Cello World Ltd (NSE: CELLO) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
Gaurav Pradeep Rathod — Joint Managing Director
Atul Parolia — Chief Financial Officer
Analysts:
Unidentified Participant
Karan Bhuwania — Analyst
Percy Panthaki — Analyst
Ankur Sharma — Analyst
Grishma Shah — Analyst
Aniruddha Joshi — Analyst
Ashutosh Khetan — Analyst
Akhil Parekh — Analyst
Karan Bhatelia — Analyst
Presentation:
operator
Ladies and gentlemen, good morning and welcome to the CELO World Q4FY25 earnings conference call hosted by ICIC Securities Limited. As a reminder, all participant lines will remain 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 the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Kalan Bhuvanya from ICICI Securities Limited for opening remarks. Thank you. And over to you, Kalan.
Karan Bhuwania — Analyst
Thank you. Good morning everyone. It’s a pleasure at ICICI securities to host P4FY245 results conference call of Silo World. From the management we have Mr. Gaurav Rasor, Joint Managing Director and Mr. Adul Parolia, CFO.
I’ll hand over the call to management for their opening remarks post which we can open for the Q and A. Thank you. Over to you, sir.
Gaurav Pradeep Rathod — Joint Managing Director
Thank you. Good morning everyone and a very warm welcome to our company’s earnings call. Joining me is our CFO Mr. Atul Farodia and an Investor Relations Advisor SGA. The results and presentations are available on the Stock Exchange and on our website. I hope you had a chance to look at it. Financial year 25 brought with it a unique set of challenges that tested industries, economies and business across the globe in the Indian consumer space specifically saw subdued demand environment. However, at Cello World we delivered a 7% year on year growth backed by a healthy business model and resilient margins.
We are proactively adapting to the challenging situation in a timely manner and have started making strategic modifications in our product portfolio and distribution strategies. We have added some new SKUs and discontinued a few products which were not performing well in terms of volumes, margins and ROCE perspectives. We have also relooked at our distribution strategy as we see a major shift from towards quick commerce and E commerce. This is expected to bring down share of general trade. We have also tied up with most of the quick commerce players and added products that can do very well in this channel.
I’m pleased to share that we delivered a healthy performance in Q4 achieving the highest ever quarterly revenue of Rupees 589 crores with a growth of 15% year on year. While Ebitda and fat margins remaining stable at 26% and 16% respectively. This quarter was better compared to the previous quarters in terms of consumer demand as well as we continue to benefit from reduction in food cost. Both of these along with a boost in our class fed also contributes towards healthy business growth. Additionally, some correction has also happened during this quarter hopefully leading to a better upcoming month.
Our consumer based business did exceptionally well with a year on year growth of 24%. The glass drinkware products manufactured in house are well accepted by the customers and we are getting a good response especially for the quality of these products. Currently we are pricing these products on par with the import prices and are able to maintain a similar margin profile. As we are passing through a learning curve this quarter, we primarily focus on improving our cost efficiencies and and are aiming to reach to about 75% efficiency levels in the next two to three months. This year our target is to break even in the glass space as we expect to exhaust our capacity by financial year 27.
Similarly, our Opalware business also performed pretty well reaching almost 80% of our furnace that is sold until financial year 25. We hope to exhaust the capacity of this furnace in the financial year 26. There was a change in BIS norm for stainless steel vacuum plus bottles due to which import of such products from China has been banned. This resulted in elimination of lot of unorganized players from the market and there is a huge gap that I see now which be able to take advantage of in the longer term. For the time being we have built up five to six months of inventory for these products and have already ordered machines to be used for manufacturing of such vacuum steel bottles in house.
This is a massive opportunity in the long term. As I mentioned we might see short term stock outs that could affect sales in the near short term. Now coming to the writing instruments vertical, we continue to face challenges in terms of export demand slowdown due to which the segment revenues today 78 crores as against 87 crores in Q4 last year. However, we see some signs of recovery in demand scenario from exports as well as domestic market and are hoping for things to improve in the coming year. To better manage the situation, we are working towards diversifying our Onomax product basket by adapting new product lines such as art related products, geometry boxes et cetera.
Finally coming to the furniture business, the performance was in line with the trends of the industry but we managed to deliver growth of 8% which is slightly better than the overall industry growth. We are planning to add up some products into this category which can help us grow at a faster rate. We continue to have a premium approach towards our products and focus on expanding our reach and penetrating deeper into all the states of India. On the back of a strong balance sheet position and healthy operating cash flows, the company is well positioned to grow faster as the demand scenario improves.
I will now hand over to our CFO Mr. Atul Parolia for the financial highlights. Thank you very much.
Atul Parolia — Chief Financial Officer
Thank you Adhav and good morning to everyone. I’m happy to announce that Board of Directors has recommended a final dividend of 1 and a half rupee per share which is 30% of the face value of the 5H4 financial year 2425. Now I will be sharing the financial details for the quarter one bag. In quarter four financial 25 we achieved a revenue of rupee 589 crore and a beta of 148 crore with a LG EBITDA margin of 25%. Our pad stood at rupee 88 crore with a margin of 15%. Speaking of the revenue mix, over 69% of revenue came from the consumerware, 13% came from the lighting instrument and remaining 18% from the moulded furniture and allied products.
General tail channel contributed 77% of the sales while export and online sales made up to around 9 and 8% respectively. Volunteer growing at the faster rate accounted for the remaining 7%. In terms of segment wise margin, Lighting instrument led with a 58% gross margin followed by consumer wear 53% and mollet furniture at 42%. Now coming to the 525 performance, revenue was 20002136 crore with a year on year growth of 7%. EBITDA stood at 555 crore with a margin of 26%. PET was rupees 339 crore with a margin of 16%. Our cash flow from operation stood at rupee 262 crore.
During the year we have reduced our entire debt and as on March 25gr net cash position for the full year. We entered a capex of around 166 crore that mainly include investment for the glassware facility. Going ahead for final day 2026 we expect to do a capex of around 100 crore.
Now with this I would like to open the session for question and answers.
Questions and Answers:
operator
Thank you ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue you may press star and Two participants are requested to use their handsets while asking a question. One moment please. While we poll for questions,
the first question comes from the line of Percy Pantaki from IIFL Securities. Please go ahead.
Percy Panthaki
Hi Tim. Good morning. Can you just give some idea what is the sales from the new plant that you have recorded this quarter?
Gaurav Pradeep Rathod
Right, so it’s a 20 crore turnover basically because the plan got commissioned in February. It’s only two months data. So we have grown, we have doubled the sale over last year for the two months. So net net it’s a 10 crore increase.
Percy Panthaki
Oh, okay. It was 10 crore. Sorry, I didn’t understand that. Because this is a new brand.
Gaurav Pradeep Rathod
So the idea is that you know, in the first quarter because we only got about two months of selling from the new brand which was February and March. So basically for the two months for the quarter we got a 10 crore increase net net in the glasses. So we were doing imports right before. So those got substituted as well. So that is why net net, it was a 10 crore increase in the glass segment.
Percy Panthaki
Okay. Okay. So I was actually looking at what would be your homeware segment growth adjusted for this new plant because it’s 24 that way. So I was just looking for that number.
Gaurav Pradeep Rathod
You can just minus about 10 crores and then you would get the growth, you know, of the homeware segment overall.
Percy Panthaki
Okay, okay. So that’s still a decent double digit growth, right?
Gaurav Pradeep Rathod
Correct. Correct, of course, absolutely.
Percy Panthaki
Okay, so there has been a significant improvement versus what we’ve seen in the last two, three quarters. So just trying to understand what’s the reason behind that. Is that just a pre sale or a pipeline issue or there’s some real underlying improvement in demand.
Gaurav Pradeep Rathod
So there was improvement in the last quarter for the demand. Of course there is a slight shift which is why we see a better growth. But of course it is not a continuous growth. It has just been the last quarter that we’ve seen this. So it doesn’t kind of because the overall year was a little challenging. But yeah, quarter was good. Let’s hope you know, it continues.
Percy Panthaki
Okay. And secondly, you mentioned that you have taken some portfolio rationalization decisions. So if you could give some idea that the part that you are rationalizing, what is the annualized sale and annualized EBITDA of that part so that we can sort of try and understand the impact on the FY26 financials.
Gaurav Pradeep Rathod
The idea is overall rationalization across categories. So you know, normally we all do an 8020 kind of a product analysis and through that we found a lot of products that don’t need to be a part of inventory because a lot of these products are very similar to our current products. So they’re probably cannibalizing sales of other products that are doing very well because either we are not producing them because we are producing the other products and there are orders that are pending for those particular items.
So in effect it’s not really going to hurt any revenue because at the end of the day these are products that have either become obsolete or they are products that are just kind of like other good running products. So I think the rationalization comes from the fact that some SKUs are not needed anymore in the portfolio and that is where they are being removed. So I think the underlying basis is only that.
Percy Panthaki
Okay, so basically you’re saying no impact on top line or margins on account of this. Any impact on working capital or any sort of one time provision or charge that you will be taking if these items are obsolete.
Gaurav Pradeep Rathod
No, when I talk about obsolete, this is not inventory that is obsolete. These are products that have become old in our portfolio. So there is no inventory hit that we take for this because that inventory doesn’t exist. We are just taking it off our price list so that we are not offering this to our customer anymore. So that’s all that. And in terms of, you know, in terms of the products, there is of course going to be newer products that are going to come in while we replace these.
But if they are replacing, if you are, you know, getting 10 rid of 10, we’ll probably add only two also. This is from the perspective of the channel as well. That lower inventory in the channel will also help the database come down. So the idea is to kind of cleanse the pipeline as well to a certain extent where we can bring down our data days further.
operator
Percy, have your questions been answered by the management? Since there is no response from Percy, we move on to the next question. But before that, ladies and gentlemen, if you wish to ask a question, please press star and 1.
The next question comes from the line of Uncle Sharma from HDSC Life Insurance. Please go ahead.
Ankur Sharma
Yeah, thanks. Good morning sir and thanks as always for your time. First on the glassware segment, if you could help us, what was the full year sales in FY25? I think you were earlier guiding to somewhere around that 450, 470odd crore number for the full year. And you know, how do you kind of see this shaping up over the next year or so as you ramp up this new plants?
Gaurav Pradeep Rathod
Right. So I think for the financial year 26. Our aim is to reach about 450, 475 around that figure, which will exhaust our glassware capacity by about 65 to 70%. And we still have some capacity left for next year which we want to exhaust. So the idea is to grow this to that level. And plus we have our Opal Wear capacity which is about 80% utilized. And we would like to exhaust this within this year. So that’s where we stand in terms of the overall glassware scenario.
Ankur Sharma
Sorry, so what is the number for FY25? Where did you close on glassware?
Gaurav Pradeep Rathod
So I think we do not disclose numbers separately for glassware. I’m not in a position to review that on the call.
Ankur Sharma
Okay. Second, you spoke about the stainless steel bottles with this whole BIS coming through and of course imports getting banned and therefore the unorganized kind of moving out. Could you help us? How large is the unorganized actually? What percentage of the market would be unorganized? What would be your share in this segment and what could be the market share gains that could happen over the coming quarters?
Gaurav Pradeep Rathod
So stainless steel of course is a pretty big category in India and a lot of sales have been hit due to unavailability of this stock industry wide. So I think even a small retailer would be able to order a container. So you can see how fragmented the sale actually was. So we. So talking about our number, we were about 12 to 13% of this segment and top three players put together will be about 35, 40% of the business and the rest was unorganized.
So I think there is significant gains in the long term that we can expect. But having said that, we will be putting up our facility in the next four to five months and in the short term we might actually see some reduction in sales due to non availability of this particular item. But in the long run we have a lot to gain. And even though there will be some OEM players who will also come into the foray, which have already started, but I still feel brands overall will really benefit from this BIS implementation.
Ankur Sharma
Okay. And I’m assuming the top five brands would be the largest player, largest gainer. I’m sorry, including yourself. That’s how we should.
Gaurav Pradeep Rathod
Yes, yes, absolutely.
Ankur Sharma
Okay. Just a third question. You know, you spoke about this shift away from GT and you know, more towards qcom E Com. So if you could just help us, what would be that share? You know, at this point, how does that affect profitability in a positive, negative way? Just some color there to understand how it affects our overall business.
Gaurav Pradeep Rathod
Right. So I think online we have increased by about a percentage. Overall though it is, in percentage terms it’s pretty small. But Overall it has 32 percentage points. We have increased revenue, but in real terms the quick commerce sale has really helped us to increase this path. And going forward I see a faster growth in these channels compared to gt. So though GT is also growing, it’s not that it is not growing, but I think the pace of growth on these alternative channels, Quickcom Ecom, will be a lot faster. So you know, I wouldn’t be surprised if we have 2 percentage point gains every year, you know, in the next coming few years.
Ankur Sharma
And profitability versus GT
Gaurav Pradeep Rathod
profitability. We, you know, we maintain pretty much similar levels. You know, we do this primarily by, you know, differentiating the product line online and offline.
Ankur Sharma
Got that. And just last one if I may. Clearly when I look at the Q4 numbers, if I adjusted the glassware sales, houseware clearly has done quite well likely in that low mid teen kind of growth. So if you could just help us understand, is this more of channel filling before the summer? Is this real demand? Pickup and secondaries have also been equally strong.
And if yes, which pockets is this? Lunch boxes or is it bottles? Just some more color as to what’s driven that growth for us in Q4 and how sustainable. So basically trying to understand as we get into 26, do you think we can get back to maybe the high single low teen kind of growth?
Gaurav Pradeep Rathod
So I think yes, it has been good overall consumer demand was pretty good actually in Q4. But having said that, we have not seen continued growth even we experienced this growth in the last quarter as well for a couple of months and then the December month kind of died down a little bit. So we’re not seeing consistency here. We are seeing spurts of growth, but that consistency still is not bad. So it’s tough to say that we continue on this ramp.
But having said that, what we can expect in the houseware business is you are right about at least a high single digit number should be possible and achievable in this coming year. And overall we think that having glassware also in the portfolio, but that will be slightly offset by the steel plus demand, but we still expect about a good 12 to 15% kind of growth in the next coming year.
Ankur Sharma
Thank you. Thank you so much for your time.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. The next question comes from the line of Grishma Shah from Envision Capital. Please go ahead.
Grishma Shah
Good morning to the management team and thanks for taking my question. Couple of questions. If you could also help us understand one, you know the 100 crore CapEx that we’ve announced includes the Glass CE, the GIS related product CapEx also that is one second is the raw material output. Those are the first two questions.
Gaurav Pradeep Rathod
So yes, the underclock capex includes the, the steel, the new facility that we are putting you know in Rajasthan. So that is, that is a part of it. And sorry, I did not get your second question
Grishma Shah
overall for the business. What’s the raw material pricing outlook for FY26? You said there was some benefit of lower raw material prices in quarter four compared to quarter three. So that you know, continuing that. What does the outlook look like in FY26?
Gaurav Pradeep Rathod
So I think we are pretty much at our lowest point in terms of raw material prices because due to subdued crude prices. So I believe that the crude prices will continue being like this and that is, I think the raw material prices will be at this level so don’t see too much of fluctuations. I think it will clearly be at this level for this financial year.
Grishma Shah
And you know this line, how much time would it take to you know, come on the sea bottle plant and. You know. Will it like take till the end of the year or what does it look like?
Gaurav Pradeep Rathod
So I think we only know once we start. So I think our idea is to start in the next three to four months the facility and it might take you know, a few months to stabilize. But having said that, you know you can start production but maybe the efficiencies might be low initially but you know it is going to be a learning curve because you know we still don’t make the best bottles in India as good as China.
So we of course take some time to get to that quality. But having said that you know we are all in the same boat so no one has an advantage at such. So yeah we try our best to you know, make sure we are know up and running very quickly.
Grishma Shah
And in terms of OEM tie ups, we’ve not tied up with any OEM in the interim. Is that a stopgap arrangement that we have in place?
Gaurav Pradeep Rathod
Yeah, we have some bottles coming from OEM but it’s very limited because India, the production itself is extremely limited at this point of time. So even though OEM production is going to a lot of people, so it’s not only coming to us, it’s going to a lot of people. So for that reason that is why we might see some gaps that might come in in the next few months. But yeah, we are trying to plug that Gap as soon as possible with our production.
Grishma Shah
The other question was on the open air side, what gives you confidence to exhaust the capacity in FY26 given that there would be a fourth place who would enter, who also is a formidable player in the other category. So, you know, what are the, you know, positive demand trends that you’re picking up due to which you think that the overall capacity would be important?
Gaurav Pradeep Rathod
I think we’ve taken a lot of initiatives to kind of exhaust this capacity, including some additions to arrange. So I though there is a fourth player entering. I feel until then, and the entry is a little away. It’s. It’s not going to be pretty soon. So I think for this year we are pretty confident of exhausting that capacity out and I think we’re pushing for that pretty aggressively. So I think the idea is to exhaust and be at a good position for next year. Though of course capacity additions now have taken a back seat for the time being. But at least exhaustion is. Is our first priority.
Grishma Shah
Okay. Okay. Okay, fine. Thank you so much.
operator
Thank you. The next question comes from the line of Akshat Mehta from Seven Rivers Holding. Please go ahead.
Gaurav Pradeep Rathod
Yes, absolutely.
operator
Yes. Akshay.
Unidentified Participant
Hello.
Gaurav Pradeep Rathod
Hello. Yeah, please go ahead.
Unidentified Participant
I just want one clarification. You know this BIS norm that have come out for consumer appliances is well said. Those bi. You know, a few days back there was a notification where they said that they have extended the deadline by another year. So are those norms still applicable for consumer appliances or what is the scenario there?
Gaurav Pradeep Rathod
So consumer appliances actually had the BIS implementation about a couple of years back only. So most of the manufacturing that is happening today is in India. It’s not really happening in China anymore. So consumer appliances, the entire base is actually local now. You’re not allowed to import a finished product from China. So that has happened about a couple of years ago. It’s not something new.
Unidentified Participant
Oh, okay. Okay. Thank you, sir.
operator
Thank you. The next question comes from the line of Aniruddha Joshi from ICICI Securities. Please go ahead.
Aniruddha Joshi
Yes, sir. Sir, I missed the initial part of the call, but in terms of exports of writing instruments, is that only export suffering or is there exports in other segments too and that is also suffering? That is question number one. Also. When do we see the in a way, export normalization means already four quarters are over and we still continue to see decline in the exports business. So what is the outlook here? In a way means if we are not present in that market, probably we will lose the market share permanently itself. So how are we thinking on Those lines.
Gaurav Pradeep Rathod
So in terms of export, our major export actually comes only from stationery and writing instruments. Everything else is pretty meager. It’s not a lot of exports in other categories. So writing instrument has of course been taking a hit. Having said that, it’s not that we are losing markets because these market demands have dropped, but we are still exporting to all of these markets. So the idea is that of course the demand of the numbers have to improve for the exports. And probably one initiative that we have taken is to add in more countries. You know, the country that we are present in now, they are adding some more to kind of stem this problem that we are facing in the other markets.
So as the demand that there would increase, it would definitely have a positive impact. And the right in instruments derose has pretty much probably been because of the exports only. So the export slowdown has really impacted the overall category. While domestic of course also did not grow, but it did not decline as well. So there, you know, we actually want to push now domestic demand a lot more because that’s where the growth avenue is more than exports.
Aniruddha Joshi
Then secondly, at the time of we had also seen that there are some of the products where we are using the global cartoon character brands on, let’s say on the lunch boxes, etc. But since we don’t see that anymore. So is that in a way meant over or is the company in process to in a way renew that? Or in a way it adds a lot to the branding for a kid products. So what is the strategy further on that?
Gaurav Pradeep Rathod
No, we are actually. So we have a renewal of these licenses every year and even this year we have renewed. What we tend to do is we tend to change the characters. So it’s not that some characters you might not see, but there are others that have been added. So that keeps changing as per the demand scenario. So for example, one character might have become popular with kids during the last couple of years. So those are the characters that have been added and some that have been less popular are being removed. So that is just a rejig. It’s not that we don’t have licenses in place.
Aniruddha Joshi
Okay, okay, surely understood. And now last question from my side post uip now the balance sheet is in a flush with cash and again the company will also continue to generate good amount of earnings as well. So what plan with the cash which will get accumulated on the balance sheet, whether it will be paid out in terms of dividends or some money may be required in the capex that you indicated earlier.
But any Anything on the cash plans in terms of acquisitions? Because Media indicated that we were looking for acquiring away some brands definitely in the innovate bags or something like that. So any any further thinking on those lines?
Gaurav Pradeep Rathod
So I think, yeah, sorry. So in a way, basically, you know, the cash we’ve always opened to any acquisitions or mergers, you know, that come our way and having cash on the books is always good, you know, in such a situation. So though we might be sitting on cash today, you know, if the there are good opportunities at some other way, we are quite open to, you know, kind of go that far. And yeah, of course if we don’t find any opportunities in the next couple of years, there will be good payouts as well. So I think we’re open both ways.
We’re not shutting down any opportunity that comes our way. So yeah, open to everything. But not currently, you know, as I mentioned last year time we were looking at a potential buyout of a certain player in the plastic segment that is currently off the table because when we did the due diligence, we did not find it appropriate some of the things. And so we took a backseat on that. But having said that, we are still open to any kind of acquisitions in the future.
Aniruddha Joshi
Okay. Surely, sir, and last question. In the previous call, the Q3 call, you had slightly toned down the EBITDA margin guidance. Now obviously revenue growth is coming back, so you will benefit from operating leverage. Plus the key raw material crude oil has also in a way gone down now. So logically, glassware plant should stabilize and it should also add to the profitability as the initial TV issues may get resolved. So any fresh guidance in terms of the ebitda margins for FY26,
Gaurav Pradeep Rathod
I think. EBITDA margins I had guided would be subdued because of the glassware pixels, because glassware in the first year, as you know that it takes a little time to stabilize. And even now we are still at only about 55% efficiency level. So the idea is that we might not see any good profitability overall. We might, we want to, we would be able to break even for the year. And that is why, you know, the revenues might rise, but it might not add to the profitability. And that is the reason why I guided that, you know, the profitability could take a percentage point hit for the year.
But having said that, you know, we will try not to have that kind of a situation. But you know, just in case, you know, this efficiency is the earlier we achieve, the better the position will be. Of course.
Aniruddha Joshi
Okay, sure, sir. This is very helpful Many times.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. The next question comes from the line of ashutosh Ketan from AMSEC. Please go ahead.
Ashutosh Khetan
I just needed one clarification. The 12 to 15% growth that you said in FY26 is for the consumer segment, right?
Gaurav Pradeep Rathod
No, this is for the overall company.
Ashutosh Khetan
Okay. And segment wise, if you could just break down this growth.
Gaurav Pradeep Rathod
Yeah. The consumer wear would be a little higher at about, you know, 18. 17, 18%. Owing to the fact that we are also adding revenues of glassware in this and the writing instrument segment, you know, we are. We are targeting about 10 to 12% growth and for richer as it is at about 7 to 8%. So overall, 12 to 15% is the kind of number.
Ashutosh Khetan
Okay. Okay. Got it. That’s it. Thank you so much.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. The next question comes from the line of Akil Parikh from BNK Securities. Please go ahead.
Akhil Parekh
Yeah, thanks for the opportunity. I have three questions. The first question is on the product which we have discontinued or we are planning to discontinue, would you be able to highlight which are those? Some of the products? And was the ROCE lower because of the heightened competitive intensity in this.
Gaurav Pradeep Rathod
Sorry, I didn’t get your second question.
Akhil Parekh
No. So my first question is whether the product categories which we have discontinued, the ROCs are lower, you have highlighted. Right. Was it due to the heightened competitive intensity in those product categories? And what are some of those products? That’s my first question.
Gaurav Pradeep Rathod
Yeah. So I think the returns over time on each product line. These are not product lines, these are products as such. So for example, if there is a bottle, I am not discontinuing the entire range of bottles. We are just discontinuing, say two, three products from that range. The idea is either they have become older, so they are probably being sold at slightly lower prices. So they are eating up into the sales of the products that are doing better and have higher margins. So that is the reason why we are discontinuing some of these products because it brings down the overall margin portfolio.
And also it doesn’t let the newer product lines sell as much because the production capacity for a particular month is only that much. And a lot of the products are 18. Say a portal is very seasonal in the summer, it sells a lot more than the rest of the year. So I think that is the reason why we want to kind of do this. So while roce’s are one of the reasons, another reason is also the inventory buildup that happens at our distributor and our channel partners due to the Number of product lines. So we are trying to reduce the number and also in effect trying to reduce the inventory that our partners can.
Akhil Parekh
Sure, sure. And so this will also help us reduce our own inventory and help us improve on the working capital.
Gaurav Pradeep Rathod
Absolutely.
Akhil Parekh
And any guidance on the inventory days we expect from this activity.
Gaurav Pradeep Rathod
So inventory based should be at a reducing trend. It is now currently it’s pretty high also. But because of our steel flux, because we had filled in about inventory of about 6, 7 months, which is now coming down. So we should be able to see about seven, eight days of or about 10 days of improvement after all of this is in effect. But yeah, you will see it in a phased manner. You might not see it immediately.
Akhil Parekh
Sure. And the third and last question. 80%. Of utilization, what kind of revenues you can generate?
Gaurav Pradeep Rathod
So at, so at full capacity, we are looking at about you know, 400, 425 crore of revenue that can be generated out of this plant.
Akhil Parekh
That should be 100% plus.
Gaurav Pradeep Rathod
That’s right.
Akhil Parekh
That’s all from my friend and best love for coming.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. We take the next question from the line of Karan Batalha from amsec. Please go ahead.
Karan Bhatelia
Hi, good morning. Am I audible?
Gaurav Pradeep Rathod
Yes, absolutely.
Karan Bhatelia
Yeah. Hi, Gaurav. Wanted to understand the value volume matrix across categories for FY25. That’s the first question.
Gaurav Pradeep Rathod
Right. So I think volume is slightly higher than value though. You know, it’s very difficult to quantify our products in terms of of volume and value because we trend across a lot of different price points. It’s not the right way to look at our product line. But having said that, the volumes have been higher because there has been a little more discounting in terms of value, but only about percentage point difference. So if it’s 7% growth overall, we would be at about 8.59% of volume growth.
So you can’t actually see this number doesn’t make sense in our overall scheme of things because there’s so many product lines. Even our writing instrument is completely different. Furniture is very, very different. So also raw material fluctuations also makes a lot of difference in this. So not a very good metric to look at. I think in our portfolio we should always look at only value, which will make more sense.
Karan Bhatelia
Yeah. So wanted to understand whether the industry had grown and we’ve grown better in terms of volumes. So that was the focus anyway on the discounting. You mentioned that. So are we like we think healthy discounting for the fourth quarter or are we peak in terms of discounting?
Gaurav Pradeep Rathod
Discounting has been for the entire year. If you see there is, that is why there is a little drop in your gross profit level. So it’s not the major discounting. It is slight bit of discounting that has happened because of demand pressures. So that has been there for the entire year. It’s not only the fourth quarter phenomenon.
Karan Bhatelia
Right. And while we’re not sharing the Opal and glass revenue separately, if you can give me at least the growth X of opal and glassware in the consumer segment for 25 percentage will be fine.
Gaurav Pradeep Rathod
Yeah. So Opal wear and glass grew at about 13% for the, you know, for the entire year.
Karan Bhatelia
Okay. Okay. And the writing export, what’s the quantum and what’s the decline for this year? That’s it remind.
Gaurav Pradeep Rathod
So the export is still about 46% of the sale of the writing instrument segment and the Decline is about 20 or so, which is the decline that we see in the overall, you know, numbers as well.
Karan Bhatelia
So I repeat, 46% value in writing was exposed and it degrew by 20%.
Gaurav Pradeep Rathod
Correct. 20 crores. So absolute numbers. Yeah.
Karan Bhatelia
Okay. Okay. Yeah, yeah. Thank you Gaurav. That was a very helpful.
operator
Thank you. We take the next question from the line of Percy Pentaki from IIFL Capital. Please go ahead.
Percy Panthaki
Hi, sorry, I got disconnected while I was asking a question. So just a follow up on those questions which I asked. So I did the math and I removed that 10 crore from the consumer where it is still a 20% growth this quarter compared to the first nine months which is like 7, 8%. So just trying to understand this very, very sharp acceleration in this segment. What can I attribute this to?
Gaurav Pradeep Rathod
So a couple of factors. Hydration has started, did very well for us due to early summers. So summer, your March sale contributed a lot of hydration sales. So uptick in all channels for hydration, you know. So that kind of did very well for us. And plus overall, as I said, demand scenario was much better. So these were, you know, these were growth that we were seeing in 22, 23, you know, across all quarters. So I think. But you know, having said that, you know, these are spots of growth and not consistent. So I wouldn’t guide on, you know, anything going forth because the idea is that, you know, it has to be consistent for us to tell you that, you know, this will continue.
Percy Panthaki
Understood. So excluding the capacity addition, how much would you say that the consumer where division could grow for the full year? FY26, would it still be a double digit number if not 20%?
Gaurav Pradeep Rathod
Yeah, absolutely. So about, as I mentioned, about 16 to 18%. It should grow at for the year. You know, also because we are adding our classic capacity also.
Percy Panthaki
No, no, I’m saying excluding the capacity addition because I want to take organic basis which is a reflection of the underlying demand.
Gaurav Pradeep Rathod
Excluding it would be like low single digits.
Percy Panthaki
Got it, got it. And secondly, on your writing instruments portfolio, I understand the exports is in decline, domestic is doing well. But when does this equation take so that at an overall level you come back to a yoy growth?
Gaurav Pradeep Rathod
So the idea is that, you know, the dependency on exports has to come down a little bit because we’ve not seen, you know, green shoots there in terms of growing demand. So while we are adding a few countries, the idea is to grow the domestic market more aggressively this year. So that will basically add to, you know, the growth.
Percy Panthaki
Sure, sure. But do you think it will take like maybe 3, 4/4 more till this portfolio is back in a ROI growth at overall domestic plus export level.
Gaurav Pradeep Rathod
I think we should start seeing growth in the second half for sure in this category.
Percy Panthaki
Understood. And lastly on furniture, since crude prices are little soft and there might be either higher discounting or lower pricing of the products, how do we see the value growth of this segment for this year?
Gaurav Pradeep Rathod
So the idea is to keep selling premium products in this range. So until we are able to increase the share of our premium product lines, we should still see a value growth. You are right in terms of saying that revenues drop in this category when the raw material prices come down. But hopefully that will be offset by, you know, selling the premium things.
Percy Panthaki
Got it, got it. That’s all for me. Thank you. And all the best.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. We take the next question from the line of Grishma Shah from Envision Capital. Please go ahead.
Grishma Shah
Hi. Two quick follow up. You know what has been the cooler category growth for us this Summer Given that Q4 also would, you know, help us in that.
Gaurav Pradeep Rathod
So last year we saw a big surge in cooler demand. This year was very limited. So so not really any growth. We are only meeting last year kind of expectations this year.
Grishma Shah
Okay, okay. And the second,
Gaurav Pradeep Rathod
there was also a lot of inventory by other players in the channel because everyone kind of anticipated it to be very good. But the summer was short lived so I think that was another reason.
Grishma Shah
Okay. Okay. Do we also have like more inventory in the system or we didn’t have much.
Gaurav Pradeep Rathod
No, not really. We don’t have that much inventory on the cooler bit. We’ve pretty much sold out on that inventory side.
Grishma Shah
And the second thing was on the distribution side, if you could highlight, you know, what, what is the current reach that we have and how do we plan to expand in the coming year?
Gaurav Pradeep Rathod
So I think in terms of distribution. Of course, they are all India, Pan India distribution is there. There are pockets, of course, that we keep improving where we feel that our, you know, sales are lower than, say, a competitor or a peer or we feel that the potential of that particular territory or area is a lot more. So I guess from that lens, you know, we keep improving it year on year.
But having said that, there is no real geographical area that we are missing out on. So I think it’s just about addition of, you know, more and more penetrating further in those areas. And also, you know, other channels, as I mentioned, you know, quick commerce, E commerce are also helping us, you know, reach customers, you know, and penetration is also increasing from that perspective.
Grishma Shah
Thank you and good luck.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you, ladies and gentlemen. With that, we conclude the question and answer session. I now hand the conference over to the management for their closing comments.
Gaurav Pradeep Rathod
Thank you so much, everyone. Hopefully we’ve had a good quarter and hopefully this momentum continues. That’s what we hope and we hopefully continue to deliver great results. Thank you so much.
operator
Thank you. On behalf of ICICI securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.