Good afternoon, everyone. On behalf of ICICI Securities, we welcome you all to the Q1 CY '23 Earnings Conference Call of Huhtamaki India. Today from the management, we have Mr. Dhananjay Salunkhe, Managing Director, and Mr. Jagdish Agarwal, Executive Director and Chief Financial Officer. I would now like to hand over the call to the management for their opening remarks, after which, we can open the floor for Q&A. Thank you. Over to you, sir. Thank you, Hitesh. Good afternoon, everyone, for attending the call. I am Dhananjay Salunkhe, Managing Director of Huhtamaki India, attending this call along with our CFO and Executive Director, Jagdish Agarwal. Let me start the presentation by drawing your attention on our Safe Harbor statement, including the presentation for good order sake. A quick around the Huhtamaki India's background. Huhtamaki India is a leading provider of the primary packaging and decorative label solutions in India. We are part of Huhtamäki Oyj, a global leader in sustainable packaging solutions, over 100 years of legacy and Nordic heritage. We have been consistently growing since 1935. Huhtamaki has been packing memorable experiences together with our customers and partners. Today, we are an integrated flexible packaging solutions company with a pan-India presence backed by 10 manufacturing sites, one R&D center, and five offices. A bit on Huhtamäki Oyj. Huhtamäki Oyj is a global leader in sustainable packaging solutions with Nordic heritage. With innovations and transformation at core, the company is steadily pursuing 2030 ambitions of achieving carbon neutral production and making all its solutions Recyclable, Reusable, or Compostable. Coming to March quarter performance. Company faced challenging external environment, with overall demand impacted by continued pressure on consumption, more predictable supply chains, which are evidenced by destocking and inventory pipeline corrections by our customers, and return of demand seasonality. Overall, sales declined due to lower volumes. However, company has been able to realize value for its products by increasing our relevance to the customers. In spite of decline in sales, EBIT and EPS improved due to better portfolio and price management. We continue to invest in our operations and technology to innovate and develop fit-for-purpose sustainable packaging solutions. We are redefining the possible with game-changing sustainable packaging solutions, setting new industry standards. Under our blueloop brand, we have developed fully recyclable mono-material structures for our flexible packaging. What is unique about these solutions is the combination of best-in-class protection in packaging, which is fully recyclable and being fully affordable globally. These structures or these products will be replacing conventional flexible packaging with completely new structures suitable for a broad range of demanding applications in food, beverages, pharmaceutical, home and personal care, and industrial applications. These innovations will help our customers in delivering onto their commitment of using only recyclable packaging by year 2025. Many of our key global customers have independently pledged to drive fully recyclable or recyclability and circularity of packaging. With our innovations, we are helping address this need. Similarly, we are also making good progress on our strategic priorities, which are delivering customer excellence, developing new innovations, driving world-class operations, and embedding sustainability in everything we do, and developing a talent required to execute our strategies. During the quarter, our labeling innovations have been recognized for their outstanding quality and excellence by India Star Award. These pressure-sensitive labels were recognized for their unique features, which are metallic and tactile finishes and security features, and also for innovative tooling requirements which are for tablet packaging. Our PP-based laminates for specific product category like chocolate and transparent barrier for a snack pack won the SIES SOP Star Awards. These awards are a testament to our focus on delivering packaging excellence to our customers in product development, innovation, creativity, and sustainability. These recognitions are also a reflection of the collaboration and collaborative efforts our teams are doing along with our partners to help brand owners in terms of personalization, sustainability, and improving accessibility in the packaging area. Now, I would like to hand over to Mr. Jagdish Agarwal, our CFO and Executive Director, to walk through the financial performance. Thank you, Dhananjay. Good afternoon, everyone. I'm feeling excited as we are starting this call after a long gap. I'm sure it will help to strengthen our communications with our stakeholders. I'll walk you through our March quarter performance. Not with the sending a challenging environment in March quarter, we have been able to maintain a steady bottom line in the quarter despite of IOI increase in the top line by 9%, which is true that INR 6.46 billion for the quarter. The increase is mainly attributable to volume pressure. Our softening in inflationary pressure and improvement in operational efficiency partly helped to bridge the price versus cost gap, leading to an improvement in margins. Even though EBITDA at INR 576 million backs for the quarter in terms of percentage of sales YoY, EBIT at INR 420 million is higher at 6.5% of sales compared to 5.8% year-over-year. This improvement is majorly driven by lower depreciation due to revision in useful life of 6%. Profit before tax at INR 352 million, slightly better on YoY basis. Working capital efficiency helped to reduce overall borrowings and in turn, lower finance costs despite increasing the debt cost. Net profit for the quarter at INR 355 million has improved to 5.5% of sales, driven by one-off reversals of accrual for an uncertain tax provision on account of favorable tax ruling. EPS for the quarter at INR 4.71 is higher by 44% year-on-year basis. We have talked about this top line contraction. In fact, Anuja has emphasized on the top line contraction, and that's mainly because of volume. It was due to multiple factors. Having said that, this is also one of our key priority by targeting responsible and profitable growth business. Except top line, if you look at all other financial indicators for the March quarter are on upward or positive trend. Be it EBIT, which is at 6.5%, PBT at 5.4%, and if you talk about Profit After Tax, it's around 5.5%. The company remains committed to its shareholders, focusing on technology-enabled innovation and operational performance, and realization of value for its products by engaging constantly with our customers. We believe this will help the company remain competitive in the long run to drive responsible and profitable growth. With that update, I would hand over the call to Hitesh for Q&A session. Thank you. 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 touch-tone 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 is active. Our first question is from the line of Manan Poladia from MKP Securities. Please go ahead. Hello, sir. Congratulations on a good set of numbers. My first question is based on the press release, the disclosure we just put out, about the liquidation of the land in Thane. Is there any ballpark numbers that you could give us as to what will be realized by that liquidation? I'll take this question. It's very difficult at this point of time to, you know, talk about any ballpark numbers because it's still. I mean, if you look at, we had given a disclosure on 17th of March. Yes. At this point of time, we are engaging and the due diligence process is going on. Okay. We can't give any number at this point of time. Okay, understandable, sir. Another question. Regardless of whatever the proceeds are from that sale, do you intend to utilize them to pay back the long-term borrowings that we have from the parent? Again, I mean, it's too early to comment on that point, but definitely, you know, once we'll get into a sort of a certainty about that transaction, we can work it out, what will be the right usage of that, you know, consideration. Okay. I just have another natural follow-up question on that. My question is, sir, do you intend, like, for the next year or two years or so, are there any CapEx plans in the offing whatsoever? I think- Any acquisition, like it could be either CapEx or acquiring other companies, whatever be the case. I think CapEx is anyway an ongoing process, and we continue to invest for, you know, sustainable-based innovation, and we are doing that, and that's going on, already, and it will continue to be, you know, in that, CapEx, mode. Anything, you know, talking about acquisitions and all at this point of time, at least we are not, in any such discussions. Right, sir. Until and unless- Thank you. Thanks. Right. I'll get back into the queue. Thanks. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. Our next question is from the line of Priyank Chheda from Vallum Capital. Please go ahead. Yeah. Hi. Thanks for the opportunity. Like, I have a strategic question. We have seen flat volumes in whole of CY 2022. While most of your OEMs that we track have grown in terms of value or and even in terms of volumes plus they have an aggressive plan to grow further. In this context, I mean, what are your long-term growth plans? We as an investor community, how do we track that your growth plans are aligned with your OEMs? Yeah. Let me share our strategic position and we, you know, position ourself as a, you know, a solution provider to our all the OEMs in terms of such innovative and sustainable and differentiated product structures, which helps them, our the brand owners to introduce their product into their respective categories. Coming to your first question, which is, you know, the flat volume growth. Yes, we observe that, you know, there is a very accelerated commoditization which is happening, and that is where we are creating a differentiation in by introducing and by launching the new innovative products. That is where we are launching the blueloop, which is the differentiated mono structures which will create a differentiation in the market. These are the product lines which are strategically, you know, positioned to take care of the future. Right. Right. Right. Yeah. Mr. Dhananjay, so you've been appointed in this company over the, over the past four, five months. I mean, it would be glad to hear what are your priorities in the near and long term, and, how are your strategic, I mean, talks going on with the parent? How do they look, India as a growth opportunity, as an engine for the growth? Yes. A very good, you know, follow-up question wherein our parent definitely sees India as a very exciting market because the next new 1 billion consumers are going to be here. Our recently, in fact, coincidentally yesterday we had, you know, our global Huhtamäki Oyj has updated the strategic intent in terms of our 2030 ambition and strategies. Our strategies are clearly aligned with our parent strategies. Essentially what we are focusing on as a strategic priority is one, overall enhancing our customer experience, that is customer centricity, then driving innovation, then accelerating our world-class operations. These are the three clear strategic priorities what we have articulated. Along with that, I mean, in order to execute those priorities, we, the enablers such as talent pipeline and digital, these are the enablers which we are driving, and these are consistent with our parent company. Got it. Got it. Last question. Over the years we understand that raw materials have been volatile. How do you see your gross margins moving ahead directionally and even in what would, if you can share what would be your long-term targets? Where do you see your gross margins settling down from the highs of 22%, 23%, we are down to 26%, 27%. It would be great if you can highlight on that. Thanks. Yeah. Commenting on directly on a gross margin, would be kind of speculative, but at the same time, to answer your question, yes. I mean, in this, in India is going to be remain, you know, the market which is quite competitive, and that is where we are focusing on, you know, having the right balance of our product portfolios, business portfolio and product mix. Going forward, we definitely, you know, anticipate that the volatility, what we have seen in the past in our raw material prices shall stabilize and will kind of give us opportunity to make a long-term plan, in terms of our product business, portfolio. Hello? Are you there? Yes, sir. We are moving to the next question. The next question is from the line of Mr. Nisarg Vakharia from NV Alpha Fund Management. Please go ahead. Good evening, gentlemen. I wanted to ask you firstly that in a growing economy, you know, where the volume growth is at least 5%-6%, this company, with the best lineage and like best sort of clients, has remained at a flat EBITDA for almost six to seven years, from 2015-2016 to 2018. You know, in your brief stint of four to five months, could you attribute the key reasons to why this company has underperformed so many other packaging companies in India very briefly? This is my first question. If you see the overall market in India and the packaging companies, very difficult to pinpoint the volume growth or, you know, organic growth of any particular player. Most of the time what we see is the, you know, it's a combination of organic or inorganic growth. Coming to Huhtamaki India's, you know, proposition, why volumes have been either flat or so on. I will go back to my first comment wherein we position ourselves as a, you know, the like the company who is into the innovative, sustainable and differentiated products, wherein off late, as the time horizon what you mentioned, we have seen the rate of commoditization, you know, increase over a period of those five to six years. That is one. The second biggest opportunity in flexible packaging in the past is to be the from the conversion from a product format from a rigid to flexible. We are seeing the maturation, it is maturing over a period of time. Those two things are definitely, you know, seen as a challenge in my last five to six months of tenure. That is where we are, you know, aggressively launching the sustainable packaging solutions in terms of our blueloop brand, which will help us to, you know, cater to our customers' ambitions, which are, you know, introducing the recyclable packaging solutions by 2025, which most of our end customers have pledged to do. That is where we are, we said that we are increasing our relevance. That should help us to, you know, maintain our position of, you know, differentiation. This recyclable, sustainable packaging, that you're planning to launch, is that also having a large enough addressable opportunity in India or will it remain a niche business? This would have a large addressable market. As you know, you would have heard in my comment that the product range, what we are going to launch is going to serve a broad range of products, right from food, personal care, home care, industrial applications. It is definitely going to have a larger addressable market. Thank you, sir. Sorry to interrupt. Mr. Nisarg Vakharia, it is a request that you return to the question queue for follow-up questions as there are several participants waiting their turn. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to 1 to 2 per participant. Should you have a follow-up question, we would request you to rejoin the queue. Our next question is from the line of Piyush Khandelwal from Bank of India Mutual Fund. Please go ahead. Yeah. Hi. Thanks for the opportunity. My question is, I mean, addition to what the previous participant asked. If I look at last, I mean, five years, our growth, volume growth especially has been very patchy, and our major growth has come from the acquisition. I mean, in last 10 years we have done couple of acquisition with the majority of the majority acquisition that we did in 2015. How should we look at that, let's say next two years, three years down the line about the organic volume growth or maybe volume growth as a whole for a company? Will it be like again acquisition led or will it be an organic growth? Yeah. Whether organic or inorganic or acquisition, I think that would be slightly speculative. At the same time, the product range, what we are offering to our customers, which is in line with their 2025 ambitions, which is basically introducing recyclable structures. I think that is where we are, you know, focusing on supporting the, you know, new age structures. Sir, is there any targets in your mind that you will be looking, let's say, I mean, a mid-single digit kind of a volume growth, which is, I mean, FMCG market grows in India? Is there any targets in your mind that you're looking that you should be hitting at least this kind of a growth? We will be looking at a responsible growth. A responsible and sustainable growth. I mean... Oh, Jagdish, do you want to come in? Yeah. I mean, I just want to add a couple of points to what Dhananjay talked about. First of all, if you look at like, 2022, we had a 14% revenue growth. If we are going through our, you know, financials of 2022, we have talked about that our top line has increased from INR 2,675 crores to INR 2,982 crores. That's a 14% growth. Now, talking about volume, if you look at, I mean, I was looking at a report which talk about that 2022, the FMCG volume growth was into -0.03%, and that's a reference from one of the published reports. The consumption was challenging if you look at last year because of driven, impacted by the high inflation and all. Having said that, you know, our strategic initiative where we are trying to address a key problem, what is sustainability, and we are engaging with our customers trying to solve the bigger problem. I'm sure that long-term things probably they won't be able to see individually impact with this. Definitely we are stating our case for long-term growth and long-term profitability. As a responsible solution provider, we're solving the problem of our customers, at the same time driving our growth in a more long-term and sustainable manner. All right. All right. Understood. Even if I, let's say, I mean, COVID impacted or let's say, I mean, CY 2022, I mean, the volume growth has not been very sustainable, which we expect actually from companies like you, like a sustainable which are entering to the FMCG market. That's what not has been witnessed. I'm just trying to understand what was the issue. Is it like the change which you said that, change in packaging, let's say, from flexible to rigid, that kind of trend that you are witnessing, I mean, going forward and hence, this kind of volatility between... Not like that. I mean, like I said, if you talk about overall FMCG volume growth of 2022, that was slightly negative. There were no growth in the volume for 2022 calendar year. When you talk about, you know, Huhtamaki, actually, I can, we talk about that we are a differentiator and we are working on, you know, sustainable-led innovation, and definitely we are focusing on a long-term growth, working very closely with our customer. Another, point to note is that, you know, there is a heightened competition within the market which, some of the applications are getting commoditized. Our focus would be to address the bigger challenge, which is like impacting the planetary environment, we have sustainable packaging solution. That is going to help us have a long-term growth and sustainable growth. That is our focus here right now. Thank you. Our next question is from the line of Mr. Naushad Chaudhary from Aditya Birla Sun Life AMC. Please go ahead. Yeah, hi. Thanks for the opportunity. Sir, firstly, just wanted to understand you on the overall business margin profile. See, historically also we have seen in the raw material there has been the volatility. Despite that, we have not so much on the either gross margin or EBITDA margin. This time from last two years, I think we have been struggling. We understand that there has been a raw material pressure and other cost pressures. Given the nature of our business, do you think this should not be the protection which we are seeing should not be there in the margin? Is there anything else that changed in the business which used to be two years before versus now? Can you explain this? If volatility remains same in the future, will we experience a similar kind of volatility in the margin as well if raw material volatility remains similar in the future? First let me talk about our EBITDA margin. We have reported for the March quarter 8.9%. If you go back at December quarter, we have reported 6.7%. There is a improvement in our EBITDA margin between December quarter to our March quarter. The second biggest part we are focusing is that we are working on a world-class operation. We are driving operational excellence through TQM solutions and all. We are trying to, you know, work on the things which is going to help us with long-term sustainable competitiveness, and there we are all focusing. I hope that definitely, you know, the journey which we started, we continue and we continue to focus on the opportunities what we have in our hand. Having said that, you know, we are focusing on both, is the top line as well as the bottom line, and that what it reflects, actually bottom line reflecting to this March Quarter results. Maybe adding to Jagdish's point, you also asked us about the what's the plan around managing the volatility. I think the volatility what in everyone observed in the last two years was actually not experienced before. I think most of us are now, you know, ready to manage such kind of volatility going forward. Hopefully systems and processes are placed in terms of managing that. Hopefully, you know, as industry trends are indicating, raw material and such a volatility should be stabilized going forward. Irrespective of the volatility in the raw material prices in future, we should not see such kind of volatility in your gross margin. Is that the correct understanding? See, if you talk about there will always be impact on inflation on any financials. It's like a time lag. Normally, you know, we do have a contract with our customers. At the same time, we do have a contract with our suppliers as well. Any time lag and the frequency of that contract terms definitely have impact that year. If the kind of impact what we have been seeing in 2021, some of that was the outlier. We won't expect that kind of a severe impact because the time lag impact will be there, whether it's a plus or minus. Thank you. We move to the next question. Our next question is from the line of Deven Shah from Niveshaay Investment Advisors. Please go ahead. Good afternoon, everyone. My question is, please give a brief about revenue breakup industry-wise, I mean which sector contributes to major revenue? Mr. Deven Shah, I will mute your line as there is some kind of a disturbance or static on your line. I will mute your line while the management answers the question. I will unmute it once they are done. Thank you. We, you know, we play in all segments, whether it's a personal care, whether it's, you know, food and beverages or confectionery and all. I think pharmaceutical and all. I think we play in all segments where we have a play into it. Yes, some sectors which have a high significant share of our business is the food and beverages and personal care. Hello? Yeah. Hello. Please go ahead. Can you provide some number, I mean, which percentage-wise number which sector contributes major revenue? We won't go into the segment wise, but yeah, I have to put two big sectors for us. Definitely, food and beverages and personal care are the two. Okay. Can you provide some insights about raw material mix? In the packaging side of the raw materials, those can be resins, inks and foils. I think it's a combination of all these raw materials. Sorry, you are not audible. Is it okay now? Yes, sir. Please go ahead. Yeah. The general raw materials in any flexible packaging is revolved around the resins, fumes and foils. Okay. about operational efficiency, did your TPM policy improve your operational efficiency that you were talking about? Yes. In TPM. Yes, we have launched a, you know, total productive manufacturing in our plants, and we are seeing improvements in terms of operational efficiencies in our plants. Thank you. May we request you to join the question queue for follow-up questions. Thank you. Our next question is from the line of Khush Gosrani from InCred Asset Management. Please go ahead. Yeah. Hi. Thank you for the opportunity. I just wanted to understand, are we looking to introduce, fiber packaging as well, which has been a positive segment for a while? Huhtamaki India is, you know, we are into a flexible packaging, you know, business. Fiber and fiber food services is a another segment and, it's a independent entity in India. Yeah. Okay. In terms of the Azure highlight, there has been inventory destockings by our customers. Has that situation normalized now or is this something which will take time for us? What is the inventory question? Yeah. I think we are seeing two things parallelly. One is of course, inventory pipeline correction or destocking, and second is also seasonality. While inventory pipeline correction we are seeing some moderation or, you know, coming back to the stability. Basically not only at our end customers, but at their, you know, distribution centers and so on. That impact as well as seasonality is yet to be assessed. Like just one point in case is, typically summer season, there are some product portfolios which we service for a beverage industry. Because of the untimely rain season across India, the summer season has been kind of delayed a bit. We are yet to ascertain the impacts of those seasonalities too. Sure, sir. Thank you. Our next question is from the line of Bharat Sheth from Quest Investment Advisors Private Limited. Please go ahead. Hi. Thanks for the opportunity. I hope that in future we'll continue this communication also. My question is relating to this blueloop technology where you said that it will completely replacing the flexible packaging. Is it mandatory for the all the flexible player or it will be optional? That is one. If that is going to happen, what will be the new raw material and what changes that we need to make in our manufacturing processes and how cost competitive will it be? Okay. I think you have asked the three things. One, we intend to continue these communications, ongoing. Thank you very much. Second one on the blueloop, maybe, I have to again explain. It is not going to replace the flexible packaging. Typically, currently if you see the packaging is, you know, this is the requirement of the product. It can be termed as a multilayer packaging or polyolefin-based packaging or monolayer packaging. Just point in case like multilayer packaging involves either of the three, which makes that packaging end product, after use unrecyclable or non-recyclable. Like if there is a usage of paper, polythene or paper and, either PP or PE or foil. Whereas our polyolefin is basically, it involves PE and PP, which still slightly recyclable but not fully recyclable. Whereas monolayer, which is either the packaging which is made by PE/PE or PP/PE, is considered as a best for recycling. What we are introducing is the laminates or flexible packaging, which is made out of monolayer, which is basically either which is based on PE only or PP only or paper-based. That is a technology we have been developed along with our partners and that is getting launched. That's the second one. Third one, whether it is mandatory for everyone, you can refer to the regulatory changes, what are being happening India as well as in other parts of the world. Whereas, there is a lot of impetus now on the post-consumer recycling, which is called PCR, then the, you know, end-of-life recycling and so on. Yes, the government is also making certain changes which will definitely, you know, regulate the brand owners to adapt to this. Lastly, it is also because of the brand owners or the large FMCG or consumer packaging good company are also pledging their you know, themselves in terms of their sustainability goals. Many of our large customers have pledged that by 2025 their majority of their product portfolio will be in the recycled structures. That's where our new structures will be, you know, helpful to our customers. Related to that question, will it be more cost competitive or is there any change in the manufacturing process or raw material part will be there? Yeah. while we can't put a number to it, but I just, I think, I mean, I will say this way, that the product which we are going to launch structures, they are having three discrete, you know, combination. One, protection, which is for the any product which is getting packed, whether it's a food or non-food, it requires the, you know, the shelf life, right? The protection and the shelf life. The, the product which we are going to launch, there will be no compromise on that, you know, shelf life and then the barrier properties which are required. The second one is the recyclability, which will be fully recyclable. Third is affordability. Yes, we are, you know, making sure that it is affordable, within the sustainable packaging options available right now, and that's what the purpose is. While we are working on all the ecosystem to make sure that, yes, it is affordable for all the, you know, customers and the consumers in mind. Sir, in connection that, can I please take one more, two more question, please? Hello? Go ahead. Okay. You said this will be... Now that a large part of the flexible packaging also has moved to rigid, is that our potential or market size reducing? No, I said vice versa. In the past there was a clear movement from moving from rigids to flexibles. Comment, not the opposite. Okay. On the paper side also, how do we see same thing? There are certain customers which are, you know, introducing the paper-based packaging also. At the same time, you know, it depends on which they are launching, considering the barrier requirement and shelf life requirement. Thank you. Mr. Bharat Sheth may we request you to return to question you for follow-up questions. Thank you. The next question is from the line of Nimish Maheshwari from RSPN Ventures. Please go ahead. Good afternoon, everyone. My first question is related to the tax, the tax rate, because there is too much volatility in the taxation in the last three to four years. How we can see the tax rate in actually 2024, 2025? As well as, my second question is about contingent liability, which increased from INR 5 crore to INR 23 crore. What is the management view on this and how we look into this? Let me first answer your questions on the effective tax rate. If you talk about the first quarter, definitely first quarter we have some favorable ruling in the, to have a impact on the effective tax rate. Typically, you know, we have opted for low tax. Our normal tax rate is 30%-31%. If there are some development that help us on certain favorable judgment, that might help. Otherwise we continue to going to have around 12.5% tax rate for us. Contingent liability, whatever probability of getting materialized into probably assets has already, I think, accounted for in our financials. We don't see any further, you know, challenge on that front. Okay. What is the other income comprised of? Why is the last quarter it was negative? We had the one of reversals in March 2022 quarter. On competitive basis, it might be looking otherwise there is no other stuff in that. That changes. What is it? Sorry. In March 2022, we had a one of the liability, which we have reversed in March 2022 because that was not getting utilized. That helped improve our other income in March 2022. On a competitive basis, when you look at a March 2023, it looks negative. Thank you. We move to the next question. Our next question is from the line of Mr. Vipul Shah from Sumangal Investments. Please go ahead. Hi, sir. Thanks for the opportunity. My first question is regarding the stability of the management. Now the management, top management has stabilized because there's a lot of management changes. Hello? Yes. I mean, yes. You can see this. We have started this communication on the confidence that we continue this. Jagdish and myself, Dhananjay, are well entrenched into this company. Jagdish have, I think now one year, more than a year, and I'm kind of getting reborn, nine months. Yes, we intend to continue and there is a good stable, you know, key management personnel also, we call them a leadership team. Yes, if your question I can affirm in yes. My second question, sir, can you quantify the drop in the volume? So- In terms of percentage? Yeah, yeah, sure. Slightly higher than the revenue drop. No, no, I, not in rupee terms. I mean volume terms I'm talking about. Yeah, yeah. Around it, around 50%-60%. Thank you. We move to the next question. Our next question is on the line of Dhavan Shah from AlfAccurate Advisors. Please go ahead. Yeah. Thanks for the opportunity, sir. I have a question on the blueloop technology. You know, if I look at the parent presentation plus our annual report also, I think we are very much focusing more on the blueloop one. How do you see the next 5 years growth once we launch this blueloop technology? What do you foresee the overall financial performance? How it will change just because of this technology? And plus the market size, market share, anything you can highlight based on, you know, the addressable market plus what will be our confidence against, you know, the other peers available in the market? If you can share thoughts on this thing. Maybe directly commenting on the market share or what is our, you know, the plans in terms of realization will be kind of speculative. At the same time I can answer on the confidence level and comparative positions what we have in the marketplace. As I articulated earlier, the blueloop products which we are launching are going to service the broad spectrum of the requirement, right from food, pharma, non-food, industrial, home care, personal care and so on. Per se, the addressable market is going to be, I mean, what we are serving now or maybe slightly larger as one. Second, it will be the confidence is coming from fact that this is a global innovation and the technology what we have developed is basically is along with our key partners and global experts. There is a, you know, confidence behind the success of the not only technology but also the outcome. We are, you know, pretty confident on introducing these which are going to replace the non-recyclable solutions. That's where the confidence of, you know, coming from. Thank you. We move to our next question. Our next question is from the line of Jeetu Panjabi from EM Capital Advisors. Please go ahead. Hi. Thanks Hitesh. One, I really appreciate you all coming out of the call and talking. I think that's a great thing. I'd be great to continue this. My question is, you know, in an earlier question you articulated that the three key priorities areas would be doing customer centricity, strategic stuff and innovation. My question is, if we were to try and look at the three Es to try and understand what you're putting to work in terms of people and resources to execute on what you just articulated, can you just give us some color on what resources and people as well as non-people resources you're putting to work in the change journey going forward? Yeah. I think you heard it very well. That's three priorities and two enablers. Talent remains one of the enabler. We have, you know, you know, talent pipeline, which is definitely helping us to, you know, do this innovative and differentiation introduce these products. These are now backed with our global reach. You know, we have R&D labs in Germany. We have the marketing help getting across the, you know, globe. Then there is a reach in each market which is having some specialized, you know, portfolio reach. That is where we are kind of also getting certain help. On top of what we have a resident knowledge icon, a resident knowledge, you know, Huhtamaki India, which is basically, in fact, we are the institution which is, you know, known for the talent, in fact, depletion in packaging industry. Thank you. Our next question is from the line of Himanshu Shah from Dorado Capital. Please go ahead. Thank you. Thanks for the opportunity. Just a couple of questions. One, are we looking to sell any further plants because we have so much manufacturing sites and besides Thane, would we be looking for a consolidation of the production process which will bring some more efficiency in scale of operation? We continue to look at our, you know, the customer relevance. I mean, everything what we do is going to revolve around the customer requirement. If you see in last few years, there has been changes in terms of, you know, GST regime, the transportation efficiency, road infrastructure, the new customer sites, the new supplier sites, and so on. We continue to look at the network as a overall, you know, not only the manufacturing sites. We look at the, you know, what is required from our customers, and we keep on taking the view. That is what you would have seen in the, our actions, like what we have, you know, taken a view on a Thane unit, a Thane plant. At this moment, I mean, we keep on evolving the options available in front of us and take a view on ongoing basis. Thank you. Our next question is from the line of Priyank Chheda from Vallum Capital. Please go ahead. Yeah, thanks for the follow-up opportunity. Just a suggestion and more than a feedback, since you've been doing this call after a long time. Going ahead, it would be better if you can have more clarity about, you know, the lot of aspects which are unclear yet. The land sale, quantum, how we would use the proceeds, CapEx plans, I mean, how do we plan to get back the gross margins? Actually, there's a lot of other data points which were discussed till now, yet unclear. In case, I mean, if you can help me with two more further data points. One is on the utilization levels, where are we right now, and what are the plans to scale up the exports? Thank you. Well, you know, the utilization depends upon the technology and the product structures, what we make. It just remains at what was there in the last in line with the last quarter utilization. The next question, probably what was the last the follow-up question? I kind of missed it. What, I mean, how do we plan to scale up the exports? Exports, yeah. Definitely the exports remain our, you know, key market. We have a, if you would have seen in our annual report as well, we are servicing almost 70 countries by the way of exports. That remains one of our key levers. We are using our three-pronged approach, I mean, from a product point of view. One, of course, leveraging our product strength. The second, our global reach in terms of, you know, reaching to the market or destination market, I would say. Third, you know, the now more and more India as a country also we are, you know, getting more and more impetus to Make in India. All these three levers are definitely going to get used to enhance our exports. Yeah. Anything further? Yes. Mr. Ramakrishnan from Equity Intelligence Private Limited, please go ahead. Hi, sir. Sir, what percentage of our sales is coming from export? Going forward, what is the what kind of percentage domestic and exports we will have? Whether the export is also equally profitable to as well as domestic market? We do approximately 30% of our revenues comes from exports. We continue to look forward to enhance that. At the same time, we want to also grow in domestic market also. You know, the percentage really would not really matter, whereas in the both the market we want to grow. Answering your question on the exports profitability, I think, yes, it is accretive to our business. Okay. Thank you, sir. Our next question is from the line of Vaibhav Badjatya from Honesty and Integrity Investment. Please go ahead. Yes. Hi, that's No problem. I hope I'm audible. Yes. First, for the land that you have put up for sale, what is the size of the total land? Is it like 12 acres, 14? How many acres are these? I mean, you know, that is something which probably over 8 acres or 8-9. More than that. Yeah. I mean, I talked to Mr. Vaibhav, could you repeat that, please? Yeah. Is it like around 10 or what is the exact size of the plot? You said it's between like 10, 12, 14. How many acres are there? No, I think, we'll let you know once. You know, some due diligence is going on and survey is going on. Definitely we'll come back at the right time on that, on that. Thank you. Our next question is from the line of Pulkit Singhal from Dalmus Capital. Please go ahead. Thank you for the opportunity. Your specific market within your current category. Certain questions. Number one, how many competitors typically participate in the RFQs? Like, you know, second is that do you typically have to kind of match the pricing or are you able to get some kind of pricing premium for the product? That is my first question. In RFQs, I mean, it depends upon the structures and the products and the lots. I would say there are on team competitions. I mean, if you have to ask numbers, probably it kind of can be ranged from, typically 12 to almost 20. That's the intensity of a competition. The whether to match the prices or not, you know, it depends upon the company to company or, I mean, customer to customer. Of course, as RFQ nature itself is that, the decision lies with participants, where they want to quote and where they want to hold on to. The last one comment what you asked for, the premium, you know, this is, this is where I already mentioned that the pace of commoditization in the flexibles packaging has accelerated over last few years. That is where the new product introduction is going to play a very important role to again demand that premium. Understood. The second question was on the new product introduction plan. It typically changes, you know, when a, when a company is going to reload, they will consider all kinds of products that will actually do related to packaging as well. So whenever, you're competing with paper, where they are able to match the barriers, properties, et cetera, requirements, what is the pricing difference that is there, in the single use versus, paper? I mean, is it a premium or discount? From that point of view, we see the plastic pack, I mean, flexibles packaging, which is non-paper, let's say that is one of the most competitive, you know, structures available. Whereas wherever there is a paper involved, it would be a premium structure. As compared to the current flexibles structures. Thank you. Due to time constraint, that was our last question for the question and answer session. I would now like to hand the conference over to the management for closing comments. Yeah. Okay. Yeah. Thank you, Hitesh. Thank you everyone, you know, attending the call and asking the questions which are also helpful for us to reflect and take certain inputs and we continue to engage with the community going forward. Thanks, everyone. Thank you Jagdish for joining me today to attend this call. Thank you, everyone. Thank you. Thank you. Thank you on behalf of Hitesh.