital): And the normalized margin, would they be lower than IIL? The normalized margin I'm talking about.

Kunal Tokas: And the normalized margin, would they be lower than IIL? The normalized margin I'm talking about.

Rajesh Kumar Aggarwal ): One more time. Can you repeat your question? I could not hear it clearly.

Rajesh Aggarwal: One more time. Can you repeat your question? I could not hear it clearly.

Speaker #2: Come back again, please. Can you repeat your question? I could not hear it clearly.

Speaker #3: Yes. Sir the normalized margins for pyros sir not what they are right now in the initial phase but what they would be when pyros goes to a good price.

[Analyst] (Fair Value Capital): Yes. Sir, the normalized margin for Taro, sir. What would be our right hand valuation think they would be when Taro grows to a good size?

Kunal Tokas: Yes. Sir, the normalized margin for Taro, sir. What would be our right hand valuation think they would be when Taro grows to a good size?

Speaker #2: The normalized margin also you can believe should be around single digit at the moment and there it goes up then I recommend. I'll not say that it will cross double digits now.

Rajesh Kumar Aggarwal ): The normalized margin also, you can believe, should be around single digits at the moment. As it goes up, then I will be able to comment. I will not say that it will cross double digits now, till I achieve something there.

Rajesh Aggarwal: The normalized margin also, you can believe, should be around single digits at the moment. As it goes up, then I will be able to comment. I will not say that it will cross double digits now, till I achieve something there.

Speaker #2: Still I keep something between.

Speaker #3: Yes, sir. And we talked about the price hike. Can you also talk about what the volume de-growth was for both B2B and B2C in this quarter?

[Analyst] (Fair Value Capital): Yes, sir. We talked about Taro. Can you also talk about what the volume de-growth was for both B2B and B2C in this quarter?

Kunal Tokas: Yes, sir. We talked about Taro. Can you also talk about what the volume de-growth was for both B2B and B2C in this quarter?

Speaker #2: Yes the growth is almost similar. B2C B2B business has shown a little more growth in Q1 and in Q2 I think B2B business is going to show little more growth than B2C.

Rajesh Kumar Aggarwal ): Yes, the growth is almost similar. B2C or B2B business has shown a little more growth in Q1. In Q2, I think B2B business is going to show a little more growth than B2C. That is the status.

Rajesh Aggarwal: Yes, the growth is almost similar. B2C or B2B business has shown a little more growth in Q1. In Q2, I think B2B business is going to show a little more growth than B2C. That is the status.

Speaker #2: That is the status.

Speaker #3: So, for Q1, the volume growth was similar.

[Analyst] (Fair Value Capital): For Q1, the volume growth was similar?

Kunal Tokas: For Q1, the volume growth was similar?

Rajesh Kumar Aggarwal ): Volume growth is similar.

Rajesh Aggarwal: Volume growth is similar.

Speaker #2: Volume growth is similar. Thank you very much.

[Analyst] (Fair Value Capital): Yes. Volume growth is similar.

Kunal Tokas: Yes. Volume growth is similar.

Speaker #3: Volume growth has not come in Q1 because overall there's value growth or fee growth also, and volume growth degrowth as well.

Rajesh Kumar Aggarwal ): Volume growth has not come in in Q1 because overall there's

Rajesh Aggarwal: Volume growth has not come in in Q1 because overall there's

[Analyst] (Fair Value Capital): Yes

Kunal Tokas: Yes

Rajesh Kumar Aggarwal ): value growth, our fee growth also and volume de-growth also.

Rajesh Aggarwal: value growth, our fee growth also and volume de-growth also.

Speaker #2: How much was that, sir? That is what I wanted to know. You said the price hike did not have a major impact, but then—sorry.

[Analyst] (Fair Value Capital): How much was that, sir? That is both around B2C.

Kunal Tokas: How much was that, sir? That is both around B2C.

Rajesh Kumar Aggarwal ): Hello?

Rajesh Aggarwal: Hello?

[Analyst] (Fair Value Capital): You said Taro is not having the same. Sorry.

Kunal Tokas: You said Taro is not having the same. Sorry.

Rajesh Kumar Aggarwal ): Yeah. The volume de-growth is about 13%. There is a small value growth of about 2% actually, which is visible in Q1 results.

Rajesh Aggarwal: Yeah. The volume de-growth is about 13%. There is a small value growth of about 2% actually, which is visible in Q1 results.

Speaker #3: The yeah the volume degrowth is about 13%. There is a small value growth of about 2% actually which is visible in Q1 results.

Speaker #2: Okay, okay. Thank you very much, sir. Have a good day.

[Analyst] (Fair Value Capital): Okay. Thank you. Good luck and have a good day.

Kunal Tokas: Okay. Thank you. Good luck and have a good day.

Speaker #3: Okay. Thank you.

Rajesh Kumar Aggarwal ): Okay. Thank you.

Rajesh Aggarwal: Okay. Thank you.

Speaker #1: Thank you. Ladies and gentlemen as a reminder if you wish to ask a question please press star and one on your touchdown telephone. Ladies and gentlemen if you wish to ask a question please press star and one on your touchdown telephone.

Operator 2: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touchtone telephone. The next question is from the line of Sonia Raghuwanshi from Nirmal Bang Securities. Please go ahead.

Speaker #1: The next question is on the line of Sonia Raghuvanshi from Nirma Securities. Please go ahead.

Operator: The next question is from the line of Sonia Raghuwanshi from Nirmal Bang Securities. Please go ahead.

Speaker #4: Good evening. Thank you so much for taking my question. Sir in the previous quarter the management expected herbicides to record healthy growth after the prior year's returns and pricing pressure.

Sonia Raghuwanshi: Good evening. Thank you so much for taking my question.

Sonia Raghuwanshi: Sir, in the previous quarter, the management expected herbicides to record healthy growth after the prior year's returns and pricing pressure. How did the herbicide portfolio perform in Q1, and what is the segment-wise revenue for Q1?

Speaker #4: How did the herbicide portfolio perform in Q1 and what is the segment wise revenue for Q1?

Speaker #3: The expectation from herbicide growth is again there in Q1 also many products we have touched last year sales and the exact growth because it was delayed so the growth is going to come get registered in Q2.

Rajesh Kumar Aggarwal ): The expectation from herbicide growth is again there. In Q1 also, many products we have touched last year's sales, and the exact growth because it was delayed. The growth is going to get registered in Q2. Definitely in comparison to last year, more than a majority of the herbicides will cross last year's achievements. But yes, we have not touched the figures which were the dream figures for this year. That is for sure. Talking about the segment-wise sales, I will give it to the CFO to give you the exact breakup of herbicides, insecticides, and fungicides.

Rajesh Aggarwal: The expectation from herbicide growth is again there. In Q1 also, many products we have touched last year's sales, and the exact growth because it was delayed. The growth is going to get registered in Q2. Definitely in comparison to last year, more than a majority of the herbicides will cross last year's achievements. But yes, we have not touched the figures which were the dream figures for this year. That is for sure. Talking about the segment-wise sales, I will give it to the CFO to give you the exact breakup of herbicides, insecticides, and fungicides.

Speaker #3: Definitely in comparison to last year more than majority of the herbicides will will cross last year's achievements. But yes we have not touched the figures which were the dream figures for this year that is for sure.

Speaker #3: So talking about the segment wise sales I'll give it to the CFO to give you the exact breakup of herbicide insecticide and fungicides.

Speaker #2: Yeah. The insecticide percentage in B2C is around 33%. Herbicide is around 59%. Fungicide is 5% and PGR is 3% in this first quarter. Thank you.

Devendra Kumar Ray ): Yeah. The insecticide percentage in B2C is around 33%, herbicide is around 59%, fungicide is 5%, and PGR is 3% in this first part. Thank you.

Devendra Kumar Ray: Yeah. The insecticide percentage in B2C is around 33%, herbicide is around 59%, fungicide is 5%, and PGR is 3% in this first part. Thank you.

Sonia Raghuwanshi: Okay, sir. Sir, my next question is on what revenue did GRANUVIA and Spinoace generate during Q1, and what are management's revenue expectations on each product for FY27?

Speaker #4: Okay, sir. Sir, my next question is: what revenue did Granuga and Pino Ace generate during Q1, and what are management's revenue expectations from each product for FY27?

Speaker #2: Revenue expectation has crossed about 5 in Q1. If Pino Ace is just a beginning I think a small Q1 growth from the pilot was generated in Q1 because the lump was almost in the second.

Rajesh Kumar Aggarwal ): GRANUVIA has crossed about INR 5 crore in Q1. Spinoace is just a beginning. I think a small Q like this. Fungibion has got generated in Q1 because the launch was almost in the same. I believe GRANUVIA can touch about INR 22 crore in six months, and Spinoace can go INR 10 crore plus. Both products put together INR 30 crore to INR 35 crore revenue is possible this year. Gross level. When it comes to net level, you have to get 25% out of it. Which means about INR 25 crore of net sales is possible by between Q4.

Rajesh Aggarwal: GRANUVIA has crossed about INR 5 crore in Q1. Spinoace is just a beginning. I think a small Q like this. Fungibion has got generated in Q1 because the launch was almost in the same. I believe GRANUVIA can touch about INR 22 crore in six months, and Spinoace can go INR 10 crore plus. Both products put together INR 30 crore to INR 35 crore revenue is possible this year. Gross level. When it comes to net level, you have to get 25% out of it. Which means about INR 25 crore of net sales is possible by between Q4.

Speaker #2: I believe Granuga can touch about 40 crores in this system. And if Pino Ace can go 10 crores plus so both products put together 30 to 35 crores range is possible.

Speaker #2: At the gross level, when it comes to net level, you have to take 25% out of gross. So this means about ₹25 crore of net sales is possible with these two products.

Speaker #4: Okay, sir. Just one last question from my side. Management plans to approximately double the crop solution plots from the existing 36 plots. What is the exact FY27 target, expected expenditure, and measurable revenue opportunity associated with these plots?

Sonia Raghuwanshi: Okay, sir. Just the last question from my side. Management plans to approximately double the crop solution plots from the existing 36 plots. What is the exact FY27 target expected expenditure and measurable revenue opportunity associated with these plots?

Rajesh Kumar Aggarwal ): If you talk about the expenses, we were aware that this is going to be a difficult season from the very beginning. We have not increased any expense budget for the company as a whole, and we will try to manage with the existing budgets what we have. There will be expansion, but I told in my speech also that we are working on maintaining our expenses, particularly in the power and the steel, which are the two major expenses. In a controlled fashion so that we do not increase that. For that, we will be using the solar energy, the wind energy, and also the solid fuel to control our expenses. We are on verge of getting that advantage by the end of this quarter.

Rajesh Aggarwal: If you talk about the expenses, we were aware that this is going to be a difficult season from the very beginning. We have not increased any expense budget for the company as a whole, and we will try to manage with the existing budgets what we have. There will be expansion, but I told in my speech also that we are working on maintaining our expenses, particularly in the power and the steel, which are the two major expenses. In a controlled fashion so that we do not increase that. For that, we will be using the solar energy, the wind energy, and also the solid fuel to control our expenses. We are on verge of getting that advantage by the end of this quarter.

Speaker #2: If you talk about the expenses, we were aware that this was going to be a difficult season from the very beginning. So, we have not increased any expense budget for the company as a whole.

Speaker #2: And we'll try to manage to keep the existing budgets that we have. There will be expansion, but I told in my speech also that we are working on maintaining our expenses, particularly in power and steel, which are the two major expenses.

Speaker #2: So, in a controlled fashion, so that we don't increase that. For that, we'll be using solar energy, wind energy, and also solid fuel to control our expenses.

Speaker #2: And we are on the verge of getting that advantage by the end of this quarter. So, in the next half-year, we should be able to control it. In other words, I can say we'll have more production while our expenses will be on sale.

Rajesh Kumar Aggarwal ): So in this H1, in the next half, we should be able to control it, and in other words, I can say we have more production with the same expenses. This is the target. So expenses will be controlled this way. Growth targets, we are very aggressive because this is the third consecutive year of the company. We want it to grow in a big way. But since in the Q1, we have received a setback, so I believe that we will be improving in Q2 and let us see the Q2 performance, because H1 is very, very important for the performance of a company because it contributes more than 60% of the total sales. So after that we will review that what type of growth will be possible in this fiscal, and we will give you the growth targets.

Rajesh Aggarwal: So in this H1, in the next half, we should be able to control it, and in other words, I can say we have more production with the same expenses. This is the target. So expenses will be controlled this way. Growth targets, we are very aggressive because this is the third consecutive year of the company. We want it to grow in a big way. But since in the Q1, we have received a setback, so I believe that we will be improving in Q2 and let us see the Q2 performance, because H1 is very, very important for the performance of a company because it contributes more than 60% of the total sales. So after that we will review that what type of growth will be possible in this fiscal, and we will give you the growth targets.

Speaker #2: This is the target, so expenses will be controlled in this way. Growth targets were very aggressive because this is the 25th year of the company.

Speaker #2: We want it to grow in a big way. But since in the first quarter we have received a project so I believe that we'll be improving in Q2 and let's see the Q2 performance because first half is very very important for the performance of our company because it contributes more than 60% of the total sales.

Speaker #2: So after that we'll review that what type of growth will be possible in this section and we'll be reviewing targets.

Speaker #4: Okay, sir. Understood. Thank you so much. That's it from my side. All the very best.

Sonia Raghuwanshi: Okay, sir. Understood. Thank you so much. That is it from my side. All the very best.

Speaker #1: Thank you. The next question is from the line of Devesh Varma from AKS Capital. Please go ahead.

Operator 2: Thank you. The next question is from the line of Nibesh Varma from AKS Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Nibesh Varma from AKS Capital. Please go ahead.

Speaker #5: Hello sir. Am I audible?

Nibesh Varma: Hello. Am I audible?

Nivesh Verma: Hello. Am I audible?

Speaker #1: Your voice is a bit crackly.

Operator 2: Your voice is a bit cracking.

Operator: Your voice is a bit cracking.

Nibesh Varma: Hello. Am I audible?

Nivesh Verma: Hello. Am I audible?

Speaker #5: Hello am I audible?

Rajesh Kumar Aggarwal ): Your voice is cracking, but we can hear you.

Rajesh Aggarwal: Your voice is cracking, but we can hear you.

Speaker #1: Your voice is cracking

Speaker #2: but we can hear you.

Nibesh Varma: Can you hear me now?

Nivesh Verma: Can you hear me now?

Speaker #5: Can you hear me now?

Rajesh Kumar Aggarwal ): No. I do not know where lies the disturbance, but you are not very clear.

Rajesh Aggarwal: No. I do not know where lies the disturbance, but you are not very clear.

Speaker #2: No, sir. I don't know what or where the disturbance is, but your line is disturbed.

Speaker #5: Okay.

Nibesh Varma: Okay.

Nivesh Verma: Okay.

Speaker #2: You can ask the question. Let me try—if I am able to understand, I'll reply.

Rajesh Kumar Aggarwal ): You can ask the question. Let me try. If I am able to understand, I will reply.

Rajesh Aggarwal: You can ask the question. Let me try. If I am able to understand, I will reply.

Speaker #5: Sure. I had a quick question. In Q4, management suggested that the working cycle of approximately 120 days could potentially be achieved within FY27. Hello?

Nibesh Varma: Sure. I had two questions. In Q4, management suggested that a working cycle of approximately 120 days could potentially be achieved during FY27. Hello?

Nivesh Verma: Sure. I had two questions. In Q4, management suggested that a working cycle of approximately 120 days could potentially be achieved during FY27. Hello?

Speaker #2: Not very clear in Q4; working to be clear.

Rajesh Kumar Aggarwal ): Not very clear. Please come more clearly closer.

Rajesh Aggarwal: Not very clear. Please come more clearly closer.

Speaker #1: Sorry to interrupt, Mr. Nivesh. Please rejoin the queue when your voice is clear. Thank you. The next question is from Pohal Sharma of DD Capital.

Operator 2: Sorry to interrupt, Mr. Nibesh. Please rejoin the queue when your voice will be clear. Thank you. The next question is from the line of Pahul Sharma from DD Capital. Please go ahead.

Operator: Sorry to interrupt, Mr. Nibesh. Please rejoin the queue when your voice will be clear. Thank you. The next question is from the line of Pahul Sharma from DD Capital. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Hi, sir. Thanks for the opportunity. I have some questions.

Pahul Sharma: Hi, sir. Thanks for the opportunity. I have some-

Speaker #2: Please go a little louder.

Rajesh Kumar Aggarwal ): Please speak a little louder.

Rajesh Aggarwal: Please speak a little louder.

Speaker #4: Yeah. Hi, sir. So my first question is that despite the revenue decline, gross margin expanded by 240 basis points to 23.16%. Could you break down this expansion—was it due to pricing, premium product mix, lower cost inventory, or, we can say, backward integration and other factors?

Pahul Sharma: Yeah. Hi, sir. My first question is that despite the revenue decline, gross margin expanded by 240 basis points, like to 31.6%. Could you break down this expansion between pricing, premium product mix at lower cost inventory or we can say backward integration and other factors?

Rajesh Kumar Aggarwal ): I just told that today there was a 13% decline in the volumes, and there was 2% rise in the prices. The price hike can be due to the focus on the specialty products and some advantage into inventory also you can say. The markets were highly fluctuating. The solvent and the plastic prices, plastic is pack and HDPE and emulsifiers and also other things were highly fluctuating during the quarter. The variations were as high as some solvents, the price doubled. For many other things, you don't know what is the price. Today somebody is saying 100, tomorrow he's saying 140. That type of variations were there. In that variation, whatever we could buy, we bought it actually, and tried to manage the quarter and still managing. I believe that the total turnover of the company dropped.

Rajesh Aggarwal: I just told that today there was a 13% decline in the volumes, and there was 2% rise in the prices. The price hike can be due to the focus on the specialty products and some advantage into inventory also you can say. The markets were highly fluctuating. The solvent and the plastic prices, plastic is pack and HDPE and emulsifiers and also other things were highly fluctuating during the quarter. The variations were as high as some solvents, the price doubled. For many other things, you don't know what is the price. Today somebody is saying 100, tomorrow he's saying 140. That type of variations were there. In that variation, whatever we could buy, we bought it actually, and tried to manage the quarter and still managing. I believe that the total turnover of the company dropped.

Speaker #2: I just told the student that there was a 13% decline in the volume, and there was a 2% rise in the prices. So the price hike can be due to the focus on the specialty products, and some advantage due to inventory also, we can say.

Speaker #2: But the markets were highly fluctuating. The solvent and plastic prices—plastic means PET and IPP—and amortisers and also other things were highly fluctuating during the quarter.

Speaker #2: The variations were as high as some solvents the price doubled. And for many other things like you don't know what is the price. Today somebody is saying 100 tomorrow is saying 130.

Speaker #2: So, those types of variations were there. So, in that variation, whatever we could buy, we bought it actually, and tried to manage the quarter, and we are still managing. So, I believe that the total turnover of the company dropped.

Speaker #2: So that was the reason why there was a cut in the quarter margin which we should be able to recover in Q2 with improved sales numbers with an expected after the August sales growth.

Rajesh Kumar Aggarwal ): That was the reason why there was a drop in the profit margin, which we should be able to recover in Q2 with improved sales mix which are expected after the August rains.

Rajesh Aggarwal: That was the reason why there was a drop in the profit margin, which we should be able to recover in Q2 with improved sales mix which are expected after the August rains.

Speaker #4: Understood sir. Understood. My next question is that like what is the current utilization of the hedge including the recently added capacity and also what incremental revenue can be supported before another major expansion like which is required?

Pahul Sharma: Understood, sir. Understood. My next question is what is the current utilization of Dahej including the recently added capacity? Also what incremental revenue can be supported before another major expansion which is required?

Speaker #2: The hedge has very good potential. We are planning to change the product mixes. We are dividing the herbicide and insecticide plants, so that has already happened.

Rajesh Kumar Aggarwal ): Dahej has a very good potential. We are planning to change the product mix. We are dividing the herbicide and insecticide plants. That is already happened. There is about 50%, 60% equipment is being utilized for the new plant which we have made. There is further expansion of power. We have taken a new power connection and it started this. There is a new boiler which is upcoming. After that complete erection, we will again get some expansion advantage because we will be able to use the new expansion fully only after that. Then we have the steam also with that. We are working on that. That should help us to achieve the next year targets and this year targets also in our de-congestions. We are trying to add a few KL and there is some backward integration portion also there.

Rajesh Aggarwal: Dahej has a very good potential. We are planning to change the product mix. We are dividing the herbicide and insecticide plants. That is already happened. There is about 50%, 60% equipment is being utilized for the new plant which we have made. There is further expansion of power. We have taken a new power connection and it started this. There is a new boiler which is upcoming. After that complete erection, we will again get some expansion advantage because we will be able to use the new expansion fully only after that. Then we have the steam also with that. We are working on that. That should help us to achieve the next year targets and this year targets also in our de-congestions. We are trying to add a few KL and there is some backward integration portion also there.

Speaker #2: There are, there is about 50–60% equipment currently being utilized for the new plant which we have made. So there is further expansion of power.

Speaker #2: We have taken a new power connection and we have started this. There is a new boiler which is upcoming, so after its complete erection, we'll again get some expansion advantage because we'll be able to use the new expansion fully.

Speaker #2: Only after that when we have the steam also developed. So we are working on that. And that should help us in achieving the next year target and this year targets also.

Speaker #2: In a better fashion. So we are trying to add a few AIs, and there is some backward integration portion also there. We have identified which technicals we have to increase the production of, so we are working according to that strategy.

Rajesh Kumar Aggarwal ): We have identified which technicals we have to increase the production. We are working according to that strategy. Those, yes, it has got a good potential of delivering us results. Let's see how the number comes because the season has started with a great difficulty and difficult situations overall. At this moment, it is difficult to give you numbers, but it has got good potential actually. At least INR 200 crores is possible to be added into the technical production part. The formulation also is going to support in a good way. At this moment, I will not give you numbers, but as the season progresses and we get further details for next year, we will be able to give numbers for next year what contribution they will make. Yes.

Rajesh Aggarwal: We have identified which technicals we have to increase the production. We are working according to that strategy. Those, yes, it has got a good potential of delivering us results. Let's see how the number comes because the season has started with a great difficulty and difficult situations overall. At this moment, it is difficult to give you numbers, but it has got good potential actually. At least INR 200 crores is possible to be added into the technical production part. The formulation also is going to support in a good way. At this moment, I will not give you numbers, but as the season progresses and we get further details for next year, we will be able to give numbers for next year what contribution they will make. Yes.

Speaker #2: So, growth—yes, it has got a good potential for giving us growth. So, let's see how the numbers come because this season has started with great difficulty and a difficult situation overall.

Speaker #2: So at this moment, there is some difficulty with the numbers, but it actually has good potential. At least ₹200 crores could possibly be added to the technical production part.

Speaker #2: And formulation also is going to support in a good way. So at this moment I'll not give the numbers but as the season favors us and we get further details for next year definitely we'll give the numbers for next two to three years.

Speaker #2: What contribution then to yes.

Speaker #4: Understood sir. Understood. Great. And last question is that like could you could management quantify the expected asset turnover and return on capital from the hedge and Sutanala investment once utilization stabilizes?

Pahul Sharma: Understood, sir. Great. My last question is that could management quantify the expected asset turnover and return on capital from the Dahej and Chopanki investment once utilization stabilizes?

Speaker #2: We'll give that number as it comes. Overall there's a strategy that we have to stress the assets to get score and increase the ROCE.

Rajesh Kumar Aggarwal ): We will give that number as it comes. Overall, there is a strategy that we have to first de-access CB score and increase the ROCE. Multiple level improvements are being followed for that. We are working on improving our working capital, increasing the turnover from the current business, reducing the trade debt in the market, and also doing more cash generation and working on the strategic initiatives. Everything is focusing around improving the ROCE, and that is our target which I am working personally. We are going to stress on this. Already we are working on monthly basis. Now we are working to make it weekly meetings of the senior team members to review this actually. It will be the key focus of the company that I must say, I can say.

Rajesh Aggarwal: We will give that number as it comes. Overall, there is a strategy that we have to first de-access CB score and increase the ROCE. Multiple level improvements are being followed for that. We are working on improving our working capital, increasing the turnover from the current business, reducing the trade debt in the market, and also doing more cash generation and working on the strategic initiatives. Everything is focusing around improving the ROCE, and that is our target which I am working personally. We are going to stress on this. Already we are working on monthly basis. Now we are working to make it weekly meetings of the senior team members to review this actually. It will be the key focus of the company that I must say, I can say.

Speaker #2: So, multiple-level improvements are being followed for that. We are working on improving our working capital, increasing the turnover from the current business, reducing the trade days in the market, and also doing more cash generation, as well as working on the strategic initiative.

Speaker #2: So everything is focusing around improving the ROCE, and that is my target which I'm working for—selling. And we are going to stress on this; we have already—we are working on a monthly basis.

Speaker #2: Now we are working to make the weekly meetings of the senior team members to do this actually. So it will be the key focus of the company that I'm I can say.

Speaker #2: And we definitely improve our performance because already the big inventory which has come in the month of June is struggling us actually and we'll see a substantial improvement in this corporation.

Rajesh Kumar Aggarwal ): We will definitely improve our performance because already the delivery which has come in the month of June is stunning actually, and you will see a substantial improvement in this quarter actually.

Rajesh Aggarwal: We will definitely improve our performance because already the delivery which has come in the month of June is stunning actually, and you will see a substantial improvement in this quarter actually.

Speaker #4: Understood, sir. Understood. That's all from my side. Thank you so much.

Pahul Sharma: Understood, sir. That is all from my side. Thank you so much.

Speaker #1: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone.

Operator 2: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, that was last question. I would now like to hand the conference over to the management for closing comments.

Operator: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, that was last question. I would now like to hand the conference over to the management for closing comments.

Speaker #1: Ladies and gentlemen that was last question I would now like to hand the consents over to the management for closing comments.

Rajesh Kumar Aggarwal ): Again, I thank you very much for your active interest. I can say that Q1 was focused on building the foundations, improving business profitability, progressing strategic initiatives, strengthening execution across multiple business drivers. Performance has been mixed with some progressing well and some requiring sharper execution. Better visibility now available on key business drivers, areas of opportunity, areas requiring corrective action. We need to move from initiatives to measurable outcomes is our aim, and we are working on primary outcomes, namely growth, gross margin improvements, profitability, cash generation, and better asset utilization. With this, again, I thank you very much for participating in this session. Thank you.

Speaker #2: So again I thank you very much for your excellent consent. So I can say that Q1 was focused on building the foundation improving business visibility progressing strategic initiatives strengthening execution across multiple business units performance has been mixed with some progressing well and some requiring sharper execution better visibility now available on key business drivers areas of opportunity area requiring corrective actions need to move from initiative to measurable outcomes.

Rajesh Aggarwal: Again, I thank you very much for your active interest. I can say that Q1 was focused on building the foundations, improving business profitability, progressing strategic initiatives, strengthening execution across multiple business drivers. Performance has been mixed with some progressing well and some requiring sharper execution. Better visibility now available on key business drivers, areas of opportunity, areas requiring corrective action. We need to move from initiatives to measurable outcomes is our aim, and we are working on primary outcomes, namely growth, gross margin improvements, profitability, cash generation, and better asset utilization. With this, again, I thank you very much for participating in this session. Thank you.

Speaker #2: Is a reliance and the we are working on primary outcomes as a new growth growth margin improvements profitability cash generation and better response system.

Speaker #2: With this, again, I thank you very much for participating. Thank you.

Operator 2: Thank you. On behalf of Insecticides (India) Limited, that concludes this conference. Thank you for joining us. You may now disconnect the lines.

Operator: Thank you. On behalf of Insecticides (India) Limited, that concludes this conference. Thank you for joining us. You may now disconnect the lines.

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Q1 2027 Insecticides (India) Ltd Earnings Call

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