Ladies and gentlemen, good day, and welcome to the conference call of Samvardhana Motherson International Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, 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. VC Sehgal. Thank you, and over to you, sir. Thank you. Good evening, ladies and gentlemen. It's my honor and my pleasure to welcome you to this event call. I want to request Vaaman to please introduce the subject and also make the opening statement. Go ahead, Vaaman. Thank you, Baba. Ladies and gentlemen, good evening, thank you for joining us on the call. We are delighted to announce that SAMIL has announced two strategic acquisitions today. The board has approved the acquisition of an 81% stake in Yachiyo's four-wheeler business, which is a subsidiary of Honda Motor. We have been chosen by the customer for a strategic partnership demonstrating Honda-san's trust in Motherson. This is 81-19 joint venture. Both Motherson and Honda-san drive the company towards a sustainable future and prepare for the next generation of products and technologies. The transaction has multiple steps to closure. Honda-san currently owns 60.2% of the listed company, Yachiyo, and will launch a tender offer to make it a wholly-owned subsidiary. In order to be successful, Honda-san must reach a minimum of 66.7% shareholding for the same. Secondly, Honda-san will transfer the two-wheeler business, which is Goshi Giken from Yachiyo, in order to consolidate this set of businesses. Finally, we will then acquire 81% stake in the Yachiyo four-wheeler business, with Honda-san continuing to retain 19% as an active management participation. Just to give you a bit of color, Yachiyo four-wheeler business has 13 facilities, 13 manufacturing facilities, and three R&D centers across eight countries, which are in very close proximity to Honda Motor Co., Ltd. plants across the globe. The business supplies substantially to all the sunroof in few times to Honda-san. This business clocks revenues and EBITDA of EUR 824 million and EUR 94 million, respectively, in FY23. The transaction is taking place at an equity value of EUR 145 million or JPY 23 billion for the 100% stake. We will be buying 81% for EUR 117 million or JPY 19 billion. This is all subject to the necessary approvals, and we expect it to close FY2025. The company is a strong and has a very strong pedigree of R&D and innovation, having developed multiple products and systems jointly with Honda-san. We look forward to running this business together with Honda-san, of course, pivoting and evolving as the auto industry needs. In light of this, Yachiyo has already started to work on the next generation products, such as light tailgate and hydrogen, which is Type IV storage containers focusing towards clean mobility. Post successful closure of this transaction, Motherson will become the partner of choice for Honda-san. This transaction enables diversification in line with our 3CX10 strategy, of course, this acquisition is also EPS accretive. This also provides additional opportunities for us to leverage our relationship with global OEMs and offer Yachiyo four-wheeler product portfolio, such as the sunroof and the fuel tanks, to them, at the same time, the opportunity to cross-sell the entire suite of Motherson products to Honda-san. Motherson is a company built on trust. The acquisition of Yachiyo is a testimony to the trust that our customers, Yachiyo in this case, has on the abilities of Motherson. Simultaneously, Motherson will continue to explore other areas of diversification in order to create a long-term value for all our shareholders. The second announcement, which we have made today, we are pleased to announce that the board has also approved an investment of $14 million, via 12% optionally convertible secured notes to the company called Prysm Systems, Inc. Prysm is engaged in designing and manufacturing of large format, touch-enabled display screens with embedded collaborative software based on in-house proprietary technology in Laser Phosphor Display. This is what we call LPD. This technology is very unique, in comparison to the other technologies, and it is more power efficient and is able to provide much higher resolution for displays of same sizes, which is more than 100+ inches. This is a key part of the technology that is for large size display screens. Prysm System is already has a good customer base with installation of displays, with various use cases across meeting and boardrooms, amongst other indoor applications. Investment is being made to support the development of the new Gen 3 prototype to mass production. This development is supported by a strong engineering team and over 200 global patents. The successful development of Prysm prototype, which is the lead counsel specification associated conditions, will lead to a unique value proposition for large screen display users. With the development being in line with the expectations, we will convert this debt into equity stake of not less than 72% and invest in this company for future growth. This is in line with our strategy to enter new market segments and align with non-automotive diversification as part of our Vision 2025 plan. Potential synergy for technology and electronics vertical as divisions utilizes capability of electronic manufacturing and software development. With this, I would like to start my opening statement and open up the floor for question and answers for you, please. Moderators, you please support. Thank you very much, sir. 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 will break for a moment while the question queue assembles. We have the first question from the line of Jinesh Gandhi from Motilal Oswal Financial Services. Please go ahead. Hi, sir, congrats on the acquisitions. A couple of questions on Yachiyo. Firstly, would you be fair to say currently, 100% of revenues will be coming from Honda or it would be less than that? I can take that. It's about 90%+. Amen, you heard the question? Yes. 90%+ from Honda, sir. Okay. It does give us access to other customers as well. Right. which we are excited about. Obviously, I mean, now that your ownership won't be considered as a Honda subsidiary, so that should help us to diversify beyond Honda. Second, the verification was on sunroof. In the presentation, it's mentioned it has 9% market share. That's for the overall sunroof industry or for specific type? Could you tell us where you are, reading that? Presentation, just a second. I can add. This is in relation to the global market share. Right. Yeah. That's 9% global market share for Yachiyo. That's right. Okay. I think, the idea is also that they have, you know, $2.5 million capacity, 2.5 million unit capacity. It could get over 6 units. We have complete technological capability for starting end all the way into high-end, which is extremely exciting, because as you know, more and more vehicles are coming with, you know, optionality of sunroofs is becoming more of a standard. Really, we're able to bring these sunroofs into any customer. Got it. Great. Thanks an lot. Thank you. The next question is from the line of Raghunandhan NL from Nuvama Institutional Equities. Please go ahead. Thank you, sir, for the opportunity. Congratulations on both the acquisitions. Firstly, on the sunroof side, currently, sunroof penetration could be about 25%-30% in the global market. How do you see the potential size of opportunity, both in terms of increase in the share of sunroof as well as increase in the potential vehicle because of the product upgrades which are coming up? Great, thanks for that question. Of course, you know, this company is very dear to Honda-san and strategic supplier. We believe that, you know, the opportunity, like you rightly have described, is to take this product to the other, to the other customers as well. We see a very strong correlation with sunroof becoming more, more and more standard. As we see the SUV trend growing, we see a lot more growth in sunroof in those vehicles as well. Not just on the premium side, really, we're seeing the sunroof penetration increasing, and we believe this will continue to grow with the new product offerings. On the, on the EV side, you're seeing, you know, more and more optionality coming with sunroof. We're really excited that we can take this product and, you know, grow it to many other customers, as well as bring the product portfolio of Motherson to Honda as well. Very, very excited with this, with this acquisition. Thank you, sir. Very useful. My second question, can you elaborate on the potential synergies and in-sourcing opportunity? I know it's early, but, any quantification of the potential synergy benefits in the coming years? Yeah, look, we're waiting for the transaction to close. I think we'll give you a lot more color and detail once that happens. Just so that you understand, we already have, you know, in the past experience with Sunroof, we believe that again, this is a product that will continue to grow, together with the mechanic section there, the amount of other products that goes into building the Sunroof, the mechanical parts, et cetera. These are all places where, of course, we will look to drive synergies with the Motherson, from our geographical spread of being able to take this to the other customers and leveraging, of course, our inner kick reduces support these child parts. Also with the tanks as well, I think, as you know, this will require a lot of plastic parts, elastomer, tooling, machine parts. These are all things that Motherson already has capability, and of course, we will try to drive the synergies once the transaction is completed. Got it, sir. Just on the transaction side, I mean, do you see any risk in terms of completion of transaction, like acceptance and tender offer? ... of course, then they have normally, go ahead, Baba. Probably, I remember that once, in Japan, it's pretty common that once, the customer has, you know, he has majority of car, making the offer, very rare that the offer would not be accepted. Our experience say. Thank you, sir. That's very helpful. How much would be the debt in business, sir? It's free, I think. Kunal? Yeah. It's actually a net cash balance sheet. I mean, so would it be I mean, would you have the numbers handy, sir? How much would be the net cash? Look, if you look at what's there in listed entity, if you look at the public disclosure, it will tell you around about EUR 45 million of net cash. That's for the whole group. Obviously, two-wheeler business will get taken out of this. Hence it's the four-wheeler business that we will be buying. That will also carry a net cash. The transaction is expected to close in FY2025. In reality, we will only come to know then what the net cash is going to look like. We do expect it to be a net cash business, and we are acquiring it. Thank you, Kunal, sir. One last question relating to Prysm. How do you see the revenue potential for Prysm going ahead? As of now, the revenues are small at $6.5 million, but the investment costs suggest that you are taking in strong growth over the medium term. Any revenue targets or potential you can indicate for the next five years? Look, I think what's most important is that, you know, development of Generation three, which is the latest technology offering with the most advanced features. I think once we're, you know, closer to that Gen 3 being completed, we'll come back to you with a more solid state of what the businesses will do. We, you know, to tell you, we'll give you some more color around right now. I think you have to understand that, you know, as we are going into a work mode of more people working from home, also a lot of collaboration, I think the potential of this product is significant. I think the software is superior, allowing people to collaborate real-time with people that can be looking at one location. The quality of the screen is absolutely immaculate. It's much higher than in resolution and what there is really out there in the other offerings. There's a price advantage. On top of that, it's just a completely green product, you know, being manufactured, being able to be manufactured in any country, that brings a lot more, as you can imagine, local manufacturing for this product. It does not use any harmful chemicals, which is normally associated with television manufacturing. We believe it's a much cleaner, better product. Also the screen is completely rollable and foldable, which means that, you know, you can really take it to and install it in any location. We really see a lot of advantages in this product. Of course, we need to make sure that Gen 3, which is, you know, the latest offering with the technical specs, which brings it, you know, a lot superior than anything else on the market, is completely finished. That should be in about six months, seven months' time. Then I think we will come back with a further update of how we look at, the business and once we've been able to cross that, important gate of having that product, ready, exactly how we envisaged it. Thank you, sir. Very helpful, and congratulations again on the acquisition. That's all from my side. Thank you. We have the next question from the line of Chirag Shah from White Pine Investment Management. Please go ahead. Mr. Chirag Shah- Hello. Yes, go ahead, please. Am I audible? Yes, you are. Sir, congratulations for, fantastic acquisition, sir. Two questions I had. One, just a clarification or rather, I'm presuming that there are no restrictive covenants on use of technology for non-Honda customers. Whenever you start approaching them, both for sunroof and fuel tank. Especially sunroof. There is no such covenant, right? There, like there's. You are right. You are right. Absolutely, we will own 81% of the company and Honda will be very happy. One of the reasons that they are looking at Motherson is because we are a global company, global customer base, and we have unprecedented to sell this technology to our customers. Great, sir. The second question is, wanted to understand the fuel tank business that you have also acquired. Any thought process on that or sunroof is the primary area and fuel tank you will develop as it comes across. Is that the right way of looking at this business, this acquisition? Good question, Chirag. The thing is that, of course, it's known that my views on electric vehicles and all that, but also the fuels like mixed fuels, also hydrogen fuel cells, and all these different things will require a plastic. ... especially the mixed fuels, you know, ethanol and all that. It doesn't accept, steel, or iron, fuel tanks because it will corrode it. Plastic fuel tanks is the answer for that. This company has the best technology of, doing that, so I, we are not worried about it at all. For another 10, 15 years, plastic fuel tanks is going to be good business. Absolutely. If I can just add to that, I think what's really, you know, exciting for us is the R&D capability that Yachiyo has. Through R&D, complete capability, and this company has had a lot of, you know, strategic importance to Honda-san and has developed over the years. You know, in fact, in the past, not just for the fuel tanks, you know, they've been doing fuel tanks since 1977. One of the earliest in the industry. As the trends evolve towards alternate fuels, like Baba was saying, you know, they have complete capability to be able to design and develop tanks for hydrogen, ethanol, et cetera. Not only that, you know, they've also done complete vehicle assembly in the past. That's how innovative and how strong this company is in engineering. Of course, we haven't even tapped this motor vehicle market or the other off-road vehicle market, which is, again, huge possibility for, with this business. On top of that, again, they have complete technical capability to develop, of course, not just a few tanks, but pretty much anything, even the clear gates in plastic. This is a very innovative company. It has survived over the years and is a very dear company to Honda-san, has very strong R&D capability, engineering capability, which of course we will harness within the group. That is the solutions are multifold, right? Not only can we bring other Motherson products now into Honda-san as an offering, because we have the footprint, we have the, of course, the connection, and now we are serving them in a meaningful way. Take these products to other customers as well. Really, it's a very exciting opportunity. It's a partnership which we are extremely, you know, honored to have, and will really open up the gates to a lot more with this opportunity, and we believe that there is very strong growth ahead for this company. Thanks for the round, because civil tank revenue contribution is almost similar to Sunroof. It's a reasonably big way in overall scheme of it. That's what I'm asking. Thanks for the clarification. You're right. You're right for that right now, but like we said, I think, having Honda-san there together, we are committed to growing the company. So even if, even if in the worst-case scenario, we see, you know, one product declining, there are so many opportunities, with the, with the other businesses, that we see that I just talked to you about, the plastic gate, the sunroof, the vehicle assembly. I mean, there's so much engineering capability here that we believe the thing will continue. Even if you just look at the fuel tanks itself, I think it's a, it's a stable business for at least 10 years to come. You know, while growth, we can all, we can all debate. Yeah, yeah. We believe that it will continue to grow. Yeah, I couldn't agree more on that side, on the EV transition. last question, if I can, and this is for Kunal. Kunal, just for clarification, the equity value here, you've indicated business value of around, EUR 145 million. Whatever cash is there on books, post this demerger and when the acquisition closes, the EV actually goes down, right? To the extent of cash on books. Is that the correct understanding? That's right. Yes. Yes. Thanks, sir. Thank you. The next question is from the line of Siddhartha Bera from Nomura. Please go ahead. Yes, thanks for the opportunity. First quickly on this R&D point, which you just indicated about the strength. Any percentage of revenue you can share, how much we are generally investing on the R&D? We can come back with that number. I think again, from our side, the R&D is split into many forms of development, not just, of course, for the sunroofs, which is the leading product, it depends exactly on what is the requirement of Honda for the new vehicles. I think we will continue to maintain that as the direction, of course, of Honda. What is it that they want the company to continue to invest in, and what we feel that we can use these expertise to further and our time and money on. I think we're going to be using these capabilities, R&D facilities, the three of them, two being in Japan, one in U.S.A., has been extremely successful in developing new products for Honda-san, bringing them to market, and being first in the market. You know, as the normal philosophy of Motherson, we do not go by, you know, spending a certain percentage or something like that as a guideline. We believe that is not the right way to look at it. It depends on program specifics. It can be 1%, it can be 4%. It again, depends on the customer's requirements and what it is for the region, and we will continue that trend to make sure, of course, that we are developing products and maintaining profitability and doing it at a way that the customer wants us to. Got you. Sir, generally trying to understand, for example, if you take Sunroof, is there any sort of technological advantage which they have compared to other suppliers right now, which will help us to get more clients in the future? Just. Yeah. They have more than 200 patents on this technology. You can understand why, you know, the lion's share of Honda-san business has been with the company. They've been completely focused on Honda-san. Honda-san is known in the market to use very, very good technology and quality. You know, they have a very, very strict technical requirements, one of the toughest in the industry. This company really ranks quite high, and I'm sure that once we teach it to the other customers as well, they will be happy to, you know, absorb this technology. Of course, we have to wait for the closing. We have to get into it. We have to get in front of the other customers. As you can imagine, this is a listed entity in Japan, you know, we can only do all of that once the transaction is closed. Extremely, extremely optimistic about it. Again, we will come back to you with more color once this transaction is closed, and we can talk about more traction then. We are very confident that the other customers will take it. I mean, already there are customers in Yachiyo, such as Toyota, I have Nissan and Subaru. You know, again, some of the best customers are already there, and we don't see any reason why we can't continue to grow the customer base. Got it. Sir, second question on the transaction side. Generally, if we look at the past, we have generally acquired entire entity. This time we had acquired more around 81%. Why is this slightly different this time? Is there any thought to maybe acquire the 100% at some point in the future? Look, again, I think. I think. Go ahead, Baba. I was just saying that, you know, 19% shares, having Honda as a partner, do you think that is not worth it, is it? It's your way of thinking, but in our way, to have Honda as your partner, can you imagine what it will do to Motherson, you know, in, to all the product set we are making? There's so much more that's there. Rather than looking at what we didn't acquire, think of the opportunity that you have opened. We are now directly partnering with Honda. Two sides of the coin, I think. Got it. Okay. Okay, sir. Okay. Thanks a lot. Thank you. The next question is from the line of Kumar Rakesh from BNP Paribas. Please go ahead. Hi, good evening. Thank you for taking my question. My first question was more of clarification. When you talk about 90% global market share in sunroof, Honda's market share would be about like single-digit to slightly higher than that. I'm guessing that we wouldn't be providing 100%. As in, Honda won't be sourcing entirely from this company. How is he getting the 9% market share? What am I missing in that calculation? Firstly, you are looking at total market share, right? We're talking about cars with sunroofs. That obviously, the market size reduces only those cars with sunroofs. Also, the majority of Honda sunroofs are coming from this company, the lion's share, so a very, very high percentage. Plus, of course, I'm talking about other customers as well, which are using it. It's not just for that customer. The majority share is there, and you have to reduce the target size by only those cars which are using sunroofs. The cars which are using sunroof, which those Honda would be having higher share, is what you are implying? I mean, these are all figures that we can give you more color on if you would like on a offline. Yeah, sure. Thanks for that. My second question was to understand in historically, in the previous acquisitions which we have done, primarily in the area of fighting fiber for polymer, we have very strong capabilities in-house as well, which we bring it into those companies and make significant transformation in the operation of those companies. Now, fuel tank and sunroof is a new area in which we are entering. How do you see the execution in these companies? What potential value add we can bring in to transform these companies, or it's more to gain from these companies as we have been talking about the R&D capabilities, that we would be gaining more in this particular transaction than bringing our capability in those companies? Thanks for the question, Kumar. Okay, I'll take it. Look, we've already explained the philosophy. We don't go after a company and say, "Oh, now you have to take only the Motherson way." In fact, we go after companies, always as a customer's head. Always the companies have inherent strengths that we like to imbibe ourselves, improve our group, imbibe that, and of course, share the good things of Motherson, the Motherson DNA and what we bring to the table. Over here, like I said, I think this is extremely exciting because they have a very, very strong capability in R&D. You know, they have been able to deliver Honda's requirements globally, which is, again, something that is, you know, very heartful for us to see, that a Japanese company has been able to do that globally, and even break into the other customers. Again, I think it's a two-way street. They have very strong capability. I also touched on the call before that, of course, fuel tanks and sunroofs are their leaders, in their own right, with their technology capability, which we would of course leverage and try to take that and grow that and invest further in those, in those capabilities. Also in the past, they've even shown capability to assemble full vehicles. As our aspiration is to grow, you know, further and further into the value chain and increase the value content, I think that's a capability that we, that we admire, and that we will learn from. Of course, Motherson's economies of scale, our in-depth customer reach that we have with the traditional players and the new mobility players, our capability to, again, set up greenfields around the world, support the customer's ambitions, together, I think with Yachiyo, it's a, it's a real win-win. Really, we see it as a, as a two-way street. We will learn, and of course, we will also share our best practices, and to tell you that the relationship has started and proceeded at a phenomenal pace and, you know, there's so much trust between the companies. Really, we see so much potential, and that is also why you can see that Honda-san is retaining the stake, because they see Motherson as a strategic supplier. They see a lot of possibilities and growth for this opportunity, for this asset in opportunities. And I think that's why we're all here to, you know, take, conclude this transaction, and to start the good work that Yachiyo has started and continue in the Motherson way. Thanks a lot for that, Vaman. Thank you very much. The next question is from the line of Basudeb Banerjee from ICICI Securities. Please go ahead. Thanks for that with the announcement. Just wanted to understand the calculations suggesting EUR 155 million equity, as you said, with cash entry and maybe turning somewhere around EUR 90 million.[So It] will be somewhere around 70, and it might be 50. Those three outside investment is, and maybe we expect the deals are less than 3x. Why Honda is giving the stake or selling out the stake at such a attractive valuation for you in the sort of high angle? It can be open to counter with another? What's the question? Sorry, I missed the question. The deal valuation is very, very attractive, any specific reason why the business is getting sold at such a lower valuation as such? Vaaman, sorry, I can't hear. Nothing is there, I can't hear in Japan. Can you please explain to you guys, can you answer it, please? Sure. I can take this question and also, Kunal, you can, I can also. I think generally we're seeing, you know, a consolidation of the supply chain and the customers continuing to prefer long-term partners, such as Motherson into the business, where they can grow globally with their ambitions. Of course, the entire industry is going through tremendous amounts of change. So consolidation has been on the cards, as you can imagine, with all the issues that have been in the supply chain. I'm not just talking in this practice, I'm talking more generally. We are seeing the customers preference towards more and more consolidation, which is playing out in the market. Again, I think, you know, Honda-san is really driving this. I think it's a great outcome for a company acting, you know, together under Motherson's fold, have opportunities to grow substantially larger outside of Honda-san as well. Get access to a global network of customers while we can enhance our product portfolio. I think it's a great win-win. It's a growth opportunity for the company that they perhaps would not have access to without Motherson's depth and reach. For us as well, we get into a strategic partnership with Honda-san, and we continue business and bring in more products, exciting products into the fold. I believe it is a fantastic deal for all parties involved. Sure. Last one can say that it is a mere deal. It is more tight association with Motherson as a group for Honda-san, and that will help the relationship prosper further and import synergies and make the relation more stronger, more than just a mere deal. Absolutely. It's both ways. It's our honor as well to grow. As in, you know, Baba has said very clearly the vision for us, you know, 3CX10, no country, no customer, no component, more than 10% of our business. Honda-san was not a large share, and with this, you know, Honda becomes a very meaningful customer of Motherson Group. Of course, has diversified the base even more. It's again within the direction of our chairman and where the group wants to be in 2025. Sure. That date then we can also enhance your business obviously overall through marginally, but in the right direction. Second small question, sir. Sorry to interrupt. You have a background noise in your, on your line. I request you to please mute your line after you've asked the question, please, sir. Sure, sure. My last question is, as you said, it will be consummated sometime in FY2025, whereas it's a large part of your revenue base. Can you indicate what, beginning of 2025 or end of 2025? That will help us. It will be beginning of 2025. We are expecting somewhere in Q1 FY2025 for this transaction to happen. I think I'd also ask the question whether someone else can come and bid for this. Please bear in mind, 50.4% is owned by Honda already of Yachiyo. The tender offer is being made by Honda. Unlikely someone will be competing with the OEM, which is anyway the person procuring, you know, nearly 90% of the products of Yachiyo. Highly unlikely event is someone were to come and compete for the tender offer. Sure. Great. Thanks a lot. Thank you. Thank you. The next question is from the line of Hitesh Goel from CLSA. Please go ahead. Yeah, thanks for my question, congratulations on a good acquisition. My question is, Steve, I mean, I can see that you, for Motherson's, a great acquisition because you've got greater share in Honda. How will you grow this company? I, you know, I understand sunroof adoption within the, you know, automobile cars within Honda, that will be an opportunity. Can you throw some light with other customers, can you go ahead with? I I saw, I think, that through you're supplying some bumpers through this unit. Can you talk us about other Japanese customers which you can supply? Because all of them have their own supplier base, right? Trying to understand that. I think one particular thing, I don't know whether it has caught your attention. This is the first time that a Japanese customer, OEM, has selected a supplier and given an important part of his company to them, which is the trend that, as Vaaman said also, we are seeing across the board. It's happening in Europe, America, and also in Japan. For us, we've been working on this particular thing for a long time, and the real fact that the Japanese OEM, as big as Honda, has trusted Motherson for this particular acquisition. Also, please understand it will open the floodgates of the lot of companies in Japan who are in trouble because of the current conditions globally, especially China and Russia war and all that particular thing which is happening. There is a lot of pain in the system. Definitely, Yachiyo, we will solve because we have tremendous amount of inputs with German and American and European customers. If you get deeper into the whole thing, you will see that there are only one or two max, which are the strong companies, and Yachiyo is only focusing on Honda. For us, we already have plans to introduce them to the European, American, and German customers. There is with the quality and the supply ability, reliability. They have 13 plants all over the world. Wherever Honda is, they have a plant there. That bodes very well for us to make sure that we can crush it and cross-sell this particular thing, because we have very strong relationship with the other customers also. I'm not so worried about that. I think our product of Yachiyo will do the talking. They have the complete range from small sunroofs right up to panoramic roof and all the things is out there. I think they're very capable, and we just have to let them go. I think that's the biggest thing that we did with [inaudible], we did that with [inaudible], we did that with Woco. We always do that. You know, we go multiple customers, this is so that's already tried and tested. I don't think we should doubt that at all. Also, please consider that Motherson started with the Japanese joint venture in 1983, and now we are taking over a company in Japan. Japan is a very close market and you probably know that very well. Once we can show our capabilities here, believe me, we have a huge opportunity in Japan, and that is also and also new products, new companies. Yes, sir, definitely. I mean, I think very, you are the only company which is doing this in Japan. Like you said, it's very difficult to get business and, you know, big companies like you are doing it. All the best, sir. Thank you so much. Thank you. Thanks for reminding me about Daihatsu, because we become direct suppliers to now, to Daihatsu, in Toyota, in Japan. Yeah. Yeah, that's right. Daihatsu is a driven company. All the best, sir. Okay. Thanks. Thank you. The next question is from the line of Jinesh Gandhi from Motilal Oswal Financial Services. Please go ahead. Hi, sir. Two questions. One is to Kunal on the components of the deal. Would there be any change in working capital structure or margin structure since it will become a third-party supplier to Honda? Does it also guarantee continuity of business from Honda to Yachiyo? To your first point on working capital, look, it's a running business. We do not anticipate any changes happening. Please bear in mind, again, Honda is a partner to us, between now and closing, again, we do not see any change in business dynamics versus what is already happening today. What was the second question? With respect to continuity of business from Honda, is that also guaranteed? I mean, I'm assuming being partner here, that should be the case. ... Look, right now, nearly 100% of, actually 100% of the fuel tank business is with Yachiyo. Okay. It is going to continue, and more than 90% of sunroof is with Yachiyo as well. Okay. No real reason to believe things will change. Sure. The second question, from perspective of, synergies in terms of, obviously cross-issue Honda and offer Yachiyo's products to other OEMs, would it be fair to say that this will take at least two to four years for that to reflect in numbers, given the timelines which are involved in such kinds and will be getting, the acquisition done only by one year, by 2025. So three years from there is when we should expect to reflect in numbers? Sorry, Vaaman, I couldn't hear clearly. There There was disturbance on the line. Kunal, please go ahead, or Vaaman, please go ahead. Yeah. The transaction was closed in 2025, and of course, once the transaction is closed, there is a process of, you know, taking these products. There will be some time for us to obviously get in deep into all the product offerings, all the new programs, track the plan and any new program that you win just start two years down the line. That's normal automotive process. Of course, we will start the groundwork already with the capabilities that we can bring, but all programs are obviously new programs and new offerings from the customer. This is the normal time which it takes for any acquisition. The company itself is a running company, it's a growing company. We believe that of course, this, the growth opportunities here are tremendous. I've got it. Thanks a lot. Thank you. The next question is from the line of Chirag Shah from White Pine Investment Management. Please go ahead. Okay, thanks, [inaudible], again. Just one small question for Kunal, sir. Could you from Japan and China for this entity, a ballpark number? Sorry, the turnover from Japan and China? Yeah, for this entity. Japan is 18 odd%. China is 43%. China is 43%, and Japan is? 18%. 18%. Rest of it would be either US or Europe? Americas is the second largest at 33, and Asia is, the rest of Asia is seven. Okay, great. Thank you very much. Chirag, Honda has two huge plants in China, they are getting the supplies for there. I don't understand if you're thinking they're not importing, it's all for China. Yeah, yeah, I was, I was also, you know, I, you know, I was aware of that. I just wanted to ensure that, China is like 35%-40%. I was exactly. Thank Thank you. This is helpful. That's because Honda has two joint ventures in China. In China. Yes, yes. Yeah. Yeah. The numbers are very strong in favor of China. Yes. Yeah. Thank you very much. All the best. Good. Thanks. Thank you. As we have no further questions, I would now like to hand the conference over to Mr. VC Sehgal for closing comments. Over to you, sir. Thank you very much. Thank you very much for your questions. We at Motherson are very excited because I think, one, to gain a great company like Honda as your joint venture partner. Under our leadership, we will definitely take Yachiyo to new heights. Just also because, as I said, it opens a lot of avenues, a lot of companies which in Japan were hesitant to come to outside Japan. I think they will be very much brave now to say that, "Yes, why not? Let's go to a global company like Motherson." Secondly, on the sentimental side, it's wonderful for me because in 1978, I started working in Japan. We learned everything from them. 1983, we started the joint venture with Sumitomo, and we have learned everything. Whatever we have today, a huge part of it has come from Japan. Today, for the first time, we will give back to Japan, and for me, that's a very sentimental to give back on the Guru Purnima to your guru is something very, very heart-touching and warm for us. Thank you all very much, and wish you all a good week ahead. Thank you. Bye-bye. Talk to you. Thank you. On behalf of Samvardhana Motherson International Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.