Ladies and gentlemen, good day and welcome to Schaeffler India Klaus Rosenfeld, Q2 CY25 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 the conference call, please signal your number later by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Gauri Kanikar. Thank you, and over to you, ma'am. Hello, good evening everyone, and welcome to Schaeffler India Klaus Rosenfeld's earnings conference call for the Q2 and six months ended 30th June 2025. We have the staff from the management today, Mr. Harsha Kadam, our Managing Director and Chief Executive Officer, and Ms. Hardevi Vazirani, our Director of Finance and Chief Financial Officer. As always, Mr. Kadam will first take us through a short presentation on the results, after which we will open the floor for questions. With this, I now hand over to Mr. Kadam. Good evening, sir. Hello, good evening. Harsha Kadam here. Hardevi Vazirani. Yeah, so let me start by taking you through the presentation. And as usual, I always begin my presentation by sharing recognitions that we have got from our prestigious customers. And in the last quarter, I'm happy and proud to share that we have received four recognitions and awards from our customers, and three coming from agencies for the various corporate social responsibility initiatives that we run. So to start with, from the customers, two awards that came in from the Toyota Group, so the Toyota Kirloskar Auto Parts and the Toyota Industries Engine India. One award was in the area of zero defect supplies in that quarter. And the second award was, again, in the supply of 100% delivery without missing a single day. Now, both the awards mean prestigious coming from the biggest brand, Toyota. We also got an award from one of our customers, OEM customers. But the award was given for our vehicle lifetime solutions business, which is traditionally the aftermarket business in the automotive space. And the award was from Honda Limited. That said, an award from one of our industrial customers in the railway sector, that is from Alstom. So as you can see, all the marquee brands have recognized us in that quarter, clearly pointing to our commitment, our sustained commitment that we keep with our customers being at the center of what we do, keeping a clear focus on the quality of the products that we deliver, and ensuring that we stay close with our customers and ensure we give them timely delivery on time. Apart from these four awards, we also have received two awards for one of the prestigious water conservation projects that we are very proud of in the quarter that we received these awards coming from the project name being Jal Samruddhi, which is a water conservation initiative, and we were recognized both by the Association Chambers of Commerce and Industry, and also at CSR Universe Climate Action and Sustainability Awards, we were recognized for the Jal Samruddhi project as such. The third award in our corporate social responsibility drive was an award that we received from Tamil Nadu, and this is in the area of diversity and inclusion, which we have always felt is one of the high-focus areas as an organization and as a nation. For empowering women to take up vocational pursuits in terms of upskilling them and handling them to establish themselves in the society in a dignified manner. Now, that said, we were recognized for the initiatives that we have strived to focus on women empowerment. With that, I move on to slide number four to throw some light on the economic indicators as such. As you can see from the slide, the economic performance in terms of the GDP for the Q2 is still an estimated number. We are awaiting the official number to come in, but the estimates are close to around 6.5% is what we believe, which has been a drop from the preceding quarter. But again, if one were to look at how the sectoral performances and other indices have evolved, look at the automotive production in the country for the quarter. More or less it has remained stagnant at the same level as the Q1 of the year. Talk about the index of industrial production. Well, since we have the data of April and then June was yet to roll in, but you do see that there has been a kind of a slowdown in some of the industrial sectors. While on the optimistic front, you do see that the consumer price index or inflation, which stood at 2.7%, has for the first time since 2019 come down to the lowest level. And this is a heartening indicator that hopefully this is going to propel consumption within the country and positive sentiments to that effect. I move to slide number five to throw some light on the core sector performances. What you see is we talk about cement production. As you can see, the clear focus on the infrastructure sector in the country, even by the government of India, clearly defining the cement production and steel production definitely are doing better in the Q2 as well. On the mining side, it's still a lot of room to improve. Unlike the Q1, we have not seen a significant increase in terms of coal production. Yeah. The power generation, definitely we have seen an uptick again, clearly pointing to definitely some improvement in the industrial manufacturing sector performance as such. That said, we have seen positive signs in many of the sectors. Let me now take you through the sectors in the automotive performance, and I am on slide six. Here again, what you see is when you look at the sector, the two-wheelers also have been kind of moderate in its performance in the Q2, which is not a surprising thing because that's a business cycle that the sector follows annually, and when one looks at the passenger car, this is where it got a little challenging, considering the fact that in Q2, the numbers began to gradually go down, and in the month of June, we had lower numbers than compared to the June of last year in terms of vehicle production. While this was the situation on the production, it has also stemmed from the fact that the domestic sales of cars, passenger vehicles in the country, have been lower, whereas the export went up double digit in the country. So based on the CM reports, clearly the data shows that the export demand in terms of the passenger vehicle segment has been much better than the domestic demand in the country. Talking of commercial vehicles, again, Q2 has been a little subdued compared to Q1. However, the numbers have been marginally better than the same period last year. Where we are seeing a very strong and positive traction is on the agricultural tractors. And as you can see, for consecutive three months of April, May, June, we have seen increase month over month as well as the same period last year. So we have a mixed performance coming from the automotive sector as well as the industrial sector from an economic growth standpoint. I move to slide number eight. How did we perform in the quarter? I think we had a pretty good performance in terms of sales revenue. We were able to generate a revenue of INR 2,282 crores in the quarter, which was a clear 8.2% better than the preceding quarter and a 10.1% better performance than the same quarter last year, resulting in a strong EBITDA as well, with 449 crores being generated as EBITDA and taking the EBITDA percentage to 19.7% from the preceding level of 19.3%. Culminating into the profit after tax to 13%, which definitely was better than the 12.6% in the preceding quarter, bringing in INR 296 crores into the wallet. Our best performance has been in free cash flow generation. In the quarter, we were able to generate a free cash flow of INR 287 crores, unlike the preceding quarter with INR 237 crores compared to the same period last year, where we were in a negative cash flow situation. All in all, I must say it has been a reasonably good performance considering the challenging ecosystem that is prevalent in today's market. We have been able to navigate through these challenges, also very clearly managing our CapEx investments as well, which have clearly enabled us to deliver the numbers that we see. I will throw a little more light on the details as I move forward. What keeps us going is the new businesses. What you see here is, again, within the quarter, we have been able to secure some long-lasting businesses, particularly when you look at the automotive technologies. With some of our key marquee customers, we have been able to have strong businesses in many places as a single source with hydraulic lash adjusters as well as on the clutch, heavy-duty clutches. On the vehicle lifetime solutions as well, some of the recent products that we launched, like wipers and particularly oils as well, we have seen tremendous upswing in demand, and we have been able to capitalize on the sales there as well. On the bearing and industrial solution side of the business, here again, some of the cement, the raw material sector, we have been able to have some big businesses. And in addition to that, also had businesses in our lifetime solutions product, which is primarily in the diagnostics area as well as condition monitoring area of the application. So our continuous focus and strive to keep the pipeline of new businesses coming into the system continuous, and this is a key focus area for us to deliver the sustained growth going forward. That said, I now move to an important milestone that we as an organization crossed. I'm on slide 10. In the month of May, we had the executive board coming to our Schaeffler AG coming to Bangalore, and we had the privilege of using their gracious presence to inaugurate the fifth manufacturing facility in Schaeffler India Limited, a new plant for our clutch applications and some of the drivetrain powertrain applications that we would be manufacturing in this plant. The first hall to that effect with 16,500 square meters of floor space was inaugurated officially, and the machines were rolled into production, so this important milestone is a testimony of our commitment to continue to invest and grow in India, and this is the one step in the direction. Just to share with you that this same plant also has additional land space to further expand to three times the size what it is today now that we have started off. With this, I move to slide number 11. Another important milestone that we crossed was with the launch of the Tata Harrier. We have started our series supplies of the e-axle to the Harrier platform, and we are proud to be associated with this platform. And we have also had a formal inauguration of the partial production line that we have set up at our plant in Talegaon. Now, obviously, this is a modular being a drivetrain architecture. So we have started off by investing in phases. The step one of the investment is what you see in the picture, and where we are going to carry out the end-of-the-line testing as well as marking the traceability of the products. And now we are moving, as I speak, we are moving into the phase II of the expansion, which will bring in more localization on the production line here. Obviously, our product has been very widely and rigorously tested across the length and breadth of the country. I must say with a lot of pride that it has successfully passed all the rigorous tests that the customer put our product through, and we have come up successfully on top. With that, I move to the next slide. I am on slide number 14, which talks about the revenue from operations. What you see on slide number 14 is the quarter two performance in terms of revenue, which I already mentioned. We were able to bring in a revenue of INR 2,282 crores in the quarter. Clearly, that's 8.2% over the preceding quarter and 10.1% over the same quarter last year. How has this come in? I draw your attention to the revenue bridge below. As you can see, out of this INR 82.6 crores of revenue was generated from the automotive side of the business, and the vehicle lifetime solutions brought in about INR 35 crores, with the industrial also bringing in INR 22 crores. Our star performer has been the automotive and intercompany export business, which also came in at about INR 70 crores into the system. All in all, raising the revenue in the quarter compared to last quarter by an additional INR 2,000 crores coming into the system. All in all, it was a broad-based growth within the domestic businesses and also quarter-on-quarter positive performance with the business growing up by 6%. If one were to look at how did within the four divisions that we operate in, export obviously grew at a very strong end. Then if one were to look at the six-month period, our export business has grown 23% compared to the same period last year. Automotive Technologies at 13.5%, Vehicle Lifetime Solutions still coming back strongly at 12.3%, Bearings and Industrial at 7%. All of this contributing to a very strong performance in the Q2. That said, our business mix, which has been our biggest strength, continues to operate with Bearings and Industrial Solutions at about 40%, and Automotive Technologies 30% of the sales mix. The exports, which was languishing at 89%, have gone up to about 16%, and Vehicle Lifetime Solutions too going up to 13%. Some light on our earnings quality. So when one looks at the EBITDA performance here, we registered an EBITDA of 19.7%, bringing in INR 449 crores in the quarter, which was a clear 10.3% improvement over the preceding quarter and a 16.6% improvement year on year. Again, here, when one looks down at the EBITDA bridge as to where the quality improvement happened, we did definitely one was the volume effect with the gross margin also bringing in 128 crores, while we had some strain on the other income and expenses. All in all, yet posting a very positive EBITDA number with the improved quality of the earnings that has come. And this has resulted in a very strong profit after tax of INR 296 crores in the quarter at 13%, again, 11.6% better over the preceding quarter and 17% better than the same period last year. On the working capital, we have managed to sustain the same levels as the preceding quarter. We have been focusing on our CapEx investments consistently, and we continue to focus on our localization drive. And the focus continues to remain on utilizing a better utilization of the invested capacity and focuses more on efficiency improvements on the invested capacity. And that is something the export business is also enabling us to leverage the capacities that we have already in place in a much better fashion. So with that, if you look at the quarter in terms of CapEx or investments to that INR 100 crores as against the preceding quarter, we are still better at INR 82 crores, which was in Q1. However, compared to last year, we have moderated a bit, but this is not to say that our CapEx commitments are going to go down. It is just that we are aligning our spend, our investments in tune with how the market is shaping up, and this is where agility and also the prudent management of capital flow becomes super important. That said, some light on the free cash flow, which I already talked about. One of the strongest quarters in terms of free cash flow generation at INR 287 crores within the quarter has been clearly the focus on generating cash from the market has been on high focus, plus managing our working capital in a much better way. Moving to slide 17, where the key performance indicators a lot more in detail. I'll leave you to go through the numbers. As I've already covered each of them, I just wanted to share on the six-month period 2025 revenue, where we stand at INR 4,392 crores at six-month closing, which is a clear 12% growth over the same period last year. That said, the EBITDA margin of 19.5% resulting in an EBIT of 15.9% and a profit after tax of 12.8%. I move to the next slide, which is slide number 18, and I wish to draw your attention to the KRSV Innovations Auto Solutions Limited, Koovers in short. And Koovers too has posted some good revenue generation exactly in line with the plan that we have set for. We do have challenges on the gross margins here, and we are trying to work that out. We are trying to sort some things out. So as you can see, a revenue of INR 71 crores coming in the Q2 in line exactly with the plan that we have laid out. Margins are still negative at 15% EBITDA and a 16.8% EBIT. This is a key focus area for us. This is resulting into a consolidated Schaeffler India results of 18.7% EBITDA and a 15.1% EBIT margin. With that, I move to slide number 19. So all in all, good and strong performance, double-digit growth year on year. The momentum continues, and this is the fifth consecutive quarter where we have been able to sustain the growth. And quality of earnings, which remains a high focus area on efficiency and cost management, continues to remain. And we have improved levels of operating metrics, as I already shared. Working capital continues to be a high focus. Free cash flow definitely, and with that, we will moderate and continue to be agile on our CapEx investments as we move forward, monitoring the market situation as it evolves, as it is a very volatile market situation out there. So we are brought in a lot more agility in terms of our CapEx investments. With that, I come to the end of my presentation. Over to you, Luke. 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 desktop 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'll wait for a moment while the question queue attends. The first question is from the line of Mukesh Saraf from Avendus Spark. Please go ahead. Yes, good evening, and thank you for the opportunity. Congratulations on great numbers. My first question is regarding a recent commentary from the Schaeffler Group CEO, Mr. Klaus Rosenfeld. He mentioned that the CapEx, or rather the investment in India, is expected to be upwards of EUR 100 million a year. And obviously, we had been talking about reduction in CapEx over the previous years, obviously at, say, 500 to 600 crore kind of an annual range. So it seems to be much higher than that. So could you kind of give some sense on, are we looking to increase our CapEx targets as the commentary suggested? Thank you for your question on CapEx. Mr. Rosenfeld announced overall EUR 500 million in the next five years until 2030. So averaging out to approximately EUR 100 million starting from 2026 onwards for five years. So this year, CapEx plan is intact, and it will move in the direction of leveraging on capital efficiency because we have made close to INR 1,700 crore investment in the last three years. So this year, we are trying to look at the capital efficiency, and then we will again ramp up from next year onwards. Right. So next year onwards, it can be in that INR 1,000 crore a year kind of ballpark based on the EUR 500 million number that you mentioned for five years? As Mr. Saraf, as I already mentioned, that yes, we definitely want to continue to invest. However, it is very important that we closely monitor the market development, which we are doing both on the domestic front and on the export side. However, our commitment still remains. It is not that we are going to stop investment. It's just that we will have to play with the market. The way the market moves, we are also going to monitor and start investing in because we already have the space, the machines that we need. So that's something we will take a call looking at which product lines need to be invested in, which needs to be localized. So there are various parameters that we measure then, and accordingly, we will continue doing that. Sure. Sure. Thanks for that. And in terms of exports, we have seen a very strong quarter, again, good growth even on a sequential basis. Any kind of outlook or visibility that you can provide? Last time, you had mentioned about the Asia-Pacific markets doing better, and from there, we further improved. So any kind of visibility that you have on exports that you can help us understand here? So at this point of time, as it looks based on the order book that we will be able to sustain the pattern that we have so far, at least this year. However, how the geopolitical situation and the market in Europe and America are working out to be, it will determine the next year. However, this year, the order book is secured. Yeah. So just to add to your comment on the exports to Asia-Pacific region, I'm happy to say that our growth is definitely there in the Asia-Pacific region. We have been considerably grown in the Asia-Pacific region, and our dependency on the rest of the world, we have been kind of moderating it to bring in that balance. And I'm happy to say that we have succeeded to a large extent in increasing our export business into the Asia-Pacific. Sure. Sure. Good to know that. And just last question from my side is, when I look at the bearings and industrial solutions business, especially in the non-mobility side, the other side, it seems to have kind of flattened out this quarter after maybe four or five quarters of 20+% growth. Anything that we should read into that, or is this just a temporary kind of a blip? Yes, but when one looks at within the sector, specific sectors, we have been able to perform very good. In some of these specific sectors, we have seen a very strong growth in our, for example, the railways. If one were to look at future performance, we have done pretty well. And then the railways, we have done well, obviously, in the wind energy sector. So we've been able to consistently grow. We've also done good in the off-roads with our clear focus on infrastructure and agri-industry. Yeah. So these sectors, we have been able to do. Yes, some of the moderation or the tepidness came in was more on the two-wheeler sector, again, right? And yeah. And our distribution also did pretty well. I must say the distribution business did pretty well in the industrial distribution, I mean, when I talk about it. So that took pretty strongly. So some sectors which are critical for us in terms of volume as well as on the margins, they have helped us in this quarter. Got it. Got it. Great. Thanks a lot. I'll get back to you. Thank you. The next question is from the line of Raghunandan from Nuvama Research. Please go ahead. Thank you for the opportunity. Congratulations on continuing double-digit growth and also inauguration of the new Savli plant. Firstly, on the vehicle lifetime solutions, you've continued to see strong double-digit growth. Can you elaborate on the efforts which are helping market share gains, better penetration, and also on the new products? Yeah. So on the vehicle lifetime solutions, a couple of points that I'd like to give is one, that our OES demand from the OEM customers definitely has also gone up. Obviously, clearly, a clear indication that the aftermarket demand in the market has kind of picked up. That is from the market side. From our own effort side, some of the traded goods that we launched also we saw a strong uptick in terms of the oils and lubricants, in terms of the wiper blades. We have seen strong uptick in demand. We were able to leverage that. Also, what we did was we were able to, with the sluggishness that we saw in the OEM side of the market, we were able to better leverage the production capacities to go ahead and leverage those available capacities to feed more into the aftermarket as well. And particularly, this is coming in our clutch portfolio, which we sell in the aftermarket. So all in all, there were multiple reasons which we were able to manage very well in this quarter. Thank you, sir. And you alluded to other expenses and income during the opening remarks. Can you indicate on the other expenses side? It seems to be notably higher YOY. Was there any runoffs there? What was the reason for it? Would it also include the cost relating to the new plant? Also on the non-operating income, there also is a strong growth. If you can highlight on that as well. Sure. So on the non-operating income side, we had supported the group companies in a specific project, which was charged out to them based on the transfer pricing policies of the group. So income is mainly for the project-related support cost that was incurred by us, and it was then charged out to the group companies. On other expenses side, it is mainly, there are certain one-time expenses related to the new plant, certain tooling, certain operating supplies, the filling, the coolants, etc., in the plant, as well as certain one-time expenses for tooling for e-mobility, which we have been able to beautifully absorb because of the better gross margin. Of course. What would be the sustainable rate here for other expenses? I mean, going forward, what would be that one-time impact which would not be there next quarter? I think we have been able to manage overall in the usual range that we show quarter on quarter, and we will be able to maintain that as we go forward in the year because these are the fixed costs, and those will be absorbed with the double-digit growth. So we don't foresee any further hiccups in the coming quarters. Got it, ma'am. So also congrats on the commencement of series production of EXL, which you commenced last quarter, and now you have started the phase II investment at Savli. Can you indicate how do you see the progress on ramp up? Considering that you have a lifetime order size of EUR 300 million, what can be the annual revenue run rate for this particular project, and how do you see the domestic and export shaping up? I felt there are two questions within that one question that you asked. So let me take the first part first. So to answer to EUR 300 million, which we had projected, and how is it going to ramp up? Well, as you know, it all depends on the vehicle that is launched already, and we are already seeing good response in terms of our series supply, which we have already started. It's an indication that the vehicle is doing well. However, for me to give you a number, it's pretty challenging now because we'll have to wait and watch how the vehicle performs in the market. That's number one. But the other question I was unable to grasp, you referred to exports. Yeah. I was trying to understand would there be an export opportunity also for this EXL component you would have? Well, as of now, we haven't we are clearly focusing on the Indian market because this is a market that is waking up. So our entire focus is on how do we leverage and grow the e-mobility business in the Indian market space. Got it, sir. Thank you so much for that. And just the last question. The press release and your opening remarks, you indicated two efforts on localization and the efficiency measures. Can you indicate the current localization share? It was 76% last quarter. Would you be able to achieve 80% by end of 2025 or in 2026? And sorry, I'm just adding the last question again. Thank you for the courtesy of investment. We couldn't hear your last part of the question. I was just trying to understand from the Savli plant, whatever investment has been made so far, how do you see the revenue potential for that? Okay. So on the localization front, certainly with the good demand coming on the export side as well, we were consistently focusing on making the products here. So yes, you are right. We were in the range of 75% to 76%. And I'm happy to say that in the Q2, the same number, we were able to take it up to 78% and above. So currently, we are in that range of 78% to 79%. And we will continue to keep that focus because localization is definitely one of the important prerequisites to compete in the Indian market. Yeah. So that will continue to remain. And the second question was on the revenue increase. Revenue potential for the Savli plant, would you be able to, on the investments which have been done so far, what would be the kind of growth or turnover you look forward to? I'm afraid, I mean, we don't link necessarily every plant-wise revenue performance because there are interdependencies. There are processes which are done by one plant for the other plant. So at this point of time, at least we will not be disclosing on the revenue potential for Savli. Good. Fair point, ma'am. I'll fall back with you. Thank you so much. Thank you. The next question is from the line of Harshit Patel from Equirus Securities. Please go ahead. Hi. Thank you very much for the opportunity. So my first question is on our automotive technology segment. We have been consistently outgrowing the overall industry-level volumes when it comes to TVs, CVs, tractors, etc. So could you provide a broad breakup of the revenues into these three, four larger segments? So has this mix changed significantly in the last three to four years, and how do you see this mix evolving over the medium term? Yeah. Mr. Patel, thank you for your question. See, we normally track in terms of the portfolio of products that we claim. And all I can tell you is to give you a specific split may not be appropriate, even in some of the areas. Talk about e-mobility, have non-disclosures at the customer's end, which is binding us not to share specific details about what revenue we generate. So much as we would love to, we are a little tied down because of the NDAs that the customers have insisted on signing. Understood. Sure. No problem. So secondly, you have previously mentioned that in the TVs, our content per vehicle has reached as much as EUR 50 at present. So how much this number would be for CVs as well as LCVs at present, and how this number has improved over the years with our newer product offerings and the business means that we have been consistently generating? Yeah. Just to throw some light, you talked about CVs and LCVs. So let me just talk about that. Yes, our content per vehicle there was somewhere in the range of EUR 50 to EUR 60. Actually, we were lower in commercial vehicles. We have started to increase our offerings there. LCVs in particular, we've been doing well. So I must say we should definitely be in the range of EUR 60 to EUR 65 plus. Even on the passenger car, it's the same story. We have been with hybridization coming in, definitely our content per vehicle also has gone up there. What we do not have not yet have started to measure is the content per vehicle on the electric vehicles, obviously, because we need that necessary volume to come out still. So we have not started the measurements there as such. Understood. Perfect. Thank you very much for answering my questions. I'll come back in the question queue all the way list. Thank you. The next question is from the line of Balasubramaniam from Arihant Capital. Please go ahead. Good evening, sir. Thank you so much for the opportunity. So with gaining traction in EVs, how we are balancing R&D investments between ICE products and new EV technologies? And secondly, we are supplying components for hybrid platforms to Japanese OEMs. Are there any plans to expand localization for other global OEMs? What is the CapEx allocation for hybrid and EV components? Okay. So there are three questions. So the first one is about? R&D investments between ICE products and new EV technologies. Thank you. Thank you. India is a pretty different and challenging market with all the technologies coexisting today. You have the gasoline engine, you have the hybrids, as well as the pure battery electric vehicles as well. So that said, we have a pretty vast portfolio of products which can cater to all the three application segments. On that front, we continue to invest, and we will continue to invest in the gasoline sector. Why am I saying that? Because in India, we definitely still see some double-digit growth happening year after year. And so it is pertinent that we continue to leverage the growth that we see in the gasoline segment, yes, to stay relevant in the market. So we have investing there as well, whether it is to do with the I just said about the lash adjusters that we have one. So we have invested in a production line for hydraulic lash adjusters and some of the other products. We have already started to also produce for the hybrid powertrains with the Japanese partners, the Japanese customers who are the prime movers in the hybrid powertrain technology in India. So we have already got the businesses. We are producing these products from our Hosur plant, and we have started to give to them already. Talk about the electric EXLs as well. We have started to invest as well as produce here from Pune. Now, when it comes to the R&D, we already did have the R&D infrastructure in place for the gasoline engine portfolio. Plus, we have a strong support that comes from our headquarters in Germany when it comes to R&D. That said, even for the hybrid technology, definitely that competence is now here in India, as well as we get the ample support coming in from Germany. For the e-mobility side, we were not having two years back any competency, but over the last two years, our consistent focus in terms of building those capabilities and competence, hiring the perfect, the right kind of talent to deliver those kind of technologies in terms of R&D has been invested in India as well. So rightfully, today, I don't see any reason why in India we cannot be able to develop many of the requirements in any of the three spaces that I already talked about. Last but not the least, we also now have the electronics and the capability to talk about the sensors, the controllers, and this is coming through the Vitesco portfolio of products, which is also available to us. Yes. So we do already have the competences in India to do as the technology matures, and Germany definitely is way ahead of us in terms of the faster new technology adoption. We will bring the relevant competence development here in India as the need arises in India. Yes, sir. Sir, on that, you can share details about CapEx allocation for hybrid and EV components. I think you mentioned about EUR 500 million over five years' time frame CapEx. And we also. Yes. Go on. So we are also supplying hybrid platforms to Japanese OEMs. Are there any further target to supply other global OEMs? We are working with many other customers here as well for e-mobility platforms. We have some breakthroughs and success. But the thing is, as I already mentioned earlier, that a lot of it is we are bound by the non-disclosure agreements with our customers. So I'm afraid at this point in time, we will not be able to reveal what these projects are. We talked about the Tata Motors Harrier EXL because they have officially gone public on it, and we were given the permissions to talk about it. Whereas for those projects which we are working on, I'm afraid we are bound by the NDAs. Okay, sir. Sir, industrial bearings majorly dominate for exports. Is there any plan to diversify the export product portfolio, especially high-margin segments like automotive technology? I'm sorry. I didn't understand your question. Mind Mind you. Sir, I'll make it simple. Is there any plan to diversify export product portfolios? We have been consistently investing in India to manufacture products both for Indian requirements as well. So when we talk of localization, the same capacities we utilize to also feed the rest of the market. As the demand comes in, we are able to leverage the capacities we have here in India based on the localization strategy that we have been pursuing in the past years. So that remains. And the main portfolio is bearings. So there are more and more new bearings that get added to the portfolio of local production here in India. So that we will continue to do. And in India? Sir, there is a limited scope that the automotive manufacturers of the world, they usually prefer the locally produced parts in their respective countries. So it has a very limited chances, I would say, opportunities for us. And there are a few areas where we have plans to export, but it would not be as big as it is currently for industry. Correct. Got it. Thanks. Thank you. The next question is from the line of Rishi Vora from Kotak Securities. Please go ahead. Yeah. Thank you for the opportunity and congrats on good set of numbers. Just first, one clarification on the CapEx numbers which has been guided by the parent. Does it also include the Vitesco India's CapEx as well for the e-mobility solutions, or the CapEx number which the parent has stated is going to be done by Schaeffler India only? Well, this investment is for India, and we have been talking about these investments, as you know, since the last few years. We've been consistently investing, and it is all about Schaeffler India Limited. Well, if any investment that comes out there as well, I'm sure we'll get to hear it. Okay. So this number is specific for Schaeffler India entity. Understood. And secondly, on the quarterly numbers, just on the industrial segment, if you could give us some color on how the trends have been, especially across railways, wind, and other raw material-related industries on where we have seen growth and where the growth rates have been slightly moderate? Well, I did already touch upon the railway business, which has done pretty well in the quarter, correct, as well as the off-road and also the power transmission business. We have seen some strong uptick in terms of our sales because the demand was there as such. As you know, the railways, what we see is a transformation happening in terms of moving away from the tendering process more to privatization of manufacturing the coaches. So that too is kind of helping us because we are able to compete with the technology and the quality that we offer when private players are coming into play, and that's enabling us to also do better in the railways as a sector. Talk about wind. Yes, in the Q2, the wind production equipment of wind turbines in the country definitely there was an increase. But since we had to build up stocks, so we had already generated the sale in the Q1 of this year. So, the Q2 wind, obviously, you will not see it adding significantly to the same growth numbers in terms of the equipment production numbers of the wind because we had already supplied in the preceding quarter the quantities that our customers needed. But all in all, we have seen good demand and good uptick coming. Some of the product portfolios within the automotive space as well, we have seen good uptick. So even though in this quarter, in the Q2, we did see sluggish production numbers from the automotive passenger vehicle segment particularly. But some of the product portfolios, because of what we had already, these were new businesses that we had secured, and they were ready to be start of production, and supplies were already in place. So we have been able to post a much better number than the market growth because of our continued focus on not just acquiring new businesses, but making sure that we realize those businesses. Understood. Just last question on the e-mobility EXL business. Can you give us some color on what can be the potential content just from this product in the future? Not talking specifically about the current supplies to the customer, but in general, what can be the potential content for this product, EXL? Just a few clarifications. When you say content, do you mean the content for vehicle, or is it the value of the component? V alue of the component Well, as I said earlier, these are things I am not able to disclose now because of the NDAs we have in place. Okay. Okay. Thank you. Thank you. The next question is from the line of Mayank Bhandari from Asian Markets Securities. Please go ahead. Yeah. Sir, just one clarification on the Savli CapEx number that you have given of INR 330 crore. So this INR 330 crore, how much was done in last year and how much we are doing this year? So most of it was done last year. This year, it's close to INR 40 to 45 crore so far. Which is the machinery, right? And how much of asset turnover we should expect on this number? This is the part that currently we cannot disclose. Okay. And would you be able to share what is the overall capacity utilization or plants are operating at Q2? And so our capacity utilization is currently close to 85%. There are different capacity utilization at different plants, but all are above 80%. See, as I already mentioned, our localization rate has gone up, and we have been able to better leverage the capacities that are in the country, thereby taking the localization rate up to 78, more than 78. Clear indication that the capacity utilization in our plants is also at a high level. As Baby mentioned, it's definitely better than 85, and we have plants which are doing better than that as well. Okay, and lastly, on this export mix, would you be able to give some data around how much proportion you are exporting to your own sister entities and how much to the customers? No. All of it is to our sister companies. I think this should be clarified that whatever we say export is all exported to our sister companies across the world, right? That's how all multinationals work, and we too are no exception there. Sure. Sure. Thank you. Thank you. The last question for the day is from the line of Saurabh Mehta from ICICI Prudential AMC. Please go ahead. Thanks for the opportunity. So just on the new Savli plant, where the portion of the investments had gone into over the last few years, right? So out of the constructed area, what sort of utilization has already happened in terms of the new lines and what proportion of it would still be left for you to utilize in future? And just on the last part you highlighted, most of the plants are above 80% utilization. Is it true even for the new Savli plant? That is right. That is right. It's true for Savli plant. It's true for Savli plant as well. And of the constructed area, what sort of lines utilization would have already occurred, sir, in terms of the installed lines? You mean to say that so right now, we have built two halls there where we have Generation C large-size bearings, wheel bearings, and angular contact ball bearings. And most of the lines are actually above 90%. Okay. Sure. And second question just on a quick one on the localization, which is supposed for, say, the domestic content requirement for the wind turbine components, right? Is there an implication for the domestic bearing industry in a sense that is there an imported bearing content which exists, or it is anyway largely localized and doesn't add much to the industry? Are you referring to the wind segment specifically? Yeah. On the localization, the domestic content which is proposed for the wind turbine components, right? So are the wind bearings anyway localized, or is there a good imported bearing market which can be replaced due to this? Surely, as I said earlier, our localization rate is still at 78%, although we have improved over the preceding quarter. So there are products that we continue to import, not just in wind, for the other segments as well. So wind too has a few bearings that we do not make here, considering the limitations of the machines that we have. So there are clear investment plans in that direction as well to bring in those sizes of bearings to be manufactured here in India, which we today are importing. So we have a clear plan for the wind as well going forward. And just to add, I think in the last year itself, more than 27 different types of bearings have been localized, which means we were earlier importing these bearings. And now we have started to make them here. And some of it definitely is for the wind segment as well. Yeah. That's good. All the best. Thank you. Ladies and gentlemen, due to time constraints, that was the last question for the day. I now hand the conference over to Ms. Gauri Kanikar for closing comments. Thank you, everyone. Thank you for joining us today. If you have any further queries, please do reach out to me or drop me an email at gauri.kanikar@schaeffler.com. Good evening and wish you a good day. Thank you. We now end the call. Thank you. On behalf of Schaeffler India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect the call.