Good afternoon to all the participants. Year 2020 was a dramatic year, with businesses witnessing a sharp dip followed by an equally sharp recovery, which was led by monetary and fiscal stimulus, coupled with a rebound in consumer confidence. This is also reflected in our results. Before I get into the results, I would like to highlight certain significant developments that we have already announced. Grasim is on its path of a strategic transformation. In the last few quarters, we announced strategic decisions like sale of fertilizer business, partnership with Lubrizol, and entry into the paints business. We are very excited as we potentially imbibe more growth, which makes us positive about the future direction of the company. Let me briefly update you about the progress on these initiatives. On fertilizer, we have received CCI approval and NOC from stock exchanges. We have filed our scheme with NCLT, and we are well within the timeline of consummating the transaction that we indicated earlier. On paints, for the benefits of audience, I'll reiterate what we said in the previous call, that our foray into paints is a strategic portfolio choice. Entry into this B2C business will provide scale and growth to the existing portfolio of the company, and at the same time, reduce cyclicality. Within paints, decorative paints will be our focus area. We've committed to an initial CapEx amount of INR 5,000 crore over a three-year period. We are in the process of seeking shareholder approval, and key steps in executing our strategic plan in paints will commence thereafter. We will share updates with you periodically, post completion of material milestones. As of now, I would direct you to refer to the transcript of our previous investor call for further details, as there's no further update from that call. On our CapEx of current businesses, all our CapEx are progressing well, and we are scheduled to meet the commissioning timeline of VSF project in two phases in quarter two and quarter three of FY 2023. For chemicals, all the three projects will commence by quarter one FY 2022. In terms of operational performance, Q3 FY 2021 has been a strong quarter with all our key businesses reporting robust operational performance and financial performance, and we have simultaneously deleveraged our balance sheet. At consolidated level, the company reported best ever EBITDA and PAT numbers. Likewise, our standalone financial performance demonstrated a strong rebound. Our VSF plants operated at 100% capacity utilization throughout Q3, and the utilization of VFY plants touched 89% in December 2020, and for the quarter, it stood at 77%. The VSF demand in India recovered to pre-COVID levels with the share of domestic sales in the overall sales mix expanding to 91% in quarter three from 82% in quarter two. The share of value-added products in our overall sales mix improved to 22% in quarter three from 15% in quarter two. The uptick in the VSF price has been driven by strong revival in domestic demand, primarily in the tier two and three towns and rural areas, supported by festive and wedding seasons. The Chinese VSF realizations maintained an upward trend and averaged RMB 10,500 in quarter three, up 23% sequentially. In January, the prices have further climbed to about RMB 13,800 level. Favorable inter-fiber dynamics with widening gap between cotton and VSF led to reduction in inventory levels and higher operating rates. The VSF plant inventory in China moderated from 23 days in September to about 10 days in January. The viscose business reported best-ever financial performance in the last too many quarters, with revenue of INR 2,145 crore and EBITDA of INR 482 crore in quarter three. The viscose EBITDA witnessed a significant 89% increase YoY. For the VFY business within the viscose segment, the revenue was INR 436 crore and EBITDA was INR 97 crore in quarter three. The Chlor-alkali capacity utilization touched 89% in quarter three, a 9% improvement in utilization rate sequentially. Revenue and EBITDA of chemicals business touched the pre-COVID levels with pickup in sales volume, and further supported by lower input costs, especially in power. The continued weakness in ECU realization impacted the EBITDA. The caustic soda prices in CFR terms in Asia, however, recovered a tad from the lows of $239 per metric ton to about $270 per metric ton. The demand for chlorine VAP, value added products, witnessed some weakness from the health and hygiene segment, along with some softness in the realization. At the same time, in the chemical segment, the epoxy business witnessed a strong demand for its products from auto and consumer durables. On the standalone basis, excluding the discontinued operations of fertilizer, as we have signed the agreement out there, our revenues and EBITDA for quarter three stood at INR 3,672 crore and INR 709 crore respectively. EBITDA reported an improvement of 53% YoY. Our PAT for the quarter nearly doubled YoY basis to INR 359 crore in quarter three. The revenue and EBITDA from the discontinued operations of fertilizer for Q3 stood at INR 597 crore and INR 57 crore. If you had theoretically added INR 57 crore of fertilizer EBITDA to the standalone EBITDA, our EBITDA would have been at INR 766 crore. The accounts is all adjusted for fertilizer being excluded line by line and only included before PAT as a specific item. Owing to lower CapEx and better cost management, we have been able to significantly de-lever our balance sheet during the nine-month period at both consolidated and standalone level. The consolidated net debt stands reduced to INR 12,767 crore, a 39% reduction from March levels. At a standalone basis, the net debt reduced from INR 2,975 crore in March to INR 2,093 crore in December. This will get further strengthened with the proceeds coming from the fertilizer sale. Our focus on sustainability related initiatives are getting recognized at the global level. We are committed to improve our non-financial reporting standards further going ahead. In December 2020, Grasim released its maiden integrated report. The purpose of embracing integrated reporting is to make our stakeholders aware of how all six capitals come together at Grasim to create greater value. Recently, Grasim won Investor Relations Award being organized by Investor Relations Society in collaboration with BSE and KPMG under the category ESG disclosures. Our VSF business won the Golden Peacock Global Award for Sustainability 2020. Our Dow Jones Sustainability Index score also witnessed a significant improvement in calendar year 2020. We moved six ranks to 11th position in our sector. In the latest WBCSD report, Grasim Industries featured at the top among the list of companies procuring renewable power through corporate renewable PPAs in India. Viscose business sustainability achievement has been showcased in a case study, Birla Cellulose Spearheading Sustainable Fashion, which is the title, published by world's renowned Ivy Publisher. It is now available on HBS website. Finally, in terms of outlook, we expect strong tailwinds for viscose business with improved demand outlook, although various input costs have also started to firm up. The demand outlook for Chlor-alkali and epoxy remains positive for the quarter. The ECU realization continue to remain weak, driven by softness in the global caustic soda prices. Our inherent strength lies in our operational excellence, financial prowess, our resilient growth, and our customer centricity. If you see the cover of our presentation for this quarter, as a stronglomerate, we combine the synergy of a conglomerate and energy of focused businesses. Back to you for Q&A. Thank you very much, sir. Ladies and gentlemen, 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. Anyone who has a question may press star and one. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question is from the line of Gunjan Prithyani from Morgan Stanley. Please go ahead. Yeah. Hi, that's Gunjan from JP Morgan. I just wanted to, sir, clarify on the CapEx thing. I see that there is a balance of about INR 1,000 crore yet to be spent. That is all for Q4, we'll be spending. Is that understanding correct? Gunjan, that's why INR 1,800 crore or INR 1,825 crore was what was approved by the board. For nine months, first quarter, we didn't spend any. Nine months, we spent approximately INR 800 crore. Balance remaining approved is INR 1,025 crore. There's a high likelihood that some of this will spill over to quarter one of next year. It's quite possible that we may not be able to spend the entire INR 1,000 crore, but there might be some spillover to quarter one. Do we have an assessment of how much we are looking to spend next year? I mean, keeping the paints foray aside for the core VSF and the caustic business. This time of the year, as some of you may know, we go through our CapEx planning cycle. By next quarter, we should be able to give you guidance of what will be the budget for the year that will be approved by the board. As of now, it's under planning, and then we'll take it to the board and get it approved. That should include all the businesses, including paints. Okay. Is it fair to assume that the magnitude of INR 1,800 crore, a large part of CapEx on the core business is being done now incrementally, a dominant part of CapEx is going to be on the newer venture. Just on that line only, if you can also tell us the consummation of this deal, fertilizer, when do we expect the money to come in? Sure. On the first part, Gunjan, unfortunately, at this stage, we are in the planning stage. For me to give any guidance on the CapEx will be very difficult as we are collecting all the figures and then we will internally go through them and then take it to the board, and there may be changes there as well. I won't be able to give you that guidance. The major CapEx of Vilayat, of course, from VSF perspective, will be done. There is no major CapEx in VSF after that. In chemicals, there are multiple projects, as you know, that goes on, unlike Vilayat, which is one large project that we were putting up. In chemicals, it's always difficult to give such CapEx guidance. On the fertilizer sale, when we announced the transaction, we gave a guidance of about nine months. Somewhere around June, July is what we expect it should get over. We are expecting the timeline to be around that, looking at the development of what has happened with the regulatory approvals. As of now, fingers crossed, we are hoping that June we should be able to culminate the transaction, and therefore we will get our funds as well. Okay. The second question I had was on the VSF industry now. Clearly a very very sharp pricing improvement after a long time. I just wanted to understand how much of it is also the supply which had gone off the market. I mean, is there any risk that some of the capacities which were taken out of the market start to come back given the demand environment is improving? I mean, just general sense on how should we think about the whole demand supply over the next 12, 18 months. Gunjan, if you look at the numbers, in fact, what you are saying has already happened. The operation rate in China, which touched a low of 65% in Q2, is now already at 80%. Now, 80%, 81% is a healthy utilization rate. Even at that operation rate, the inventory is coming down consistently. What it is telling you is the demand is far outstripping the supply. The reason for that being twofold. One is the viscose demand per se has gone up, and second, the cotton yarn price has shot up significantly, globally and everywhere else. There is a shift from cotton to viscose. China, as you know, consumes about 8.5 million tons of cotton and produces only 6 million tons of cotton. Then they import about 2.5 million tons of cotton yarn. They are under huge pressure because of the growing price of yarn to use more and more viscose. That is what is driving the entire pricing system. The prices are moving exponentially. If you like, Ashish mentioned it was [1.8-1.85] as we speak in China in January. In December end, it was 1.45 or that kind of a number. I think we are now coming to almost pre-COVID level of prices and the demand because the inventory has come down to 10, 11 days, which is a historic low and which is something which is a healthy inventory. I think this is more demand-driven than supply constraint. There is no big capacity expected to commission? Nothing coming. I think 200,000-300,000 tons that is routine debottlenecking people do. The biggest one to come on stream is our capacity only, which I mentioned to you is only India for India. Fair enough. Okay, got it. I'll join back with you. Thank you so much. Thank you. Our next question is from the line of Sumangal Nevatia from Kotak Securities. Please go ahead. Yeah. Thanks for the opportunity and congratulations on very strong quarter. First question is on the VSF business. One is you said $1.8 versus $1.4 price. That is the January, and I just wanted to confirm that. The second is, y ou see the cost is also catching up and we benefit out of the lag. If we factor in the spot prices and the spot pulp cost, what sort of margin change or spread change we will see, at least directionally from what we have seen in 3Q of around INR 30, INR 32 per kg? If you can give some sense on that, it will be very helpful. Sure. I think, specific guidance on spread, we will not be able to give, but we can give you directionally the pulp price and how it has actually gone up in line with VSF price. That, Dilip can give you some idea on. You have seen the quarter three results. What you have seen, the pulp hasn't started running up the way. Most of the increase happened after the quarter three. Pulp today as we speak is almost at $890 per ton. Pulp always follows the viscose. Unless viscose can take, pulp cannot go up. While you are right that the input prices are going up, but the quarter four will also see a rising price in viscose. I thought to my mind, delta will still remain favorable. Understood. Second, with respect to the chemical business which is still struggling, is it possible to share some more outlook as to how we see FY 2022 shaping up? Have we at this point, hit close to the bottom as far as cycle is concerned, and either should move sideways or north in the coming quarters, especially given there's so much of capacity addition happening and the pipeline is also quite filled up. Yeah, Jayant. Hi. Let me put it this way that the last couple of months what we've been seeing is more lateral movement on the caustic prices. When margin goes up, margin comes down. Until unless a significant demand supply scenario changes, I think we are at the bottom of the cycle. As you put it very correctly, that there is a substantial demand supply gap at this point of time. We really don't see. That even exists today. I think the picture would be either it will do a lateral movement or it will do a marginal upward movement. I don't really see it going down subsequently until unless the demand side significantly changes. Understood. This is very helpful. Thanks and all the best. Thank you. We'll take the next question from the line of Gaurav Rateria from Morgan Stanley. Please go ahead. Hi. Thanks for taking my question. Firstly, on chemicals, any outlook on what's happening on the duties which got expired? Is it going to be reinstated? Any color on that? From what you talked about that it appears that it has bottomed out on margins. What exactly one should try to understand that beyond this contribution margin, it will not make sense to increase supply automatically, the rebalancing of demand supply will happen? Let's put it this way that we're still trying to assess that because now if we have to go back towards the Korea, China, which expired the sunset review. We have to go through the entire process of figuring out does it again lead to injury margin when they were not supplying earlier in the past. That's a long run process which will take its own set of time. I think the industry is working towards it to see what they do next on that. To your point on the margin front, I think the picture is going to be as in more and more capacity utilization increases in the industry. Although as it is today, has gone above 80% capacity utilization. I think the margins are expected to only increase because there is enough demand in the market both on the caustic side as well as the chlorine VAP side, plus chlorine consumption per se. While it's a very delicately poised position at this point of time, any demand decrease could have marginal deterioration of margins and any upside coming could lead to an increase in margin. It's fairly fine-tuned at this point of time. I won't get into margin guidance at this point of time because we're still in the process of ascertaining what we will do for next year. Sure. Thank you. Just to add, globally as chemicals, there is a huge rebound. Majority of chemicals overall have recovered. We expect coming year to be significantly on a bullish side. As Jayant said, the demand is looking strong. We will still see that we are at the bottom end of the cycle and we will continue to have a similar level of lower level pricing for the coming few months. One thing you need to know is there's not been any significant capacity increase anywhere else in the world. Predominant capacity increases have been in India only. As Jayant said, as and when the capacity start to be utilized further, we should see both from a global perspective as well as an India perspective, we will start to see a rebound. We are waiting. Just like you, we are waiting for the coming months. Sure. On VSF, given that the margins are so lucrative, prices have gone up so much, do you think that there can be new supply which can come in? Even if it happens, how long does it take for the new supply to really come in and get commissioned and start producing output in the market? If you're talking of opening up a new plant, it is anywhere between 24- 30. More than 30 months to 36 months. Two and a half to three years. Okay. Lastly, a question on capital allocation for Ashish. Bulk of the organic CapEx will get funded by internal accrual given the cycle's turn. Maybe we'll lever up the balance sheet to fund the investments in the paint business. From a medium-term, two to three year perspective, are there any potential investments over and above the paints which one should keep in mind, either from a group company's point of view or any other organic investments? Thank you. Yes. What we see today as we stand, there is capital demand from viscose continuing. There is chemicals. When I say chemicals, it's chemicals and some of the other sectors like insulator and VFY. Our standalone businesses. Paints will be another one. Given all the capital demands from all these, okay, it is substantial enough for Grasim to take care from its internal accruals, and we'll of course take debt to meet the requirement. It's highly unlikely that there will be capital infuse or investments into any of the subsidiaries or JVs or associates or anything of that sort. Except, of course, solar. As we increase the capacity, the equity infusion is done by Grasim, and equity is always a smaller portion out there. We generally fund it through out there. That would be the broad capital allocation plan for Grasim. Ashish, does it also include the outlook for financial services, like from a no requirement from a subsidiary or joint venture when you mentioned? As of now, as we stand, financial services, we've already infused equity a year back. We don't anticipate a requirement to come for some time. Financial services needs to be treated differently than other associate companies, et cetera, because it's a growing entity. It's delivering double-digit growth in its financials. We would like to maintain consolidating stake out there. If it's a big dilution event out there, and if we want to maintain the stake so that it is value accretive for Grasim shareholders as well, we may infuse capital there. That's a very, let me put it, a framework that I'm talking about, okay? There is absolutely no plan and there has been no proposal from financial services also that has come to us for any capital infusion. Sure. Thank you. Thank you. We'll take the next question from the line of Amit Murarka from Motilal Oswal. Please go ahead. Hi, thanks. Good afternoon. I just wanted to check on the expansions, like the caustic 300 KTPA and even the VSF about 200- 220 KTPA. When is the expected commissioning now of these expansions? On the caustic side, like Ashish put it, we expect by the end of quarter one of next financial year a large portion of the caustic capacity would be more or less up. Okay. How will be the ramp-up of the same? It'll be a slow ramp-up, like with any manufacturing process. I think by the time it reaches the industry level capacity utilization, it will take the balance part of the year. End of FY 2022, you're saying that it will be your normal utilization level? Yes. Also the VSF? VSF, the first line will come in quarter two and the second will come in quarter three. Normally it takes about three to four months for a full ramp-up. The VSF, the demand is there. It's all up to us to how fast we stabilize the plant. Based on the past experience, it should be doable in three to four months time. When speaking of VSF ramp-up, will the export share go up or you think that you'll be able to... Right now, as we speak, the domestic demand is really very high. We are not able to service all the demand. That's why we had to cut exports. Keeping the healthy level of export which we have always been keeping, I think we should be able to sell quite a bit of it in domestic market. As we speak, there's a lot of yarn still gets imported into India, which is slowly coming down. That demand will come to the fiber. We expect a very healthy demand for the fiber at least in FY 2022. Yeah. Just one more question on China. Two years back when Sateri had done that big expansion, what I understand that there was a plan to expand that further actually later. Have you heard of any development on that second phase of expansion there? No, I think maybe your information, it's all hearsay. There's nothing on the piece of paper. The announcement they have made is about a lyocell. Suddenly, Sateri is saying that they will put up a 500,000 tons lyocell plant in China. If you look at the number, Lenzing, which has started lyocell 30 years back, is right now at about 250,000 tons per annum. He's saying, "I'll become double the size of Lenzing in In the next four to five years." To my mind, their focus right now is a lyocell plant in China, and they are trying to debottleneck all of their existing plants. That everybody will do. When the market goes well, everyone starts to debottleneck their pipelines. A few times you can always get from existing pipelines, existing production line. Okay, sure. Thank you very much. Thank you. We'll take the next question from the line of Nirav Jimudia from Anvil Research. Please go ahead. Good afternoon, sir. Sir, I have a two-part question. One is on the chlorine VAPs, which you mentioned in the presentation that the EBITDAs have improved by almost 45% on a YoY basis. If you can give some sense in terms of how it has performed on a QoQ basis, given the weakness in the realizations, that would be helpful. If you can give some sense in terms of even the epoxy side, how it has performed on a QoQ basis in terms of some percentages, that would be helpful. This is the first question, sir. Jayant, would you like to give some direction of VAP? Yeah. Let me put it this way. The chlorine consumption in India at the moment is fairly robust. Correct. I think that's a big positive for us. The chlorine demand is now growing at a fairly rapid clip. It is actually growing faster than the caustic demand. Again, gives it a positive tick mark going forward. In the early part of the pandemic year, you had a huge surge of requirement of VAPs, particularly on the hygiene and sanitation part, which gave a very robust EBITDA growth to the VAP products in that segment, of which we are the leaders. As the pandemic has slowly slowly gotten to control, the demand for those VAPs have now come back to the earlier levels, which is business as usual, and obviously has led to certain softening of prices, although still maintaining a positive EBITDA. Our VAPs EBITDA is very healthy. I will not get into numbers on that particular front, and we expect that they will continue to remain healthy as we go forward because there is an intrinsic behavior change of sanitation which has come into the country and the world, per se. Okay. If I would tick mark, I would say chlorine demand, great, doing very well, growing at a good clip. VAP on hygiene sanitation have upped their base level and are doing well. The balance comes with seasonal VAPs, particularly as the rainfall comes, so the water sanitation demand goes up. As the aquaculture comes, those products go up. I think we are fairly well placed on our VAP side to continuously seeing a robust growth, both on the volume side and a healthy EBITDA. Okay. Sir, on epoxy, like last quarter, we have given some indications in terms of our performance, some quantitative numbers also. Even if you can't discuss the quantitative numbers, if you can give some percentage growth in EBITDA or something like that would be helpful. See, I think, epoxy business, first of all, in the last quarter, was still on a ramp-up phase, okay? Coming out of COVID, et cetera. Correct. In quarter three, you enjoyed the benefit of volume, and that came from auto sector as well as consumer sector. There were actually three advantages really that the epoxy business had. One is the volume pickup that happened in quarter three. Yeah. Second, the realization also went up in epoxy. The third is that epoxy is, in a way, a pass-through business, okay? The raw material that they import. Yeah. Most of it, okay, it's mainly a pass-through to the customer. It has to be looked at from conversion basis. Okay. If you make volume, you make that contribution per ton. Correct. There is some advantage that we got in epoxy due to the lag again of raw material prices. We still had the inventory of some older inventory of ECH and BPA. Okay. Which is at lower cost, which helped us with that small timing gap benefit that we had out there. Epoxy has actually performed much better than Q2 as well as on YoY basis. Hopefully it will continue to do so in this quarter as well. Okay. Second is on a slightly strategic one. In terms of if we see our sales of VSF, it's around 142,000 tons as we have mentioned in the presentation. If we make some breakups in terms of value added as well as the gray value added, we have sold almost close to 31,000-32,000 tons. As per what we have been trying to calculate it based on some backward numbers, it seems like out of our broad category of value-added products like Modal, Excel, flame retardant, dope- dyed, it seems that less premium products as compared to gray is sold more in this quarter. If you can give some sense in terms of how this mix moves in this quarter as well as on a yearly basis. If you can give some sense on that. You want me to respond? Yeah, sure, Dilip. Please. I think in a way you are right. There are four value-added products we have. Correct. Dope- dyed, then we have Modal. Yeah. We have Excel. Yeah. We have got the recent one, Livaeco. Okay. In a way, the dope- dyed which goes in uniforms and office wear. Thank you. Trousers. Right. That you all know because of the COVID and the work from home, that segment is totally dead because the schools are closed. The children are not going to the school. That segment is where the consumption has come down, and that's a large consumption segment. Correct. If you look at Modal is a high delta, high value-added product, but low volume. Correct. Dope-dyed is a high volume, but low value-added product. You may make $0.20, $0.25, but the volume is 300 tons per day. Okay. The multiplier is much bigger. Correct. Now, that is now reviving. As we speak now the offices are opening, people have started going out. What is being told now with the schools opening around the corner, the country will need 4 crore uniforms. Okay. There's going to be huge surge in the demand for the dope-dyed fiber for the uniforms. Okay. We believe that is coming back. Okay. Modal has done very well. Modal has done exceedingly well. It has grown back and we are growing. Okay. Livaeco is a great success story. I've told you again and again because the first time we have got a premium on our commodity viscose because of its eco-friendly. Okay. That is compensating to a large extent the dope-dyed loss. Otherwise, I would have had a much bigger loss. Okay. Fourth was the lyocell, which got impacted in China because once Sateri announced his plan for 500,000 tons per year plan, and he said, "I will bring down the price," the same story. The lyocell price and demand suffered in China. Okay. On that it was more emotional response to Sateri's announcement. Got it. People realize that it doesn't happen like this. It takes years to build those kinds of volumes. Got it. It is now recovering back. Correct. We are announcing in Q4 quite a good uptick in lyocell demand. Okay. I think the number what you have computed is on upward trend. As Ashish said, 13% went to 22%. 22% will go much further up in Q4. Absolutely. Sir, a related question to this. It is safe to assume that we sell more of Modal, Excel in the domestic market more than in the export market? Modal and Excel is largely export market. Okay. Domestic, we are growing it now. We have grown very well in last three to four months. Yeah. I have tried to shift lot of domestic users who were importing to our product. Correct. Shifting from cotton to lyocell, because the price today is very favorable. Correct. We have done that role. Dope-dyed is a largely India driven. That we are the biggest in the world. Okay. That's how it is. Okay. Sir, in terms of our competition also, if you see our biggest competitor is having some 280,000 tons of Modal capacity, 260,000 tons of lyocell capacity. Not so much. Okay. 300 tons per package. Lenzing has 300 tons per day capacity, right? Yes, sir. 200 to 350 is how much? Yes, sir. It's not so much. They can't make more Modal. Okay. We have got almost similar. We have added our Modal capacity overseas, not here. Okay I think we can make good amount of Modal now. Sir, when they try to penetrate in Indian market and when we try to fight against them, what all parameters score? One is if we try to rate them in terms of, let's say, first is the distribution network, one is the post-sale services which we provide to the customers, third is the quality, and fourth is the price. Which all parameters we would like or we actually compete with them in the domestic market when they come and sell their products into India? See, specialty is a very different ball game. Okay. There are only three parameters there. Okay. The foremost is the qualifying parameter, which is nomination. Okay. Most of the specialty goes into brands. Okay. Brand nominate that I want of this. They certify a fabric. Okay. Because they do trials, they make garments, because they don't want the customer to have a different experience. Okay. It's not like commodity viscose you can buy from XYZ. A specialty Modal, even if my quality may be as good as my competition. Yeah. That customer has to first use my Modal, make the product, try with the customer, get the feedback, and then nominate me. Okay. The whole effort, why it takes time is the nomination cycle, which can be anywhere from six months to two years. Okay. That is where the biggest differentiator. Because Lenzing, the competition had a head start. Yeah. They had more nominations because they're European customers. Okay. We are getting those nominations, and as we get the nomination, our volume keeps growing. Correct. That's the biggest change. Once the nomination is there quality is a qualifying condition. It's all same. Okay. We all give same quality. Okay. The price. Price becomes number two. Even if I offer a lower price. Yeah. If there's no nomination, nobody will buy it. Okay. These are the parameters. Okay. Post-sale service is also a parameter because probably you would have more distribution network in India than the competitor, and that also helps. These are by nature niche products. They are less or low volume, high price. Service is more important for a product like viscose. Okay. You can't default on the customer orders. You have to supply in time. Okay. It is not the key element. Okay. Thanks a lot, sir. It's a very important element for the mass viscose. That's where we score over. Okay. When you are a local producer, you are supplying local customers, you give just in time, you give technical service, you help them troubleshoot their plants, you help them with their productivity. Okay. It's a big differentiator for the mass, of course. Okay. Thanks a lot, sir. Thanks for all the explanations. Very helpful. All the very best, sir. Thanks. Thank you. Our next question is from the line of Sanjeev Kumar Singh from Systematix Shares. Please go ahead. Thanks for the opportunity, sir. My question is related to the previous question. Somewhat what I'm seeing is that in VSF, our realized growth is only 9% QoQ, when in international markets, the prices are up by 20%. Is it because of higher share of sales in the domestic market, or can we expect higher prices increases going forward? I don't know. No, actually, see, this is a little bit competitive sensitive information to talk about, I think, how much increase is expected in the domestic prices from now. I think it suffices to say that there has been increase in the global prices, and in line with that, India prices have also gone up. It may not have gone up as much as the international prices. One of our ingredients and inherent strength that I talked about earlier is our customer centricity. We have to discuss and make sure that we react to price increases in a calibrated way along with the customer. Dilip, if you want to add anything to that. I think you rightly said, because I think we have been saying this time and again on the call, we do not blindly follow the global prices. We believe that the health of the value chain is very important, domestic value chain. You can take a price increase as long as the domestic value chain, the weaver in the system, the spinner in the system, can withstand that. The global price is a base. What you actually do is also to make sure that the health of the value chain is maintained. What was happening, there were a lot of yarn imports happening into the country in quarter three and quarter two. To make sure that the imports don't happen and our spinners get the opportunity to service that market, we decide on the price increase and sync with that principle. It will follow, but it follows in a calibrated manner. Yeah. Okay, sir. Got it. Thanks a lot. Thank you, Sanjeev. You see you have two, the price and volume. You can get one and you destroy other. Doesn't make sense. You must have both the multipliers with you. Right. Thanks, sir. Thank you. Our next question is from the line of Prateek Kumar from Antique Stock Broking. Please go ahead. Hi, good evening. Thanks for the opportunity. My first question is on CapEx. I mean, a couple of years back, we announced this large CapEx plan of INR 7,500 crore or INR 7,800 crore, which we used to mention in our presentation. How much of that in FY 2020 and 2021, I believe around INR 4,700 CapEx could have been done, so another INR 3,000 left. Are there significant savings which we have done on that number, which we gave couple of years back? See, I think when we gave a number of INR 7,500, okay, it was multiple projects, and since then the estimates have undergone change. Broadly, it remains the same, but the estimates can be a few dollars here and there. Okay. Broadly, my guidance to you on CapEx would be to actually focus on what we give in the next quarter, rather than trying to figure out through the balance figure that is left. My guess is that the number that may come out will be around the balance figure over the next two years. Right? That's what it should come out. That's been the history, if you see, of Grasim, where the numbers of CapEx tends to be around INR 2,000-INR 1,500, somewhere around that range. Like I told, I think in the earlier question as well, it's best to wait until the plan is approved by the board. Okay. Secondly, on fixed cost, we had several cost savings on fixed cost in Q2. Have some of those which were not sustainable, have they all come back or some of them may still come back in Q4? I think our approach to fixed cost was different. We attacked fixed costs to actually have sustainable savings in the fixed costs rather than just because of COVID, everyone enjoyed fixed costs, so we also did so. The fixed cost saving has continued in quarter three as well, and if YoY basis, there is a double-digit reduction in the fixed cost savings as well. There are conscious programs that we've run to reduce the fixed cost. Just one last question on VSF spread. Our spreads, like for the way we have exited this quarter, can it likely cross our previous highs, which we did in Q1 2019, in Q4? Given the tariff increase in domestic side, and I think even Q4. All one can say is the demand is healthy and trends are good, that's all. Sure. Thanks a lot. Thank you. Our next question is from the line of Bhavin Chheda from Enam Holdings. Please go ahead. Good afternoon, gentlemen. Good set of numbers. Just on the CapEx, since there is a bit confusion. VSF, sir, we are largely completing 0.8 million by first half and chemicals also, we are largely completing by quarter one, except for that 73,000 phase two which will take time. Your slide says your pending CapEx is INR 1,000 crore. Over and above this, for completing this VSF and chemical announced expansion, there will be some number in FY 2022. That's the number only left, right? Is this a substantial number or it is less than INR 2,000 crore? I said that it's difficult to give that guidance. In terms of expansions in VSF, it will be over. Unlikely that the number will be large CapEx coming out of VSF. In chemicals, there are multiple projects. There are VAP projects, there are power saving projects, which they may want to take, and it's a multi-locational business. Okay? It's always difficult to say what the CapEx there would be. We have to also look at paints, et cetera, right? No, I'm saying it's a non-paint business, only the current business, VSF and chemical, which is getting largely completed in first half. Paints we understand there was a separate call and it would be. No, Bhavin, my point is different. My point is that now we have commitment towards paints as well. We have to look at the overall picture and overall number as well. We can't keep looking at things individually, because then we have to see how much the balance sheet of Grasim can support without us reaching certain levels of net debt- to- EBITDA, et cetera. Therefore, I'm suggesting that let's look at the number in the next quarter for the CapEx. Sir, earlier you said that this VSF incremental capacity which is coming in just takes three to four months to overall stabilize. This incremental over 219,000 should have a full blow in second half of FY 2022 because way the demand situation is, the market is already there. It is how much you churn out from your production line. If all goes well, that incremental 219,000 can be available at optimum in second half. Is that assumption correct? No, it will come in phases. The first line is coming in quarter two, so that can possibly be available if all goes well for two quarters. The second is coming in quarter three. If all goes well, you'll get for one quarter full blast. Rest all will be partial. Okay. Thank you, sir. Thank you. Our next question is from the line of Madhav Marda from Fidelity Investments. Please go ahead. Hi. Good evening, and thank you so much for your time. I just wanted a quick update from you on the CPVC project that we had announced. Any updates on the timeline there? I understand that the CapEx there will be quite limited to negligible from Grasim's side. In terms of the management fees or however the contract would be, how much of an EBITDA contribution can one expect from that project? Sure. On the CapEx front, Kalyan, would you like to give that update? I think on EBITDA front, we've said last time also that it will be part of the VAP EBITDA. We're not giving out a specific number out there. Like we don't give for each component in chemicals what number is. I had also said, and I'll repeat that what we get as EBITDA per ton of chlorine, if you look at that measure out there, then it is likely to be better than the blended EBITDA per ton of chlorine that we get today from our VAPs that we produce. That may give you that idea that it is better and it's high in terms of profitability. Kalyan, would you like to give the status of the project? When we established this alliance partnership, I think we had three things in mind. One was a full-fledged chlorine integration with a world-class player. We wanted to bring world-class technology and we would then automatically have a certain fixed margin to ourselves. Three, we will be indirectly linked to a segment which is growing fastest and environmentally friendlier. I think those were the three criteria. As Ashish already said, the chlorine integration and then related other utilities, effluents and related by-products that come in, there is a value to it. We can't share in that sense because each product is quite different and we don't go into that level of detail. We also have within the partnership and alliance, a certain fixed margins, and that is another one which we get value from. As of now, the project discussions have started. I think the teams are working on layout and designing. I think we are on track with what we said we would do in terms of the timeline. Yeah. Anything else, Jayant, you want to add? I think you right summed it up, Kalyan. In terms of the project timelines, there is a lot of back and forth which is happening in terms of how to expedite and the engineering is happening in the back end and discussions are happening right on the layout to see how soon can we get the plant running up and running. Yes, if you ask me, it will take another about 24- 30 odd months before we will see physical production specs of anything. I think one thing which I want to leave with is, these are the types of alliances and partnerships we would see more of from Grasim, where world-class technologies come in. We will leverage on the capabilities of manufacturing in India, and Atmanirbhar Bharat. We also want to invest in capacities which is not for India alone, but for globally. Hence, even these capacities that we are investing is globally the largest in two phases. That intent will continue more of, and this is, I believe and hopefully, if all goes well, the starting point of many. Thanks. Understood. Okay. Thank you so much for your time. Thank you. Our next question is from the line of Sanjay Parekh from Nippon India Asset Management. Please go ahead. Congratulations to the team. Great set of numbers. One of these questions just Kalyan answered, which I had of, can there be more of such alliances like the one we had with Lubrizol? That is answered. In case you want to expand on that of what potential there is, it's a win-win wherein the chlorine can be used for value-added products. We get a fixed type of revenues, and it reduces the cyclicality of the business. That piece, if we can get more elaboration, it will help. If not, it's okay. The second is for Ashish. I was just seeing, we became the debt right now at INR 2,090 crore, and we're supposed to get money for the fertilizer plant and INR 1,000+ crore to be spent in fourth quarter. If I take the next three year broadly cash profit that we make, and this is assuming that we make steady state like what we will have in Q3, Q4, then even if we invest into the entire INR 5,000 crore, and we spend INR 2,000 crore CapEx, let's say for 2022 and 2023, then in the next three-year timeframe, our debt would actually not go up beyond INR 1,000- INR 200 crore. That's the calculation I'm coming to. Am I right? It does have one assumption that the EBITDA that we see would be steady, which is a big assumption. If that is the case, then the debt actually doesn't go up. It will remain in the range of INR 1,000- INR 1,500 crore. In the interim they may go up, by and large, it remains in that band in the next three years. Am I right on this or am I going wrong somewhere? Yeah, just let me add one last bit regarding overall capabilities. I think we have two large businesses in chemicals. One is a much more linked to petrochemicals like epoxy resins. We now call it advanced materials. The other is Chlor-alkali, which is the foundation and a core raw material in inorganic segment. Overseas, these petrochemical inorganic and organic complexes are integrated. We haven't yet leveraged, so we are thinking how the next stage of things, how these things become more of integrated complexes. In that area, we see a lot of potential for partnership and alliances. We also not only think of alliances and partnerships on that end, but also integrating Chlor-alkali and advanced materials and then downstream. We see a lot of opportunities. Hopefully, some things will materialize in future. Over to you, Ashish. Yeah. I think, the calculation seems. It's again, difficult to say what the debt level three years down line will be because it has basically, you can say three components to it, right? One is EBITDA, okay, for the next three years. I can give you a directional view of how you can calculate. EBITDA, you have to make an assumption that Grasim EBITDA this year is not so relevant because you lost two quarters, right? Quarter three, quarter four would be more representative of EBITDA out here. Then there's an expansion that will finish next year for both. You can take second half for both expansions to come through. There's an expanded EBITDA of Grasim that should be taking. Then there is Grasim's own CapEx, right? You can take maintenance plus the projects that we will tell you about, but you can take a broad number out there, okay? That's your own assumption because we are not giving any guidance there. It comes to the paints EBITDA which can be negative for few initial years, okay? This paints CapEx that we have given as of now. These are the three, four components you have to put together. Now, after EBITDA, also there are tax outflows, there are dividend outflows, there are other things also that go out, okay? Interest, et cetera, which probably you've not taken into your account. If you do this broad calculation, you should be able to get some idea of your own estimate of what the debt level would be. Sure. I did look at cash profit and, of course, the dividends. What I'll do is I call you offline and get in touch. Thank you. Thank you very much. Ashish, your biggest guidance is that their debt EBITDA you'll control. You will never let the debt go beyond the limit. Yeah. No, absolutely right. We gave that guidance last time also, that we maintain a threshold that we focus on, which should be three to maybe three and a quarter or something of that sort. We wouldn't like to breach that. Sure. Thank you. One more thing which can't be quantified, but we have been saving a lot of cash on the working capital side. It is an ongoing exercise, it keeps on happening year-on-year. Yeah. Sure. A lot of cash business goes through working capital control also. Sure. Thank you. Our next question is from the line of Keyur Shah from PNB MetLife. Please go ahead. Thanks for this opportunity. I think most of my questions have been answered. Sir, just if you could offer any comment on any potential investment that could be required on the telecom side of the business. No, nothing at all. We've got our priorities at the standalone business, for which funds are required. We don't envisage any near-term investment on that side? No. Okay. Thank you. Thank you. As there are no further questions from the participants, I now hand the floor back to Mr. Ashish Adukia for closing comments. Over to you, sir. Yeah, thanks a lot. Great questions on back of an excellent performance in Q3. We hope that this continues. We'll connect with you guys with more clarity on CapEx and paints, et cetera, perhaps in the next quarter. Thank you. Thank you, members of the management. Ladies and gentlemen, on behalf of Grasim