Mayur Uniquoters Ltd (MAYURUNIQ) Q3 FY23 Earnings Concall Transcript

Mayur Uniquoters Ltd (NSE:MAYURUNIQ) Q3 FY23 Earnings Concall dated Feb. 08, 2023.

Corporate Participants:

Vinod Sharma — Chief Financial Officer

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

Analysts:

Rahul Dani — Monarch Networth Capital Limited — Analyst

Aman Agrawal — Carnelian Asset Management LLP — Analyst

Awanish Chandra — SMIFS Limited — Analyst

Dhruvesh Sanghvi — Prospero Tree Financial Services LLP — Analyst

Nirali Gopani — Unique Asset Management LLP — Analyst

Dhiral Shah — PhillipCapital (India) Pvt. Ltd. — Analyst

Manoj Dua — Geometric Securities and Advisory Private Limited — Analyst

Nikhil Upadhyay — Securities Investment Management Pvt Ltd — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Mayur Uniquoters Limited Q3 FY ’23 Earnings Conference Call Hosted by Monarch Networth Capital Limited. [Operator Instructions]

I’ll now hand the conference over to Mr. Rahul Dani from Monarch Networth Capital Limited. Thank you and over to you, sir.

Rahul Dani — Monarch Networth Capital Limited — Analyst

Yes. Hi, thank you, Faizan. Good afternoon, everyone. On behalf of Monarch Networth Capital, it’s our pleasure to host the senior management of Mayur Uniquoters. Today we have with us, Mr. Suresh Kumar Poddar, Chairman and Managing Director of the company; and Mr. Vinod Kumar Sharma, CFO of the company. I would now request the CFO to start with the opening remarks, and then we’ll go to Q&A. Thank you and over to you, sir.

Vinod Sharma — Chief Financial Officer

Thank you, Rahul. And good afternoon dear investors and analysts. Ladies and gentlemen, it is a great pleasure to be here to share with you the performance of Mayur. Thanks for giving your precious time to join Mayur Uniquoters Limited’s Q3 FY ’23 conference call.

Mayur Uniquoters, being a market leader in the synthetic leather industry and an organized player, has been able to leverage the emerging opportunities and delivered exemplary performance in past years, both in domestic and international business markets.

Now I would like to start with financial highlights for Q3 FY ’23 under review, and we will also reply your query after our review on financial results for the quarter. The company has achieved revenue from operations on a standalone basis amounting to INR170 crores, PBT INR32.70 crores, PAT INR26.07 crores during the quarter. The revenue from operations is decreased by 13%, however the PBT and PAT has slightly increased by 1% and 3%, respectively, over the last quarter. The revenue from operations on consolidated basis is INR178 crores, PBT is INR33.40 crores, and PAT INR26.56 crores, and has decreased by 13%, 5% and 2%, respectively, on a quarter-to-quarter basis. Our endeavor here is to make the company a preferred supplier for the leading OEMs, especially U.S. and European regions.

In OEM sectors, we have been selected for several upcoming SKU models in exports and domestic markets, for which supply is expected to start in the years ’23-’24 and ’24-’25. So we are hoping a very good performance especially in coming next 2 years. And this year also is going to be better year for us with top line and bottom line than last year.

While pursuing our business interest, Mayur Uniquoters has also been endeavoring to fulfill our responsibilities to our society. Under the Corporate Social Responsibility program, contribution towards regular plantations and plan to do at large scale in coming years. The company has also adopted many happy schools for educations of children. The company has worked on education for all and underprivileged children, various healthcare initiatives, especially child skill development, water for all, sanitation at school area, distribution of books, bags, cloths, et cetera, and most importantly family planning and family welfare schemes in the villages of the states. The state government has recognized these initiatives on various platforms.

I am thankful to all the investors for their valuable time to those who became the part of this earnings call. With this positive note, I would like to conclude and request you all to open the forum for questions, and we request you to kindly note that due to time constraints, duration of this call will be around 45 minutes. We, therefore, request you to kindly avoid repeated questions, and we will not discuss volume data, so please avoid volume-related queries.

Over to you, Rahul.

Questions and Answers:

Operator

[Operator Instructions] The first question is from the line of Rahul Dani from Monarch Networth Capital Limited.

Rahul Dani — Monarch Networth Capital Limited — Analyst

Yeah, thank you, sir. Just wanted to check regarding the footwear segment, again, we’ve seen a decline in revenue. So what is your outlook on the footwear segment?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

Footwear segment it was okay, but, of course, it’s little down because during November and December — from November, December, January, three months are the winter season, and in the winter season, the chappals are sold less, only closed shoes are sold. And these closed shoes are made with — generally with leather. But now it has started again [Phonetic], and we’ll be okay.

Rahul Dani — Monarch Networth Capital Limited — Analyst

Okay, sir. And just wanted your outlook on the domestic OEM business. On a Q-o-Q basis, we’ve seen a little [Phonetic] decline. Just wanted to check regarding Hyundai and Kia orders, have they started to pick up.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

The domestic OEM business, in this quarter, we have done — on domestic OEM is INR30 crores in this quarter, and previous quarter it was INR32 crores, because of new year they keep less stock because people want to buy a new year model car, so that’s why December is a little bit down. From January it’s start to increase. It will increase [Indecipherable].

Operator

The next question is from the line of Aman Agrawal from Carnelian Capital. Please go ahead.

Aman Agrawal — Carnelian Asset Management LLP — Analyst

Sir, thank you for the opportunity. A few questions from my side. First of all, if you can talk about how much has been the impact of raw material price decline in terms of our revenue. Because if I see on a Q-on-Q basis, we have declined by somewhere around 13% and on Y-o-Y basis, the revenue has declined by around 1% on consol basis. So how much of this impact has been due to decline in crude prices and relating to our raw material? And what kind of volume growth we have if you can talk about?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

So the price has not declined, yet, of course, the raw material prices are going up. And it will be decline little bit, but [Indecipherable] quarterly contract with the automotive industry. Accordingly, when the price is up, we increase the price; when price is low — and leather if you compare [Phonetic] from quarter 3 to quarter 2, per meter price has increased by INR5.89 per meter, and volume was a little less [Indecipherable].

Vinod Sharma — Chief Financial Officer

Volume total, in last quarter, we sold 75 lakh meters and in Q3 the volume was 64 lakh. So volume was down a little — 12.6% but the price has increased over the last quarter. So the sales and — profit has increased over the last quarter. If you see, our profit in Q3 was PBT around INR32.69 crore and PAT INR26.07 crores. And in last quarter, it was INR32.47 crores and INR25.39 crores. In spite of decrease in the sales revenue, our profit has increased.

Aman Agrawal — Carnelian Asset Management LLP — Analyst

Understood, sir. If you can explain why this volume decline on your Y-o-Y and Q-on-Q basis? Is it mainly driven by exports or some other segments also impacted the volume demand for this quarter?

Vinod Sharma — Chief Financial Officer

Volume has declined in Q-on-Q [Phonetic] basis, but it is not on Y-on-Y basis. Y-on-Y basis, it has increased. And in last year, 9 months, we have sold around — just a minute — 192.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

October, November, December is generally down quarter.

Vinod Sharma — Chief Financial Officer

In last year 9 months, we have sold 192.3 lakh meters, and this year 9 months, 208.86 lakh meters.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

So the 9-month volume is more than last month — last 9 months.

Vinod Sharma — Chief Financial Officer

In fact, it is 9% increase in volume and prices also.

Aman Agrawal — Carnelian Asset Management LLP — Analyst

Understood, sir. And on the Hyundai Kia order update, sir, if you can update when that would start coming to the sales in — on that book [Phonetic].

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

You’re asking about Hyundai order?

Aman Agrawal — Carnelian Asset Management LLP — Analyst

Yes, sir, Hyundai.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

Hyundai we are supplying now at the moment it is growing about 30,000 to 35,000 meters per month. These orders are specifically for specific model. Model which we have been given that is lifting [Phonetic] is about 30,000 to 35,000 meters per month.

Aman Agrawal — Carnelian Asset Management LLP — Analyst

Understood, sir. Just a final question on margins, sir. Our gross margins have improved materially during this quarter. We have reported 42% gross margin. So what actually led to this kind of improvement? Is it due to higher realization or if you can talk about it, sir?

Vinod Sharma — Chief Financial Officer

It is because of both. Raw material prices also decreased, and we have also increased our prices, as I already told you. In last quarter we have increased average INR6 per meter sale prices over the last quarter so the profit has increased because of increase in sales price and decrease in raw material prices.

Aman Agrawal — Carnelian Asset Management LLP — Analyst

Understood, sir. And this should be the trend going forward also, right sir, given the way we are seeing raw material prices and all?

Vinod Sharma — Chief Financial Officer

Yes, we are expecting the same trend in coming quarters.

Aman Agrawal — Carnelian Asset Management LLP — Analyst

Got it, sir. I’ll join back in the queue. Thank you, sir.

Operator

The next question is from the line of Awanish Chandra from SMIFS Limited. Please go ahead.

Awanish Chandra — SMIFS Limited — Analyst

Congratulations, sir, on a good set of performance, especially on the margin side. Sir, first question on PU business, we were doing INR6 crores to INR8 crores run rate in a quarter. So any improvement on that side or any guidance for next year on the PU business side?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

You see PU business because that goes mainly in footwear and leather goods, as I told you that in this quarter, it is always down, whatever it is, other than automotive. So now it was okay, just it was going. But from this quarter, the sale will increase. And secondly, we had a division in Chennai, leatherette division, where all the — most of the top brands like Adidas, all that — Louis Vuitton, these big brands people came there, listed [Phonetic] our division also. And we are expecting good business. Now it should start moving. And then we have appointed one distributor in South who is selling a lot of chemicals, different type of chemicals of the world’s renowned companies to all these big brands. So now he will start — he has started introducing us to the big brands for our artificial leather PU [Phonetic]. And I hope next year should be good and year after next should be much better.

As I told you previously also, because of the problem of the government this traders’ manipulation of the excise duty and this custom duty given we have put up a antidumping duty, now they are manipulating in quantity and the prices they are showing is hardly half or one-third. So that was creating a little bit problem. But now what — we are shifting now to the brands. So in the brand, advantage is that once the brand is approved by any supplier to any supplier, then their supplier has to buy from us. So I think this year, we should come in line. And hopefully, next year, we should do much better.

Awanish Chandra — SMIFS Limited — Analyst

Okay, sir. And sir, second question on Mercedes and BMW. So what kind of run rate we are having now from the Mercedes, monthly or quarterly any run rate, and BMW timeline.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

Monthly about it’s 30,000 to 35,000 meters with Mercedes. BMW it was 3,000 to 4,000 meters because it was going to Thailand only. Now they have approved for South Africa. So in next three months, it will also start 15,000 meters, and it will go in six months’ time up to 30,000 meters.

Awanish Chandra — SMIFS Limited — Analyst

Okay, sir. Okay. I will come back in queue.

Operator

[Operator Instructions] The next question is from the line of Dhruvesh Sanghvi from Prospero Tree. Please go ahead.

Dhruvesh Sanghvi — Prospero Tree Financial Services LLP — Analyst

[Foreign Speech]?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

[Foreign Speech] whatever we are making, and we are very much optimistic with export auto OEMs. Not only optimistic, we have got many models order. The program has already started. And in next two years, in ’23-’24, ’24-’25. ’23-’24 it will be doubled than ’22-’23. I’m talking about export OEM. And from ’23-’24 to ’24-’25, it will increase by another 50%. This I’m talking with the orders, which is in our hand. The supply will start after — some supply will start after three months, some after six months, some already has started. So there is going to be a very good growth in export OEM. And the profitability should be also more because the OEM profitability is good. And then the turnover will also increase quite handsomely. So I can say in nutshell, ’22-’23 is good, ’23-’24 and ’24-’25 these two years will be fantastic years.

Dhruvesh Sanghvi — Prospero Tree Financial Services LLP — Analyst

[Foreign Speech] Is this correct assumption, sir?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

Per quarter, 75 to 90.

Vinod Sharma — Chief Financial Officer

75 to 90 [Foreign Speech]

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

[Foreign Speech] I can’t predict at the moment. But one thing I can tell you, the turnover will increase because when you are exporting OEMs, the cost prices — the selling price is also very high. [Foreign Speech]

Dhruvesh Sanghvi — Prospero Tree Financial Services LLP — Analyst

Yes, sir. [Foreign Speech]

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

[Foreign Speech] We have already been approved by Chrysler Motor for their Thailand plant. We have already started supplying 10,000 meters every month which is about $21 per meter. And this will also go up. When people are converting on PU, some different types, there are three, four kinds of PUs which has been started. So this is one which has started long back. Now two different type of PUs is also coming, which is very strong, and you can compare it with leather. So that product is also developed by us. In the world, only three countries are making. One is German company, one is a Japanese company, and we are the third. So we have started entering on that line also, which has got good margins and top price — basic prices are also very high. So we are concentrating more on that.

On the top of that, I don’t know whether we have started retelling of furnishing material. We have introduced more than 270 retail counters all over India, and we are selling directly to them and then through our distributors also. By end of this year, in 2023, we have plan to make 1,000 dealers all over India. Advantage in this business is that you are having direct contact with the retailers, and we are having good margin. Of course, it takes a little time. But when the brand is famous then you start getting good. It’s going slow, but it has — people have started asking nowadays now the people are asking for that cinema halls, hotels, restaurants, we have got order for one 5-star hotel for their all India and one they have got 2,000 meters order.

So this is the new area which we have opened in furnishing, and we are very much optimistic on this because margin is good. And in my study, I have studied that artificial leather, which is used, say, 100 meters is used in all type of this thing, out of that, 50 meters is used in furnishing. Furnishing means sofa set, chairs, cinema hall seats, and all those contract [Phonetic] upholstery. So this is a very big market, which was not tapped by us very rigorously. Now we are going for it, and we are getting good response. Good means, it will be gradually. Maybe in the next two years, we will see the good result out of this. Maybe in this less volume but more profit. So we are working on that also.

What I’m trying to say, we are working in all the lines. Now we have got hold of one very big leather goods manufacturer like [Phonetic] ladies purse, ladies bag, and they are supplying to all over the world. And we had a good connection with them. They have made a material from our material and the customer has liked]. These are the future things which are happening. And we were not much in leather goods, and now we are concentrating more on export of leather goods and footwear manufacturers, those who are exporting these products with the PU material. So we are very much optimistic about PU also, because PU is increasing, PU is replacing leather, and there are two, three kinds of PU. So we have started making another PU also.

Operator

[Operator Instructions] We’ll take the next question from the line of Nirali Gopani from Unique PMS.

Nirali Gopani — Unique Asset Management LLP — Analyst

Yes. Thank you for the opportunity. Sir, just one clarification on this PU part. So you are saying that we have developed a second type of PU and that is mainly for the automotive side, right? The first type of PU will go to the footwear or the handbag product.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

No, you see this costly PU which we have produced, we are going to introduce it in furnishing and footwear and leather goods also. Now because it is very expensive than our common PU. So how people will take it up, but of course, automotive people have started accepting. And I think in the next three, four years, it will increase. And gradually, leather is going down because of the cost, because of this environment and this sustainability and go green. And now the PU, also, we have made without solvent and without DMF, which is, as I told, that only three companies are making, including ourselves.

So people are going more towards environment. So that is also good news for our artificial leather. And because we are working only on top products, that’s why we are getting margin. And I have very good hope for this artificial leather will keep on increasing, there is no doubt, because nowadays hardly any difference in leather and artificial level because people say it is breathable. Now where is the breathability because of a lot of finishing and all that, the breathability is going down day by day. A general person will never understand, but the price difference is huge. So people have started even here in America this SUV’s third row, people have started shifting from leather to PVC or to PU. So the PU will keep on increasing, no doubt about this. And we are only after that, working very hard on that.

Nirali Gopani — Unique Asset Management LLP — Analyst

Right. So, sir, what will be the volume for PU in this quarter?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

You see, I told you, this is just starting. As I told that we are making about 7,000 to 10,000 meters, we have already started supply from last three months. So it will — for another six months, it will be 7,000 to 10,000 meters only. After six months, it will gradually go up, because there was a German company, we have taken fresh order from them.

So now because we are new in this type of PU, people will like to understand us, how is our quality, how is supplies and all that thing. So gradually, they will increase. But it will be increased 100%. There’s no doubt about it. And it is because this is we are supplying only to Thailand. Now we will start — our material is in process in America also, and I think during the next three, four, five months, you’ll get the result. And we will start there also. Like that, we are talking with the Ford Company also. You see in this automotive industry it takes time. But when it once happens, then it happens. Like we are drawing [Phonetic] so much work for PVC. Now the things were moving very slow, but now you will be surprised the increase you will see in next two years, you will be surprised because we have already got the order, some RFQ is on the line, some SOPs are in the line. So this ’23-’24 and ’24-’25 there will be a big expansion, and it will keep on increasing.

Nirali Gopani — Unique Asset Management LLP — Analyst

Sir, I understand that we are very positive about the next two years, FY ’24 and ’25, and we are trying to do multiple things, export OEMs, PU, furnishing. So as investors, what revenue growth should we see over the next two years?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

Revenue from export?

Nirali Gopani — Unique Asset Management LLP — Analyst

No overall at company level.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

You see what is my calculation, in next two years, ’23-’24, ’24-’25, revenue should grow between INR1,100 crores to INR1,200 crores.

Nirali Gopani — Unique Asset Management LLP — Analyst

Okay, sir.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

This is for sure.

Nirali Gopani — Unique Asset Management LLP — Analyst

Okay. Fair enough, sir. And sir, one request or suggestion. Since your son has joined the business, why don’t you bring him on the call so that it will give a lot of comfort to the investors to see the succession planning also at the company level?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

[Foreign Speech] And don’t worry, this company is going fully — professionalized, and we are working with professionals. And he will also come, but it will take some time.

Nirali Gopani — Unique Asset Management LLP — Analyst

Okay, sir. Sir, the CEO search is also.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

My grandson is getting ready also.

Nirali Gopani — Unique Asset Management LLP — Analyst

Sorry?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

My grandson is studying in America, and in the next two years he will pass the graduation, and he will also work.

Vinod Sharma — Chief Financial Officer

He will also join.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

He will also join because he is very much interested. So from — see from that point of view of what will happen if Manav is coming or not coming or late coming, nothing will happen to the business. Now this company I am handing over more and more responsibility to professionals, and they are really doing wonderful. Now I’m looking for a CEO also and COO also, which the next 1.5 year or two years I will finalize. Because the way things are growing, we need to [Indecipherable]. Now we are — maybe we have to open a plant in Mexico also because the whole thing goes to Mexico of this U.S. account [Phonetic]. And it is because the quantity is increasing, we are looking — seriously we are looking for a land also to have a plant. So a lot of things are going on. We are discussing with some European companies also. We want to be all over the world. If you have a plant in Europe, if you have a plant in USA or Mexico, and then you have a plant in India, that means you are going all over the world. So the final planning is this [Phonetic].

I was just waiting for the orders of automotive industry. Now I have got the orders. Now I’m more confident because you see when you start a new plant somewhere, you need a minimum business. So that now — I think, at the moment, we are supplying about 1.5 lakh or 1.7 lakh meter per month. But in next two years, it will cross 5.5 to 6 lakh meters. And when the prices are high, we have backward integration also, we have got foam lamination, we have got perforation. In some products, the price is $13, $11, $12 with these value additions. So things will increase. And I’m sure in next two years also so far as footwear and leather goods and furnishing, our name will be very much important, because I’m concentrating more on quality products, not on these day-to-day business.

In automotive now, you can say, we are covering almost most of the automotive manufacturers. So like that, I want to go for the brand name of automotive — sorry, of footwear, furnishing, and leather goods also because they are selling in much better price, so they can give price also. But there also it is not easy. [Foreign Speech] Now Zara [Phonetic] people have visited our Gwalior plant. They have seen we are working very seriously with them. We are talking to one or two other companies also. That means people have started coming to visit us, people have started knowing Mayur in leather goods and — in leather goods mainly. And furnishing also now, we have started this furnishing, anybody is talking, is it Mayur, because in leather cloth in India, we are number one. And number two is not even 50%. Go anywhere to any distributor, any retailer, they will know who is Mayur. And now because of our standing in all foreign countries, those who are making car seat cover or auto interior, anywhere you go and ask the name Mayur, they will say yes. These are going slow in the export. Now we are well equipped, and we are moving towards even having the plants in Europe and America.

Operator

We’ll take the next question from the line of Dhiral Shah from PhillipCapital.

Dhiral Shah — PhillipCapital (India) Pvt. Ltd. — Analyst

Yeah. Good afternoon, sir. Thanks for the opportunity. Sir, historically, if I see your EBITDA margin, sir, it was in a range of 24% to 25%, even higher than that around 27%, and in last two years, sir, it has fallen to almost 18%. So when do you see, sir, these margins going back to original level of 24% to 25%?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

[Foreign Speech] Why I’m moving to exports and with these guys, because of only reason that we have a good margin, we have a good product, we have a good technical product. [Foreign Speech] You understand my point?

Dhiral Shah — PhillipCapital (India) Pvt. Ltd. — Analyst

Yes, sir.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

But I can’t give any guarantee that it will be like this. I can just say that it will increase. And naturally, I am the supplier, I will try to get as much possible as much price. But all depends on circumstances also. But now I can tell you so far as my supply is concerned, that top line will be there and bottom line also will increase, not decrease. And it should increase good.

Operator

[Operator Instructions] We’ll take the next question from the line of Manoj Dua from Geometric Securities. Please go ahead.

Manoj Dua — Geometric Securities and Advisory Private Limited — Analyst

Am I audible?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

Yeah.

Manoj Dua — Geometric Securities and Advisory Private Limited — Analyst

Okay. So Poddar ji, last call we were talking about that we are trying for sample of Chrysler USA for high solid PU. So what is the progress regarding that?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

I have explained just now that we have already started supplying in Thailand its plant. Now we have given our sample in America also. We are testing it and hopefully in next three, four, five months we will get it. You see, it will go slow, but it will increase. Everybody is looking at Mayur. Because of the climate, because everybody wants DMF and solvent free. You see, even PVC also there is solvent and PU also there is DMF and solvent. So we are working for the process which doesn’t have all this. And it is not easy that anybody can go and do it. We are the third person only in the world. One is German, one is European, third we are.

So you can understand how much pain we are taking and how much our R&D is working on those things. [Foreign Speech] This process we have been doing some last three, four years very rigorous, and we are getting the results. [Foreign Speech] Why is it so? Because everybody talks very big and then what happens? [Foreign Speech] I want to talk what I can do. [Foreign Speech] I don’t want to do that. And in spite of that, last three years where everybody has gone through the huge pain. [Foreign Speech] Because of this chips problem. They were gone up to 175,000 meters per month, which gone down to 80,000 meters. Can you imagine? Because there was no chip supply. Now the chip supply are abundant, and we have allotted the other competitors’ programs also.

So what I’m trying to say is that even if the market is little bit tough, my automotive export will not be decreased [Phonetic]. That’s what I’m trying to tell. So I’m very confident for next two years. And naturally, every year, it will keep on increasing.

Operator

We’ll take the next question from the line of Nikhil Upadhyay from Securities Investment Management.

Nikhil Upadhyay — Securities Investment Management Pvt Ltd — Analyst

[Foreign Speech]

Vinod Sharma — Chief Financial Officer

Nine months this year, total exports is around INR135 crores and last year it was INR206 crores [Phonetic], nine months.

Nikhil Upadhyay — Securities Investment Management Pvt Ltd — Analyst

And one clarification. [Foreign Speech] You mentioned in Thailand, we are — for BMW, we are supplying 3,000 meters as of now, which will scale up to 15,000 meters.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

Up to 30,000 meters in one year time. [Foreign Speech] Yes, this is for South Africa.

Nikhil Upadhyay — Securities Investment Management Pvt Ltd — Analyst

BMW, which will scale up to 30,000 meters.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

Yes.

Nikhil Upadhyay — Securities Investment Management Pvt Ltd — Analyst

Okay. [Foreign Speech] Do you think [Foreign Speech] opportunity to increase our share in that segment [Foreign Speech]? Any idea if you can?

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

[Foreign Speech] Technical requirement is more like MG Motors [Foreign Speech]. Now they have — this is a Chinese company. They were buying from China factory also our material. Now they have shifted us to 100%. So now one thing, Mayur is known all over the world, and now people — why people come to us? For the quality. And I cannot supply the material, which is very low price and low quality. That’s why — and there is a huge competition because every day one new leather cloth companies are coming, they are just reducing the prices, so I don’t want to go in that line. We are stick to our quality products and the high price. And the world is so big, I think to get at least 20%, 25% growth every year is not a very big thing.

Operator

Ladies and gentlemen, we’ll take that as our last question. I now hand the conference over to the management for closing comments. Thank you, and over to you, sir.

Suresh Poddar — Chairman, Managing Director, and Chief Executive Officer

That was the last. Now thanks to all the listeners and investors. One thing I can assure you, from Mayur point of view that you will see growth every year, good growth. Of course, last three years were not that good, but last year was better, this year will be better than last year, and next two years will be very good. Maybe so far I think INR1,000 crores we will cross in this year only ’23-’24. That’s what I’m after it. [Foreign Speech] future is good, in nutshell I can say that. Thank you, very much for listening.

Vinod Sharma — Chief Financial Officer

Thank you.

Operator

[Operator Closing Remarks]