On behalf of Nirmal Bang Institutional Equities, have great pleasure in welcoming one and all, each and every one of you for our today's session, which is held as a part of week-long conference. For our today's session, we have with us management of Voltas, represented by Mr. Manish Desai, Head Corporate Finance. It's always a great pleasure hosting you, sir. Thanks for giving us an opportunity to host you. As for the format for today's session, what we will do is we will request you to give an overview of business as it stands today. Post that, we will open the session for Q&A. Hope that suits you, sir. Okay, I'm fine with it. Good afternoon to all of you. Yes. Yes. In fact, it's almost a month now since we announced the results for the quarter four. What we have and journey thereafter, I would say is supporting this category. We have seen a scorching weather in the month of April and May as well. There is no comparison of the volume growth between the current year vis-a-vis the past 2 years, because there's a complete season period which we are getting it in this year, which was not there for the year 2021 and 2022 because of the pandemic situation. We are not actually comparing the volume growth of the last 2 years. If I take to the 2019-2020 volume, which was considered to be a normal year, I would say the volume it's closer to that particular period or the kind of volume which we have seen in the year 2019-2020. As far as the industry is concerned, I'm sure that each players has done their best in this particular quarter, given the complete season period available to all the players in this industry. If I look from the competition perspective, we have the market share data as of March. We are expecting for the month of April very shortly from the agencies. Looking into the market share or the kind of competition landscape, there is not much change what we have seen in the laddering of the competition landscape vis-à-vis what we have seen in the year before. The difference between, yes, we all know we have seen a drop. If I look from the YoY perspective as of March by almost 180 basis points. If I look on a quarter-on-quarter basis of the YoY numbers, the drop is even close to higher than 200 basis points. By analyzing further on that, the way in which we highlighted in the investors field as well, we have lost to Lloyd, the larger market share. This is largely, I would say, attributed towards the price reason and not for anything else. As far as the overall inventory is concerned in the cooling product business, I would say that the growth which we have seen in the month of April and March was unprecedented and unplanned for that matter, leading into some of the SKU mismatch. I'm sure this situation is universal or uniform across all players in this industry. However, we have certain materials flowing into it continuously, which should help us to navigate this volume till the end of the season. As we all know, South and West probably will come closer to the season end by in the next one or two days. Whereas North will continue till probably end June, till we see a regular monsoon taking place across the states in the country. If I look from the channel partner inventory perspective, they all are running hand to mouth, based upon the secondary what we are seeing in the market. Accordingly, we are not expecting even more than 25-30 days inventory with the channel partners when they come or currently and will probably come to a season end, probably they'll be having much lesser than that. This is our reading, based upon the ground field. More data and more certainty can flow once we get the third party independent GfK data on the market share side and further insight into it. If I look from the subcategories of the cooling product business, commercial refrigerator continues to do well. It was doing well in the year 2021 and 2022 as well. We have seen the growth over those bases as well when we are going for 2023. This growth is largely attributed towards the, I would say, the expansion of the market, the change in the lifestyle of the people. As we all know, mom-and-pop stores are expanding to Tier II, Tier III cities, where the taste of the people moving more towards ice cream and chocolates and all, finding good kind of support for this category to grow. If I look from the air cooler perspective, the air cooler, despite having a higher kind of inventories with the channel partner, it's doing well, I would say in this period. I would not like to quantify any such, further growth for these categories, given their forward-looking statement and the kind of restrictive environment in which we all are working under this regulation. That's what I have for the UCP segment. If I look from the Voltas as a continuation of the appliances, the growth over there also is good compared to the last year. If I want to attribute towards the overall performance of the Voltas Beko categories, I would say that we achieved close to 4% market share in the washing machine and exceeding 3% for the refrigerator in a short span of 2.5 years. Having the substitutive way of sourcing for a refrigerator category for Voltas Beko, probably we should be in a more better situation or better position to feed the local market at a regular frequency or as per the demand from them, and should bode well for this category as we move forward. As we have highlighted during our investors' meet, we have localized or we have started manufacturing of the top-loaded washing machine as well in our factory, in the Sanand factory. It's a mixed kind of volume. We are doing certain models through OEM and certain models based upon the value addition, higher valuation attributable to the category, we are doing it our own manufacturing location. That also should help us in terms of strengthening or positioning our product, as well as a margin-accretive as we move forward in the future for these categories. This is where I have to say about the Voltas Beko. If I come to the project side, we have seen good amount of execution during the better half of the last year after the COVID situation got improved. Better execution, good control on the working capital, and consistently I would say a customer-driven approach is. I'm getting some disturbance. Yeah, resulting into a better margin for this category or work for this segment. In terms of the order inflow, yes, there was a slow progress or slow amount of order intake in the last year. I would attribute this slow intake on actually two grounds. One thing is there was a delay in the announcement of the project itself, if I look from the domestic environment side, because the first half, the more attention was there to control the pandemic because it was more severe than the COVID first wave. Later on we have seen some kind of movement, but that movement was short compared to what the original expectation was. I request all to go on mute, please. If I look from the international market, it was attributed largely towards deferment of some of the projects, given the economy looking or facing the headwinds of lack of tourism, as well as the oil prices was not supporting for the country to go for an expansion of the infrastructure projects. If I look from that perspective to 2022, 2023, I am sure that international market is going to bounce back because the markets have opened for tourism as well as oil price, what we are seeing today, gives enough cushion to those countries to look for an expansion of the infrastructure projects which have been abandoned in the last year. Similarly, domestic market, we have seen a high allocation of capital towards the infrastructure projects. The country does need the infrastructure, so I'm sure in all aspects of water, electrical, airport, and all modern infra, the order intake in the current year should be going back for the old trajectories where we started with. However, second reason what I was about to narrate over there is we ourselves has taken a selective approach while picking up this order given our past experience based upon the customer profile, credit, and the risk mitigated kind of approach, which may result into some of the projects which probably government may announce or may fall into our kitty, but we may not pick up because given the nature or maybe a kind of project which probably we'll not like to bid for it given the past history of our experience in dealing such kind of projects. In summarized way, I would say that the order inflow for the 2022, 2023 will certainly go up compared to what 2021, 2022. We are hopeful to go back to the old trajectory of order intake given that competition itself in this business is getting reduced to a few players in this market. On a balance sheet front, we remain strong in terms of the cash and cash equivalents. If I look from the CapEx perspective, given the PLI and the expansion of our manufacturing capacity, we are planning to incur close to INR 400 -INR 500 of CapEx in the two phases over the next 2 to 3 years. Given the strength of the balance sheet, we are not looking into sourcing of this plan or budgeting or meeting those capital expenditures from any other sources other than the internal accruals what we are going to generate over a bit of time. I would say this will be the overview from our management side, and I'll open the floor for a question-answer session from the participants. Thanks a lot, sir, for a very comprehensive overview and update. Participants, if you have any query, kin dly make use of raise hand function or come in directly introducing yourself with company name, please. Yeah. We have a query from Ruchika Bhatia. Go ahead, madam. Yeah, Ruchika. Yeah, thanks for taking my questions. Would like to understand the pricing scenario vis-à-vis the new standards that are coming in, and how do you find the commodity markets like, you know, going forward? Is there more inflation? What is your view on it? Ruchika, if I look from the pricing aspects, given the table change which is happening from 1 July, what we have seen in the past, similar kind of cost escalation will take place. If I look from the consumer perspective, what they are paying today for five-star, that will be applicable for the four-star kind of category. I'm not putting the quantification to it, Ruchika. The reason being is because there are very much variance into it, like your 1 ton, 1.5 and 2 ton. That's I've given a general answer. In terms of what difference you are finding between these two stars today, probably that will be the cost escalation if you have to go for under the revised table guidelines, which is getting implemented, which is coming into force from 1 July. If I look from the commodity perspective, we have seen some kind of softening trend in the early April. However, the trend is short-lived. We are again seeing upward movement and some of the commodity, especially copper and aluminum, still has seen some kind of softness. But looking into our BOM, the copper-aluminum content consists of higher percentage, so we won't see any much kind of relief coming to or flowing to the manufacturer in the current particular year, 2023. It seems that the commodity price will remain elevated for almost entire year of 2022 to 2023, considering the demand-supply gap which is prevailing right now. In such scenario, the immediate question comes is how the company is going to react on it. If commodity price remains at the level at which we were there until March and all, we won't see any further price hike coming up in a short tenure, except the table change which is applicable across all the industries. If you are seeing the price gap today, what we have is sizable, I would say, because the competition is not. Sorry? No, nothing from my side. Please continue, sir. Sure. Looking into the competition today in the respective demographics in which we operate, we try to, I would say, I would not put the word absorb, but we'll try to do a price hike in a calibrated way to ensure that we give tough stance to the competition. At the same time, those steps works towards protecting margin without impacting the market share. Yeah, because, like, you know, we've already seen that Lloyd and few players have not been that strong in pushing the prices, because of which, you know, there has been some market mismatch. That was the reason why I wanted to understand. Another thing on the supply side, sir, like, is this the supply to the southern market being normalized and anything like going forward is there gonna be some supply side issues? I'm not seeing currently any headwinds. The only which I have heard about it is the growth which you're seeing in the current first quarter was much higher than what any of the manufacturer has projected for the period. Which means that your inventory, you will find some kind of mismatches in your SKUs, which may not be aligned with the demand from the market side. In that case, the only supply chain issue will be there. The markets, China is also opening now, so we won't see any much kind of disruptions or normal disruptions in terms of logistics and all other kind of issues. What we have seen in the last year probably will have a lesser kind of impact in the current year because markets are generally opening up, unless and until we see some kind of COVID variants or COVID, I would say, disturbance impacting again the entire operation for that matter. What you said about the Lloyd and all, yes, the market has seen it, and in my opening remark as well. I have told you that My analysis says we have lost a larger market share in terms of the Lloyd, but that's where the strategy the Lloyd may be approaching towards it. We won't see immediate reaction to it, because in the past as well we have seen some of the brands have actually played the card but could not move successfully for a longer period of time. We have to do a wait and watch, but as I said, we will do what we require to do on the market front to ensure we remain competitive and with the twin objective of protecting margin as well as spreading over the market share. Sure, sir. Thanks. Thank you so much. Thanks a lot, madam. Yeah, participants, if you have any query, kindly make use of raise hand function or come in directly introducing yourself with company name, please. Hi, Manish. Hi. Rita here from IndiGo. Hi? Hi. Well, you alluded in terms of the price hike in the system, you know, but is there a lead lag in terms of price hike across players? Are the others also following you in terms of price hike, say, you know, post the March period? That is number one. Secondly, while obviously the GfK data is not out as yet, but depending upon your understanding on the ground feedback, you know, do you see market share to a certain extent coming back for Voltas in that perspective? Rita, there will always be a time lag between the leader do the price hike, being followed by the other players. As we said in the past as well, we have seen this kind of time lag. If you look from the current year, I am sure that none of the brands actually have done the price hike, including Voltas. We thought to do a price hike in the month of April, but we held ourselves given the ground realities. To a certain extent, as I said, softening of the commodity price could give some kind of cushion in terms of the weighted average cost of the inventory. But that said, the price gap, the difference is still there between the input cost increase vis-a-vis the sale price to the channel partners. It cannot be bridged. The gap is not so little in order to bridge or to absorb ourselves. We, as I said, we have to find a calibrated way in order to ensure that wherever we find, wherever we can do, we can pass on those increased input costs to the end consumers. Now, having said that, in terms of the market share, we have, as we said, we have taken corrective actions in the month of April in this particular quarter. In our own estimation, we should be able to recoup most of the lost market share by the quarter one itself. That's what our reading as of now data. It can be confirmed or it can be, I would say, ascertained only when the GfK comes out with the market share data. Got it. Thanks, Manish. The second question is more in terms of medium term. You see, there's a lot of competition and aggression in the market, and we've seen these phases multiple times in the past also, especially in the AC segment. Incrementally, say maybe 3, 4 years down the line, how do you see saliency in terms of the entire AC market? This along with, you know, margins. Because you see the prudence coming in terms of margins, or do you see the aggression being higher and continuous and we're moving from this, you know, 12%, 13% kind of margin down to, you know, 10% or 11% kind of margins? Over a 3-year perspective, I'm talking. Agree with you. Even I look into the midterm kind of scenario from where we are today, I would not see a competition landscape will go any substantial amount of change over there. Even when I see last 3, 4 years, barring Samsung who has done the re-entry into this product category, all players are remain same, probably in the same order which were there. Only between third and seventh, between third to fifth or sixth position, change takes place in some of the quarterly basis, where one player is taking lead over the others, and accordingly suit follows over there. In terms of the margin, I would say that it remains. It's going to remain competitive. 13%-14%, even though earlier when we have used to interact with the investors, we used to tell about 11%-12%. However, looking into the current situation or the scenario in which we are, and looking into the intensity of the competition as well as the price or the kind of acceptance level from the customer end, I would say that it still looks difficult to get into 11%-12%. Although some of the PLI benefits will follow from the government based upon the backward integrations or the expansion plan which we all are eyeing for. However, with that as well, we are seeing that margin near to 9.5%-10% looks reasonable. It is still in closer to double digits. To exceed 10% probably, although the efforts will be there to achieve that level, but today it looks difficult. Not because, as I said, because of the change in the competition and all, but I would say that if remain competitive in the market and the kind of affordable level what we have seen at the customer end, that's what the conclusion comes. Although in the current year, looking into the weather, the inflation has not played any role and the customer was actually lapping up on this product because of the extreme heat. We are talking about margin for the entire year on an annualized basis and not on a quarterly basis. During those kind of, I would say customer demand may go slow when you are not looking for a product or during the lull period time where this product doesn't have any seasonality over there. Got it. Just two follow-ups here. While, you know, the margins even if, you know, not, does not fall down to significantly lower levels, do you think the growth in the system is significant enough to give you a, maybe a PBT CAGR of say 12%-15% over the next 2-3 years, even if you take a hit in terms of margins? If I look from the industry perspective, and obviously when Voltas is planning to do a higher growth compared to the industry. Industry itself is expecting to grow in excess of 10% in the next 3-5 years timeframe. Having that, obviously my margin percentage to the turnover may get subdued knowing the reasons what I've given. In terms of the absolute value, probably we should be able to achieve it, the growth percentage which we just discussed. It should fall in line with the revenue growth. Slightly, as I said, the margin may get set in the current year itself. In the near, in the long term, or in the midterm for that matter, reasonable to have a CAGR closer to the industry or the volume growth for that matter. Just one last follow-up on this is, what is the level of the industry volumes do you need in the system? Say you're at 7 million volumes, if I understand right, as of now. What levels of the industry volumes is needed in the system for, you know, for players to reach to the next level in terms of margin profile, considering, you know, the aggression normalizes and there is enough for everyone on the table? See, I would say that it is not the volume which you can decide in terms of the scale among the players. It all depends upon how much the player would like to keep a margin with them in order to further do investments in this category. Because that is driving factor today. Because volume, even though in the year 2019-20 when the industry touched to a highest volume, some of the players were still having a single-digit margin. It all depends upon the business and the manufacturers, at what level they would like to do the operation or like to continue or be in this business. That's what, in that reference only we said about in our own aspirations, we would like to have both market share and the margin as a twin objective. We feel that the closer to double-digit should be a reasonable one to be there in the business. All right, thanks. I'll get back to the queue a few more. Thanks a lot, Rita madam. Yeah. Next query we have from Yeslands Down, Anionic. On behalf of her, the query is basically she wants to know what are the initiatives recently taken to capture increased market share. I would not like to quantify them, given the competition intensities and all. I would say that we have also seen in the past this kind of price game and disruption being played. We have a learning with us in order to navigate those kind of situations. As I said, I would say give more attribution towards the price and other stuff, supply chain to certain extent and price to certain extent for the reason for loss of the market share. The supply chain issue been addressed immediately in the month of April itself to ensure that we are providing the material what market needs it. Regional balance itself got adjusted, seeing we having the heat spread across all parts of the country. As far as price is concerned, we have followed a calibrated approach to ensure that we remain competitive across demographics and wherever we can get advantage, we follow the same and capture those kind of opportunities. There are various many steps, but I would not like to elaborate more into this. Our action itself will show the outcome probably when we are getting the market share data from these agencies in a short period of time. Thanks a lot, sir. Yeah. Participants, if you have any query. Next, we have from Mr. Pulkit Patni. Please go ahead, sir. Thank you for the opportunity. Sir, if you could just help us understand the INR 400-500 crore CapEx over the next three years. Can you break it up and tell us which are the areas particularly you are going to spend that? Pulkit Patni, we have applied for a PLI scheme under two different headings. One is for our own, which is our component manufacturing, and other one is also a component compressor, but under the joint venture. A joint venture is obviously subject to the necessary approvals from the ministry, having the joint venture partner coming from China. Those two will take away roughly around INR 300 crore-INR 350 crore of investments. The balance will go into a capacity augmentation, which we are anyway planning to do it and which is already underway, for expanding our manufacturing capacity for air conditioner as well as commercial refrigerator. If you can just elaborate on the manufacturing strategy. If I look at AC manufacturing pre-COVID, and if I were to look at the bill of materials, roughly what percentage value add were we doing earlier? What is it likely to be, say, 3 years or 5 years out, once you have this manufacturing strategy in place? Will, say, 10% value add go to 30%-35%, or if you can give some sense of those. See, Pulkit, what will happen is, as we said, with this even expansion what we are doing it, we will be not having 100% of our requirement flowing into it. It will still catering around 50%-60% on the component side, on small components. However, the compressor front, maybe in the 2-year timeframe, we will be able to. Just a minute, Pulkit. I'm on some calls. Just a minute. Sorry, Pulkit. Where was I? Okay. With this. Oh, shit, yeah. Just a minute again. Sorry. It is very difficult to say how much valuation pre-COVID to post-COVID or PLI after application will flow into it. I can say that the intensity of manufacturing will certainly go up compared to what we used to have earlier. When I say value addition, I would give one example of the indoor unit, where you say, where is the value addition shown over there. I can say we have two benefits which will flow over there. One, we have substituted our import to a local one by investing in the mold. We still didn't have a molding capacity because the molding capacity is freely available across nook and corner of the country. To a certain extent, the assembly of the IDU will flow into it when we are looking for expansion of the manufacturing facility. It is difficult to ascribe a particular percentage to the value addition, but the efforts are there to balance the supply chain between our own in-house manufacturing plus the OEM. Support on the OEM will not be stopped altogether. We'll still depend upon the OEMs. The absolute quantum remains same, but the percentage what I used to have, 100% earlier, as example, will certainly come down to a less than 50% when I have the complete, you know, phase two or my phase one and phase two getting over in our part of factory backward integration. Okay. Lastly, what kind of benefits do you see for this strategy, either in terms of, say, margins or in terms of, demand planning? I presume the whole inventory cycle and planning comes down. If you could just elaborate on the benefits, 3-5 years down. See, Pulkit, one thing is that once you have attained the volume, probably you need to balance your supply chain and you need to get the advantage of the scale by doing some components in which we have or we are seeing the good amount of validation as a part of your backward integration strategy. That's actually driven us to have this change in our manufacturing or change in the business model. You may not see a margin accretive immediately on some of the move in the first year of the operation. But certainly in the long term there are various associated costs will certainly come down by virtue of this initiative on a manufacturing side. When I say certain cost is, it goes into a logistics cost. It counts as a part of the inventory holding cost. Third, more important, we all know if I look from the import to localization, the government is anyway eyeing for another Phased Manufacturing Programme, a continuous increase in the customs duty. Which means if I'm not doing those necessary steps today, my landed cost will certainly go up as we move forward in the future period. These are the things about I would put that attribution towards the government initiatives, government involvement or consideration in terms of promoting the local manufacturing. As well as attaining this kind of huge volume where you need to have a balanced approach towards the supply chain and sourcing. The result will definitely result into a overall benefit as we look from the operational perspective as we move forward in the 3-5 years timeframe. Just one quick data point. In FY 23, what is the share of e-commerce, I mean, likely going to be for the industry? FY 2023, which is current year? Yes. Current year, likely. I would say that it. Because it's opening up as well, right? No, I would say that. See, e-commerce, if I look from the data of journey since it started, yes, it's improving, but it's not showing a huge growth compared to the other categories, if I look from the appliance perspective. In those scenario, I would say that the contribution may remain somewhere between 8%-9% at the most, compared to what we are seeing currently for that matter. Got it, sir. Thank you and all the best. Yeah. Thanks a lot, Pulkit ji. Next query we have from Mr. Chinmay of Reliance Nippon Life Insurance. Please go ahead, sir. Yeah. Thank you for taking my question. Basically my question is with respect to, I mean, what happened in South. I mean, Haier did manage to gain share over there on pricing. Why that has not happened or didn't happen maybe in geographies like, North and West, where you could have also played the pricing game? Chinmay, I just want to reconnect on the point of South. What we said is South was having larger imbalance. The reason being is because the summer starts early in South, but the other part of the country didn't see those kind of weather in the early part of February and some of first week of March. Actually, we were traditionally second player and not the leader in this particular South region. Whereas we were having a leadership position in all the balance three, East, West and North for that matter. That gives some advantage when you are actually having a leadership position to do, or to play around on the pricing, to play around on the product side, to play around your strategy on the ground, on those three regions. That is largely a reason for that matter. Otherwise, price card can be played by any brand in anywhere in all parts of the country, but they also need to see where they are strong and where it's going to have a larger impact on that. Sure. My second question is basically when we say we want to. Sorry, Chinmay, I'm losing your voice. Yeah. Can you hear me now? Yeah. Second question is basically when we say we want to recoup our market share, and we'll, I mean, most probably do it by this quarter, or so. What we mean is maybe we'll come back to say, exact market share of, say, maybe, 25-26%. That is what you are kind of indicating or it's like, I mean, because we have also substantially gained market share, like last couple of years. Earlier it was more of a 20-23% kind of a number. What do you exactly kind of target when we say that we will recoup our market share? Chinmay, I would not like to give any quantification to that. I only can say that the maximum recoup of the market share loss will take place by end of quarter one. Let the data itself talks about where we can get into it, but that's our efforts which we put on the ground to ensure that the maximum recoup took place in this given period itself. Sure. Thank you, sir. Yeah. Thanks a lot, Chinmay ji. Yeah. Participants, if you have any query, kindly make use of Raise Hand function or come in directly introducing yourself with company name, please. Yeah. As the question queue lines up, Prashil, you would like to take up yours? Yes, sir, I have one question on basically, is there a main customer profile difference between south or the north region? I would not say a customer profile difference. The only difference which I can say in terms of south, generally, we have seen more kind of advanced customers. When I say advanced is split largely contribution is coming from south and west market. A window is still, as I said, prevailing in the north, which we all know about it. Inverter category adoption is large, so largely being seen in the south and west market, followed by north over there. That much only I would say a customer profile difference, but otherwise there is no much kind of differentiation over there. Okay. Thank you, sir. My last question would be pertaining to, you know, we are planning to introduce some Wi-Fi ACs. You know, how does this bode with, you know, given the low penetration, we will be having a lot of first-time buyers, you know. How does this strategy bode, you know, given the price sensitivity of our customers as well? Wi-Fi's are everywhere. There is nothing which we are going to introduce now. It's already there in the market. It's available in the market itself as of now. Okay. Okay. Thank you. I'll get back. Yeah. Yeah. Next query we have from Mr. Rupin Shah of InCred Wealth. Please go ahead, sir. Sir, in your commentary, you mentioned twice that, historically also, you lost market share, and then because of the competitive pressure, and then you regain the market share. If you can give some like one or two example of this competitive pressure, and if you can also specify on like how much time it had taken, like, to regain the market share, this data would be helpful, sir. Rupin, I'm just standing correct to it. I have not said that we have lost market share in the past. I've said in the past we have seen such kind of price disruption being played by a few brands. I will not like to name the brand name because it is not our practice to know or practice to follow over there. Industry knows about it, and I'm sure you are following the industry, so it's nothing new to you as well. In terms of we have, when I say price card being played, but in that point of time, we could balance our market share. Our growth would have come down, but not I would say in an overall basis. In some of the markets, we did have setback on that ground of the price disruptions. In terms of recouping, the same as I said, that's what we are targeting in the current year itself. I'm repeating that maximum loss of market share can be recouped, and that's what our efforts are by the quarter one itself. Sure, sir. Understood. Sir, secondly, if you can specify localization level and, with the JV like, which is under process, what kind of localization level we are aiming in next two years? Today, if I look from the import perspective, larger component which we are importing today is restricted to compressor only. Because in the absence of ecosystem prevailing in India or available in India, motors and controllers are still getting imported, but the quantum or the contribution has come down so substantially because we started developing working with the local vendor as well in order to have a substitution. If I look from next three years, probably, we may not have import of any of the components and all should be available within India on a best effort basis. Leaving aside, if anything, on a competitive side, on balancing on the supply chain or to get some kind of advantage, if you have to go for import, then that also the contribution will not be so high compared to what we are today. Almost 100% we are doing for compressor, which certainly will come down substantially through joint venture sourcing and the other efforts which we are doing it in the near future. Understood, sir. Thank you. Thanks a lot, Rupin Shah. Yeah. Participants, if you have any query, kindly make use of Raise Hand function or come in directly introducing yourself with company name, please. Okay. Manish, Sita here. Sorry. Yeah, please go ahead. Yeah. Manish Desai, Sita here again. Just one last question. You know, in terms of while we're doing the tie-up with Haier in terms of compressor, do you think any technological hindrances would you face, you know, tying up with just one compressor? Or you still keep yourself open from buying from Gree in that perspective? Rita, in fact, the Haier is the second largest manufacturer of the compressor in the world. We have a current sourcing also coming from both GMCC as well as Haier. As we all know, GMCC is also going, and they're going to have a manufacturing setup within India, and their commercial production also will start as we move into the new year. Their factories and the above, a lot of, because of pandemic, it got delayed. Otherwise, they would have a commercial commencement in this year itself. We have all the sources open. Our objective to go with the joint venture is to knowing the criticality of the component. That's why we opted for inverter compressors because we are not expecting any major change to go into it, into this component. The objective is to sustain, I would say consistent or ensuring a consistent supply of this component. Because of which, this strategic move has been made. This will allow us to go on a long-term agreement. Now the question comes that can be done with the other players as well. But knowing the capability of these players, and largely these two players accounting for almost 80%-85% of the world compressor manufacturing capacity. Sir. We would see that the joint venture with Highly or Haier should help us out in ensuring and sustaining, I would say, or sensitively or sensibly secure our procurement of the components for our manufacturing plan for our growth in the future period. Got it. I'm not seeing a technical hindrance as such on this ground. As I said, we are going for inverter kind of compressor. In the near future, we are not seeing any kind of technical change which is taking place in those components for that matter. Got it. Thank you, Manish. Thanks a lot, madam. Yeah, for want of time, we have to close the session. Thanks a lot, Manish Ji, for taking time off and for giving us an opportunity to host you. Participants, thanks a lot for participating and taking time off the schedule, busy schedule. Thanks. Keep safe. Thanks to all of you. Thanks to all of you. Thanks to all of you for being there. Thank you.