CLadies and gentlemen, good day and welcome to Timken India Q2 FY25 Earnings conference Call hosted by Avendus Spark. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. 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 an operator by pressing the star, then zero, or a touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mukesh Saraf from Avendus Spark. Thank you, and over to you, sir. Good evening, Mukesh here from Avendus Spark. Appreciate everybody logging in. I'm pleased to be hosting Mr. Sanjay Koul, Chairman, Managing Director, Timken India, and Mr. Avishrant Keshava, Whole-time Director and CFO, Timken India. We'll start with a brief opening remark from Mr. Koul and then follow it up with the Q&A. Also, this will be a 45-minute call. Sir, over to you. Thank you, Mukesh. Thank you very much. Thanks, everybody, for joining. I'll make my opening remarks quick so that we have enough time for questions. Generally, the Q2 2024-25 performance highlights were we got the best September quarter revenue of INR 753 crore, which was a 10% YOY growth compared to the same quarter last year. Demand was largely driven by the domestic, which was the plus, and exports were minus. That was the plus was domestic, and minus was exports. They were subdued. But if you compare to the previous quarter, the domestic was less by 4%. And largely, that was raised because of, obviously, we had the monsoons and all that stuff, cyclicality. And then overall, I can say that, obviously, there is a geopolitical situation, and there are uncertainties across multiple end markets. The US market has been subdued. China is down, so China is down, mining is down, Australia is down. We export to these markets. America, though, October retail showed some positiveness in the US. Hopefully, from today onwards, it should be better. But in the quarter, it was not a great sales revenue here. Our PBT margin was 16.4% compared to 18% in the prior year period, and last quarter was 16.6%. Our margin performance in the quarter, despite unfavorable product mix, obviously, the range was down, so that impacted the product mix a lot. And overall, our balance sheet is breaking free. Cash flow is robust. We have continued strategic investments. And as we have spoken before, the Bharuch project is in full swing. And as we speak, the shop floor, the building is up. Shop floor utilities are currently up. On the construction, the air conditioning, the whole plant will be, obviously, the air conditioning HVAC is getting in place. LP wasn't getting in place. All the cooling systems are getting in place. We are putting up a 66 kV line getting directly from the GETCO substation. Not currently, we are going for a 66 kV. Looking at future and everything, civil is progressing STP ETP. Solar work is in progress. Fabrication work is in full swing. The machines are already, the box machine has been received from Italy, Switzerland, Japan, etc. So more machines are coming in. So overall, Bharuch facility is in full swing. Though last two, three months, there were big challenges, heavy rains, Baroda was underwater, crocodiles on the streets. All that is now behind us. That, obviously, had an impact on the construction. That is the general highlights. And with that, I would turn it over back to you guys so that we can directly go into the Q&A. And as it is only 45 minutes, and we have only gone six minutes, so 49 minutes left. So let us jump into the questions, please. 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 your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Abhishek Jain from AlfA ccurate Advisors. Please go ahead. Thanks for the opportunity, sir. Sir, how was the revenue mix segment-wise? Mr. Jain, the revenue mix for the Q2 24-25, this quarter was out of the total pie, the rail was 23%, mobile was 18%, distribution was 19%, process was 21%, and exports were 19%. And in the earlier segment, how do you see the growth going ahead? Basically, in the fourth quarter, the number was very much strong. From there onwards, we see some sort of moderation in the revenue. So what? Sorry, your voice cracked a little bit. Can you repeat, please? Sir, how is the outlook for this earlier segment? Basically, in the fourth quarter, revenue was very much strong. And from there onwards, we have seen some moderation in the revenue. So how do you see the revenue growth in this earlier segment for the next FY 2025 and 2026? And what would be the growth figure? Generally, the rail is always the last quarter is generally best because the wagon industry pushes the wagon manufacturing. They have to complete their contract. So if you see all years in the last 30 years, the last quarter of the fiscal year is always the best. And there would be no change to that. That would remain here. Overall, the wagon build is pretty healthy. And also, the rail passenger Vande Bharat and all that is pretty okay. Metros are also chipping in. And as I have been always saying, it will be always a steady growth in rail. And it will keep on growing. And that is how it is happening. And it will continue to grow. Though not like a hockey stick, but it will keep on growing. Obviously, the wagon production capacity is slowly enhancing. It is not enhancing at a very breakneck speed. And the buying is also going through its own channels. So the last quarter of every fiscal year for people doing business and railroads is always the strongest. So it will not change. I think it is a slow, steady, solid growth pattern. Last year, fiscal last quarter was very good. Again, I think this fiscal last quarter will be good. And more and more wagons are obviously getting made. I don't think there is a—it is not a hockey stick, but there is no doubt about it as well. Obviously, some quarter it will be low. Some quarter it will be exceeding well. But overall, year on year, there will be slow, steady growth. That is how it will remain. The metro pushing there. But obviously, metros are a small number of cars. But that will also remain there. Vande Bharat is having traction. So I would say that it is nice for rail. It is nice overall as an industry, nice steady growth. And that momentum will keep on happening. the export side, how is the outlook ahead from last two to three quarters? There was a weakness. And most probably that, as you mentioned, that there will be some recovery expected from the U.S. market. So what is your outlook for the H2 and FY26 and exports? U.S. market, I would say Americas, not only U.S., Americas, both north, south. Obviously, north is important. Americas overall, rail had its pluses this year. I think that even next year, the rail in the Americas will be decent. The Class 8 heavy truck segment has its weakness. Hopefully, with the election results, October was a better month compared to the rest of the year, most likely better. I am expecting that there might be a possible recovery in the U.S. markets, especially on the Class 8, which is the heavy truck side. I am hoping that everybody is having their dues there. I think that with the election getting over and steady political coming back, and October is a new indication. It might be better than what everybody is expecting that it might be. But rail side of Americas will remain okay next year. Thanks. That's all from my part. Thanks. Thank you. Before taking the next question, we would like to remind participants that you may press star and one to ask a question. The next question is on the line of Chandrakant from Arihant Capital. Please go ahead. Hello? Yes. Yeah. Good evening, sir. My question was regarding the current portfolio besides bearings. Will they be launching that portfolio in India through Timken India? Or is it not yet clear? No, I think it is already clear that everything which we are selling in India is through Timken India Limited. That is what we have been doing always. Now, the major multi-billion dollar or multi-million dollar question is that the parent has taken over good companies, a lot of technology companies, which is part of the power chain, whether it is belt, chain, pulleys, etc., and also in the area of robotics and linear motion, etc. So these are all European American companies. So they are high on tech. Now, the question is that we are obviously in bits and pieces here and there importing and selling. Like, for example, we recently did the Pune Metro lubrication system, which we got from one of our sister companies, TIL, sold it to the Pune Metro guy. But the real essence is whether we have a solid business case to use that technology and do something in India, either in terms of M&A or a greenfield or something like that or supply chain. So those are the business evaluations we are continuously doing and looking at it differently. The technology is available. Some great companies have been acquired by the parent. And how do we leverage them in India, both for the domestic market and for the export? So this is continuous evaluation discussion also at TIL board level and also within our company in the leadership here. How do we leverage that? But it is very clear. It is sold to TIL, so that is very clear. Now, how do we procure it at the right cost using the technology? Like, say, for example, in the case of Timken India Limited, we have the technology from there, and we have the local sourcing and local manufacturing, and we have a good combination. So on those, which we call internally industrial motion components, whether it is belt, chain, lubrication, etc., etc. So how do we leverage that technology and use India-based and India cost to serve the Indian customers and also use it for export? So those discussions are on. There's an interesting company which Timken has taken over some time back called H-Fang, which is Cone Drive, which is into the solar market and which is into slew drives. Now, these slew drives are optimizing are very important if you want to graduate from the fixed panel in solar to rotating panels so that you get the best of the sun mode, you get the best of the rays of the sun and produce optimum level of. So we are looking at that. We just won a small order from Tata Solar, and we did some assembly, and TIL sold some units just kind of a final. So it is a great opportunity. We are looking at the best model which will provide growth for Timken India Limited. But one thing is still it will be sold to TIL. Now, how do we do it? Because it needs both technology and a local manufacturing base or local cost base. So that we are evaluating. Okay. That's great to know, sir. My second question is regarding the holding of the parent in Timken India. That's reduced to 52%. Are there any plans to increase it so that investor confidence is also increased? The parent is currently at 51.05, and currently, we are at 51.05, and that is it. I have no further information on that. Neither going up, neither going up. No information available with me. Thank you. That was my last question. Thank you. Thank you. The next question is from the line of Saurabh Patwa from Quest Investment Advisors. Please go ahead. Thanks for the opportunity. So the first question, sir, with the new plant commissioning possibly happening sometime in 2025, how do you see it impacting our revenue growth and margins? And also, the second question is on with the change in leadership at a global level, how do you see India? Are any discussions on for India gaining more share in exports with the new plant and any more plans of incremental CapEx happening in India? Okay. Thanks, sir, for asking one great question and one tough question. So let me answer the first question in terms of the new project which we are doing in Bharuch. Just to put this question in context, Timken India currently has a plant in Jamshedpur and has a plant in Bharuch, and we are manufacturing tapered roller bearings generally on 0- to 8-inch, which largely goes to heavy trucks, both axle and differential wheels, and also goes into the tractor and similar applications and goes into off-highway, the excavators, backhoes, things like that. Then we also produce the rail bearings which go into passenger trains, locomotives, etc. These are what we term largely as the mobile equipment, which in simple language is whatever has a wheel on it is mobile. Whether it is off-highway or on-highway, that is what we are producing largely in India and Bharuch and at Jamshedpur, whether it is rail or whether it is tractor or whether it is a truck. Now, India also is a growing bearing market. Apart from the mobile, there is also a lot of stationary equipment. Stationary equipment means equipment which goes into steel making, which goes into cement making, goes into power generation, goes into aggregates, material handling systems. These are the areas where you use bearings, which are other. They use tapered roller bearings, of course, but they also use spherical roller bearings. They may use cylindrical roller bearings. These are different forms and sizes of the bearings, and these have a large growing market in India. That is what we are currently importing, and TIL buys it from its sister companies and sells in India. We looked at the market size, looked at all aspects, and then obviously went to the board and came to the conclusion that we should start producing cylindrical roller bearings and spherical roller bearings, which has a large demand in India. These bearings are also used in similar equipment in every part of the world. So for example, in Malaysia, in Indonesia, they are largely heavily used in the palm oil market. In the oil market, they are used in the same cement and steel industry. So with that, we have the business case. We got a tool and we started investing in our project in Bharuch, which will start making the spherical roller bearings and cylindrical roller bearings, which are going to cater to the Indian market. We were exporting and we were importing. And now we have a chance to localize it. And we have the chance to export it. Obviously, it is going to be revenue more because of the fact that with the right cost, local supply chain, strategic customer, and these are the customers where we have been traditionally importing tapered roller bearings and supplying them for years. They have been always asking that, "Hey, why not the other portfolio, the basket is available? Why not try that?" We started then importing and testing the market and finally we have started making those bearings from mixed gear and start supplying them. It is certainly going to be revenue positive as Timken has a heavy knowledge on supply chain, our knowledge on material science. We have created a nice supply chain. Given our previous record, I'm sure that this would create with the Timken technology, world-class bearings with the right cost. The market is going into stage growing into stage for equipment. And that should fetch us not only our top line betterment, it will also do a better addition to our bottom line. So that is the whole idea of the business case. And we are committed to execute that. So it would be positive, positive. Now, how much positive? We are only timing still, but the business case is meant for positive top line and positive bottom line. So that was the good question. Now, the tough question is that with the new CEO, Mr. Tarak Mehta, how do you see the new growth? How does it impact India? So obviously, Timken Company now I'm speaking of Timken Company is a global company. Obviously, they are the promoters for the largest promoters for TIL. And 125 weeks will break 125 years this year. So it's a large old manufacturing company. Mr. Mehta comes with tons of experience previously from ABB. He has been on ABB India board. He knows India pretty well. Though he has not spent much time in India, I think he left India when he was 17 or 18 and has lived in America and Europe most of the time. He's a very, very great business leader, a proven business leader in ABB. He has done many M&As in his time at ABB. And yesterday was his first investor call as well. And he has come on board to lift Timken Company to the next layer. So obviously, our previous CEO, Rich Kyle, ran the company as a CEO for more than 10 years. And he did a fantastic job of transforming the company from only bearings to a complete solution provider in the power chain. And now the next level obviously has been initiated. I think certainly as he has been on the ABB India board, has been working on ABB China, etc., understands Asia pretty well. And Asia definitely has a strength. India has a super strength of cost quality delivery. And our quality is in general in industry, mechanical industry, good company, top quality and great cost and also good delivery. So I'm pretty much hopeful that any great business leader will leverage India. And now there is China plus one and all those things on one side. But just looking at India by itself, currently your $5 trillion economy has 12-30% manufacturing. Every day the economy is improving as it becomes 7-8 trillion and manufacturing becomes 25% of the pie. Obviously, you need a lot of manufacturing in India. And then India can easily become the workshop for the world. So Mr. Mehta is an astute business leader, understands Asia very well, understands America very well. And definitely he has been hired to take the company to the next level. So obviously markets are going to be down. There has been America last year. But they run in cycles. And I'm pretty much sure that he's bound to lead the company to the next level. And nobody can ignore India. It's a great home market and a great manufacturing base. So it is how do you leverage well? And when somebody knows that region very well, obviously it will be leveraged very well. Great, sir. Thanks a lot for the detailed explanation. Can I add one more question if you allow, sir? Sorry? Yes, sir? If you allow, can I add just one more question or? No, no, sure. Yeah. So going by, sir, your comment on the previous question, would it be safe to assume, sir, that the second half would be much better than the first half? And in terms of both growth as well as mixed improvement, and should lead to a better EBITDA margin as well? So I cannot tell you about. I can't give direction on the margins, but obviously whether they will be better or worse. In general, I will tell you in general, there are two three things which I can tell you in general, as I told previously. Rail, generally in the last quarter for the industry is good. Rail as a mix is good. With the American election getting over, I'm sure there is going to be a direction there. October was giving some good kind of indication. India after Diwali generally is good. I don't see any reason to be pessimistic as I look for the October to March two quarters in general. I think business people who run business should be optimistic. There's no cause of being pessimistic in it. That would be my limited answer. Great, sir. Great. Thank you, Adam. Really helpful, sir. And all the best. Thank you very much, sir. Thank you. Participants who wish to ask a question may press star and one. The next question is from the line of Ankur Sharma from HDFC Life. Please go ahead. Yeah. Hi, sir. Good evening. Thank you as always for your time. Just three questions. One was on the process industry, steel, cement. How are you seeing demand over there? Also, if you could talk about wind, one of your peers talking of a reasonably good revival on the wind market as well. So yeah. Thanks, Ankur. And so let us take wind first. So in general, you have now a lot of wind companies making gearboxes in India. So I'm first looking at the bucket, which is the export bucket. So whether it is ZF, Flender, Danieli, or even NGC, they are looking at India for the right reasons to do the job here to serve the market in and out. And that is pretty much optimistic in nature currently. So that is on one side. On the other side is that Indian domestic need of wind is gathering momentum definitely with Adani's especially. They have a pretty solid plan. Even Suzlon is pretty much robust in nature. The consumption in India was always sub-megawatt. And now even two megawatt is very small. So Adani is looking at three and five, which is a pretty significant good wind. So I would say that with the push from the Government of India on wind, although we have a strong solar shaping up as well, but with the reason why they wanted for strategic reasons as well, the touch and that area. So wind for domestic use is picking up definitely. And we see Suzlon, Adani for the Indian market doing a good job. And then we see on export, though obviously there has been the Chinese wind market definitely is down. If you compare it to what it was last year, it was definitely down. But the manufacturing of the gearboxes in India for the ZS of the world or the Flender of the world is okay. Even NGC is starting being okay here. And domestic is okay. So I would concur with the fact that wind is not going to be a pessimist. It is definitely going to be a good year. I think I can use that term for the next year. But all these take time. Wind is again a market. Let's say, for example, Adani is coming. They have to test and install and anyway, then obviously then they will go with a lot of strength to do the rest of this stuff. So it will be good and will take time. Like railways, it is heavy infrastructure. So it will be nice and steady. If not slow and steady, then nice and steady. So definitely wind is there. On the steel side, I would say that we currently definitely are not using steel production in India to capacity utilization. That is not happening. But as the export markets pick up, I think that will have a positive impact on the consumption of steel, especially alloy steel, which is a more kind of nearby. But in general, steel currently is not to capacity utilization, but it's not in a bad shape. But as exports out of India pick up, there was a bit that as they pick up, definitely more steel is used. On infra, because of the election, there was a slowdown on infra a little bit. You guys know it better than me. But now the traction has started. So the traction has certainly started on that. And if Mr. Gadkari remains committed to use cement, because he keeps on talking about alternative technologies, but as long as he uses a lot of cement in the infra build and bridges and other related areas, and as new steel gathers more traction, which is still not gathering that traction. So cement is also going to remain, and you can see the stock price of the steel companies. So overall, I would say that wind, steel, wind followed by cement, followed by steel, that would be, if I have to say, number one, number two, number three. Okay. Got that. And then a related question, sir, on the CV market as well. What are you hearing from some of your key customers? Given, as you said, elections are over. I know Q2 also some heavy rainfall, etc. So government spending too was a little weak. But are you seeing initial signs of a pickup on the overall government spends and maybe that trickling down to better numbers for some of the CV makers? My personal view is that obviously if we see some good quarter over quarter, it would be the last quarter which is usually better. We certainly see, obviously, last year for the excavators, those that dumped was great. Then it went down because of election and all that. So that has come up again. And definitely we kind of again, by 2030, we can expect the market is going to be easily 10 million market. So that is going to help traction. On CV, particularly, I think January, February, March might be a lot better than the previous two, three quarters. Got that. Okay. And just the last question, sir, on the margins itself, when we look at gross margins/material margins, we used to do about 41%-42% earlier, maybe last year even before that. Now we are in that 39% range last two quarters. So is it more to do with the mix where we have lower share of export, or is it also that we're not able to completely pass on, I don't know, maybe higher RM prices? So just trying to understand, when do we see gross margins going back into that range? Obviously, my boss is asking the same question. So it is sort of a mix of everything. It is a mix of inflation. It is a mix of it is partly because of the mix, partly because of inflation, energy cost, labor cost, and then steel going up and down here and there, etc. So it's a mix of everything. Our end goal certainly is to make sure that whatever can be passed on should be, if not the price, the cost expression has to be passed on. So that, especially the automotive industry is legendary. It will always be fought at the same time, customer is a customer. But overall, I would say currently there was a combination of inflation, combination of mix which included the export, the debt, etc., etc. So endeavor is to have the right balance, optimize the supply chains and things like that. But on passing the price in automotive stuff, I don't see that the endeavor is continuous. But there is huge resistance. And obviously, the industry is competitive. So here I see it not getting a lot of traction. But we are trying to improve our margins, trying to further optimize wherever we can as much as solar to bring down the electricity cost. So all those endeavors are on. But passing the cost in totality is a battle which sometimes we win and sometimes lose when the battle is on. Okay. Okay. Got that. Thank you. Thank you. A gentle reminder to participants that you may limit your questions to two per participant as there are several participants waiting for their turn. The next question is from the line of Deepesh Agarwal from UTI Asset Management. Please go ahead. Yeah. Good evening, sir. So my first question is, what is the biggest player exposure in terms of railway and auto? And how is the European railway doing right now? Sorry, Deepesh, I think your voice was not audible a little bit. Can you please repeat? Yeah, sir. So first question is, can you give the split of exports in terms of railway exports and auto? And how is the European railway doing? Okay. Sorry. Thanks. I got the question. So generally, when everything in America goes well, it is generally 50-50. That is generally the mix between the heavy truck. And this time around, rail is more skewed. So it is almost 70-30 or 68-32. Generally, it is 55, but this time it is more rail, less TS from the heavy truck. On the rail side in Europe, Europe is not having any much trade. Russia is generally out because of the various reasons they have there. But the European market is not a heavy trade market. So rail trade in Europe is almost minimal. And their passenger is also very, very minimal and mostly running on freight goods. And we are in India mostly making coaches for the passengers. They are slowly converting to coaches and might be a market for export tomorrow. So rail market in Europe is a small market, is a niche market. We do export to the leading rail, but it is small. We have no large freight. Obviously, the large freight markets of the world are America, China, Russia, India, and South Africa, followed by Australia. So these are the large freight markets in the rail sector. Currently, what would be geography-wise play for us in exports, US, Europe? Largely, our exports are North America. We export to Australia. We export to even China. But largely, it is US followed by Europe and followed by the rest of the world. So US would be more like 60%-70%. Is that understanding correct? Africa would be, yeah, 50%-60% on the U.S. side. So the other is that on the CRB, SRB, I believe the CapEx was originally INR 600 crore. If I look at your balance sheet, CWIP is INR 290 crore. So it seems still a large chunk of the CapEx is pending. So is there any delays in terms of timelines for the Bharuch plant? So obviously, we have INR 600 crore approved, and we have obviously paid the advances. Then we have to run up the machines. Final payments will be done up the machines. These are imported into India. And then civil construction, you pay only after finishing. Then you keep 10% still there and all that. So we will be obviously consuming the CapEx. Every order is placed. Machines are coming. You don't pay them until you don't run off them all. Then our 66 kV is to be energized in the next 10 days. After that, we pay the electricity guys, which is also a tiny sum. So all that is in motion. So the plant is, I can't show you the picture, but in a busy without machines, major machine boxes are inside the plant. We are waiting for the final lap on the 66 kV, coolant systems and all that. Air conditioning is getting fixed by, but obviously, all payments will be done after complete installation, testing, etc. But we are not delaying as such the project. But there will be natural delays because this time there is a lot of rain, etc. This should be commissioned by January, right? So we are working towards as fast as possible. Some months we are there, but the endeavor is first quarter-ish, somewhere like that. Okay. So lastly, if you can share what is the quantum of CRB, SRB you are currently buying from the group companies? So we are on the large. I think it might be 60-70 crores. So obviously, we are importing it from Romania. We are importing it from U.S., but it is not a huge sum. But as our competitors are making the most in India. So we have the chance to take it up. But generally, it will be currently, if my math tells me, it will be not more than that in the total price. And it is all obviously part of our imports into India, which is part of our distribution sales. Sure. Thank you. And all the best. Thank you. The next question is from the line of Bharat Sheth from Quest Investment Advisors. Please go ahead. Hi, sir, thanks for the opportunity. My question is related to this new plant which we are building, and since we don't have much presence on the CRB side in India, so how much time will it take really to ramp up our production and getting the client confidence on our bearings of CRB and NRB. Really, if you can give two, three years' time kind of, I mean, reasonably okay? So I would say that Timken has been selling CRBs and SRBs for the last 20-plus years. So as you know, most of the equipment which is either in the paper industry or in the cement industry or it is in the steel making industry are mostly having their own, for example, Danieli, Italian company. So they are all exposed to the chemicals like cement. So it is not that something is going to be completely new. We could have sold a lot more if I was not margin-centric, but we have to balance everything. So the clients, say, for example, if I can name Lafarge Holcim or the world or similarly steel making, John Cockerill or steel makers like Tata Steel, they all know Timken SRBs and CRBs. And for us globally, quality is same. Our material specs are same. Steelmaking technologies are same, so if we don't sell, it will be our failure. Our sales failure will be failure because the customer doesn't know Timken or the technology is not there or the product quality is not there. We are using the best of the best if you need service, so no, obviously, it is always when there is a new plant, the new plant has, first of all, Timken will do a brand approval on it. That is a process which goes through rig testing and things like that, then the customers will start doing the PPAP, and they will also have their own paperwork, so that is the time which is mandatory to be taken, but I would say that from the end, let me also add this little thing. We started assembling these bearings by getting the components from our sister companies and already started testing and selling and all that stuff. So we are on the job. And I think that it should be between the first month of production to, say, 18 months of production. During that period, we should be established with most of our customers supplying from this plant. Great, sir. Is it possible to get the quantity that how much we are, I mean, is assembling and selling it? We are currently, I think, assembling and selling. The value is not huge, but maybe 1,000 bearings, so it is just to kind of, as you know, start to move customers and all that, so that is more of testing rather than the revenue but as we start producing out of the plant and start shipping, already, as any business will do, our customers are aware. We are keeping them fully aware of what is happening, what kind of machines we are getting in, what kind of processes will be taking place, so as soon as I don't think the flow of orders will be a challenge. Challenge will be to do the paperwork, management of change, PPAPs, and things like that. Obviously, we have to compete and win more and more orders. All these customers, major customers, are already exposed to our SRB, CRB which we have imported and are supplying to them. Now the quantities and the customer base would increase. Great, sir. On railway, how do we see our market share? And you said that there is some kind of a delay in procurement of wagons and all, which you expect that to start picking up from Q4 and Vande Bharat. If you can give some color, is there any delay? Yeah. So obviously, the last quarter of every fiscal year is always the best for the railway companies. All the railway companies do very well because they have to complete their order books. And monsoons are over, and all the Diwali and the Chhath, those things are over. So obviously, those are the last lap of the race. So no-brainer, the rail industry last quarter of the fiscal year is very good. As far as our market share is concerned, it is a competitive market, and we compete. We have created a world-class supply chain, and we got pretty well-depreciated good asset base in the Jamshedpur. We are on freight. We are the market leaders in India on passengers. We are the market leaders, and we intend not to lose any ground to anybody. So as far as the market goes, we are committed to serve our customers in rail and not give up position. But at the same time, at the same time, we continuously work on technology. We continuously work on enhancing the product features. And that is the way we've been ahead in India. When we have time now, I can explain how we have brought newer technology every three, four years into India, and railway has benefited, and we have always been ahead. And many of the specs, when the first Train 18 was flagged by Mr. Narendra Modi, it had Timken bearings on it. So we are always with RDSO on the drawing board. We've been working closely with the railways for the last 37 years on design aspects, improving the safety aspects. And it is not only supply chaining or optimization. It is also enhancing the features of the bearing, getting better, say, for example, Class K or DFC, and then as they also want more safety features and Timken will place all this, so all that together, we will work hard, work hard, and we know everybody else in the market is working hard to keep our position intact on railways, and railways in India for the next 15, 20 years is going to be a market will be slow and steady, better every year, but not a hockey stick, as I always say, so that would be my answer. Thank you. We will take the last. I think 5:45, 5:47, we can take one last question, and if there is a question, we can take one more question, please. Yes, sir. The last question, it's from the line of Priya Ranjan from HDFC Asset Management. Please go ahead. Yeah. Thank you, sir. Thank you and happy Diwali and happy New Year. So just one thing on, I mean, how much bearing-wise we are selling to the sensorized bearing, etc.? I mean, and what is the status of the rolling mill contract we used to get? I mean, last year, I think we were having around 12 or 14 sites we were operating. So if you can throw some light on that. Happy Diwali to you too. We are really asking a very tough technical question. Did you visit my office today morning or what? So you're asking for some bearings. So okay. So obviously, let me take it out of this question, the easy part one. We are operating 28 MILLTEC sites in India. So we are running more sites in India, and we intend to promote that model on not only steel. We want to take it from MILLTEC to caster t ech to power tech to cement tech. So it is a tough journey, but we are on that path. So that's the path we are walking. And to get better experience for our customers, better real life out of our world-class bearings, which are produced with a lot of care. We want to make sure they are mounted right, they are run right, and we are increasing our sites. As I said, we have already 26, 27 sites there, and we are increasing by the day. Just last month, we have won the caster maintenance site at Dolvi, Bellary here in Karnataka. Now on the sensorized bearing, Timken supplied sensor bearings to Ford for many, many years. We produce a railway sensor bearing. Almost I did a presentation to railways 30 years back or 25 years back. Timken has the technology of how the sensors in the bearings, which are largely used for calculating or measuring the heat, temperature, and the vibration. This is meant to, as a safety device, temperature is high, that means there is some problem so that you can stop the bearing so that the derailment does not happen. And vibration, again, the same cost safety. So obviously, we have the technology. We obviously can do that. Now the question is that is the customer ready for it? Does he ask for it? So Priya Ranjan, when you were driving a freight car 15 years back, you had no technology in the car. Now when you are buying a new car, you will not buy a car without the technology. Now Priya Ranjan sir is ready to pay money for the tech in his car. Similarly, now railways is ready to explore and pay for extra safety in the rail. And we have the tech. We have the technology both on sensorized, wireless, wired. And we've been doing it in North America for many, many, many years for Ford and for other aspects. I remember back in the day, we had a bearing which could generate electricity. Who knows the freight market? They used to be a dark train called Caboose. Caboose, there was a lantern. Lantern was not for that filming song. It was because there was no electricity in the last car, which was the Caboose. So Timken had a bearing or generator, which would electricity generation through the bearing and can light two lamps for the guard. So long story short, we have the tech. We want to make sure that the railway and the industry is ready to accept it and pay. And then we are ready to introduce that to the market. But obviously, the customer should say yes to it. So by the way, I was discussing this with my technology team today morning on it, sir. Great to hear. Just lastly, if I can squeeze in one. So if I'm not wrong, you said around 18 months to ramp up the capacity, ramp up of the production of the new Bharuch facility. So in 18 months timeline, I mean, what kind of capacity utilization we can think of? I mean, typically, we have always operated at 80-plus capacity. I would say that in order to reach 80%, I would say that in 18 months, I should be able to every asset, every machine has to be ramped up, and all that should take me 18 months, but for your question, it goes beyond the ramp up with capacity utilization. I would say it will take us at least three years to reach the mark or to use at least 80-85%, which is our intent. Sooner the better, but I would say that new plan, new technology, PPAPs, certifications, ISOs, everything, we would ramp up nicely by 18 months and capacity utilization by 24-30 months would be my take. Okay. Got it. Got it, sir. All the best. Best of luck. Thank you, sir. Thank you very much. Thanks a lot. Thank you very much. You all have a good evening. Thank you very much. Back to you guys. On behalf of Avendus Spark, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.