AGI Greenpac Ltd (NSE: AGI) Q3 2025 Earnings Call dated Jan. 21, 2025
Corporate Participants:
Om Prakash Pandey — Chief Financial Officer
Rajesh Khosla — President & Chief Executive Officer
Sandeep Sikka — Group Chief Financial Officer
Analysts:
Akhilesh Kumar — Analyst
Zakin Nazzar — Analyst
Pranay Roop Chatterjee — Analyst
Anil Shah — Analyst
Garvita Jain — Analyst
Dhaval Shah — Analyst
Ronak Oswal — Analyst
Viraj — Analyst
Niharika Jain — Analyst
Meet Katrodiya — Analyst
Deepak Poddar — Analyst
Parikshit Gupta — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the AGI Greenpack Limited Q3 FY ’25 Conference Call hosted by Emkay Global Financial Services 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 the conference call, please signal an operator by pressing star then zero on your touchstone phones. Please note that this conference is being recorded. I now hand the conference over to Mr Akilesh Kumar from Emkay Global Financial Service Limited. Thank you, and over to you, sir.
Akhilesh Kumar — Analyst
Thank you. Good evening, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Rajesh Khosla, President and Chief Executive Officer; Om Prakash Pandey, Chief Financial Officer; and Sandeep Sikka, Group CFO. I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.
Om Prakash Pandey — Chief Financial Officer
Good evening, everyone, and welcome to AGI Greenpack’s Q3 FY ’25 earnings call. We have already uploaded our earnings presentation Q3 FY ’25 on the stock exchange and our company website. We are happy to report a strong performance this quarter, demonstrating the effectiveness of our strategic initiatives. This quarter, we achieved a total income of INR674 crores. More importantly, our focus on profitability has aided significant result with EBITDA increasing 20.3% year-on-year to INR185 crores, achieving a 27.4% margin. Profit-after-tax also saw robust growth, increasing 35% year-on-year to INR91 crores. In the first-nine months of FY ’25, the company reported a total income of INR1,862 crores. EBITDA grew by 15.1% year-on-year to INR497 crores with an EBITDA margin of 26.7%. And profit-after-tax increased by 20.9% year-on-year to INR226 crore. Looking-forward, we are confident in our ability to deliver continued strong financial performance. I will now hand over the call to Mr. Khosla.
Rajesh Khosla — President & Chief Executive Officer
Thank you, Mr. Pandey. We are happy to report continued growth momentum this quarter, maintaining strong glass container capacity utilization, which is over 95%. The results validate our core strategic priorities, disciplined cost management, optimizing our product portfolio and cultivating strong and long-term customer relationships. By focusing on these key areas, we are building a more resilient and profitable business. We continue to actively participate in exhibitions across UAE, USA and Europe, strategically building visibility and forging connection with the potential clients and partners in key markets. Sustainability is a core pillar of our long-term strategy and we are proud to have received several awards this quarter recognizing our commitment. We are honored with bronze at 24 2024 International Green Apple Environmental Awards in UK, recognizing our dedication to sustainable packaging. We were also named the fastest decarbonizing packaging product company of the year 2024 at the Suryakon Hyderabad in Telangana and AP Annual Solar Awards, acknowledging our progress in reducing carbon emission, our commitment to sustainability, innovation, community engagement and brand-building is not just about. It is about creating a long-term value for our stakeholders and building a stronger, more responsible business. Our holistic strategy underpins our confidence in achieving continued growth and long-term success. Now we would like to open the call for any questions you may have. Thank you very much.
Questions and Answers:
Operator
Thank you. Thank you. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone 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 wait for a moment while the question queue assembles. The first question is from the line of Zakin Hassar, an Individual Investor. Please go-ahead.
Zakin Nazzar
Yes. Sir, the name is Zakin Nazzar. So please correct that. And sir, congratulations to the management for a fantastic set of Q3 numbers as indicated in Q2 where you had said that one furnace will block better in Q3. Sir, would we consider this as the new normal, the INR650 crore kind of the top-line? And how do you think the tailwind in the industry will pan-out because as we read and as declared on the exchanges, another furnace of SNG is shut-down. So do you think this will — this is — this will add further to your margins.
Rajesh Khosla
Okay. So number-one INR650 crores whatever we have achieved in this quarter is a normalized normal. So it is not a normal, but it’s a normalized normal. It means that because the prices of the glass are also dependent on lot of inputs material prices like soda ash, sand and other commodities. So if those prices are taken in account, so it will only become a normalized normal. Number two, since we are running with the full capacity, which is 95% plus capacity, so probably any furnace which is getting down or coming up, it may not get affect to us much because we are already running full capacities. First, we are having a long-term association understanding with our customers where we do not exploit our customers with any demand and supply gap, rather we are a long-term sustainable permanent partners with our customers. So our strategy has nothing to do with exploiting the temporary situations.
Zakin Nazzar
Good and wha what about? What about any kind of fundraising plans the company I mean, are you looking at something or in the near-future, sir?
Rajesh Khosla
You mean to say organic or inorganic growth?
Sandeep Sikka
No, the question is Rajesh on the fundraising. So I’ll take my questions.
Rajesh Khosla
So yeah, yeah.
Sandeep Sikka
Basically, if you see, we closed the quarter with a net-debt of somewhere around INR350 crores and EBITDA for the nine months is there and if we try to analyze, so we are less than half time of the EBITDA on the debt side. Once we acquire with the HNG which is right now under the court processes and based on the timing when we acquire and all those things based on the court orders. So we’ll start-off with the acquisition with the debt and — but however, we have an resolution with the shareholders or that we can potentially raise equity to deleverage immediately after that. So — but nothing concrete as such. But you know what there is a plan basis which you know the resolutions have been proposed to the shareholders.
Zakin Nazzar
Thank you, sir. And best wishes to the company and the management. Thank you. Thank you.
Operator
The next question is from Pranay — from the line of Pranay Roop Chatterjee from Bruman Capital. Please go-ahead.
Pranay Roop Chatterjee
Hi, everyone. Thanks for taking my question. Sir, my first question is on your gross margin. So 71.5% is the highest recorded in a while. Is there any one-off here? And if you could comment on what has driven this margin and how we should expect it to move forward
Sandeep Sikka
We do our analysis not on the gross margin here, it’s more on the EBITDA level. So I think I understand your question, the sustainance of EBITDA is the question of the sustainance of EBITDA.
Pranay Roop Chatterjee
Yeah, yeah.
Operator
Sorry to interrupt you. This is the operator. We’re not able to hear you. Could you please come closer to the microphone
Sandeep Sikka
There is an echo from somebody’s side
Pranay Roop Chatterjee
So my question
Sandeep Sikka
We can’t hear you properly. Maybe we can take the next question in the queue. Maybe we can test the system with that and then let
Operator
Sure the next question is from the line of Anil Shah, an insightful Investment Manager. Please go-ahead.
Anil Shah
Yeah. Yeah. Hello, sir.
Sandeep Sikka
The echo was from the side of the person who was raising the question.
Anil Shah
Yeah, you can hear me, sir. Am I audible?
Sandeep Sikka
Yeah. We can hear you well. Yeah.
Anil Shah
Okay. So while I understand that the Hindustan National Safety Glass acquisition is yet under the Supreme Court judgment, what I really want to know is what’s the plan B? In case that it doesn’t go through, can the management share some insights in terms of what is the plan B as far as volume growth in the next couple of years is concerned and how do we move ahead with that next two years in case the acquisition doesn’t go through facilities.
Sandeep Sikka
So if for any reason acquisition doesn’t go through. So there is a natural evolutionary process in the companies to grow organically. And but that’s plan B. So that’s just — that’s a plan but not yet approved by the Board as such. So it’s very difficult for us, any of us to make a commitment you know what is Plan B or Plan C, any organization do have number of plans in-place, but we can talk about the same to the market only once it is approved by the Board. But definitely there’s is another way out between the organic growth.
Anil Shah
So let me rephrase, okay, the question in the sense, how do we get volumes over the next two, 2.5 years? Because I believe even if the acquisition doesn’t happen, we will probably start a new furnace, which itself could take about 2.5 years to three years, if my understanding is right. In this — in the interim period of 2.5 years to three years, is there a possibility and a Plan B and that’s the reason in terms of where we could get some kind of growth more on the volume side, because again pricing is actually dependent on the industry and multiple other factors.
Sandeep Sikka
MR. Let me reply on those numbers.
Rajesh Khosla
Okay. Number-one, yes, now you are talking if there is a H&G, then the plan is very different. You are talking of plan B. In-plan B, there are two type of growth we are expecting. One is the volume growth. And second is the value growth. Hello. Am I audible?
Anil Shah
Yes. You’re audible, sir.
Rajesh Khosla
Okay. Okay. There is a volume growth and there is a value growth. Volume growth, certainly we have to debottleneck a few more things by which we will be able to add-up some more or debottleneck the volume growth. But there will be a reasonable level of the value growth where we may like to enter into all upcoming segments where we can increase our value of the goods which we are selling. Secondly, in case there is a plan B, probably we will be in a position to open up the facilities or to start the facilities much ahead than you are indicating to us. You are indicating around three years, it can be much, much earlier than the three years.
Anil Shah
Okay. Understood. Plan B plan B, it is not advisable unless until it is approved by the Board. We cannot disclose in the public. But yes, at the right time, we will take the approval from the Board and open up to the public about our plan B part also. So just — okay. Just my understanding is right, what you’re saying, I understand that you don’t want to obviously disclose your Plan B, but what you’ve just said just from my understanding and to clarification that it does not take 2.5 years and two to three years even if we lose the bid or we do — for some reason, the acquisition with Hindustan National Safety Glass does not go through. We will still have some volume growth and we will definitely have some value growth as we move forward in the next two to 2.5 years. Is that understanding correct?
Rajesh Khosla
Strong and mature organizations does not depend only on one plan. They have all alternate plans. So there can be a plan C also in that case. So that is what maximum I can say at this point of time.
Anil Shah
Fair enough. Thank you, sir. I have no other further questions. Thank you.
Operator
Thank you thank you. The next question is from the line of Garvita from Seven Island PMS. Please go-ahead.
Garvita Jain
Hello, sir. My question is, if you could give guidance on what is the volume we can — volume growth we can expect?
Operator
I’m sorry to interrupt here, Garvita, could you please speak loudly? You’re not quite audible.
Garvita Jain
Sir, I’m asking, if you could please give guidance on the volume growth and the sales growth. Looking at the peak current utilization level, what is the growth we can expect and volume growth? Because currently this growth which we have is because of the high-value which we are attaining?.
Rajesh Khosla
So Mr Sikta, please reply on this.
Sandeep Sikka
So your question is, if I can interpret, I couldn’t hear that properly. Your question is, going-forward, how much can be the volume growth and how can — how much can be the value growth? Is that the question?
Garvita Jain
So yes, sir. My question is the same — on the same line, how much could be the sales growth in total and volume growth?
Sandeep Sikka
So this ma’am there. Sorry. Rajesh?
Rajesh Khosla
Okay, shall I say just before you I have already answered the question because the Hindustan National Glass verdict is with the Supreme Court so if it all happens, so there will be a big volume growth in case it is not there. So there is a plan B in which both the volume and the value growth are there. We may not be able to open up the numbers because these numbers are yet for the internal discussion, not approved by our Board of Directors. So those numbers once approved with the Board, we have to follow the regulation of SEBI and then already we’ll be able to declare it.
Garvita Jain
Okay. Sir, numbers can begin my case. Thank you, sir. That was half.
Rajesh Khosla
Yeah. Yes.
Operator
Thank you. The next question is from the line of Dhaval Shah from Girik Capital. Please go-ahead.
Dhaval Shah
Hello. Thank you for the opportunity. Sir, am I audible?
Operator
MR. Shah, if you could speak a little louder, that would be better.
Dhaval Shah
Yeah. Is it fine now?
Operator
Yes, much better. Please go-ahead.
Dhaval Shah
Thank you. Yeah. Thank you for the opportunity, sir. Sir, my question is on understanding the cyclicality of the — of the business. We are at the best EBITDA margin levels right now and there is some sort of demand-supply scenario playing out and which is helping us the margins and along with our own operational efficiencies. Now going-forward, irrespective of the — the acquisition, how do you see the profitability scenario for our — this current business over the next one year period.
Rajesh Khosla
We have been replying these questions for last many, many quarters and we have been consistently telling that we will be able to maintain a reasonable level of our growth as well as profitability. And if you take-in consideration all our last few quarters, we are able to maintain our commitment level. So our commitment level or I can say indicative levels remains the same. So whatever it has been happening for last few quarters, we will be able to maintain the same time.
Dhaval Shah
Okay. So if I were to ask you in from a product mix perspective, is the richer product mix which we are doing it right now, which is helping our gross margin improve quarter-on-quarter. Is this your product?
Rajesh Khosla
Yes.
Dhaval Shah
So is this product mix sustainable or is it — I mean, of course, it is driven by your end-customer, what your customer is demanding and your customers must be demanding a better premium category of glass containers, which is giving you this growth. So how much is — is dependent upon customers’ demand versus how much is dependent driven by your own market-share gain and your own in your own efforts rather than because it’s the customers premium product which are selling more, that’s why the demand is coming versus you have gained some market-share and customer is selling the same volumes what it was doing two years back. So from that perspective, any thoughts you can share?
Rajesh Khosla
The Indian economy is already close to $4 trillion. It is strongly moving towards $5 trillion and towards the $6 trillion. So obviously, then the per-capita income, which is less than $3,000 as today will grow to $5,000 in the times to come. So obviously, all this per-capita income is going to go into the lifestyle products. And lifestyle products certainly going to attract a premium quality of glass and premium quality of products which are packed in glass. So we hope so that with the Indian demographic term as well as the demand cycle in the economy, the things will be progressively moving towards premiumization. And there secondly, we are going being the largest player in the market today. So it is going to be our field to tap all those potential markets. So we expect to grow accordingly.
Dhaval Shah
Got it. Sir, what is the scenario with regards to imports of the similar category of products.
Rajesh Khosla
Imports are there. It’s not like that imports are not there, imports are there. And whatever are the imports, these are the low-hanking potential fruits for us in the times to come.
Dhaval Shah
Okay. So to replace the imports?
Rajesh Khosla
Yes. So if the import numbers are high, we are more than happy because replacing the e-board numbers is quite easy or quite low-hanging for us.
Dhaval Shah
Okay. So it also means that the cost of production is much — it’s similar to what the cost of production is there in the exporting country.
Rajesh Khosla
Glass is a very geographic sensitive products. So I don’t think so. It can much affect whether the material is coming from China or Vietnam or anywhere. The local players always have a edge and we are going to use this edge all-the-time.
Dhaval Shah
Okay, has in the past imports have — has come and disturbed our market?
Rajesh Khosla
No.
Dhaval Shah
Okay, not in the category where AGI is present.
Rajesh Khosla
Yes, no.
Dhaval Shah
Okay. And if I’m correct, then did we mention around a 10% kind of volume growth outlook in one of the previous calls?
Rajesh Khosla
Okay. Mr. Sikka, can you reply?
Sandeep Sikka
So this guidance was given a few quarters back depending on certain internally options for debottlenecking, which are available with us. So as an organization, we also keep innovating as we have done, if you see our profitability numbers over the last many years, a lot of innovation has been done internally related with the fuel mix. Let us let it be our ability to use and produce higher efficiency in the system. So we have options built-in that there are some costs involved with the incremental volumes, which can be there. But at — if required at in time, we can actually use those options and do a volume expansion also okay.
Dhaval Shah
So this 10% outlook was given for which year? Was it for the FY ’25 or no,
Sandeep Sikka
No, you can’t be so perfect like because this is not a projections call, this is a sort of a guidance call which we are giving to you.
Dhaval Shah
Okay. Okay, okay. So it was overall from that — from whenever — in whichever quarter you gave the guidance, basis the capacity utilization, you must-have said that another 10% is possible.
Sandeep Sikka
Yes, yes.
Dhaval Shah
Okay. So it was from a utilization perspective.
Sandeep Sikka
Yeah. So it’s not that generally, we don’t — we don’t come up to the market and say, next year, our volumes will be this and our sales will be this. So we give a guidance in terms of the rationality rather than numbers.
Dhaval Shah
Understood. Understood. So it holds true as of today also in terms of utilization levels that —
Sandeep Sikka
So as I told you, like options keep coming through. If we are a dynamic organization, so — and we are on a cusp of although this litigation has taken a lot of time. But rightfully so we are also waiting on the edge so that the decision come through and we walk the path. So I think I’ll request you to wait for another quarter. I think things will be more clearer.
Dhaval Shah
Sure, sir. And sir, just last question. In the last quarter, we had some litigation-related expenses as a part of other expenses and that’s the reason it was a bit on a higher side. Was it also there for the current quarter?
Sandeep Sikka
Yes. We had a very long hearing at Supreme Court. So definitely all those costs are part or already built into the P&L, which has been disclosed.
Dhaval Shah
Okay, for the December quarter. Got it. Got it. Okay. And so then once that is out, then your actual margin could be a little bit higher than what reported.
Sandeep Sikka
Yes.
Dhaval Shah
Okay. Thank you.
Sandeep Sikka
Thank you.
Operator
Thank you. The next question is from the line of Ronak Oswal from Arihant Capital Markets Limited. Please go-ahead.
Ronak Oswal
Hello. Thank you for the opportunity. Am I audible?
Operator
Yes, you are audible.
Sandeep Sikka
There is a. There is a noise in the background chorus call. I think it’s done from chorus. I think you have a background noise also. I don’t know whether anybody else is also facing the same
Operator
Let me get it checked sir
Sandeep Sikka
Please get it checked so because the voice which is coming is very muffled to me. Rajesh is it okay with you?
Rajesh Khosla
It’s okay no problem.
Sandeep Sikka
Maybe it’s mat my end. Sorry, my apologies for that. So let’s continue. Please go-ahead with the call.
Ronak Oswal
Yes, sir. First, sir, my first question is regarding XMG code case. So what is the current status of the case? And can we expect the result up to 31st March new
Sandeep Sikka
Question is relating to litigation.
Ronak Oswal
Yes, SNG court case.
Sandeep Sikka
HNG proceedings the matter has already been heard and reserved by judges and honorable venture of the Supreme Court in November 2024 we are awaiting the outcome of the of the order as an order and if the proceedings is in our favor, then NCLT can start the proceedings for the you know, hearing the matter for approval of the resolution plan, so which may take another few one or two months or three months depending on how NCLT works. So we are hopeful, we are positive. I think that’s — since the matter is already subsidized, that’s the max what we can say from the company side.
Ronak Oswal
So up to how much time we can expect the proceedings from Supreme Court.
Sandeep Sikka
So as I told you, we are — we are very positive and we are very hopeful, but I cannot make any commitment on the timeline chat.
Ronak Oswal
Okay, so my next question is regarding, can you throw some light on volume expectations?
Sandeep Sikka
Volumes and values over the medium to long-term — short to medium-term range, we have already taken three calls on this today. Maybe I would request to pass-on this because already thrice, we have answered this.
Ronak Oswal
So bifurcation regarding what the bifurcation of normal Latin specialized class.
Sandeep Sikka
So normal. Yeah, Rajesh, please.
Rajesh Khosla
Mr Sika, honestly, I think I have not understood. Can you repeat the last question, please so that I have to
Sandeep Sikka
Question is what percentage of volumes is specialized glass and what percentage is the commercial glass in the nine months.
Rajesh Khosla
Okay I can I can say approximately 10% to 12% is normally the special glass and balance 90% or 88% is around commercial glass.
Ronak Oswal
Okay, sir. Sir, my next question is regarding raw-material prices. So what are the fluctuations in prices and how it has impacted us?
Rajesh Khosla
Madam, raw-material is fluctuating, it’s a normal like major soda ash and there is a MIT also minimum import price which has not impacted us anyway. And there are challenges. We are taking a remedy election, there are more challenges, we are taking more remedy election. So that is how we are able to produce the results, which is in front of you.
Ronak Oswal
Okay, sir. Thank you. That’s it from my side.
Operator
Thank you. Participants are requested to restrict yourselves to two questions. If you have any further questions, you may rejoin the queue. The next question is from the line of from CJ Family Office. Please go-ahead.
Viraj
Hi, thank you for the opportunity and congratulations on a great set of numbers, sir. Just a couple of questions to start with. So if we look at the industry size, purely for the segment in terms of demand, because obviously capacity there’s a lot of capacity, some capacities we can’t account for, but purely from the standpoint of demand, could you quantify what would it be? Is it 9,000 tonnes per day or lower than that also?
Sandeep Sikka
See it’s actually say it has lot of fragmented market also. Very difficult to point out the number. I think so the number what you are indicating is So the number what you are indicating is reasonably close to what we are so expect.
Viraj
Okay, so for alcove segment 9000 is reasonably close. And if I were to include F&B also food and beverages, basically everything except for the specialty segment that we do. So what would that figure be close to?
Rajesh Khosla
Difficult to say. Difficult to say. But maybe hopefully 12,000 tons something like that should be total market size
Viraj
12,000. But including wellness as well. Speciality as well.
Rajesh Khosla
Maybe a little bit here and there. More because you know, a lot of material is exported. A lot of material that’s import also a lot of segments are also there. So we do not have the exact number as such. But what number you are indicating, it is more or less close to that.
Viraj
Understood. Okay, now the second question. So when we say we have improved the product mix, the product mix is improving, do we. Are we alluding to the specialty segment that we have? Is that what we are trying to point to? Or in within the normal glass also we have developed some other products as well.
Rajesh Khosla
Within the normal class also there is a lot of special segments, lot of value added segments. And specialty of course is always there.
Viraj
Got it. So when. When we are seeing that our specialty segment has 154 tons per day capacity, based on this nameplate capacity. So what would be our utilization over here? Because we’ve not reached 90% in the specialty segment. Right?
Rajesh Khosla
We are not giving partners wise details to the market. So we may like to limit to the overall numbers what we have indicated.
Viraj
Okay. But are we progressing as per our expectations in that segment?
Rajesh Khosla
Of course. Of course. Of course.
Viraj
Got it. Got it. And recently. So there was one, one verdict that came out from CCI regarding Bhagyanagar Gas. There was one petition that we put against Bhagyanagar Gas. I believe it was for pricing issue that we had because we were procuring LNG from them. Just want to understand that are we still procuring LNG from them? And if we have moved to another raw material, the power sourcing that we’ve moved to, is it more expensive or is it cheaper? Just wanted to have a sense on this.
Rajesh Khosla
Bhagyanagar Gas is a city gas distribution agency. So our Hyderabad plant belongs to that. As per the norms of the government, we are supposed to buy everything from this. Bhagya Nagar Gas only can give us a better price for the gas. And since it is in monopolistic situation, we had referred the case to CCI so that they can have a verdict on the. So this is the way we like to address to reduce our cost on the fuel side.
Viraj
Okay. But since they are monopolistic, was it the cheapest in terms of winning gas?
Rajesh Khosla
If they would. If they would have been cheapest, we would not have gone to ccl.
Viraj
Okay. Okay. Understood. Okay. Yeah, that’s it for myself. I’ll get back in the future. Thank you.
Operator
Thank you. The next question is from the line of Niharika Jain from Aequitas Investment. Please go ahead.
Niharika Jain
Hi. Thank you for the opportunity. Just two quick questions. How has soda ash prices been quarter on quarter and currently. And how has the realizations for us been like quarter on quarter and currently the glass realization.
Rajesh Khosla
You mean to say glass realization is
Niharika Jain
Basically sodas prices quarter and quarter and current and glass realization second quarter and quarter and current.
Rajesh Khosla
Madam, to calculate the glass realization we have to divide our income by the volume. As in this call we are not indicating any volume to the to the market. So I’ll be sorry to say that price per ton indication we are not giving it to the market.
Niharika Jain
You can provide that will also like is it increased or stable? That will also do even if you
Rajesh Khosla
It’s stable. So 3%, 4% plus final. I always call it a stable.
Niharika Jain
Okay,
Rajesh Khosla
Now coming back to soda ash. Ma’am, there are three type of cost of the soda ash that is called CMT, RMT and ITP. CMP means current market prices. RMT means raw material consumption prices and in it PV’s in transit prices. So what happens is whatever balance sheet is being given to you it is on the consumption basis. But the market indications are on cmp. So my numbers of CMP will not be directly translated to the numbers of our balance sheet. But as such the price of soda ash with respect to last year on CMP basis has come down and now it is quite stable.
Niharika Jain
Okay. Okay. That was it for my.
Rajesh Khosla
Thank you Beth.
Operator
Thank you. The next question is from the line of Meet Katrodiya from Niveshaay. Please go ahead.
Meet Katrodiya
Yes sir. Thank you so much for the opportunity. One big question. Is my understanding right that we should use the fund to pay the debt.
Sandeep Sikka
I can’t hear you.
Meet Katrodiya
Hello. Hello.
Sandeep Sikka
There is a background noise. If you can check please. It’s very difficult to hear.
Operator
Hello Mr. Katrodiya, if you could please come closer to the microphone and use your instrument on the handset mode.
Meet Katrodiya
Hello. Am I audible?
Operator
Yes, much better.
Meet Katrodiya
Yeah. I have one quick question. Is my understanding right that we would use the fund to pay the debt?
Sandeep Sikka
Which fund? Which fund is being referred here?
Meet Katrodiya
If we do any QIP or.
Sandeep Sikka
Yeah, definitely. Because if you see today we don’t have a much debt and you know once the acquisition happens which is subject to the approvals of the court, we’ll have to leverage for the time being to do this acquisition and bring it back and. And simultaneously we can raise equity also. So then we can prune down the debt in the company.
Meet Katrodiya
Okay. Okay, thank you so much.
Operator
Thank you. The next question is from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Deepak Poddar
Yeah. Am I audible, sir?
Sandeep Sikka
Yes, please.
Deepak Poddar
Yeah. So you mentioned in one of your remark that we are looking to increase our mix of specialized glasses going more towards premium product. So can you throw some light, I mean in next one to two years, which is currently 10 to 12% kind of a revenue mix. How do you see that the percentage.
Rajesh Khosla
Mr. Sikha, can I understand little more on this question
Sandeep Sikka
Is I understand there is a noise in the background. So the question Rajesh is that right now the premium constant, the one in terms of volume, the premium is around 12% to 15% of the volume. So where is the vision of the company in the next three, four years that how, how much more premium glass can we can sell?
Rajesh Khosla
Let me answer with this first your answer on political level. As a company we have a vision and aspiration to make 100% of our glass as a value added and premium glass. So this is just a small statement. Okay. Now coming back to the realistic part. Special, specialized glass is a very subjective term. Within our commercial glass there are a lot of special categories and we are developing the same more and more. For example, like we are having a colored glass. So colored glass is a special category within the commercial class. Then there are some more in a, in a premium glasses which are coming on the glicker side where the bottles are required in the fully decorated stage. So we are also tapping the same. Then there is a retail segment of the market. So within the commercial there are also some special segments and we are moving ahead in capturing all those special segments which are helping us to grow our top line and bottom line both simultaneously.
Deepak Poddar
So, so what sort of percentage we are looking at? I mean currently which is 10 to 12%. How do we see that panning out? I mean in next three years can it be 20, 25%? Is that something that
Rajesh Khosla
We have a vision and aspiration both for this number?
Deepak Poddar
Come again?
Rajesh Khosla
We have a vision and aspiration for this number.
Deepak Poddar
So for this 20, 25, that’s not target.
Sandeep Sikka
That’s what trying to say that we aspire towards that and we are moving directionally towards that. But the specialized glass doesn’t mean only the specialized, the glass coming from the specialized furnace. Even in other furnaces we are doing lot of specialized glass.
Deepak Poddar
Okay, okay, I, I got it. I think that would be from my side all the way. Best you. Thank you.
Sandeep Sikka
So yeah, apologies. I think there is some background noise which at least I am hearing. So I’m just trying to make the question correct. You know what is.
Operator
Thank you. The next question is from the line of Parikshit Gupta from Fair Value Capital. Please go ahead.
Parikshit Gupta
Hello. Am I audible? Yeah, right. Thank you very much for the opportunity and congratulations on a successful quarter. Actually most of my questions have been answered but I would like to get a little more color on the specialty glass segment please. We understand that numbers cannot be shared from the company supply side. But can you talk a little bit about demands in specific sub sectors such as perfumery and I believe in the FMCG sector you would you know provide specialty class to cold pressed products and the like. Can you share how much ever is, you know possible? Please.
Rajesh Khosla
See as far as India cosmetic market is concerned, cosmetic is a very generic word and it includes perfumery and lot of other products. This market is growing very very fast. Last estimate the market was close to 1 lakh crore or something like that. It was there and it is growing and, and second what is happening there is a lot of shuffling. From a traditional plastic and other products were used. They are entering into the class segments. Even in the slash segments new new entrants are coming. For example like there is a serum bottle. There is a serum bottle. And other, if I tell you correctly the Indian cosmetic market is approximately $15 billion in the year 2024. And it is projected to grow almost to $25 billion by 2033. So almost in seven, eight years it is expected to almost double. So obviously when this is going to double. So glass is going to play a very very important role and we expect that there is going to be a big growth in two segments.
Parikshit Gupta
I understand sir, that’s very helpful. But from the company standpoint would you be able to share your, I mean top line share to the cosmetic market on a year, on year basis or if that’s possible.
Rajesh Khosla
We do not declare on a furnace files any segment wise share and other things. And I request you, you can send your particular request to our company and we would like to share with you the best possible way of returning norms to you. But publicly we cannot be able to the numbers.
Parikshit Gupta
I understand sir. One more question on. Sorry one question on the export share. It was previously articulated that the company would want to you know keep the share of export at about 5% of total top line. Is there any further change in that? And you know among.
Rajesh Khosla
I believe we want to grow the exports little higher. Our aspiration is around 15% now.
Parikshit Gupta
And what kind of, you know mostly it could Be specialty products, right. If I’m
Rajesh Khosla
15% is in total, specialty will be much much more and commercial will be little less.
Parikshit Gupta
Understood. Sir, just one last question on the, on the you know retail business which was you know as a subsidiary in October. I’ve seen the products on Amazon and the basket there. What’s the medium to long term plan, you know in terms of sustainable share and top line as well as
Rajesh Khosla
This is one business which is very close to our heart and we want to grow significantly our presence in this business. Mr. Sikha, anything more you want to add in retail?
Sandeep Sikka
So if you see on the retail side there have been number of questions which have been asked on the volume value expansion. So this initiative is very rightful from our side and we are very gungo internally. So basically you made a mention that on an E commerce portal you have seen what is the cost of those models and what, what clue I can give you is that the weight of each bottle is around 350 grams to 400 grams. And there are definitely there are costs involved in the E commerce and there are also packaging costs. But once this volume gets build up there can be a substantial incremental earnings potential here with the small delta on the volumes change. So while you just try to do an inverse mathematics here, start with the sales realization on the E commerce portal and have an estimate of you know, let’s say 30, 40% whatever is the marketing cost on those E commerce portals plus the packaging cost, plus the supply chain cost. But you will start seeing a number, you know which is, which is a very healthy number. But it’ll take time to build those things because entire internally we have been a B2B organization and this is a B2C initiative which is, which will give us, give us the headway, you know towards the value expansion more with a very little bit of volume.
Parikshit Gupta
I understand sir, this has been very helpful. That’s it from my side and good luck for the next quarter.
Sandeep Sikka
Thank you very much.
Operator
Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for the closing comments.
Sandeep Sikka
Just I think this has been very interactive, very helpful but little bit of a noise in the background. You know, maybe if we have missed anything we can take it next time. But thank you everybody for coming to the call and making it such an interactive session. Thank you very much.
Operator
Thank you ladies and gentlemen on behalf of MK Global Financial Services limited That concludes this conference. Thank you for joining us. And you may now disconnect your lines.