Balrampur Chini Mills Ltd (NSE: BALRAMCHIN) Q2 2025 Earnings Call dated Nov. 12, 2024
Corporate Participants:
Jenny Rose
Vivek Saraogi — Executive Chairman of the Board, Managing Director
Avantika Saraogi — Executive Director
Pramod Patwari — Chief Financial Officer
Analysts:
Sanjay Manyal — Analyst
Shailesh Kanani — Analyst
Nitin Awasthi — Analyst
Omkar Chitnis — Analyst
Udit Gupta — Analyst
Deepak — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Balrampur Chini Mills Limited’s earnings conference call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to MS Jenny Rose from CDR India. Thank you and over to you Jenny.
Jenny Rose
Good afternoon, everyone and thank you for joining us on Balrampur Chini Mills Q2 and H1 FY 25 results conference call we have with us today, Mr.Vivek Saraogi Chairman and managing director of Balrampur Chini Mills, Ms.Avantika Saraogi, executive director and Mr Pramod Patwari Chief Financial Officer of the company.
We would now like to begin the call with brief opening remarks from the management following which we will for the question and answer session. Before we start, I would like to point out that some statements made in today’s call may be forward-looking in nature and a disclaimer to this effect. Has been included in the results presentation shared with you earlier.
I would now like to invite Mr Sarabi to make his opening remarks over to you, sir.
Vivek Saraogi — Executive Chairman of the Board, Managing Director
Thank you and good afternoon for joining us. Good afternoon and thank you for joining us on our quarterly conference call, earnings conference call. I trust all of you had the opportunity to go through the results presentation, providing details of operational and financial performance. I will initiate the call with an update on the current development in the sugar sector followed by highlights for the period under review gross production forecasting for the upcoming season is is in the range of 32 million in our mind. ISMAs view of 33 million.After accounting for diversion of 37 lakhs per month, the net sugar production is expected to be 283 lakh tons of 28.3 million tons. As compared to 32 last year.
Regionally, you be expected to remain stable at the production of over 10.8 million tons similar to last year’s level, Matra and Karnataka. However may see a bit of a tip as on 30th, September 24th Indias sugar inventory stands at around 8.5 million combined with the production of 28.3. That is the net post diversion production. This supply is expected to adequately meet the domestic need of 29 million. That is a forecasted consumption from here. There’s an ample stock. However, the opening stock which is at a record high of the recent record high, which led to a pressure in sugar prices, prompting the industry to request for an increase in MSP which is long overdue to help ensure fair returns for producers.
And also we have asked for exports based on the above balance sheet of sugar. That is the inventory position given to you.Turning to the technology sector, ethanol production from Canin has played a pivotal role in supporting the government’s blending target.This diversion remains essential as India has reached 15% in 22,024 and is on track to meet 20% by 25. Right now. The bid is for 18% 18% following a brief policy shift in the previous year. That was the election year. The government has lifted all restrictions on sugar diversion for economic production.
The industry is also awaiting the announcement of the revision of the small prices expected in the coming days. So just to take you a little bit into the balance sheet. So if we produce 28.3 net this year and presumption is 29 that’s a minus seven lakhs for this year.If I deduct seven lakhs from 85 lakhs, we get an inventory of 78 lakhs. So even if government is looking at a 60 lac inventory, there is go for almost 2 million exports which can be announced we believe that once the government gets a little more certain about the production, there could be some movement on that front.
On the business front, the company faced the selling in quarter with profitably impacted due to high sugar volumes that improved realizations. But despite higher higher volumes and slightly improved realizations lower crashing last year, which was almost similar to the year before 2% down prevented us from absorbing the full fixed cost. And the distillery division was impacted by a lower availability.
And B the government’s order of December 23 the restricting diversion of sugarcane juice and B heavy molasses for small production.Both these factors have affected our performance since all the expenses have been accounted for in this quarter without commensurate production.Looking ahead, we are confident that our intensified on block chain development initiatives, particularly our shift from disease affected varieties will help mitigate the challenges going ahead. These efforts are aimed at maintaining healthy gain availability with good recovery and also optimizing capacity utilization.
The company’s integrated operations have been a cornerstone of our ability to adapt to industry dynamics and we have remained resilient in the wake of challenges. We believe the PL A project which I will be asking A to brief on after they finish. We believe that the PL A project is a transfer, make a step for perfectly aligning our philosophy of maximizing using value for every stick of game.This initiative not only strengthens our relationship with the farmer community. And since it uses sugar as basic raw material, it advances our sustainability goals and marks a significant evolution of our business model.We are confident to create long term value by contributing to a greener and more sustainable future.In conclusion, the company remains committed to delivering shareholder value. And we are pleased to announce that the board of directors has announced an interim dividend of 3%.
I would now request Avantika to update on the PS A project.Avantika.
Avantika Saraogi — Executive Director
Good afternoon, everyone. Thank you for having me. So first a brief update on the period a project. So everything is going as per schedule. We are on time line, we are in the detailed engineering phase which is almost to conclude soon. And then we would have some irr figures for the market. But apart from that in the quarter gone by, there’s been two major developments which has happened.The first is the up government has announced a policy for bioplastics for for this project, which is a 50% capex subsidy over seven years, a 5% interest subvention and then SGSP net reimbursement. Along with this, there are other smaller benefits as well such as stamp duty, reimbursement, electrical duty waivers, etcetera, which are also part of the team.
So this is a commendable set by the up government and we applaud them for this measure it makes us you know, come to the project with double the rigor and really kind of make it happen. Well, the second thing is that in August of 24 central government cabinet approved a policy called the Bio E three policy.The policy is meant to give impetus to biomanufacturing including biopolymers in which our project also falls. We are yet to see the exact particulars and schemes which will be eligible to us from this policy. But the fact that it is about moving over from a fossil based to a bio based economy is the real push that we did want for the country as well as for the state.
So we are grateful and we are very happy for both announcements. As I mentioned in the beginning, we will have some more financials, but we need a little bit more time for that. Other than this about sugarcane production. This year, we will at the moment, I would like to say that we will be similar to last year like it, it seems flat for up and we are part of, we are in the same board, but there are some factors that could affect some headwinds, some tailwinds. So the first I would, I would, I’ll just a headwind due to you know, due to some late planting in 23 factories we might have slightly lower availability due two years. Having, you know, a month less to grow. But having said that there is a tail wind on the fact that the diversion should be much lower than last year. Other than this, there are obviously things which hang in the balance such as winter rains.
If we get a winter rain, then you can jump. So, again, this is hard to predict, but we’ve given it our best shot. That’s it from me. Thank you very much.
Pramod Patwari — Chief Financial Officer
Thank you and good afternoon everyone. I hope all of you had the opportunity to go through the results presentation that has been shared with you. So I would request the moderator to open the forum for questions. Thank you.
Questions and Answers:
Pramod Patwari
Thank you very much, sir. [Operator Instructions] The first question is from the line of Sanjay Manyal from D AM capital. Please go ahead. Hi, everyone. Just have a few questions on the sugar cane crushing part. I think last season you mentioned that there is almost 8% increase in the area in the sugar cane in the catchment area. But production was more or less flat. How is the situation? Now, if you just can define in terms of what is the increase in the area in the sugar cane and what could be the availability, whether it will be? So just leaving apart the weather factor, if everything remains normal, what could be the crashing number?
Vivek Saraogi
So I think I’ll take that. Basically, I think the area is similar to last year, there is not much change. And on the weather front, as we said, outside of the fact that India was, you know, sort of hit by Nino last year and we are entering the Lana phase, we’ve seen winter rains happening every year.
So if you see in the entire up estimate last year, it just eroded by 5% without anybody’s understanding all units across up, we build our but for everybody, so we hope that the winter rain would come in. That’s our only positive.We are saying that if the winter rain comes in, we should improve over lasts.And as AvanthikaI mentioned, lower diversion. Right? Also also just want to understand from the yield perspective, the sugar cane yield per hectare. So is it safe to say that despite increase in the area last year, probably the production was a bit lower.So is it safe to say that nonal 0 to three variety, you have a lower yield per hectare compared to the newer ones?
Avantika Saraogi
I’ll take that. So definitely 238 had had a yield which was you know, loved by farmers and Millers alike. But having said that even when 238 had come in the beginning, it takes two or three years for a clean variety to really acclimatize itself to its new surroundings where it can really then come and give you yield. So last year, if you realize that, I think market is well aware, but we had a huge shift in variety and the varieties were mostly new.So it, it could not give the vigor that it should give as as what we had estimated as well or maybe it was due to diversion, maybe it was due to the non winter rain but still net net. It did not give us the result that we thought it would.
Now this year is one more year, which means it’s had a longer time to acclimatize. I would say that until until now, we cannot give you an exact figure that if the yields are lower. According to me personally, if you ask me, the yield of the new varieties are not at all lower.I think the acclimatization process once it is done, which is more or less getting there, then this, this question should kind of go out, but we might see another, you know, maybe it might need another few months to really give you a yes or a No that.
Vivek Saraogi
So, there are two kinds of yield assessment. If one is to be brutally H1st, one is called the ratoon yield. One is called the plant yield.The ratoon yield. Since we’ve begun four of our factories right now, the rect yield, the first indication comes after 15-20 days.And just to give you other six fact begin between about 16-17 to 22nd, 23rd, with one exception going into the 1st of December.
So the entire proper yield assessment for a tool can be done by about 10 to 15 December. That’s first date and the plant yield assessment is done around 20th of the third week of February.So these are two milestones. And as Avantika said, I’m just adding a point, the availability of 238 for crushing last year was very low and it will be a little lower this year. So from last year to this year, there is, you know, no shift which is meaningful from 238 to a downward variety. Third, these varieties are disease free almost and you see they have given us a much better recovery. So these varieties going ahead will perform and the recoveries have already been higher.
Sanjay Manyal
Okay. Perfect. I believe we’ll get the sense on recovery as well after some time only.
Vivek Saraogi
It’s begin Well, but yeah, let’s just wait a bit.
Sanjay Manyal
Yes. My last question on the small part, given the fact that restrictions are being lifted, what is, what is your sense that this season we will be able to, what kind of volume we’ll be able to do? And probably if you can just give a broad assessment of what could be the heavy, what could be the juice and what could be the green part?
Pramod Patwari
So for the year which will, which has began from 1st of November and we will run up to 31st of October. We are expecting on the basis of the current gain availability. Estimate around INR25Crores including the age portion will be in a portion to do in addition to this around INR3crores liter on account of PM. So within this INR25Crore, maybe around INR9 Crore on a count of juice and around INR10 to 11 crores something 11 maybe 11 half Crore and the rest is.
Sanjay Manyal
Okay. Right. And sir in the current location, what is the location we have received.
Pramod Patwari
For the first quarter?
Sanjay Manyal
Yes.
Vivek Saraogi
I think totally.
Pramod Patwari
Total total. We have received. And that juice we have received.
Vivek Saraogi
And B we’ve sort of received 55 or almost six articles.
Sanjay Manyal
Okay. Perfect. That’s all. Thank you.
Operator
We’ll take the next question from the line of Shailesh Kanani from Centrum Broking Limited. Please go ahead.
Shailesh Kanani
Good afternoon everyone. Thanks for the opportunity. Sir, on the sugar prices since last year, the sugar prices have been holding up. Well, inpi of market knowledge that the diversion towards would be lower since last year. Now, obviously the cap has been remove. So to your mind, what factors are helping soug prices to remain a part of 38- 50.And How sustainable they.
Vivek Saraogi
Yeah, so first of all, 38-50 is not a you know, price after INR20 increase in the price, the pricing should be a little higher to our mind. So yes, if we see the situation of last year and if you’re talking about the inventory of 80 odd LA plus and the price being at 38 R, that is a good sign. However, the our open thinking is that the prices shooting proof from here, it needs a little bit of help from the government we mentioned, okay, let’s put it in short. There are three demands of the industry which need to be met which are very rational.
Two are coming out of a declared policy some years back which unfortunately has not been followed up. One is declaration of MSP. It was done for the first two years after the policy came in minimum selling price, it hasn’t been followed up thereafter. So that is one thing which can help.Two is the prices which is overdue to our mind. But we hope should come in. I probably would guess maybe a election has something to do with it for the timing portion and he is the export.
So even they were declared a statement by the government that keeping the closing stock of, you know, about maybe INR5.5 -6 million, the rest will be automatically allowed for exports. So again, our demand there is about INR2 million.If the INR2 million and MSP is done by the government, we feel the price should be headed upwards from here, which is needed by the industry.
Shailesh Kanani
Fair enough. So, so is it is it fair to assume that there is a better discipline in terms of pricing and the from the players in the industry?
Vivek Saraogi
It’s a quota system. That’s why the discipline, I guess.
Shailesh Kanani
Okay. So my second question is with respect to certain media reports where government is contemplating of increasing the blending, say 20 to 24 months along towards E 25. To your mind, sir, how practical is that? Is it possible? Do we have the fee stocks? And does Balrampur is planning to capitalize on this opportunity or anything on that side, sir?
Pramod Patwari
To sell the target for this year is around 18% of blending and for the next year it is 20%. The government is also in the process of studying beyond 20 what is what is needed to be done to achieve a blending of beyond 20.
Of course, based of availability will be a very key factor. Apart from that infrastructure and bottlenecks like creation of storage facilities, outlets dispensation.Government is considering all these factors, there will be some lesser efficiency if we go for higher building that needs to be adequately addressed to lowering of GST on flexible vehicles as well as the hybrid. So government is in the process of evaluating it.
Vivek Saraogi
And on how ramp looks to capitalize on this, we have adequate distillation capacity. So we were working very hard to increase gain production which will subsequently lead to in production.
Shailesh Kanani
Okay. sir. That’s very helpful. Thanks and best of luck sir.
Operator
Thank you. [Operator Instructions] The next question is from the line of Nitin Awasthi from InCred Research. Please go ahead.
Nitin Awasthi
Hello sir. I have a question regarding the Sugar Control Act. There’s a draft given by the government and I believe it’s under discussion with the industry and the participants within the coal industry. How will that change affect us one and your thoughts, whether those the policy is getting more stringent and it will also now in and was to, you know, get the pl A under its own control in some way or the other, which previously was not there under the older or any in this country. So if you could throw some.
Vivek Saraogi
So first of all, the government always has all powers under the act regarding essential commodities.So there were just, there’s just zero impact of that in my mind. Double zero on anything at all.Why this came up? Probably because when the government put a just a sudden halt to the small production last year, some people went to court. So based on that, they have taken the power to moderate at small production.They did it last year. And then so in our view, there is 000 impact of that. Absolutely.
Nitin Awasthi
Understood, sir. Thank you.
Operator
Thank you. [Operator Instructions] We’ll take the next question from the line of Omkar Chitnis from trade brains. Please go ahead.
Omkar Chitnis
Good afternoon. Thank you for sir.Good afternoon. I have a question, sir. I have a question on production capacity.
Operator
I’m Sorry to interrupt your audio is not clear. May I request you to use your handset, please?
Omkar Chitnis
Okay, sure.So I have a question on production capacity.One of our listed competitor in the market, they have a 40 40,000 less than PC of crushing capacity, but they are one of the largest external producer of 1,250 K period of internal production as being Balrampur having 80,000 crushing capacity. Why we are not the largest tern production producer. What are the challenges you are facing in that.
Vivek Saraogi
We we deliver our and all I think if we promote, have a adequate.
Pramod Patwari
So yeah, you are right that our crushing capacity is 80,000 tons.So we are shifting from variety to 38 to new varieties. Our existing distillation capacity can handle cane of around 11.5 Crore, 12 Crore of cane. Currently, we are in the region of around 10 Crore of.So we are waiting for the cane to be there before we take any further action.
Vivek Saraogi
And I I will attempt to answer your question. I think I’ve understood it. We build our capacity of 320 days capacity utilization. Hence that is the ratio for 320. So if you build for a, you want to sweat your assets less that is your option.So one can very safely say for our level of crushing, which I think would be better than the person. You are maybe saying, I don’t know the name. So from Bajaj is the only one with a higher crashing capacity or higher.
Can you know, because 16 units otherwise based on the numbers we’ve given you and based on the fact that you want to sweat your assets, this is the proper capacity to be installed for the crashing given.
Omkar Chitnis
Okay. Understood. And my second question is as of Q2 revenue breakup how much revenues is from raw sugar and white sugar? And who are the customers of raw sugar? Sir?
Pramod Patwari
We have not produced any raw sugar.
Vivek Saraogi
And by the way, raw sugar cannot be sold to the customer.
Omkar Chitnis
For B two B. Right sir?
Vivek Saraogi
No, not allowed.
Omkar Chitnis
Okay.So, as of now, we have co capacitor of 125 megawatt. Is there any expansion plan in that? And what is the per unit you are getting from electricity grid?
Pramod Patwari
So we we have no further expansion program in this segment. Power which we are exporting to grid Uttar Pradesh grid. We are getting realization in the region of around plus open access. So average relation should be on a normal basis or fine.Five plus for the quarter. It was around six plus. That is because of the sale of the open access, be close to five.
Omkar Chitnis
Oh okay. So I understood and my last question is the government of up has made electricity for irrigation free in the month of March this year. How much you are getting benefit from this season and what you, how much you’re expecting in crushing of sugarcane this season.
Avantika Saraogi
So I’ll take that you know, the benefits were very you know, it was very heartening to see that. And the farmers were able to irrigate without having to think of cost, especially our eu P farmers where we have eight of our factories. They are very sensitive to cost. And this really helped the people who actually had the, you know, connections and it is still a work in progress.We’re still trying to get everybody connected, but this is a big thing and it’s a very, very commendable effort by the government.
Omkar Chitnis
Ma’am, how much you are expecting crushing for this season?
Avantika Saraogi
It’s very difficult to tell on account of these things, how much the crushing will increase. And we need a little bit more time to do the cutting years to have a better you know, better visibility. Maybe in the next investor call, we’ll have a better figure for.
Vivek Saraogi
Next investor call for sure.
Omkar Chitnis
Okay, sir. Thank you.
Operator
Thank you. The next question is from the line of Udit Gupta an individual investor. Please go ahead.
Udit Gupta
Hi, good afternoon, sir. My question is sir, is there any change in the levy policy for the up government?
Vivek Saraogi
No, kind of same. It is. No, nothing to our knowledge. Yes, it should be in the same vicinity. Same thing. Repeat.
Udit Gupta
And sir are good and canari units also required to give levy molasses now.
Vivek Saraogi
No. So yeah, just to brief you since you’ve gone into a good detailed question. So the government of up has sort of indirectly directly come up with, you know, internal notifications asking for pressure etc. That is the constant to maintain some pollution laws, etcetera. They are encouraging the effect. I’m telling you, they are encouraging more diversion towards the sugar sector. So the government of U is interested that sugar industry crushes more canin and they are working indirectly towards it on good. And Kanri, there is no restriction till now but they are.
Avantika Saraogi
There’s discussion, there’s a lot of discussion.
Vivek Saraogi
Yeah, but it hasn’t happened.
Udit Gupta
So our gold rate should go up this year Sir.
Vivek Saraogi
Hopefully, hopefully give us a chance to next time because we were we are founding correct like all the others in estimating in last year. So we want to be cautious. We just want you to wait for, you know, one quarter whereby we’d also be able to give you a indication on the plan.
Udit Gupta
Right? And sir, regarding the PLA plant where there’s a 50% capital subsidy. So does that mean that it’s an interest subsidy or the like the $2000 that we invest that will come back to us?
Vivek Saraogi
Two separate things.
Avantika Saraogi
Yeah, so you want, okay, use it.
Vivek Saraogi
Yeah, two separate things. Whatever the Kex you put in 50% of that Kpex will be payable over seven years. So let us say 50% of the 1,000 let us say so 140 something in 27 or 1 43 27 is equal 2000. So government of up pays 143 a year as capital subsidy, correct interest subsidy is supposed we borrow at X percent is let us say 8% or whatever 5% out of that, which means the net impact to the company on its borrowing cost will be 3% eight minus five GST reimbursement as and when goods are sold, whether they are sold in up or not, if it’s sold in up, the net SGS T that is after the ITC credit will be reimbursed to us.
Udit Gupta
Get your point, sir. And so this plant is on track for commissioning in October 2026.
Avantika Saraogi
Yes.
Vivek Saraogi
Yes. Yes. I want to pick up 2026 October 2026. The second. Yeah.
Udit Gupta
All right. Thank you so much.
Vivek Saraogi
Thank you.
Operator
Thank you, ladies and gentlemen, we’ll take one more last question which is from the line of Deepak from Sundaram Mutual Fund. Please go ahead.
Deepak
Thank you. My question revolves around the PLA want to understand when we talk about manufacturing of PLA, you’re talking about producing pellets, right? Which will be sold to the perform Converters.
Avantika Saraogi
Yes.
Deepak
Okay. And regarding this capital subsidy of 50%. So how do we define what are the assets which are eligible for this capital subsidy? Means, meaning will it include land building R&D cost. Or technology transfer cost Or only only is it applicable to PP which will be buying.
Vivek Saraogi
Very good question
Avantika Saraogi
So the finet hasn’t totally been laid out. But usually what happens is that other than what is already, you know, what is on the ground, you are usually able to claim everything, but I think we should wait for the order to come in and read the fine print before we really make a proper comment on that.
Deepak
Okay. And let’s say if this subsidy does come in, then it’s on reimbursement model, right? It is not party possible. Meaning that when you invest X amount, the government will Also move.
Avantika Saraogi
And I just want to, I just want to clarify, there’s no if the subsidy is been allowed. So the person is out, the other thing is that we, we will come up with the fine print as well when we come up with the other financials for the project soon.
Vivek Saraogi
But your question is valid. Let me answer that. So you are saying, and I’m clarifying that to the best of our understanding or anything which is payable will be payable after commercial production except the land portion of the subsidy, it will accrue.
So let’s say you borrowed 100 quote. I’ll just give an example and until the project comes up, there is a subsidy of free pros to be claimed on.So all that will accrue but payable after commencement of production. Got it.So that will accrue and payable because they need to see commercial production and rightly.
Deepak
No, that’s exactly that was my that was understood.Yeah. Yeah. And, and 11 this macro because if you look at the pl A prices per kg means roughly around market data is INR50 per kg.And if you look at single use plastic which is PP or polyethylene based, you know, they are half the cost of PL A.
So I was just thinking, you know, means how will the volume of it happens without any regulation coming into the picture? Wouldn’t it be difficult for us to scale up this plant utilization?
Avantika Saraogi
So I I I’ll take that. So this I think let’s, you know, we must be cognizant of the fact that we announced this project before we knew also that we will get any policy or any hope of any policy even. So your question is absolutely right. Of single use plastic, 19 items for single use plastic are already banned. You cannot make it from PP or P/E.
So therein the price discussion goes out of the window because then I’m not comparing myself to AP P or A P/E right? I am competing with the alternatives, for example, in straw people are now using cardboard or paper, right? So I’m competing with that in in bags, in carry bags, people are either making very, very thick plastic carry bags which I can really be much better in terms of cost tag or they’re making cloth bags. Again, I can compete with that. For bottles they are doing you know, I can go on.
So for eb they are using paper or they are using good. Again, I can compete with that. There are many, many things for which already I’ll be able to compete at the existing price level, which you mentioned wherein you know, it’s a drop in the ocean.Our quantity 75,000 tons in a market of single use plastic in India per year five million tons, 75,000 tons will just go completely unnoticed is what we think.
But having said that we can’t, you know, we should not be so, bullish, I think we should still focus on more you know, tightening of regulations.I think the, the only luck you know, here is that the single use plastic ban needs to be enforced properly because though the regulation exists, the enforcement is sometimes you know, gray, this is what we want from the government.
We don’t want more regulation. We want enforcement of existing regulation and which we are happy to do. And in fact, basically the whole discussion was that there was no raw material. So they were not able to force the regulation as per their liking.So we are in discussions and we are happy about this you know, opportunity that they will also get to import their brand.
Vivek Saraogi
Okay. I hope you’ve understood the question. Yes.
Deepak
Yes, I have understood it, sir.So given this scenario means do you feel that once the plan gets commercialized within three years, we can achieve a peak utilization and what could be the peak utilization?
Avantika Saraogi
Yes, I think that is the plan.
Vivek Saraogi
So why three years we are working from like the full, there’s a full team working on the marketing already. So like do not go into more details. So the marketing 11 would hope to sell with the day you produce.
Avantika Saraogi
And I think. You mean do you mean production or do you mean sales?
Deepak
I mean once the plant becomes commercial means within how many years can we achieve a deep level? And what would the number be?
Vivek Saraogi
No, no. Here see the ideas are just a new plant. It’s a, you know, high end plant. So lets you take three to four to five months at best to stabilize the quality. We feel that the goods will be sold the day you start your commercial production. So capacity utilization sales our best. Yes, today is six months.
Avantika Saraogi
And he’s asking what that number is. So 75,000 times is the rated per annum is the rated capacity. Now peak will be only seen once the plant is installed.
Deepak
Got it, sir. Thank You So much.
Vivek Saraogi
Yeah, and just to clarify the competition once it’s banned gets enforceable. As I said, government is continuously saying you want us to enforce the, enforce the ban shows the alternative we inforce the bank.
Deepak
Okay. Right.
Operator
Thank you.
Vivek Saraogi
Thank you.
Operator
As there are no further questions, I would now like to hand the conference over to the management for closing comments over to yourself.
Vivek Saraogi
Thank you, everyone. And we will continuously keep updating you on all the business aspects as time goes and we are always there to answer your question.Thank you.
Operator
[Operator Closing Remarks]