Ladies and gentlemen, good day and welcome to the Borosil Q1 FY 2026 earnings conference call hosted by ICICI Securities. 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 completes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniruddha Joshi from ICICI Securities. Thank you and over to you, sir. Yeah, thanks, Nidhi. On behalf of ICICI Securities, we welcome you all to Q1 FY 2026 results conference call. We have with us today senior management represented by Mr. Shreevar Kheruka. Managing Director and CEO, Rajesh Kumar Chaudhary,, Whole-Time Director, and Mr. Rajesh Sultania, CFO, Mr. Rituraj Sharma, President, Consumer Product, and Balesh Talapady, Vice President, Investor Relations. Now I hand over the call to the management for the initial comments on quarterly performance. We will open the floor for question-and-answer session. Thanks and over to you, Shreevar. Thank you, Aniruddha, and ICICI Securities for arranging this call. Good afternoon to everyone. We are delighted to be communicating with you once again. I am pleased to inform you that the Borosil Limited board has approved the financial results for Q1 FY 2026 during our meeting on August 14, 2025. We submitted our results and an updated presentation to the stock exchanges, and they’re also available on our company’s website for your review. I am pleased to report that Borosil Limited has delivered a steady performance in Q1 FY 2026, with consolidated revenues from operations reaching INR 232.7 crore, up from INR 221.2 crore during the last year. This represents a 5.2% year-over-year growth. This steady growth, achieved against challenging market conditions, reflects the resilience of our business model, the strength of our execution, and the continued trust and loyalty of our customers. This also places us on a strong competitive footing alongside our peers. In Q1 FY 2026, the company achieved an operating EBITDA before investment income and one-time items of INR 40.2 crore, up from INR 34.6 crore in Q1 FY2025, which is a 15.1% year-over-year growth, reflecting our continued focus on efficiency and growth. The operating EBITDA margin for Q1 FY 2026 stood at 17.8% versus 16% during the last year. Other operating income includes INR 6.03 crore from shared service support income for Q1 FY 2026 and INR 4.21 crore for Q1 FY 2025, with the associated expenses captured under total expenses. Profit reported for Q1 FY2026 was INR 23.5 crore, up from INR 12.9 crore in Q1 FY25. Q1 FY 2026 includes a one-time stamp duty expense provision reversal relating to the merger of INR 7.2 crore, which is shown under the head other income, and also includes a one-time expense of INR 1.6 crore towards professional fees for a strategic assignment. The net impact of one-time items is INR 5.6 crore. At the same time, during Q1 FY 2026, as compared to Q1 FY2025, depreciation had increased by INR 2.6 crore, and finance costs decreased by INR 2.7 crore, largely due to repayment of debt. The profit after tax grew from INR 9.3 crore in Q1 FY 2025 to INR 17.4 crore in Q1 FY 2026, which is a growth of 87.4%. As of June 30, 2025, Borosil Limited has a net debt of INR 5.1 crore. Now let’s take a closer look at our category-wide performance for this quarter. Borosil’s consumer division continues to expand across both glassware and non-glassware categories under the Borosil brand, along with our Opalware range under the Larah brand. The Larah Opalware segment reported sales of INR 76.2 crore in Q1 FY 2026 versus INR 76.1 crore in Q1 FY 2025. Larah’s performance in this quarter mirrors the overall market drop in demand, with sales impacted by slower demand. However, we expect a strong recovery in the following quarters. In our glassware segment, which includes microwavables, servingware, glass tumblers, lunch boxes, and storage solutions, we recorded muted year-over-year growth, with revenues reaching INR 56.2 crore compared to INR 55.7 crore in Q1 FY 2025. As mentioned in earlier quarters, our performance was also influenced by UCPMP 2024 which restricts incentives to healthcare professionals. This impacted our B2B business by curbing bulk orders and limiting distributor engagement. The non-glassware segment, encompassing a wide range of small home appliances, insulated bottles and glass, cookware, and other kitchen essentials, performed strongly, posting a 10.7% increase in revenue. Turnover for this segment reached INR 94.2 crore in Q1 FY 2026 compared to INR 85.1 crore in Q1 FY 2025. BIS compliance requirements affected our Hydra motor sales, as some of the channels are only accepting BIS certified steel products. Our team has recognized these headwinds and is actively reshaping the overall strategy to mitigate this impact. As part of this, in the previous quarter, we announced the establishment of a new manufacturing facility in Rajasthan through our wholly owned subsidiary, StyleNet India Ltd, for vacuum insulated stainless steel glass bottles and containers. This project involves an estimated initial CapEx of approximately INR 40 crore and will have an annual production capacity of approximately 2.4 million units, with commercial operations targeted for Q4 FY 2026. In parallel, amid a muted revenue quarter, we implemented cost control initiatives, notably a sharper focus on marketing efficiency and reducing performance marketing spend online, with overall marketing spend dropping from INR 18 crore in Q1 FY25 to INR 14.1 crore in Q1 FY 2026. Additionally, power and fuel costs declined from INR 20.4 crore to INR 17.5 crore over the same period, substantially contributed by the solar projects we have installed in Rajasthan. It is important to note that the softness in the short term in Q1 does not overshadow Borosil’s proven record of consistent long-term growth. Between FY 2018 and FY 2025, our revenues have grown at a 23.5% CAGR, while EBITDA expanded at a 34.3% CAGR. Since acquiring Larah in 2016, its revenues have risen from INR 48 crore to INR 384 crore in the last year, delivering a 26% CAGR. Likewise, our non-glassware portfolio has grown from INR 23 crore in FY 2017 to INR 453 crore in FY 2025, reflecting an exceptional 45% CAGR. This is clear evidence of our ability to deliver sustained growth and value creation even over challenging time periods. Now, while Q1 was challenging, we as a company have the skin in the game for the long term. The long-term story for our category is as strong as ever. India’s per capita GDP has been rising steadily from about INR 1.1 lakh in FY 2022 to nearly INR 1.4 lakh estimated for FY 2026. Private final consumption expenditure, PFCE, is also growing, and over the next few years, per capita PFCE is expected to reach the $4000 mark. That’s important because higher income means more spending on lifestyle and home and kitchen products. With our premium yet accessible positioning, Borosil is in an ideal place to capture a share of this expanding consumer spend. The brown goods market in India, which includes microwave ovens, kitchen appliances, home appliances, and personal care appliances, is on a strong growth trajectory. Valued at approximately $5 billion in FY 2024, the market is expected to reach $9 billion by FY 2030, translating into a robust CAGR of around 10%. A major driver of this expansion is the rising demand for kitchen-centric appliances, such as microwaves, choppers, mixers, grinders, and toasters. These products align closely with evolving consumer lifestyles, where convenience, efficiency, health, and modern design play increasingly important roles in household purchases decisions. Over the last few years, we’ve seen a remarkable shift in consumer behavior in India, a shift that’s now becoming a powerful tailwind for our business. Health and wellness are no longer lesser priorities. They are central to the way people live, eat, and make purchase decisions. The Indian health and wellness market, valued at approximately $50 billion in FY 2024, is expected to grow to $90 billion in FY 2030. Two trends stand out. First, rising health awareness. More Indians are paying attention to what they eat and drink, and that naturally extends to how they store, cook, and serve their food. There’s a strong move toward toxin-free, safe, and durable products, exactly the space that Borosil operates in. Second, the accelerated rejection of plastics, driven by concerns around BPA, microplastics, and other harmful chemicals, is prompting consumers, especially urban millennials and Gen Z, to move away from plastics. Add to that government-led single-use plastic bans and growing sustainability awareness. This makes the shift toward materials like steel, glassware, and Opalware inevitable. We are excited about the Indian lunch box market, valued at more than INR 4000 crore. More and more consumers are looking for safer, microwave-friendly, and sustainable options. This is exactly where Borosil has an edge. Our premium glass lunch boxes combine toughness, leak-proof performance, and microwave compatibility, all in a product that looks great and is built to last. This is also one of our leading products. One of the pillars of our long-term strategy, the commitment to Make in India, is that we already operate one of the largest Opalware capacities in India with 84 tons per day and India’s only 25 tons per day borosilicate glassware plant, commissioned in March 2023. We’re not stopping with glass. As I mentioned, we are expanding our manufacturing footprint with a new facility being set up to produce vacuum-insulated stainless steel bottles, glass, and containers. Borosil is on a transformational journey to address key ESG opportunities and create long-term value for all our stakeholders. One of the strategic priorities of ESG is to lower our operational carbon footprint and meet decarbonization targets. Borosil has successfully commissioned two captive solar power plants in Deepranaya, Rajasthan, with a capacity of 8.6 MW commissioned in December 2023 and 7.2 MW commissioned in September 2024. These solar plants cater to approximately 40% of our overall power consumption. The recent introduction of the Green Energy Open Access Regulation 2025 permits further expansion of our solar capacity. As a result of this, the company will be further investing about INR 75 crore in the current financial year toward expansion of our solar capacity by setting up another 20 MW captive solar plant in Deepranaya. The project will be funded with an appropriate mix of debt and equity and has been approved by our Board of Directors. Borosil is at the forefront of India’s shift toward healthier, eco-friendly kitchen solutions, replacing plastic with microwave-safe, BPA-free glass and stainless steel products. Rising disposable incomes and growing health awareness are accelerating this transition, and we are successfully converting plastic use to glassware and Opalware. With aspirational design, educational marketing, and an emphasis on hygiene and elegance, Borosil is redefining the modern Indian kitchen. Our omnichannel presence across general trade, modern retail, leading e-commerce platforms, along with strong B2B and export channels, has delivered deep market penetration. Today, with products available in over 24000 retail outlets, we have built a diversified revenue base that connects with both urban consumers and international markets. In summary, despite near-term challenges, Borosil’s strong brand equity, diversified portfolio, expanding manufacturing base, and omnichannel reach position us well for sustainable goals. Thank you for listening, and I’ll be happy to take your questions. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Sucrit D. Patil from Eyesight Fintrade Private Limited. Please go ahead. Good afternoon, Shreevar. My question is, as Borosil’s non-glassware portfolio now contributes over 50% of brand revenue, how are you planning the next phase of brand evolution, particularly in expanding into existing categories like smart kitchen appliances, sustainable cookware, or modular dining solutions? Is there a roadmap to position Borosil as a full-stack home utility brand beyond its legacy in glassware? Yeah, thanks for the question. As far as our brand is concerned, we continuously look at the kitchen, table serving, and on-the-go storage as a whole category to evaluate where our products are and where we should launch products. As part of that, we evaluate not only the size of the market but also trends and growth rates, as well as the competitive intensity of these markets. There is a future in which we could consider modular kitchens, although that’s not something we are doing right now. We do have other categories we are focusing on this year. For example, gas cooktops is one such category where we’ve done quite well this year. In the last 12 months, we’ve launched a product that has been reasonably well accepted in the market. We’ll also be launching a product in dinnerware, like premium porcelain, this year. This is a continual work in progress. I believe we have a very strong team that understands trends quite well and is able to develop products to meet those trends. To answer the question, we are looking at the whole kitchen and table as a market opportunity. We believe we are an everyday-use brand for people who value quality but also want a good life, using products they feel happy to use. There’s a design aspect to it, a convenience, and a force-multiplication aspect. That’s the kind of brand positioning we aspire to. The product categories will keep coming, with new innovations. Specifically, I don't believe that we are launching modular kitchens per se at this time. We'll keep looking at new categories. Thank you very much. My second question is for Mr. Anand Sultania. I believe he's on the line. Yes? Yes, I'm there. Yes. Hi. Good afternoon. My question to you is, as Borosil scales across the different categories and channels, I would like to understand how do you internally prioritize categories between product innovation, digital distribution, and team organic growth? Is there any kind of a framework that balances near-term margin impact with long-term brand and portfolio diversification? Yes, thank you. As far as the capital allocation is concerned, we look at basically each category, like the glassware, within the glassware, the pressware, as well as whatever is procured from the scientific business. Then within the non-glassware, you have other categories like your Hydra and then your appliances, as well as your steel stuffware and a part of Larah which we acquired in 2016. The capital allocation, depending upon the size, the scale of the business, and the requirements of the business, probably is allocated. We have a very detailed in-house study that we do on a monthly basis. Sorry, what is the next question? I just wanted to understand how do you decide where to allot your major chunk of the capital? Is it between product innovation, real distribution, or inorganic growth? What is the plan of action that you follow? I just want to understand that. No, the capital allocation is on the basis of the growth needs that the potential business can generate. That is the way probably the capital is allocated. Okay, thank you. Thank you. Thank you. The next question is from the line of Mohit Jhangis from InVed Research. Please go ahead. Yeah. First of all, congratulations on a good set of numbers. Sir, my first question is on the non-glassware side as you are doing CapEx in stainless steel glass. What kind of margin expansion do we expect post the commercialization and optimum utilization of the unit? How much of demand do we have captively? Are there any plans for external sales of stainless steel glass? Any plans for further CapEx in non-glassware segment in further product categories? Okay, thanks for that. As far as our demand is concerned, our entire capacity will be for internal consumption only because I think we have more demand than supply at the moment. As far as margin expansion is concerned, it's a very, it's a dynamic market right now because there's anti-dumping duty, which is there in play for, you know, for steel as well, for that sort of raw material. As well as there are certain, let's say, pricing that the, you know, competition is offering in the market. I would say that the exact margin expectation would be very clear only in the next three to six months as the market kind of settles with this ADD, which has, you know, which has come. Hard to give a, you know, exact number for that. As I've always maintained, that's, you know, our ROCE expectation will be north of 20%. That's what we expect to achieve even here in this stainless steel category. Obviously, there's also a learning curve. It's the first time we are making steel, you know, to get the full efficiency to the level that, you know, that that's the same more established players who have been doing this for quite a few years achieved within the last couple of years. I think if I look at it from a couple of years, two-year horizon, I definitely expect that we will, we will achieve that 20%+ Roce. Okay. Sir, any plans for further CapEx in non-glassware category in any other product segment? At this moment, sir, when there's a plan, we'll update you. Right now, this is the category that we are focused on. Okay. Sir, my next question is on the EBITDA numbers or any margins that you can tell in opal or glass segment. Are there any plans to demerge opal plus glass into one company and non-glass into other? What is the capacity utilization of opal borosilicate glass unit? We don't share the margins by category, so I'm sorry I can't share that with you. There's no plan to do any structural changes in the company. We're very happy where we are. As far as the capacity utilization is concerned, I would say we are lower than expected this year because of the first quarter sales. Opalware may be around 80% capacity utilization. Glassware may be around 50%, 60%, 65%, I would say, capacity utilization. We do expect to rebound in the next three quarters. Opalware, we would ideally like to go to closer to 100%. Glassware, if we can cross 80%, it would be very good for us. Okay, thank you. Thank you. Before we take the next question, I would like to remind the participants, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Akshit Mehta from Seven Rivers Holdings. Please go ahead. Yes, for MRSB? Yes. Her first question is on the revenue side that we're targeting 15%- 20% revenue growth this year in this coming subsale to show in this quarter. How should we look at the revenue growth for the rest of the year? What would be the key drivers for that? Just to correct you, I think when we speak about revenue growth, we have always said over a three-year period, and it's never any projection for a single year because there are many factors which can happen in any quarter or any year which can derail that. A case in point being COVID. Coming back to your question, I don't believe there's any change in our medium-term revenue figure of 15%- 20%. I'm still quite bullish that we'll achieve that. We are launching, as I mentioned before, new categories which we've done this year, although obviously new categories take time to establish. Even in our existing categories, I think the first quarter has been challenging for the whole industry and not just kitchenware and tableware. If you look across the board, consumer demand has been muted. It's a reflection of that. We do have two, three, four quarter compounds in a row like this. I don't expect that to derail our medium-term growth. We do hope to rebound in the next few quarters as well. I can't give you a specific number for this year. Hard to predict. Sorry, is that the question? Did I miss something? Sorry, sir. Is there a doubt that we can grow 15%- 20% for the full year? Any near-term demand drivers that you see that can help us grow better than quarter one? Yeah, look, there's no doubt that we'll grow. Putting an exact number this year is hard to say. We still hope that we'll, you know, continue our growth trajectory as we've been having in the last few years this year as well. There's no guarantee of that. The demand driver is there. I mean, the prime minister has announced a GST rationalization, you know, on $15. We need to understand how that will impact our goods. If GST comes down, you know, on any of our products, definitely that will be passed on to the customers, and definitely that will be a demand driver. Plus, of course, the income tax, you know, scheme which was passed in the budget will also be a demand driver. Those two from a macro perspective are demand drivers. Obviously, any positive impact of, you know, customer sentiment will also be a good demand driver for us. These are all generic things I'm saying and they're applicable to probably all consumer product companies. With our view from our side specifically, I would say, you know, we keep looking at marketing as a demand driver for us. Product introductions are a demand driver for us, and those are continuing as before. Nothing has changed compared to last year or the year before. We don't expect to have, you know, a poor outcome. We are still gunning for that growth as I already shared. Whether we'll get exactly that this year, it's hard to predict. Okay, sir. The second question would be on, sir, the margins. On a year-on-year basis, we've seen glassware and Opalware being almost flat, while non-glassware has grown by 11%, which is a comparatively lower margin category. I just want to understand how have we managed to grow our margins by, you know, more than 200 basis points on a year-on-year basis? You know, what are the drivers for that? How should we look at the margins from a full-year perspective? Again, I won't answer for this year. In principle, we have always indicated that in the next two to three years, we should hit a 20% EBITDA margin. That's something that we have said many times in the past, and we stick to that. It's a part of that journey. As far as the margin expansion, I did cover it in my call that we had some savings in power and fuel expenses, as well as a rationalization of marketing spend and more specifically towards performance marketing spend this year. As we get better at targeting customers, we are able to reduce our overall marketing expenditure to that level. These are the two main drivers for the margin in our care. Even though, actually, as you rightly pointed out, the product mix from a margin perspective is actually worth it for us, given that the sales increases come largely from products which are lower margin. Okay, sir. Can you share what has been the loss of sales in pharma due to the new existing regulations that have come in in this quarter? Hard to say for this quarter. Overall, I think more than INR 50 crore per year we were doing in that segment. Okay, thank you. I'll come back. Thank you. A reminder to the participants, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Bhavin Rupani from InvateTech. Please go ahead. Yeah. Hi, sir. Thank you so much for the opportunity. My first question is related to Hydra. In the last call, you mentioned about Restcoff going out of stock due to lack of outsourcing partners in India. Would you like to throw some light here on our progress on getting new outsourcing partners on board? Yeah, I think that's been a success story. We have been able to get more and more customer, you know, suppliers on board. I would not say we are where we need to be. We are still not able to procure as much material as there's demand for. That sale loss will be there this year from that category. However, the quantum of sale loss is likely to be substantially less compared to what we had originally thought because of our ability to onboard new suppliers. I don't want to get into detail of, you know, because these things are fluid. The issue is, frankly speaking, that the predictability of supply is still lacking because some are able to deliver more in one month than others. They also have ramp-up challenges. It's hard in the first couple of years to have a very predictable answer in terms of how much we'll actually get because even the suppliers are struggling to kind of, you know, streamline their manufacturing. Overall, I would say the process is better than where it was three months ago and will likely improve further in the next three months. Got it. Sir, what I understand is this category is SKU-driven category. Can you please tell us how many SKUs you have introduced recently from this outsourcing partner, and what are the plans going ahead? I don't want to get into details of how many SKUs I've introduced, but overall, I think we have close to 100 SKUs, if I'm not mistaken, in this category. That's too much information to share at this stage. Got it. Fair enough, sir. On EMT spend, historically, our EMT spend has been in the range of 7.5%- 8% of sales. Do you think we'll continue to maintain similar run rate for the year? You did mention that in Q1 we had reduced it, but what are your expectations for the full year? Look, EMT has two types of spend. One is a general brand spend, which will not reduce. The second is performance marketing spend, which depends on your efficiencies or your learning of how to draw in more customers or get more bang for the buck. On the brand spend, we will not reduce even one rupee. If anything, there will be an increase. On the performance marketing spend, as we get better, naturally, the percentage will come down. That is what we are seeing. Our team has been continuously learning. I think we've done quite a good job there, and we're certainly focusing on that. What it means overall is that the trends may come down by one or two percentage points over the overall 8% trend, which may come down to, let's say, 6% or 6.5% of our sales. For the current year, you're saying? Look, these numbers may go off. It's hard to say for it because these are tactical calls we take on a daily basis. When we are talking about taking tactical calls, at that time, we don't worry about what we've told our investors because we do what we need to do for the business. It's hard to say for any one current year. In general, yes, that's a trend which will happen, that 8% will come down to 6%-6.5%. We will be very happy. Yeah. Got it. Sir, next question is related to power and fuel. You did mention that our cost reduced from INR 20 crore- INR 17 crore this quarter. Can you please help us understand what could be the annual savings from solar projects on our current capacities right now? Are there any possibilities of further cost reduction for the full year? INR 13 to 14 crore per year, this year we'll be getting as a saving overall, although the projects were there even in play last year. Currently, compared to last year, as compared to maybe the year before, I would say. The other point is that with the new power and fuel, the new solar project, that number will add up to another INR 17 crore annual. The number will go to INR 30 crore-INR 32 crore per year saving compared to not having done this as a project. Sir, post this new capacity that we have announced in solar, our power and fuel will be 100% renewable? It will still be 65% renewable, although there will be a roadmap to get to 100% in the near future after that. Right now, we're at 30%. We'll go to 65% with this project, and then we'll do a phase four, which should take us closer to 100%. Got it. Fair enough. Sir, our gross margins, if you look at, have declined almost 200- 220 basis points year- on- year. How should one understand this? Is it due to additional incentives in the market to push volume? No, it's a product-mix issue. It's purely a product-mix issue. We have not increased the discount for any product. All right. Our channel checks indicated there was a demand continues to be tepid in Q2. Have we increased our incentives for the channel partners to make it more attractive for them, or we haven't increased any discounts? No. No increase. As long as Diwali has discounts, which are aimed with every year, those Diwali discounts will happen this year also, but there's no increase. It will be at the same level as last year. Got it. Sir, CapEx guidance for the year, so INR 75 crore plus INR 40 crore, INR 110 crore+ some maintenance? Yeah, maybe INR 125 crores-INR 130 crores once a week. Got it. That's it from my side. Got it, sir. Thank you so much. Thank you. The next question is from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead. Hi, sir. What is our market trend in the Opalware segment? I think you can calculate that yourself because our competitors are listed. I believe that the numbers are available for everybody. My sense is it's about 30%. Okay. Sir, this new Teal Flask facility, when fully operational, what type of annual revenue can we expect from that? Phase one will be around INR 120 crore. There will be a phase II after that also, which we have not announced yet, but we will do that. In phase II, there will be another CapEx, right? Yeah, that's right. There will be more CapEx. For this particular, we'll be getting around INR 120 crore of revenue. Yeah, that's right. Thank you, sir. Thank you. The next question is from the line of Rakesh from Nine Rivers Capital. Please go ahead. Thank you for the opportunity. Sir, a couple of clarifications from the annual reports. First, in the annual report, we have mentioned the company has plans to raise INR 260 crore. Is it just an enabling resolution, or do we have an intention to raise in the coming year? Yeah, we take this every year as an enabling resolution, and likely it will not be replaced. Okay. Okay. Thank you, sir. Yeah, it's taken from the point of view that sometimes you have acquisition opportunities or some interesting things that come up in the middle of the year. In the past, we had that, and it delayed everything by having to take this resolution. That's why we take it as an enabling one only. Unless something interesting comes up, it won't be replaced. Okay. I'll check. Second, a clarification with respect to the subsidiary. That is Acalypha Realty Limited, a company holding subsidiary. That's a general business of real estate, and they are thinking to expand in that business. Anything on that business? I'm not sure where you read that we are looking to expand that business. That business is not a business. They're compatible with land, which the company owns, and there are certain, let's say, approvals, which the company has in its name. When we sell that land, which is historical land owned by the company for the last 50 years, 70 years, or 50 years, at that time you have to sell the company because the approvals and the name of the company can't be changed. This is only an enabling way to sell that land, which is the historical land of the company. There's no plan of the company to enter any kind of real estate at all. That's very helpful. Just one last clarification. In the annual report, as you mentioned, the company has installed 7.27 MW of solar plants. That is the plant you are talking about in the initial remark you talked about where you are going to spend INR 1.2 million-INR 1.5 million? Yes, that's phase I. There are two phases we already encountered. Phase III, now we'll do. Okay. Currently, because of this solar plant implementation, we'll be saving INR 15 crores- INR 20 crores in the power cost. Once the phase III comes also, we'll be saving an additional INR 15 crores from that phase III. Is my understanding correct? INR 15 crore-INR 18 crores at phase III. Yes. Yes, sir. Thank you. Thank you very much. That was very helpful. Thank you. Best wishes. Thank you. The next question is from the line of Resha Mehta from Green Edge Wealth. Please go ahead. Hello? Yes, please. Thank you, your honor. Thank you f or the opportunity. I have joined a little bit late. If my question is repetitive, then I can refer to the transcript. For the first question, which is basically, what has been the reason for muted growth in glassware and Opalware? I mean, I think market sentiment in general has been quite weak. That has been, I would say, the main reason for the muted growth. There were no marriages or very few marriages, let's say, in this first quarter. Opalware, you know, there's a lot of gifting for that. We have this UCPMP, pharma guidelines, which prevents gifting to end users of the pharma products, which has predicted with the market of one of our, you know, let's say, you know, channels, which has not had much sale in Q1. These are the two main, you know, reasons. Although, you know, we look forward to a better Q2, Q3, and so on. Does this pharma channel rule change come into the base quarter? I think of Q2 onwards last years we had a problem with it. Right, right. Sir, as far as your assets go, what's the split between ATL, BTL? Broadly, it's 8%, but there's a split between ATL, BTL. I'm sorry, I don't have the exact answer for it, but I think most of it is ATL. Sure. I have a couple of questions on your sales and distribution, right? One is, you know, how successful have we been? Broadly, we have three categories, right? A lot of these have overlapped, at least at the end retail counter. What is the kind of penetration that we had achieved for Opalware, non-glassware, with our glassware channel partners, retail outlets? How do we look at expanding this universe of 24,000 retail outlets? As I understand, the reach for the kitchenware space is around 1 lakh outlets. How do we see the path to the 24,000 outlets to 1 lakh outlets? Do you think that, because our positioning is a little bit on the mid-million side, maybe perhaps the universe is not 1 lakh outlets, it's far inward? If you can just give some qualitative thought or otherwise on this. Yeah, maybe I don't know if Mr. Rituraj Sharma is on the call. I think he's missing the call at the moment. I'll take a stab at it. As far as the numbers, as there's a number of outlets, the number of outlets which we have are 24,000. These are, just to be clear, these are outlets that we routinely bill to because we have data of billing of each and every outlet on a daily basis. These are outlets where we have done billing consistently and have billed at least once in the last three months, if I'm not mistaken. If you look at the total outlets that we bill, it could be more than 37,000 or 38,000 already. We don't put that in because there would be quite a few outlets which are billed once in a year or billed infrequently, and therefore, we don't classify that as a regular sale outlet for us. To answer your question, I believe that we do have a plan to increase the 24,000 to about 40,000- 45,000 in the next three to four years. I believe that's a realistic goal to achieve. I believe that we will get there with our increased penetration, as well as product portfolio enhancement and so on. I don't believe that 1 lakh we could reach because a lot of those outlets are rural and of a nature where the product categories are not relevant to our current profile. As far as the success of cross-selling, this is something we measure quite actively. I believe that, if you see just the proof of pudding and spaghetti thing, and if you see the dramatic increase in sales of our non-glassware, kind of gives you a very reasonable understanding that our cross-selling has worked. Many of the 24,000 retail outlets are actually new outlets which have picked up selling our non-glassware range, and that's the reason we are where we are today. I think the effectiveness of having this broad product range has definitely translated into so many more outlets buying a larger range of our products. I believe our retailers are also making better margins from us in the sense that they are earning a higher percentage of their profit from us, which also is a good symbiotic relationship to have with them. We do have software which tells us how many outlets are selling which product and how many outlets we've been able to convince to sell more of our multiple ranges. All the numbers look quite encouraging. We are quite positive on that aspect. I believe that steadily 2,000, 3,000, 4,000 outlets per year we should be exceeding over the next few years. Sir, are we also able to track, you know, since you spoke about some of the tech tools that we have, are you also able to actively track the secondary sales? Yeah, of course. We track. We have a daily tracking. Now that, since we have a wide product range and multiple categories, how are you thinking about probably getting into exclusive brand outlets or maybe just what are our thoughts there? This is something we're considering. We are working on it. We're actively figuring out how to do it, when to do it, what is the cost, what is the return, how to look at the cost. It'll take us a little bit of time, but I do believe we'll have something on this account soon. Right. Just the last one. You spoke about the muted demand. Can you call out if there are any deviations or different trends? If you're seeing them across different channels, for general trade, I think it's commonly known that there it's more muted. What about CSD, export, some of these channels if you can just highlight the demand there? Yeah. So look, overall, I would say e-commerce, quick commerce, large format stores are doing quite well. As you already noted, general trade is impacted, and given that it's the largest percentage of our sales, it has a disproportionate impact on the overall, let's say, trade, you know, overall sales. The worst hit has been the B2B business, which I already mentioned, because of this pharma regulation which came into place last year, followed by trade. Exports, frankly speaking, we have a very low penetration in exports, so it's not worth discussing because it's a basic test that's super low. I think trade will bounce back. We already see some reinforce there for Q2 and onwards. I do believe that we'll see a smart bounce back in this, and this demand will pick up quite well in the coming quarter basis. You know, my team's estimate with what's happening as we shape up through the demand increase. And CSB? CSB hasn't been great. There have been challenges in CSB, more from the internal, I would say, internal regulations. Nothing to do with demand. I think their own buying behavior is changing. It's a complex organization, CSB, and how they decide what, in terms of how to buy, what to buy. We are definitely seeing a negative impact from that. Right. All right. Thank you. All the best. Thanks. Thank you. The next question is from the line of Sumit B, an individual investor. Please go ahead. Good evening. A couple of questions. First is on Opalware. Now that Larah is a core part of the portfolio along with Borosil, and you're reaching almost, I think it's about 80%- 85% capacity utilization, what's preventing us from planning ahead? It'll take a few quarters for a new facility to come up to actually go ahead because there are news about Milton P lastics coming in. Will you be losing share if we don't actually start thinking about building capacity essentially for Larah? Yeah, I mean, this is a good question. I will answer this in two ways. Number one is that we already have a plan to de-bottleneck some of our operations, which will expand our capacity by 10%- 15% in the next year or so. That itself will happen. Second thing is that we ourselves are not at 100% capacity utilization. We're only at 80%- 85% capacity utilization. I believe that we want to build up inventory. For the next two years, to grow at 10%- 15%, we have enough demand, or rather, we have enough capacity. Then post that, yes, if we have to grow, we will need to have a third production. We have seen some new demand not being great. Just by putting up capacity, it doesn't mean we can create demand. You don't need to destroy the value of the product, which we don't want to do. I can't really comment on what competitors are doing. I think taking strategic calls based on competitors' actions alone would not be the appropriate move. From our perspective, we feel we have enough capacity to grow at a sustainable growth rate for the next couple of years. We'll see how the market trends are evolving and whether to add capacity or not. There could be also, you know, there are other next-gen launching porcelain, which is a more premium offering. It also depends, you know, that is also because when a customer goes to the market, they don't go to buy Opalware. They go to buy dinnerware or servingware. This is one of the categories. Premiumization is also a trend we're seeing. As we expand our sales of more premium products, we may choose to put up capacity in that product, right? I mean, rather than the Opalware. There are so many other questions. I believe we have a year or so even to take that call. We're not rushing into any decision because any CapEx will cost INR 200 crores. Then again, we'll be struggling with capacity utilization. I think that to take a call and actively show up, we have a reasonable chance of selling 60% - 70% capacity right up front. Got it. Thank you. My second question was on appliances. Again, this is a team that's tremendous tools deliver for our service. The line for the current participant has got disconnected. As there are no further questions, I would now like to hand the conference over to the management for closing comments. Thank you all for your involved set of questions. We as a management team are very committed to the business as we have been for the last many years, and we continue to be so for the coming years. We really appreciate your support as shareholders and potential shareholders. We look forward to growing our business aggressively with improved margins as we go along. Thank you and wish you all the very best for the upcoming tax season. Thank you very much. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.