Borosil Ltd (NSE: BORORENEW) Q1 2026 Earnings Call dated Aug. 18, 2025
Corporate Participants:
Unidentified Speaker
Shreevar Kheruka — Managing Director & CEO
Anand Sultania — Chief Financial. Officer
Analysts:
Unidentified Participant
Aniruddha Joshi — Analyst
Sucrit Patil — Analyst
Mohit Jangir — Analyst
Akshat Mehta — Analyst
Bhavin Rupani — Analyst
Vipulkumar Shah — Analyst
Rakesh Wadhwani — Analyst
Resha Mehta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Borosil Q1 FY26 earnings conference call hosted by ICICI Securities 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 and then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniruddhosh Doshi from ICICI Securities Limited. Thank you. And over to you sir.
Aniruddha Joshi — Analyst
Yeah thanks Nidhi. On behalf of ICICI securities we welcome you all to Q1FY26 results conference call of Borosil Limited. We have with us today senior management represented by Mr. Shivar Keruka managing director and CEO Mr. Rajesh Kumar Chowdhury old time director Mr. Anand Sultania CFO Mr. Rituraj Sharma, President Consumer Products and Mr. Balesh Chalpadi, Vice President Investor Relations. Now I hand over the call to the management for the initial comments on quarterly performance. Then we will open the floor for question and answer session. Thanks. And over to you Srivar sir.
Shreevar Kheruka — Managing Director & CEO
So thank you Anirudh and ICICI securities for arranged this call. Good afternoon to every one of you. We are all delighted to be communicating with you once again. I am pleased to inform you that Borussa Limited’s board has approved the financial results for Q1FY26. During our meeting on 14 August 2025 we’ve submitted our results and an updated presentation to the stock exchanges and they’re also available on our company’s website for your review. I’m pleased to report that Borussa Limited has delivered a steady performance in Q1 FY26 with consolidated revenues from operations reaching 232.7 crores up from 221.2 crores during the last year.
This represents a 5.2% year over year growth. This steady growth achieved against challenging market conditions reflects the resilience of our business model, the strength of our execution and the continued trust and loyalty of our customers. This also places us on a strong competitive footing alongside our peers. In Q1FY26 the company achieved an operating EBITDA before investment income and one time items of INR 40.2 crores up from 34.6 INR 34.6 crores in Q1FY25 which is a 16.1% year on year growth. Reflecting our continued focus on efficiency and growth, the operating EBITDA margin for Q1FY26 stood at 17.8% versus 16% during last year.
Other operating income includes INR 6.03 crores from shared service support income for Q1FY26 and INR 4.21 crores for Q1FY25 with the associated expenses captured under total expenses. Profit before tax for Q1FY26 was INR 23.5 crores up from INR 12.9 crores in Q1FY25. Q1FY26 includes a one time stand beauty expense provision reversal relating to demerger of INR 7.2 crores which is shown under the head other income and also include the one time expenses of INR 1.6 crores towards professional fees for a strategic assignment. The net impact of one time items is INR 5.6 crores. At the same time during Q1FY26 as compared to Q1FY25, depreciation has increased by INR 2.6 crores and finance costs decreased by INR 2.7 crores largely due to repayment of debt.
The profit after tax grew from INR 9.3 crores in Q1FY25 to INR 17.4 crores in Q1FY26 which is a growth of 87.4% as on 30 June 2025. Borosil Limited has a net debt of INR 5.1 crores. Now let’s take a closer look at our category wise performance for this quarter. Borosil’s consumer division continues to expand across both glassware and non glassware categories under the Borosil brand along with our opalwear range under the Lara brand. The Lara Opalware segment reported sales of INR 76.2 crores in Q1FY26 versus INR 76.1 crores in Q1FY25. Lara’s performance in this quarter mirrors the overall market softness during the quarter with sales impacted by slower demand.
However, we expect a strong recovery in the following quarters. In our glassware segment which includes microwavables, serving ware, glass tumblers, lunch boxes and storage solutions, we recorded a muted year over year growth with revenues reaching INR 56.2 crores compared to INR 55.7 crores in Q1FY25. As mentioned in the earlier quarters, our performance was also influenced by UCPMP 2024 which restricts incentives to healthcare professionals. This weighed on our B2B business by curbing bulk orders and limiting distributor engagement. The non glassware segment, encompassing a wide range of small home appliances, insulated bottles and flasks, cookware and other kitchen essentials performed strongly, posting a 10.7% increase in revenue.
Turnover for this segment reached INR 94.2 crores in Q1FY26 compared to INR 85.1 crores in Q1FY25. BIS compliance requirements affected our Hydra model sales as some of the channels are only accepting BIS certified steel products. Our team has recognized these headwinds and is actively reshaping the overall strategy to mitigate this impact. As part of this in the previous quarter we had announced the establishment of a new manufacturing facility in Rajasthan through our wholly owned subsidiary StyleNest India Limited for vacuum insulated stainless steel flasks, bottles and containers. This project entails an estimated initial capex of approximately INR 40 crores and will have an annual production capacity of approximately 2.4 million units with commercial operations targeted for Q4 FY26.
In parallel, amid a muted revenue quarter, we implemented cost control initiatives, notably a sharper focus on marketing efficiency and reducing performance Marketing spends online and therefore overall marketing spends dropping from INR 18 crores in Q1FY25 to INR 14.1 crores in Q1FY26. Additionally, power and fuel costs declined from INR 20.4 crores to INR 17.5 crores over the same period, substantially contributed by the solar projects that we have already installed in Rajasthan. It is important to note that the soft term, the softness in the short term in Q1 does not overshadow Boris proven record of consistent long term growth.
Between FY18 and FY25 our revenues have grown at a 23.5% CAGR while EBITDA expanded at a 34.3% CAGR. Since acquiring Lhara in 2016, its revenues have risen from INR 48 crores to INR 384 crores in the last year, developing a 26% CAGRADE. Likewise, our non glassware portfolio has grown from INR 23 crores in FY17 to INR 453 crores in FY25 reflecting an exceptional 45% CAGR clear evidence of our ability to deliver sustained growth and value creation even over challenging time periods. Now while Q1 was challenging, we as a company have the skin in the game for the long term.
The long term story for our categories is as strong as ever. India’s per capita GDP has been rising steadily from about 1.1 lakh rupees in FY22 to nearly 1.4 lakhs estimated for FY26. Private final consumption expenditure PE FCE is also growing and over the next few years per capita PFCE is expected to reach the $4,000 mark. That’s important because higher income means more spending on lifestyle and home and kitchen products. With our premium yet accessible positioning, borosil is ideally placed to capture a share of this expanding consumer spending. The brown goods market in India, which includes microwave ovens, kitchen appliances, home appliances and personal care appliances, is on a strong growth trajectory.
Valued at approximately $5 billion in FY24, the market is expected to reach $9 billion by FY30, translating into a robust CAGR of around 10%. A major driver of this expansion is the rising demand for kitchen centric appliances such as microwaves, choppers, mixers, grinders and toasters. These products align closely with evolving consumer lifestyles where convenience, efficiency, health and modern design play increasingly important roles in household purchase decisions. Over the last few years we’ve seen a remarkable shift in consumer behavior in India, a shift that’s now becoming a powerful tailwind for our business. Health and wellness are no longer niche priorities.
They are central to the way people live, eat and make purchase decisions. The Indian health and wellness market, which was about $50 billion in FY24 is expected to grow to $90 billion in FY32 trends stand out. First, rising health awareness. More Indians are paying attention to what they eat and drink and that naturally extends to how they store, cook and serve their food. There’s a strong move towards toxin free, safe and durable products exactly the space that borosil as a brand operates in. Secondly, the accelerated rejection of plastics. Concern around bpa, microplastics and other harmful chemicals are prompting consumers, especially urban Millennials and Gen Z to move away from plastics.
Add to that government led single use plastic bands and growing sustainability awareness. This would make the shift towards material like steel, glassware and opalware inevitable. We are excited about the Indian lunchbox market as well which is worth more than 4000 crores. More and more consumers are looking for safer, microwave friendly and sustainable options. This is exactly where borosil has an edge. Our premium glass lunch boxes combine toughness, leak proof performance and microwave compatibility all in a product that looks great and is built to last. This is also one of our hero products. One of the pillars of our long term strategy is our commitment to make in India we already operate one of the largest openware capacities in India with 84 tons per day and India’s only 25 ton per day Borosilicate glassware plant which we commissioned in March last year.
But we’re not stopping with glass. As already mentioned, we are now expanding our manufacturing footprint with a new facility being set up to producing vacuum insulated stainless steel bottles, flasks and containers. Borosil is on a transformational journey to address key ESG opportunities and create long term value for all our stakeholders. One of the strategic priorities of ESG is to lower our operational carbon footprint and meeting decarbonization targets. Borosil has successfully commissioned two captive solar power plants in Bikaner, Rajasthan with a capacity of 8.6 megawatts commissioned in December 23rd and and 7.2 megawatts commissioned in September 24th.
The existing plants cater to approximately 30% of our overall power consumption. The recent introduction of Green Energy open access regulations 2025 permits further expansion of our solar capacity. As a result of this, the company will be further investing about INR 75 crores in the current financial year towards expansion of our solar capacity by setting up another 20 megawatt captive solar plant in Beacon Air. The project should be funded with an appropriate mix of debt and equity and has already been approved by a Board of directors. Borosil is at the forefront of India’s shift towards healthier eco friendly kitchen solutions.
Replacing plastic with microwave safe, BPA free glass and stainless steel products, rising disposable incomes and growing health awareness are accelerating this transition and we are successfully converting plastic users to glassware and opalware. With aspirational designs, educational marketing and an emphasis on hygiene and elegance, Corosil is redefining the modern Indian kitchen. Our omnichannel presence across general trade, modern retail leading e commerce platforms along with strong B2B and export channels have delivered deep market penetration. Today with products available in over 24,000 retail outlets, we have built a diversified revenue base that connects with both urban consumers as well as international markets.
In summary, despite near term challenges, Borosil’s strong brand equity, diversified portfolio, expanding manufacturing base and Omnichannel reach position us well for sustainable growth. Thank you for listening and I would be happy to take your questions.
Questions and Answers:
operator
Thank you very much. We will now begin 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’ll wait for a moment while the question queue assembles. The first question is from the line of Sucrit D Patil from Eyesight Fin Trade Private Limited. Please go ahead.
Sucrit Patil
Good afternoon, Mr. Shilupa. My question is, as Borussil’s non glassware portfolio now contributes over 60% of the brand revenue, how are you planning the next phase of brand evolution, particularly in expanding into adjacent categories like smart kitchen appliances, sustainable cookware or even say modular dining solutions? Is there a roadmap to position borosil as a full stack home utility brand beyond its legacy in glassware modules? Yes, thank you.
Shreevar Kheruka
Yeah, thanks for the question. Look, as far as our brand is concerned, we can continuously look at kitchen as a whole and the table serving and even on the go storage as a whole category to evaluate where our products, where we should launch products. As part of that, not only do we value the size of the market, we also look at trends and growth rates as well as the competitive intensity of these markets. So definitely there is a future in which we could consider modular kitchens as an example, although that’s not something we are doing right now.
But we do have other categories which we are focusing on this year. For example, gas stoves is one such category where we’ve done quite well this year and let’s say in the last 12 months we’ve launched a product which has been reasonably well accepted already in the market. We’ll also be launching products in say dinnerware like porcelain. But this is a continual work in progress and I believe that we have a very strong team which understands trends quite well and, and is also able to develop products to meet those trends. So yes, to answer the question, we would be looking into the whole kitchen and the table as a market opportunity.
We do believe that we are an everyday use brand. So people who like quality but also want to have a good life everyday use product where they feel happy to use these products. There’s a design aspect to it, there’s a convenience, there’s a force multiplication aspect to it. That’s the kind of brand positioning that we aspire to. And the product categories will keep coming, you know, new and new innovations will keep coming. But specifically, you know, I don’t believe that we are launching modifications per se at this time. But you know, we’ll keep looking at new categories.
Sucrit Patil
Thank you very much. My second question is to Mr. Anand. I believe he’s. Is it on the line?
Anand Sultania
Yes, yes, I’m there.
Sucrit Patil
Yeah. Yeah. Hi, good afternoon. My question to you is as Borosil scaled across the different categories and channels. I would like to understand how do you internally, internally prioritize capital between product innovation, digital distribution and in organic growth. Is there any kind of a framework that balances near term margin impacts with long term brand and portfolio diversification? Yes, thank you.
Anand Sultania
No. So as far as the capital allocation is concerned, we look at basically each category like the glassware, within the glassware, the pressware as well as, you know, whatever is procured from the scientific business. And then within the non glassware you have other categories like your Hydra and then your appliances as well as your steel sub fresh and of course Lara which we acquired in 2016. So the capital allocation, depending upon the size, the scale of the business and the requirements of the business probably is allocated. We have a very detailed in house study probably that we do on a monthly basis.
Sorry, what is the next question?
Sucrit Patil
So I just wanted to understand how, how do you, how do you decide to where to allot the your major chunk of the capital? Is it between product innovation, real distribution or inorganic growth? What is the plan of action that you follow? I just want to understand that.
Aniruddha Joshi
No. So the capital allocation is on the basis of the roce that the potential business can generate and that is the way probably the capital is allocated.
Sucrit Patil
Okay, fine, no worries. Thank you. Thank you very much.
operator
Thank you. The next question is from the line of Mohit Jangir from Invade Research. Please go ahead.
Mohit Jangir
Yeah, first of all congratulations on good set of numbers. Sir, my first question is on the non classware side as we are doing capex in tender steel class. So what kind of margin expansion do we expect post the commercialization and optimum utilization of the unit? And how much of demand do we have captivity and are there any plans for external sales of stainless steel flask and any plans for further capex in non glassware segment in further product categories?
Shreevar Kheruka
Okay, well thanks for that. As far as our demand is concerned, our entire capacity will be for internal consumption only because I think we have more demand than supply at the moment. So as far as margin expansion is concerned, it’s a dynamic market right now because there’s anti dumping beauty which is there in play for steel as well. That’s for the raw material and as well as there are certain, let’s say pricing that the competition is offering in the market. So I would say that the exact margin expectation would be very clear only in the next three to six months as the market kind of settles with this add which has, which has come hard to give an exact number for that as I’ve always maintained that our ROCE expectation will be north of 20% and that’s what we expect to achieve even here in this stainless steel category.
But obviously there’s also a learning curve. It’s the first time we are making steel to get the full efficiencies to the level that more established players who have been doing this for quite a few years achieve. May take us a couple of years, but I think if I look at it from a couple of year, two year horizon, I definitely expect that we will achieve that, that 20% plus ROCE.
Mohit Jangir
Okay, and sir, any plans for further capex in non glassware category in any other product segments.
Shreevar Kheruka
At this moment? We know when there’s a plan, we’ll update you. But right now this is the category that we are focused on.
Mohit Jangir
Okay sir, my next question is on the numbers or any margins that you can tell in Opel or Glass segment and are there any plans to demur Opel plus Glass into one company and non glass into other? And what is the capacity utilization offer Borough circuit glass unit?
Shreevar Kheruka
We don’t share the margins by category so I’m sorry, I can’t share that with you. And there’s no plans to do any structural changes in the company. We’re very happy where we are. And as far as the capacity utilization is concerned, I would say we are lower than expected this year because of muted first quarter sales. So opalware may be around 80% capacity utilization, glassware may be around 50, 60, 60%, 65% I would say capacity utilization. So we do expect to rebound in the next three quarters. And Opalware we would ideally like to go to closer to 100% glassware, you know, if we can cross, 80% will be very good for us.
Mohit Jangir
Okay, thank you.
operator
Thank you. Before we take the next question, I would like to remind the participants, anyone who wishes to ask a question may press Star and one on their touchstone telephone. The next question is from the line of Akshat Mehta from Seven Rivers Holding. Please go ahead.
Akshat Mehta
Hello sir. Am I audible?
Shreevar Kheruka
Yes.
Akshat Mehta
So first question is on the revenue side, sir, that we were targeting 15 to 20% revenue growth this year and you’ve come in with 5% in this quarter. How should we look at, you know, the revenue growth for the rest of the year and you know, what would be the key drivers for that?
Shreevar Kheruka
So just to correct you, I think when we speak about revenue growth we have always said over a three year period, you know, and it’s never any projection for a Single year. Because there are many factors which can happen in any quarter, any year which can derail that. Case in one being Covid. But coming back to your question, I don’t believe there’s any change in our medium term revenue CAGR of 15 to 20%. I’m still quite bullish that we’ll achieve that. We are launching, as I mentioned before, new categories which we have done this year.
Although obviously new categories take time to establish. But even in existing categories, I think the first quarter has been challenging for the whole, for the whole industry and not just kitchenware, tableware. If you look across the board, consumer demand has been muted. So it’s a reflection of that. And we do have two, three, four quarters sometimes in a row like this. But I don’t expect that to derail our medium term growth and we do hope to rebound in the next few quarters as well. But I can’t give you a specific number for this year. Hard to predict.
So. Yeah, sorry, is that the question? Did I miss something? This was the question.
Akshat Mehta
Yeah. Sorry sir. So is there a doubt that we can grow 15, 20% for the full year? Any near term demand drivers that you see that can help us grow better than quarter one?
Shreevar Kheruka
Yes, look, there’s no doubt that we’ll grow. Putting an exact number this year is hard to say. We still hope that we’ll continue our growth trajectory as we’ve been having in the last few years, this year as well. But there’s no guarantee of that. The demand driver is there. I mean we are. Prime Minister announced a gst rationalization on the 15th of August. We need to understand how that will impact our goods. If GST comes down on any of our products, definitely that will be passed on to the customers and definitely that will be a demand driver.
Plus of course the income tax scheme which was passed in the budget will also be a demand driver. So those two from a macro perspective are demand drivers. Obviously any positive impact of customer sentiment will also be a good demand driver for us. So these all generic things I’m saying applicable to probably all consumer product companies. But we from our side specifically, I would say we keep looking at marketing as a demand driver for us, product introductions as a demand driver for us. And those are continuing as before and nothing has changed compared to last year or the year before.
So we don’t expect to have a poor outcome. We are still gunning for that growth. As I already shared, whether we’ll get exactly that this year is hard to predict.
Akshat Mehta
Okay, sir, second question would be on the Margins this on a near. On your basis, you’ve seen glassware and opal wear being almost flat while non glassware has grown by 11% which is a comparatively low margin category. I just want to understand how have we managed to grow our margins by, you know, more than 200bps? Basically. What are the drivers for that and how should we look at the margins from a full year perspective as well?
Shreevar Kheruka
Again, I won’t answer for this year. In principle, we have always indicated that in the next two to three years we should hit a 20% EBITDA margin. And that’s something that we have said many times in the past and we stick to that. So it’s a part of that journey. As far as the margin expansion, I did cover it in my call that we had some savings in power and fuel expenses as well as rationalization of marketing spend and more specifically towards performance marketing spend. This year as we get better at targeting customers, we are able to reduce our overall marketing expenditure to that level.
So these are the two main drivers for the margin enhancement. Even though actually as you rightly pointed out, the product mix from a margin perspective is actually worsened for us given that the sales increase has come largely from products which are lower margins.
Akshat Mehta
Okay, sorry, can you share what has been the loss of sales in pharma due to the new gifting regulation that has come in in this quarter?
Shreevar Kheruka
Hard to say for this quarter, but overall I think more than 50 crores per year we were doing in that segment.
Akshat Mehta
Okay, thank you. I’ll come back.
operator
Thank you. A reminder to the participants. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. The next question is from the line of Bhavin Rupani from investech. Please go ahead.
Bhavin Rupani
Yeah, hi sir. Thank you so much for the opportunity. My first question is related to Hydra. In the last call you mentioned about risk of going out of stock due to lack of outsourcing partners in India. Would you like to throw some light here on our progress on getting new outsourcing partners on board?
Shreevar Kheruka
Yeah, I think that’s been a success story. We have been able to get more and more customer suppliers on board. I would not say we are where we need to be. We are still not able to procure as much material as there’s demand for. And that sale loss will be there this year from that. From that category. However, the quantum of sale loss is likely to be substantially less compared to what we had originally thought because of our ability to onboard new suppliers. I don’t want to get into detail of, you know, because these things are fluid.
And also the issue is, frankly speaking, that the predictability of supply is still lacking because some are able to deliver more in one month than others. And they also have challenges, ramp up challenges. So it’s hard in the first couple of years to have a very predictable answer in terms of how much we’ll actually get because even the suppliers are struggling to kind of, you know, streamline their manufacturing. But overall, I would say the prognosis is better than where it was three months ago and will likely improve further in the next three months.
Bhavin Rupani
Got it. Sir, what I understand is this category is SKU driven category. So can you please tell us how many SKUs we have introduced recently from this outsourcing partner and what are the plans going ahead?
Shreevar Kheruka
I don’t want to get into details how many SKUs have been introduced, but overall I think we have close to 100 SKUs, if I’m not mistaken, in this category. But that’s too much information to share at this stage.
Bhavin Rupani
Got it. Fair enough, sir. And sir, on A and P spends, historically our A and P spends has been in the range of 7 and a half to 8% of sales. Do you think we’ll continue to maintain similar run rate? You did mention that in Q1 we had reduced it, but what are your expectations for the full year?
Shreevar Kheruka
So sir, look, A and P has two types of spend. One is a general brand spend which will not reduce and second is performance marketing spend which depends on your efficiencies and your learning of how to draw in more customers or get more bang for the buck. So on the brand spend we will not reduce even one rupee. If anything they will be increased. But on the performance marketing spend, as we get better, naturally the percentage will come down and that is what we are seeing. So we have been, you know, our team has been continuously learning and I think we have done quite a good job there and we will continue focusing on that.
What it means overall is that the spend may come down by 1 or 2 percentage points over the overall, you know, 8% spend may come down to say 6, 6.5% of our sales.
Bhavin Rupani
For the current year. You are seeing.
Shreevar Kheruka
Again, look, these numbers may go off again, it’s hard to say because these are tactical calls you take on a daily basis. And when we are talking about taking tactical calls at that time, we don’t worry about what we’ve told our investors because we do what we need to do for the business. So it’s hard to say for any One current year. But in general, yes, that’s a trend which will happen. That 8% will come down to 6. 6.5%.
Bhavin Rupani
All right.
Shreevar Kheruka
If you can achieve it in this year, we’ll be very happy.
Bhavin Rupani
Yeah, got it. So next question is related to Parfen fuel. You did mention that our cost reduced from 20 crores to 17 crores this quarter. Can you please help us understand what could be the annual savings from solar projects on our current capacities right now? And are there any possibilities of further cost reduction in for the full year?
Shreevar Kheruka
So 13 to 14 crores per year this year we will be getting as a saving overall. Although the projects were there even in play last year. So it cannot be compared to last year. It’s compared to maybe the year before, I would say. But the other point is that with the new power and fuel, the new solar project, that number will add up to another 1780 crores. So the number will go to 30, 32 crores per year saving compared to not having done this project.
Bhavin Rupani
So sir, post this new capacity that we have announced in solar, our power and fuel will be 100% renewable.
Shreevar Kheruka
It’ll still be 65% renewable although there will be a roadmap to get 200% in the near future after that. So right now we’re at 30%. We’ll go to 65 with this project and then we’ll do a phase four which should take us closer to 100.
Bhavin Rupani
Got it. Fair enough. And our gross margins, if you look at it, has declined by almost 200 220bps year on year. How should one understand this? Is it due to additional incentives in the market to push volumes?
Shreevar Kheruka
No, it’s a product mix issue. It’s purely a product mix issue. We have not increased the discounts or anything.
Bhavin Rupani
All right. So also our channel checks indicated there was a demand continues to be tepid in Q2. So have we increased our incentives for the channel partners to make it more attractive for them? Or we have increase in discounts? No, no increase.
Shreevar Kheruka
Normally Diwali has discounts which are anyway there every. Every year. Every year. And those Diwali discounts will happen this year also. But there’s no increase. It’ll be the same level as last year.
Bhavin Rupani
Got it. And sir, Capex guidance for the year. So 75 plus 40, 110 plus some maintenance.
Shreevar Kheruka
Yeah, maybe 125. 130.
Bhavin Rupani
Got it. That’s it from my side. Yeah, got it, sir. Thank you so much.
operator
Thank you. The next question is from the line of Vipul Kumar Shah From Sumangar Investments. Please go ahead.
Vipulkumar Shah
Hi sir. What is our market share in Opalware segment?
Shreevar Kheruka
I think you, you can calculate that yourself because the you know our competitors are listed and I believe that the numbers are available for everybody but my senses is about 30%.
Vipulkumar Shah
Okay. And so this new till flask facility. When fully operational what type of annual revenue we can expect from that plan?
Shreevar Kheruka
So phase one will be about 120, 120 crores. And there’ll be a phase two after that also which we have not announced yet but we will do that shortly.
Vipulkumar Shah
So in phase two there will be another Capex, right?
Shreevar Kheruka
Yeah, but. Yeah, that’s right. There will be more Capex.
Vipulkumar Shah
Okay. But for this 40 crores we’ll be getting around 120 crores of revenue.
Shreevar Kheruka
Yeah, that’s right.
Vipulkumar Shah
Thank you sir.
operator
Thank you. The next question is from the line of Rakesh from Nine Rivers Capital. Please go ahead.
Rakesh Wadhwani
Thank you for the opportunity. So a couple of clarification from the annual report. First part in the annual report we have mentioned the company has planned to raise 250 crore. It is just an enabling resolution or we have intention to raise in the coming years.
Shreevar Kheruka
Yeah, we take this every year as an enabling resolution and likely it will not be utilized.
Rakesh Wadhwani
Okay. Okay. Thank you sir.
Shreevar Kheruka
Yeah. You know it’s taken from the point of view that sometimes you have acquisition opportunities or some interesting things that come up in the middle of the year. In the past we had that and then it delayed everything by having to take this resolution. And that’s why we take it as an enabling one only. And unless something interesting comes up it won’t be against.
Rakesh Wadhwani
Okay, that’s very helpful. Second, second, clarity and with respect to the subsidiary that is Alpha Realty Ltd. A company, Holywood subsidiary that is in the business of real estate and they are expert thinking to expand in that business. Anything on that business?
Shreevar Kheruka
No, I’m not sure where you read that we are looking to expand that business. That business is not a business. It’s. There’s some parcel of land which the company owns and there are certain, let’s say approvals which the company has in its name. So when we sell that land which is historical land owned by the company for last 60 years, 70 years or 60 years that time you have to sell the company because the approvals are in the name of the company and can’t be changed. So this is only enabling a way to sell that land which is the historical land of the company.
And there’s no plan of the company to Enter any kind of real estate business at all.
Rakesh Wadhwani
That’s very helpful. So just one last clarification in the annual report, as we mentioned, the company has installed 7.27 gigawatt megawatt of solar plant. That is a plant. That is the plant. You are talking that in the initial remark you talked that we are going to sell 12 to 50.
Shreevar Kheruka
Yes, that’s phase two. Phase one. There are two phases which you already installed. A phase three. Now we’ll do.
Rakesh Wadhwani
Okay, so currently we, because of the solar plant implementation, we’ll be saving 12 to 15 crore in the power cost. And once the phase three comes also then we’ll be saving additional 15 crore from that phase three, which. I understand. I mean. Correct.
Shreevar Kheruka
15 to 18 crores. Yeah. In phase three.
Rakesh Wadhwani
Yes. Yes, sir. Thank you. Thank you very much. That was very helpful. Thank you. Best wishes.
Shreevar Kheruka
Thank you.
operator
Thank you. The next question is from the line of Ram Mehta from Green Edge Belt. Please go ahead.
Resha Mehta
Hello.
Shreevar Kheruka
Yes, please carry on.
Resha Mehta
Thank you for the opportunity. So I’ve joined a little bit late, so if my question is repetitive then I can, you know, refer to the transcript for the first question which is basically what has been the reason for muted growth in glassware and Opelware?
Shreevar Kheruka
I mean, I think market sentiment in general has been quite weak. So that has been, I would say the main reason for the muted growth. There were no marriages or very few marriages, let’s say in this first quarter Opalware, there’s a lot of gifting for that. We have this up CMP Pharma guidelines which prevent gifting to end users of the pharma products which has traditionally been a market of one of our, let’s say channels which has not had much sale in Q1. These are the two main reasons. Although we look forward to a better Q2, Q3 and so on.
Resha Mehta
Pharma channel rule change. So when does that come into the base quarter?
Shreevar Kheruka
I think from Q2 onwards.
Resha Mehta
Okay.
Shreevar Kheruka
I think Q2 onwards. Last year we had a problem with it.
Resha Mehta
Right, right. As far as your ad spends go, this, what’s the split between ATL BTL broadly at 8% but just a split between ATL BTL.
Shreevar Kheruka
I’m sorry, I don’t have the exact answer for it but I think most of it is etl.
Resha Mehta
Understood.
Shreevar Kheruka
I can check.
Shreevar Kheruka
Make them
Resha Mehta
Sure. And I have a couple of questions on your sales and distribution. Right. So one is, you know, so how successful, you know, have we been so broadly? We have three categories. Right. And a lot of these have overlap. You Know, at least at the end retail counters. So what is, you know, the kind of, you know, penetration that you know, we had achieved for opalware non glassware, you know, with our glassware channel partners retail outlets. And how do we, you know, look at expanding this universe of 24,000 retail outlets? So as I understand the reach for the kitchenware space is around 1 lakh outlet.
But how do we see, you know, the path to this 24,000 outlets to 1 lakh outlets? Or do you think that, you know, because our positioning is a little bit on the mid premium side, maybe for us the Universe is not 1 lakh outlets, it’s far lower. So if you can just kind of, you know, give some qualitative thoughts or otherwise on this.
Shreevar Kheruka
Yeah, maybe. I don’t know if Mr. Ritura Sharma is on the call. Okay, I think he’s missing the call at the moment, but okay, then I’ll take a stab at it. So as far as the, you know, the numbers, I’ll address a number of outlets. The number of outlets which we have are 24,000. These are just to be clear, these are outlets that we routinely bill too because we have data of billing of each and every outlet on a daily basis. Okay. So these are outlets where we have done billing consistently and have billed at least once in the last three months, if I’m not mistaken.
Now if you look at the total outlets that we build could be more than 37, 38,000 already. But we don’t put that in because there will be quite a few outlets which are built once in a year or build infrequently. And therefore we don’t classify that as a regular sale outlet for us. So to answer your question, I believe that we do have a plan to increase this 24,000 to about 40, 45,000 in the next three to four years. And I believe that’s a realistic goal to achieve and I believe that we will get there with our increased penetration as well as product portfolio enhancement and so on.
But yes, I don’t believe that 1 lakh we could reach because a lot of those outlets are rural and of a nature where the product categories are not relevant to our current profile. As far as the success of cross selling, this is something we measure quite actively. And I believe that if you see just, I mean the proof of pudding is fragged in the eating and if you see the dramatic increase in sales of our non glassware kind of gives you a very reasonable understanding that our cross selling has worked and many of the 24,000 retail outlets, actually new outlets which have picked up selling our non glassware range.
And that’s the reason we are where we are today. So I think the effectiveness of having this broad product range has definitely translated into more, so many more outlets buying a larger range of our products. And I believe our retailers are also making better margins from us in the sense that they are earning a higher percentage of their profit from us, which also kind of is a good symbiotic relationship to have with them. And we do have software or rather which tells us how many outlets are selling which product and how many outlets you’ve been able to convince them to sell.
More of our multiple ranges. And all the numbers look quite encouraging. So we are quite positive on that aspect. And I believe that steadily 2, 3, 4,000 outlets per year we should be increasing over the next few years.
Resha Mehta
Are we also able to track, since you spoke about some of the tech tools that we have, are we also able to actively track the secondary sales?
Shreevar Kheruka
Yeah, of course, we have a daily tracking.
Resha Mehta
And you know, now that, you know, since we have a wide product range and you know, multiple categories, how are we thinking about, you know, probably getting into exclusive brand outlets or maybe just what are our thoughts there?
Shreevar Kheruka
This is something we’re considering, we are working on it. We actively figuring out how to do it, when to do it, you know, what is the cost, what is the return, how to look at the costs. It will take us a little bit of time, but I do believe we’ll have something on this account soon.
Resha Mehta
Right, and just the last one. So you spoke about the muted demand. Can you just call out if you know there are any, you know, deviations or different trends if you’re seeing them across different channels. Of course, general trade I think is commonly known that there it’s more muted. But what about CSD exports, some of these channels, if you can just highlight the demand there.
Shreevar Kheruka
Yeah, so look, overall I would say E commerce, quick commerce, large format stores are doing quite well. As you already noted, general trade is impacted. And given that it’s the largest percentage of our sales, it has a disproportionate impact on the overall, let’s say trade, overall sales. But the worst hit has been the B2B business which I already mentioned because of this pharma, the pharma regulation which came into place last year, followed by trade and then exports. Frankly speaking, they have very low penetration in exports. So it’s not worth discussing because the base itself is super low.
I think trade will bounce back. We’re Already seeing some green shoots for Q2 and onwards. So I do believe that we’ll see a smart bounce back in this and this demand will pick up quite well in the coming quarters basis. You know my team’s estimate with what’s happening as a shape up to the Diwali season
Resha Mehta
And csd,
Shreevar Kheruka
CSD hasn’t been great. There have been challenges in csd, more from the internal, I would say internal regulations. Nothing to do with demand. I think their own buying behavior is changing and it’s a complex organization, CSD and how they decide in terms of how to buy, what to buy.
So we are definitely seeing a negative impact of that.
Resha Mehta
All right, thank you. All the best.
Shreevar Kheruka
Thanks.
operator
Thank you. The next question is from the line of Sumit B, an individual investor. Please go ahead.
Unidentified Participant
Good evening. A couple of questions. First is on Opalware. So now that LARA is a core part of the portfolio along with borosil and you’re reaching almost saturation, you’re at about 80, 85% capacity utilization. What’s preventing us from planning ahead? It will take a few quarters for a new facility to come up to actually go ahead because there are news about Milton Classics coming in. So wouldn’t you be losing share if we don’t actually start thinking about building capacity expansion for Lara? That’s my first question.
Shreevar Kheruka
Yeah, I mean this is a good question. I will answer this in two ways. Number one is that we have already a plan to debottleneck some of our operations which will expand our capacity by 10 to 15% in the next year or so. So that itself that will happen. Second thing is that we ourselves are not at 100% capacity utilization. We only had 80, 85% capacity utilization. And I believe that, you know, we’ve also built up inventory. So for the next two years to grow at 10 to 15% we have enough demand also rather we have enough capacity.
And then post that yes, if we have to grow, we would need to have a third production. But we have seen some, you know, demand not being great. So just by putting up capacity doesn’t mean we can create demand. You’ll have to you only destroy the value of the product. So which we don’t want to do. Can’t really comment on what competitors are doing. And I think taking strategic calls basis competitors actions alone would be not the appropriate move. So from our perspective we feel we have enough capacity to grow at a sustainable growth rate for the next couple of years.
Post which we’ll see how the market trends are evolving and whether to Add capacity or not. There could be also the other like we’re launching Porcelain, which is a more premium offering. It also depends. That is also because when a customer goes to the market, they don’t go to buy opalware, they go to buy dinnerware or serving ware. And this is one of the categories. Premiumization is also a trend we’re seeing. So as we expand our sales of more premium products, we may choose to pick up capacity in that product segment rather than, excuse me, rather than Opelware.
So there’s so many unanswered questions and I believe we have a year or so easy to take that call. So not rushing into any decision because any capex will cost 200 crores and then again we’ll be struggling with capacity utilization. So I think best to take a call when we’re absolutely sure we have a reasonable chance of selling 60, 70% capacity right up front.
Unidentified Participant
Got it. Fair enough. Thank you. My second question was on appliances. Again, this has been a tremendous growth lever for us over the.
operator
The line for the current participant has got disconnected. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Shreevar Kheruka
Okay, well, thank you all for your involved set of questions and we as a management team are very committed to the business as we have been for the last many years. Years. And we continue to be so for the coming years. We really appreciate your support as shareholders and potential shareholders and we look forward to growing our business aggressively with improved margins as we go along. So thank you and wish you all the very best for the upcoming festive season.
operator
Thank you very much on behalf of ICICI securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.