Creative Newtech Limited (CREATIVE) Q3 FY23 Earnings Concall Transcript

Creative Newtech Limited (NSE:CREATIVE) Q3 FY23 Earnings Concall dated Feb. 13, 2023.

Corporate Participants:

Ketan Patel — Chairman and Managing Director

Abhijit Kanvinde — Chief Executive Officer

Vijay Advani — Whole Time Director

Analysts:

Suraj Nawadhar — Sampada Investments — Analyst

Harish Shah — HS Investments — Analyst

Sarang Anajwala — Investor — Analyst

Kalpesh Dave — Spark Capital — Analyst

Sathish — Individual Investor — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Creative Newtech Limited Q3 FY23 Earnings Conference Call. [Operator Instruction]

I now hand the conference over to Mr. Ketan Patel, Chairman and Managing Director. Thank you, and over to you, sir.

Ketan Patel — Chairman and Managing Director

Good afternoon, everyone. Welcome to Creative Newtech Limited earnings conference call for the third quarter and nine months ended December 31st, 2022.

I want to start by thanking you all for taking time to join this call. On the call with me today is Mr. Abhijit Kanvinde, CFO; and Mr. Vijay Advani, Whole Time Director of Creative Newtech Limited.

We will start with some key developments from the quarter. Before we get into the business and financial performance, I would like to share brief insights and recent developments regarding the company. Speaking of the macroeconomic situation, it seems that COVID is behind us, but the geopolitical tension inflated [Technical Issues] pressure, supply chain issues still drive uncertainty into the macro-environment. COVID has set a digital transformation and technology both YoverY and we will do whatever is needed to ensure that we are also growing with the market. The budget proposals on digitization and technology revamp could possibly result in a multi-billion dollar opportunity for India rising sector. While the budget — with the budget allocation of INR4,600 crores in PLI scheme, we expect in the coming years to get our good manufactured in India, which will help us to reduce our inventory level and overall working capital due to the reduction of number of days in logistics.

Consolidated performance highlights for the quarter ended December 31st, 2022. Total income of the quarter was INR428.97 crores in quarter three FY23, a year-on year increase of 41.87%. Improvement in EV segment was supported by strong demand for brands such as Samsung, Cooler Master Honeywell [Technical Issues] supported growth. EBITDA grew at INR12.69 crores in quarter three FY23, year-on-year an increase of 20.16%. EBITDA margin at 2.96% in quarter three FY23. Net profit is INR7.69 crores in quarter three FY23 compared to INR7 crores in quarter three FY22, while net profit margins stood at 1.79%. Our business and vision far exceeds only distribution.

Today we shall establish — we are well-established as brand licensees with a long-term agreement with Honeywell and further between on the lines of the business. This also garner us the attention of [Technical Issues] looking at brand licensing as a beneficial of course. We recently re-arrange our segmental structure on the distribution front to better align with our business. Designment started.

Our brands are now categorized into following four segments. FMSG fast moving social media gadgets, this comprise of new and niche products that appeal to the younger demographic and our fast turnaround. The brands are given by social media penetration and wind adoption. This is one of the fastest growing and higher-margin segment. FMCT, fast moving consumer technology. This segment includes established consumer products that cater to personal and organizational demand such as Samsung, iBall and ViewSonic. EB, Electronic business. This compromises product supplied to enterprise and of high volumes. Some brands in this category in include MSi, Phillips, AOC et cetera.

Fast moving electronic goods. This segment covers all alliance with the Reliance through which we offer home appliances, bulb, lights from brands, certainly BPL category. This segment better represent our brand portfolio and give better clarity on high-margin and high-volume product. We periodically expand and refresh our portfolio with new niche brands and products relevant to our times. Some of our most recent brand addition include Samsung flash memory, Lexar, Fujifilm Instax and Hyperice, a US-based company specializing in technology-based muscle recovery and massage products, all known in the wellness and fitness category.

Our license agreement with Honeywell continues to grow strongly. We have expanded the geography outreach to 38 countries for Honeywell. We are constantly working to increase our footprint in this region. This allows us to further increase our spoke in terms of geographies and our licensing business overall. We will also work towards scaling up this line of business in the fiscal year. Given that we are present across channels, it gives us substantial leverage to reach a broad market. The synergy from Honeywell business will continue to grow this fiscal year.

Coming to CKart, CKart is our online digital B2B e-commerce platform that will aid in the growth of our business while catering to existing and new customers with nominal additional cost. It hosts our customer in supply chain and enable them to transact and share the product with their buyers. This allows the users to share their inventory and and transact with each other. It is higher-volume and expands the product portfolio offered through Creative Newtech. Ckart will continue to be our one-stop solution for our customers and improve the working capital cycle and profit athletic.

Now I hand over to Mr. Abhijit Kanvinde, who will take you through the financial highlights of quarter three and nine month FY23.

Abhijit Kanvinde — Chief Executive Officer

Thank you, sir, and good afternoon to you all. I will share the highlights of our consolidated financial performance, after which we will open the floor for questions. Our financials are reported as such in AS guidelines.

Looking at consolidated Q3 results in the quarter ended 31st of December 2022. The company recorded total income of INR428.97 crores growing 41.87% year-on-year. Improvement in EB segment was supported by strong demand for brands like Samsung, Cooler Master, Honeywell and ViewSonic, which actually fuel the growth. EBITDA stood at INR12.69 crores against INR10.56 crores in the previous corresponding period, an increase of 20.16% year-on year. The net profit for the quarter is INR7.69 crores as compared to INR7.0 crores in the Q3 FY22, an year-on-year growth of 9.85%.

Speaking of nine months results. For the nine month period ended on 31st of December 2022, the report — we reported the total income of INR999.28 crores, growing 47.07% year-on year. The growth was supported by enterprise business segment and brands like Samsung, Cooler Master, Honeywell, besides ViewSonic. The EBITDA stood at INR33.62 crores as against INR23.34 crores in the previous corresponding period, an increase of 44.03% as compared to previous periods. The EBITDA margin stood at 3.36% as compared to 3.44% in the previous corresponding period. The net profit for the nine months period ended on 31st of December 2022 is INR20.80 crores as compared to INR14.07 crores in the corresponding period, a growth of 47.82%.

This is all from our side, we can now open the floor for questions.

Questions and Answers:

Operator

Thank you. [Operator Instruction] The first question is from the line of Suraj Nawadhar from Sampada Investments. Kindly proceed.

Suraj Nawadhar — Sampada Investments — Analyst

Hi, sir. Good afternoon.

Ketan Patel — Chairman and Managing Director

Good afternoon, Suraj Ji.

Suraj Nawadhar — Sampada Investments — Analyst

So my first question is that we are guided for INR200 crores of revenue this year. We have already done INR1,000 crores. So would you like to revise this guidance upwards?

Ketan Patel — Chairman and Managing Director

We should be around — so we expect INR1,200 crores…

Abhijit Kanvinde — Chief Executive Officer

Annually.

Ketan Patel — Chairman and Managing Director

Annually. We should be, I think, between INR1,200 to INR1,300 crores.

Suraj Nawadhar — Sampada Investments — Analyst

Only INR300 crores of sales in Q4 than you’re expecting?

Ketan Patel — Chairman and Managing Director

The March quarter usually mainly corporates by the law, and that’s what we are thinking that we — margin usually around between INR250 crores to INR300 crores.

Abhijit Kanvinde — Chief Executive Officer

Yeah, yeah, yeah.

Suraj Nawadhar — Sampada Investments — Analyst

The margins have been weak this quarter. We were expecting to increase margins quarter by quarter. So when do we expect to reach our 4%, 4.5% of margins?

Ketan Patel — Chairman and Managing Director

Okay. So couple of things, one of the view for this whole year was that, the absolute margins we would increase so we reach towards certain threshold, whereby after that we could concentrate on only high-margin product. I think next year, surely by the second quarter, you should see margin between 2.5% to 2.75% PAT.

Suraj Nawadhar — Sampada Investments — Analyst

Okay, okay. And sir, Honeywell business for this quarter?

Abhijit Kanvinde — Chief Executive Officer

30… 36% — INR36 crores.

Ketan Patel — Chairman and Managing Director

INR36 crores.

Suraj Nawadhar — Sampada Investments — Analyst

Okay. Okay, thanks ji. That’s it. And all the best.

Ketan Patel — Chairman and Managing Director

Thank you, Mr. Suraj.

Operator

Thank you. [Operator Instructions] Your next question is from the line of Harish Shah from HS investments. Kindly proceed.

Harish Shah — HS Investments — Analyst

Thanks for the opportunity. I just need management’s comments on the debt. Are we planning to trim it down? Or would it be increasing as we — as the business improves? That is…

Abhijit Kanvinde — Chief Executive Officer

Honestly, if I compare the last year’s balance sheet that is as on 31st of March, okay, we had a short-term debt of almost INR53 crores, okay. And it has grown up in this December to INR63 crores, okay. I do not think there will be a phenomenal change in the debt because of working capital cycle per se has increased from 46 days as on 31st of March 2022 to around 34, 35 days. So we are churning out better.

Secondly — therefore, there will be — the rest of the thing would be funded by our internal adverse. Last year, we did some equity into [Technical Issues] of around INR11 crores with premium. So that would help to fuel the gross. I do not think that, that will grow up by more than INR5 crores, INR7 crores, INR10 crores — INR7 crores to INR10 crores in the next year. But that’s normal as compared to — if you compare growth in the business.

Harish Shah — HS Investments — Analyst

Okay. So going ahead from couple of years down the line, do you plan to trim it down?

Abhijit Kanvinde — Chief Executive Officer

Yes. Yes, yes.So the percentage of debt — now for example, on a standalone basis, last financial year the debt-equity ratio was 0.85, okay. Now it’s 0.77, okay. I am sure this ratio will be better better, better every quarter and that is the target internally boarded [Indecipherable] You have to better to see. One is working capital terms and the debt equity ratio, yeah. Plus the amount may increase by INR5 crores to INR10 crores, but the debt equity ratio would improve.

Harish Shah — HS Investments — Analyst

Okay. Okay, thanks for the elaborate answer on the debt. My second part is on our geographic presence. So I just need to check over traction.

Abhijit Kanvinde — Chief Executive Officer

Yes.

Harish Shah — HS Investments — Analyst

See we have I believe licensing for 30, 35 plus countries.

Abhijit Kanvinde — Chief Executive Officer

Yes.

Harish Shah — HS Investments — Analyst

So how many countries that we are able to tap it out?

Abhijit Kanvinde — Chief Executive Officer

Yes.

Ketan Patel — Chairman and Managing Director

Mr. Shah, I will take this question. This is Ketan Patel. Okay. So currently we have 36 countries with us in licenses, right. And our endeavor is that by 2025 we should reach close to between 18 to 20 countries. Coming to the near-term thing, currently we are in India. We have a distributor in Singapore. We have a distributor in Dubai. We have just finalized a distributor for Saudi Arabia. We have a distributor in Bahrain and Qatar. We are participating now in the GITEX Exhibition Morocco to cater to Africa, because of the whole of East Africa comes there. And we are also participating in the Thailand exhibition so that we could get our distributors for Thailand, Malaysia and smaller countries like Myanmar and Laos. That’s working. We are approaching it from per sale of what’s the population of the country, and that’s where we are picking up countries.

Obviously, in the Middle-East, we should have gone to Egypt and we should have gone to Turkey. But the foreign exchange fluctuation there is tremendous,so we have refrained from going there. And in Southeast Asia, Malaysia and Indonesia and Thailand, these are the three largest markets, which we think that we will get distributor post over. So I think on the 15th is the exhibition at Thailand, post that I think in a couple of months, we’d be able to sign-up.

Currently Honeywell products are available on Amazon India, Amazon Singapore, Shopee Singapore, Lazada Singapore, Amazon UAE and Noon UAE and the reviews are building pricing in another quarters time or four months time we would see a good traction there.

Harish Shah — HS Investments — Analyst

So incrementally, can we — any ballpark numbers that you are targeting from your all the activities in the coming year…

Ketan Patel — Chairman and Managing Director

Yes.

Harish Shah — HS Investments — Analyst

Couple of financial year.

Ketan Patel — Chairman and Managing Director

Yes, yes. So I think this year we should close between INR110 crores to INR115 crores of Honeywell business. Next year modestly if you do things right, we should close around and INR170 crores to INR180 crores, which can go upwards but that’s the minimum we think INR170 crores, INR180 crores next year.

Harish Shah — HS Investments — Analyst

Thanks. I thank the management for the opportunity, and I wish you all the best. If require, I will join the queue. Thank you. Thank you.

Abhijit Kanvinde — Chief Executive Officer

Thank you Mr. Shah.

Operator

Thank you. [Operator Instruction] The next question is from the line of Sarang Anajwala, an Investor. Kindly proceed.

Sarang Anajwala — Investor — Analyst

Hi, thanks for the opportunity. So keeping one question around the different business segments. So what I’m seeing is, this quarter specifically, enterprise business has gone up. I mean — and this one is — enterprise business is I think relatively low margin part. So do you see any demand challenges on that FMSG, FMCT part of business? Or can you talk a little bit about the split?

Abhijit Kanvinde — Chief Executive Officer

Yes. I didn’t get your name. It is Sarvan, right?

Sarang Anajwala — Investor — Analyst

Sarang.

Abhijit Kanvinde — Chief Executive Officer

Sarang, I am sorry.

Sarang Anajwala — Investor — Analyst

Yes, yes.

Ketan Patel — Chairman and Managing Director

Yes Mr. Sarang, so you rightly pointed out the enterprise business is a lesser margin business. So usually we do the enterprise business only when we have some available cash flows to do that business. This year quarter, actually the pass wing social media,good FMSG business did not do so well, not because there was not a lot of demand, but there was still supply constrained, because we had peak COVID in China in the month of November and December, that’s when a lot of material both move to India, but the supply chain was really erratic and we couldn’t get the material there. That’s what — the main reason that the profits were low. And since we had some capital less, we said that let’s do the enterprise business over a long-term of period of time. In internally never mind, we are very sure that we want to use every incremental cash flow and every incremental efforts only on high-margin business. And currently, we are at the threshold where if we do close to around INR600 crores, INR650 crores of the other businesses, then it will help us considerably reduce our cost of logistics and other stuff and it also helps us to piggyback on that business and build this business. So we are there. So incrementally, all our efforts will be in now one Honeywell and the fast moving social media goods business.

Sarang Anajwala — Investor — Analyst

Okay. Got it. And another question I had was around Honeywell. I think you mentioned we had done about INR37 crores this quarter. How much we have done in nine months so far?

Abhijit Kanvinde — Chief Executive Officer

Approximately INR76 crores.

Sarang Anajwala — Investor — Analyst

Okay. Okay. So it looks like we will go within INR110 crores to INR115 crores for the year. Okay. All right. I had one question just to understand the statements better. So one request maybe if you can publicity Honeywell numbers every quarter, I think that would be really helpful. And another around on the same lines, the difference between standalone and consolidated, is it fair to assume that that difference is the Honeywell business or just Honeywell India get….

Abhijit Kanvinde — Chief Executive Officer

So design on — also the Honeywell abroad business, the foreign business was little lower than as compared to last year, the reason behind the supply chain issues. And therefore, the profitability for the Honeywell business which got — we get consolidated has been lower as compared to the last quarter. If you compare quarter-on-quarter, it will be lower than — I am sure one quarter you always get a set back. You can’t go early quarter, okay. So this is a set back quarter for us, and we will back up and will catch up in the next quarter and the quarters going forward.

Ketan Patel — Chairman and Managing Director

Mr. Sarang just to add to your query, this request has been there from a few other investors also and we have spoken to our auditors. And from the next quarter, that’s from the month of April, we are going to give Honeywell as a separate business in the balance sheet. So we’ll show you the numbers separately from FY23, right.

Vijay Advani — Whole Time Director

Yes.

Sarang Anajwala — Investor — Analyst

Okay. Okay. Yes, that would be a help. Just one related point. Our Honeywell India business kind of gets calculated inside standalone? Or that is also part of consolidated?

Abhijit Kanvinde — Chief Executive Officer

Standalone.

Sarang Anajwala — Investor — Analyst

Standalone, okay. So consolidated is primarily the secure connection business, which is…

Vijay Advani — Whole Time Director

Yes. Correct, correct. Absolutely.

Sarang Anajwala — Investor — Analyst

Okay. Okay. Got it. Got it. It sounds good. Thanks a lot. And I get your point. I think last quarter especially was very bad quarter for China. So I understand the whole supply chain part.

Vijay Advani — Whole Time Director

Thank you.

Sarang Anajwala — Investor — Analyst

Thank you very much.

Operator

Thank you. [Operator Instruction] The next question is from the line of Kalpesh Dave from Spark Capital. Kindly proceed.

Kalpesh Dave — Spark Capital — Analyst

Hi. This is Kalpesh. Two queries technically. Are we looking at getting into more dedicated team to grow CKarts? And second was, are we looking to expand in licensing in terms of adding more brands also to the business?

Ketan Patel — Chairman and Managing Director

Kalpesh Bhai, I’ll answer this question. This is Ketan Patel. CKart is very different business from — so platform business Metwise’s [Phonetic] products are very different from a products business. So in a product business, usually the investors looked at the path and how is the PAT going, how is the business growing. In the platform business usually it is cost of acquisition of the customer, lifetime value of the customer, and it’s a kind of cash month business. And two things were there. Number one, most of the investment communities into — invested in Creative because of our Honeywell business and we did not also wanted to get into a cash burn where the balance sheet can’t support that cash burn, right. So for CKart — if that we want to grow it linearly and in the next year once the balance sheet can support a best of outflow in terms of investment, not loss making business, but where we could spend some money on marketing and other stuff that we would do on the feedback front.

Your other question was about — Mr. kalpesh what was other question? One was Ckart. What was the second question?

Kalpesh Dave — Spark Capital — Analyst

Any more — are we getting to any more licensing and adding more brands to…

Ketan Patel — Chairman and Managing Director

Licensing should happen in the second quarter next year because the more cost want us to do at least INR180 crores to INR200 crores of Honeywell business. They say that once you do that, then that business will become sustainable and then you can put your energy on one more either private-label brand or take up a licensee. So we have spoken to a couple of licensees and the licensing to get into a contract also takes almost nine months to a year, because they want to do a lot of background checks and other stuff. So I think nothing for the next two quarters. 2023, 2024 probably in the July, August, September quarter, we more have one business.

Kalpesh Dave — Spark Capital — Analyst

Okay. Thanks.

Ketan Patel — Chairman and Managing Director

Thank you.

Operator

Thank you. [Operator Instruction] The next question is from the line of Sathish, Individual Investor. Kindly proceed.

Sathish — Individual Investor — Analyst

Yes. Very good afternoon, sir. Actually you see we have recently launched something — very innovative product. One such product is our Duster Vacuum Cleaner, sir. Now what is the status of this product sir? Are they doing any business?

Ketan Patel — Chairman and Managing Director

Sir, candidly Duster — the products had good reception during the COVID time, post that there were a lot of changes in the e-commerce space in terms of the alpha used to buy back. There were disintegrated and put into lower categories. So for Duster, we would require better team to do that business. Our goal is that from April, we will look at Duster in a more focus manner. Currently, it’s on whatever sale can happens, happens. That’s the case.

Sathish — Individual Investor — Analyst

Okay. Sir, and my next question is, during the last con-call you mentioned that you’re in discussion with some gaming company. So any update on — any developments on that part, sir?

Ketan Patel — Chairman and Managing Director

Yes. So actually that gaming company called Razer, which is the Apple of gaming, we actually just signed up the agreement with them couple of days back and we should get a signed copy from them today.

Vijay Advani — Whole Time Director

Then we will notify the exchange.

Ketan Patel — Chairman and Managing Director

Then we will notify the exchange and this quarter the business for Razer should start.

Sathish — Individual Investor — Analyst

And sir, what about margin side. Is it a time margin business or…

Ketan Patel — Chairman and Managing Director

Gross 12% to 14% margin with….

Sathish — Individual Investor — Analyst

Okay. Okay, sir. Sir, and my final question is, if you see the segmental results, our fast moving electronic groups, we did around INR1.3 crores. But if you see our profits on that, it’s around INR30 crores, INR40 crores, sir, nearly. So we see — and very good profits. So what is the difference, because last — during the last quarter, actually we did around INR4 crores and our profits were still less. But this time we did a very less thing in terms of revenue, but our profits are very high. So what is — are we doing any high margin kind of product there? Or what…

Ketan Patel — Chairman and Managing Director

One second. I’ll ask Abhijith to answer that.

Abhijit Kanvinde — Chief Executive Officer

So from the perspective of volume, it is very less, okay. What you’re saying is as a percentage here across electronic goods — electric goods. That is what you referring to?

Ketan Patel — Chairman and Managing Director

[Technical Issues]

Abhijit Kanvinde — Chief Executive Officer

Which segment are you referring to, sir?

Ketan Patel — Chairman and Managing Director

Enterprise…

Sathish — Individual Investor — Analyst

FMEG, sir. Fast moving electronic goods, sir.

Ketan Patel — Chairman and Managing Director

Fast moving electronic goods.

Abhijit Kanvinde — Chief Executive Officer

Yes. So…

Sathish — Individual Investor — Analyst

Sir, we did INR1.3 crores, but our profits are around INR40 lakhs.

Abhijit Kanvinde — Chief Executive Officer

Yes. So…

Ketan Patel — Chairman and Managing Director

That’s the BPL business.

Abhijit Kanvinde — Chief Executive Officer

That’s BPL business.

Ketan Patel — Chairman and Managing Director

Okay. That’s the BPL business. So there were some credit notes, which were due to us and that came in the last quarter. But actually — it’s actually profit of the last three quarter, but there were some credit not we had not come. And since they have not conformed it, we could not take it into the balance sheet. They come from only this quarter so we have taken.

Sathish — Individual Investor — Analyst

Okay. Thanks, sir. Thank you.

Operator

Thank you. [Operator Instruction] The next question is from the line of Harish Shah from HS Investments. Kindly proceed.

Harish Shah — HS Investments — Analyst

All right. Thanks for the opportunity once again. I just have one follow-up question. This is pertaining to the business environment in China. Sir, we understand the first nine months was impacted. But how are you seeing the situation now? And does — like is there now any further disruptions that you see in the business due to China impact?

Ketan Patel — Chairman and Managing Director

So Mr. Shah, I will did take this question. Currently, internationally China has the no-COVID public policy, right. For the two years, they have followed that policy. And when they removed the no-COVID policy, there was a huge surge in COVID in the month of December, right. Now China is open for travel without any of restrictions and Hong Kong is going to have almost 10% to 12% in the month of April. And this is our chance also to go to China after almost break of three year and we are traveling to China in the month of April to — first in Hong-Kong to attend two global wealth fair there and then to visit all our factories which manufacture goods for us in China. So it’s a 12, 14 day period. Plus they also have the Chinese New Year, which is around — started around 10th of January and they resume work by end of Jan. So Chinese New Year is also behind us. So I don’t foresee now that there should be any disruption in a quarters time by March both ways, new business development as well as logistics should improve very well. That’s what I think.

Harish Shah — HS Investments — Analyst

Okay. Thank you so much.

Operator

Thank you. [Operator Instruction] The next question is from the line of Suraj Nawadhar from Sampada Investments. Kindly proceed.

Suraj Nawadhar — Sampada Investments — Analyst

Hi, sir. I just had one follow up. Is there any progress on getting a Business Head for our licensing business as we are looking to add one more client, probably next year. So is there any update on having a separate Business Head for that licensing business?

Ketan Patel — Chairman and Managing Director

Correct. Suraj, so currently what we have done is, for the licensing business — Mohit Anand who is also our co-founder at Secure Connection, he looks after that business. And since we were adding more countries and we also want to be e-com first in the countries where we enter, be that – -we will have under Mohit India country manager who comes from a background of e-commerce and audio sales because audio is there — we require a bit more expertise to crack there online. So we have already given an offer letter in the person who is joining in the first week of March. So he will lead the India thing. Plus we also have a Abhilash Hamsa as our country for Middle-East. He will lead the Middle-East. Also because we want to own the channels everywhere for Saudi Arabia, because we will be opening Saudi Arabia now, we also got the senior person from Saudi Arabia for this. And Mr. Allwin [Phonetic] is also we appointed him as Sales Director for Singapore, Malaysia and other places.

So all the manpower required are in players. They will build the regions and with report into Mohit. So that’s the structure currently we have decided. If we go into any other licensing agreement, we think that besides this also is the right skill set for that products [Indecipherable]. And we’ll follow a structure in that case. Only thing is, we will have something called as shared services, where the whole of logistics, finance, HR all that can fall into those shared services. So go-to-market teams can be different. That’s what we have currently kind of result.

Suraj Nawadhar — Sampada Investments — Analyst

And sir, the new person who is joining, he is joining from which company?

Ketan Patel — Chairman and Managing Director

So Abhilash is already already joined. The Saudi Arabian person is joining from the first of March where training has happened. And Singapore also is joining us in the exhibition. That would be time when he joins us in that exhibition. The Indian person will join on the 1st of March, who is going to head India.

Sathish — Individual Investor — Analyst

He’s joining — currently he is working in which company, the person who is joining?

Ketan Patel — Chairman and Managing Director

So current — he is an ex-JBL Harman guy. And then he was the — with Flipkart for their International business and launching products everywhere. So he has that experience of launching products in the e-comm space in Singapore in UAE, and India. Currently he works for a German company, which is air-based company for plants. So any plant on the app used, if you upload a photograph through AI, they will be able to tell what this is the plant has or what is the kind of menu you should put in that soil? He works for that company, currently.

Suraj Nawadhar — Sampada Investments — Analyst

All right. Thank you, sir. Thank you.

Operator

Thank you. [Operator Instruction] As there are no further questions, I would now like to hand the conference over to Mr. Ketan Patel for closing comments.

Ketan Patel — Chairman and Managing Director

I thank the entire team of Creative for the hard work and dedication which pushes the company forward. Also, I appreciate all of you for participating in our conference call. Thank you.

Vijay Advani — Whole Time Director

Thank you very much.

Operator

[Operator Closing Remarks]