EID Parry (India) Ltd (NSE: EIDPARRY) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Muthiah Murugappan — Whole Time Director
Y. Venkateshwarlu — Chief Financial Officer
Abdul Hakeem Ashiq — Chief Operating Officer
Balaji Prakash — Chief Operating Officer & Business Head – Consumer Products Group
Suresh Kannan — Whole Time Director
Analysts:
Sanjay Manyal — Analyst
Manish Beria — Analyst
Rajesh Majumdar — Analyst
Ajit Darda — Analyst
Rajkumar Vaidyanathan — Analyst
Ritwik Sheth — Analyst
Akshay Ajmera — Analyst
Somnath Saha — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of EID Pari India hosted by DAM Capital Advisors. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded.
Sanjay Manyal — Analyst
I now hand the conference over to Mr Sanjay Manyal from DAM Capital Advisors. Thank you, and over to you, sir. Thank you. Hello, everyone, and a warm welcome on behalf of DAM Capital to the Q3 FY ’25 earnings call of AID Perry Limited. We thank EID Perry’s management for giving us this opportunity to host this call. On the call today, we have with us Mr Mur, Whole-Time Director and other senior management team of EID Perry. I hand over the call to the management for the opening remarks, followed by the question-and-answer session.
Thank you, and over to you, sir.
Muthiah Murugappan — Whole Time Director
Thank you, Sanjay, and good morning everyone. Gives me a brief detail Q3 FY ’25 guidance call. I’ll start with an update on the India and then the Indiana then hand over to my colleague, who will take you through the operating and financial performance. You will also note that our investor — quarterly investor presentation has been uploaded online as of yesterday. In terms of the global scenario, the global sugar supply-and-demand deficit for ’24-’25 season has widened to about 2 million metric tons, primarily driven by production cuts in Asia and Mexico, which contributed approximately 1.4 million metric tons to the shortfall.
As of December, Mexico sugar production for ’24-’25 season has reached its lowest recorded level, largely due to delayed harvesting caused by wet weather in November. In Brazil, sugar production stood at about 39.78 million metric tons as of mid-December, reflecting a 4.75% decline compared to the previous year. Russia also reported lower production with total output now estimated at 6.17 million metric tons due to reduced yields. Meanwhile, Guatemala’s production for ’24-’25 season is estimated at 2.7 million metric tons, representing a 2% decline from initial projections, primarily due to a delayed harvest start and excessive rainfall.
Global trade flow surplus for ’24-’25 season has increased to 1.5 million metric tons, while the projected deficit for ’25-’26 season has expanded to 1.55 million metric tons. In the first-quarter of 2025, the raw sugar market remains balanced, whereas growing surplus in white sugar may exert downward pressure on prices. For the ’25-’26 season, trade flow deficit has widened as lower exports from Pakistan have offset production gains in Brazil and Ukraine, coupled with reduced imports from Iran. The white sugar premium closed Jan 2025 at 92.91 per metric ton, $92.91 per metric ton, marking its highest-level since August 2024 ahead of the March contract expiry.
In Indian scenario, Isma Indian Sugar Mills Association has revised its sugar production estimate for the ’24-’25 season to 30.25 million metric tons, a decline from 34 million metric tons in the previous season. A further reduction in sugar production is anticipated due to lower sugar cane yields in key sugar states such as UP, Maharashtra and Karnataka, attributing to factors such as red.infestation, varietal changes and early flowering. The estimated diversion for ethanol remains at 3.75 million metric tons. Domestic consumption is projected at 28 million tonnes while exports are expected to reach about 1 million tonnes as per the recent export permission given by the government.
With closing stocks are now being expected at about or estimated at about 6.4 million metric tons. As of Jan 31, sugar production stood at about 15.5 million metric tons compared to 18.72 million metric tons during the same-period in the previous year. Despite the lower production, government has given us this 1 million metric tons of export. Under the ethanol blended probe, I mean, under the EVP, ethanol blending has increased to over 670 crore liters in ethanol supply year ’23, ’24, achieving an approximate blending percentage of 14.6. Additionally, there has been a marginal increase in ethanol prices derived from molasses. We don’t have any clarity or visibility or increase in ethanol prices from any other feedstocks.
I’ll now hand over to to take you through the operating and financial parameters of the business for the last quarter.
Y. Venkateshwarlu — Chief Financial Officer
Yeah. Thank you, Mutu, and good morning to all participants. It’s a great pleasure to be part of the analyst call and to share — to share the key information of the operational and financial performance of the company. I would like to share with the key operating parameters of heat segment. As far as the sugar is concerned…
Operator
Sorry to interrupt, sir, there seems to be a lot of background noise. If you could come a little closer to the microphone that would have.
Y. Venkateshwarlu — Chief Financial Officer
Yeah, is it fine, Sanjay?
Sanjay Manyal — Analyst
Yes, it’s perfect.
Y. Venkateshwarlu — Chief Financial Officer
Yeah, yeah. Okay. So as far as the sugar operation is concerned, the crushing operations in Karnataka in-full touch as per the plant as per the — as per the permission given by the government. And also as per the plan which we are crushing it crushed and about 50 to 55 days, we operated in Karnataka and RGAP together. So as far as the crushing is concerned, we crushed about 12.7 lakh metric tons during the quarter against the 17.8 lakh metric tons in the corresponding quarter of the previous year. These main operations — similar operations have been shifted to the — from Q3 to the Q4. So as far as the recovery is concerned, the recovery is 10.78 for the current quarter against the 10.14 of the corresponding quarter of the previous year. As far as the sugar products is concerned, we produced about 1.08 lakh metric tons during the quarter, against the 1.5 lakh metric tons of the corresponding quarter of the previous year.
The overall cane landed cost is at INR3,899 per metric ton as against the INR3,543 per metric ton of the corresponding previous quarter — previous quarter of the previous year. The main increase is only the due to FRP impact. It is from 3,150 to 3,400 for the current sugar season. As far as the sale volume is concerned, we sold about 1,11,000 metric tons during the current quarter. Corresponding the previous quarter as well, almost like we sold about 1 lakh tonne, 1 lakh 10,000 lakh metric tons. As far as the average selling is concerned, for the current quarter, quarter is 381 pesa per kg as against INR38 70 pesa per kg of the previous year — previous quarter of the previous year.
Closing stock, we have carried about 1.3 lakh metric tons of the closing stock, the valued at INR37 around INR37 crores. Revenue from sugar is about INR392 crores as against the previous period of INR435 crores. So the main reduction is mainly on account of release quota and main focus on the retail segment. All FRPs were paid as per the timeline. As far as the consumer product CPG division is concerned, we have achieved about INR236 crores turnover as includes INR87 crores of the stable — branded stable business during the quarter as against INR137 crores of the previous corresponding previous year, representing a growth of 76% overall — overall growth in the CPG segment. As far as the cosion is concerned, we generated about 954 lakhs units as against 1,366 lakh units in the corresponding period of the previous year.
We have exported about 503 lakh units as against 677 lakh units in the corresponding period of the previous year. As far as the power tariff is concerned, the current quarter at INR398 per unit as against INR4.91 per unit in the corresponding perio period of the previous year. As far as the revenue is concerned, the current quarter is about INR41 crores as INR61 crores in the corresponding period of the previous year. So the distillery segment is concerned, we sold about 42 lakh liters as against the previous period of 273 lakhs units, of which E&A we sold about 118 lakh liters, against 114 lakh liters in the corresponding period — period. As far as ethanol is concerned, we sold 3 odd 4 lakh liters. Previous year was it about 159 lakh liters. Price relation is a good because the current quarter we average price relation is at INR65 per meter as against previous year realization crores.
As far as the revenue is concerned, current quarter we about INR290 crores as against INR177 crores during the corresponding period of the previous year. As far as the — Nutra division neutral — the division is concerned, Indian operations have achieved about INR55 crores turnover as against INR8 crores in the previous year — previous year. At the consolidated level, the Nutra business was INR43 crores against corresponding previous period, which was about INR47 crores. As far as the — refinery operation is concerned, operational revenue for the current Q3 was INR915 crores. The same previous corresponding period was about INR1,59 crores. The loss for the quarter is about INR18 crores. The same Q3 ’23-’24 is profit was about INR17 crores.
Referring sugar production for the current quarter is at is 2.05 lakh metric tons as the previous period is 1.96 lakh metric tons. Refined sugar sales quantity is about 1.87 lakh metric tons as against Q3 of 2.7 lakh metric tons in the previous period. ICD from EAD remains at the same previous year level. Our external borrowing is at INR532 crores as against INR9 crores. As far as the operation for home is concerned, the quarter-on-quarter sales is INR1.87 lakh, 2.26 revenue of INR915 crores as against INR1,05. EBITDA we are at INR60 crores positive as against INR37 crores. As far as the EBIT is concerned, INR5 crores negative as against INR26 crores is a positive. PBT INR18 crores is a negative — again, INR17 crores.
This is the performance of financial performance, operating performance the year. The floor is open thank you, sir.
Questions and Answers:
Operator
Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star N1 on their touchstone phones. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question comes from the line of Manish Beria, an individual investor. Please go-ahead.
Manish Beria
Yes. So good morning, sir. So I wanted to ask about the capital allocation policy of EID Perry. So stake provides the most economic value for the EID. So in that sense, if I look at your last 10 years, so whatever dividend we have received from the stake, that has not been fully passed on. I mean, I understand that some money was needed to support the sugar business. So my question is like to see from when do you think that the sugar business will become independent enough that it can fund its own need and become cash-flow positive and things like that? And can we reach a point in sometime in the medium-term where we can be able to pass-on fully whatever dividend we received from the stake? So just on the capital allocation policy here. Thank you.
Muthiah Murugappan
Manish, this is here. Thank you for your question. You’re right, there’s been perhaps very little pass-through of the dividend in over the last 10 years. We have obviously passed on in recent years as we’ve reported better profits in the recent past. We have passed on some of those tranches of dividend. I guess when the standalone business is loss-making, it was difficult to pass-on that dividend. The aspiration, of course, remains to strengthen the standalone business and pass the dividends on. The current phase is a tough phase as you’ve seen from the results. Our presence in three states in the standalone business is a bit of a drag, especially from AP and TN, wherein we’ve seen challenges on feedstock availability.
If you look at the broader capital allocation policy, I’ll take you back five or six years when we started restructuring in TN, we sort of came down from we closed three units down, moved some of that capacity to Karnataka wherein the crush could take place on higher recovery and better cost position of cane. We also allocated capital towards the ethanol blending program by adding distillation capacity, which we have seen now materialize and we also continue to invest in the Consumer Product Group’s business and we are working on how we can position the refinery business better. So these are really the focus areas going-forward.
We were hopeful of a better and a more sustainable policy framework, framework especially around the linkage of cane prices to sugar prices as well as ethanol blending program in terms of offtake prices of ethanol and we sort of modeled our capital allocation in in Karnataka in terms of adding milling capacity and in terms of expanding distillation capacity on this basis, that hasn’t completely played out. We margins have dipped in the distillery segment. So we again remain hopeful that policymakers will take a view which is more long-term and sustainable from a policy framework. And I think that should help steady things on the standalone business. And I think once we see those days, obviously, in terms of the dividend which you were alluding to, we would be in a position to start passing-through again.
Manish Beria
So the second one, just to add-on there. I mean, so last-time, I mean you had like 59% stake. So I mean also not only the dividend, but you have sold some stake to bring it down to 56%. But does this stay here like there is no chance like will not go down more, let’s say I understand it will be always 51%, but let’s say there is no chance so.
Muthiah Murugappan
In the past that take was sold down to you know, address some of the issues at the at the refinery. That was a you know a group level call which was which was taken. Now in terms of — in terms of the future, I can’t really comment. These are broader discussions and we don’t have anything to comment on at this point in time.
Manish Beria
Okay. Thank you. Best of luck.
Muthiah Murugappan
Thank you.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Sanjay Manyar from DAM Capital Advisors. Please go-ahead.
Sanjay Manyal
Hi, sir. Sir, have just few questions on the recovery side. It seems that the current-season recovery is slightly better. Just want to understand from the structural point-of-view, is there any possibility that Tamil Nadu and the catchment area where the possibility of structurally the gross recoveries can improve to a level the way UP has seen in the past.
Muthiah Murugappan
Anik, do you want to take that?
Abdul Hakeem Ashiq
He’ll take the question. Thank you for your question. The recovery is a factor of a few things starting from variety to the climate and the agricultural practices. What we have been consistently working is on the agricultural practices over the past few years. We are also focusing on things like getting the right time harvesting in-place, which is one of the reason we are going to make in coming out because if you harvest the tail at the mature age, your recovery will improve. The rental program within is a very robust program. We have about couple of decades of experience in developing new.
There are about two verities is hitting the bulk planting as we speak now. And in the next few years, we will probably have about four to five that will come. All these will aid in improving the yield and recovery in Tamil Nadu basically. Will it move-up to the levels of UP, et-cetera? I think that’s a — that’s something which will take some time because the northern parts of the country have had benefits of a particular verity which paid now it’s it’s going to its life the south part of the country will continue to be less in terms of recovery as compared to the northern parts, especially in the coastal belts, et-cetera. But we are fairly confident that we will see improved recovery from the recent trends in the coming couple of years. I hope I answered your question.
Sanjay Manyal
Right, right, sir. Sir, and my second question is on your view about the current ethanol scenario. We haven’t really got the price hike in and juice and industry has sort of moved to significantly move to a B-heavy molasses based ethanol and sugar can juice-based ethanol. So what is your view on that? How you see the profitability will be impacted in the ethanol part of the business? Also, if you can also sort of give your view on the sugar prices. We have seen off-led sugar price have been in an up move at least in last one month. What is your view over the next two, 3/4 how the sugar prices you think would be — would be behaving?
Abdul Hakeem Ashiq
On the ethanol blending program, I think both the industry through its representative bodies like Isma is fully seized of the matter and we continue to make very active representation to the government. We also believe I think the government understands the sector well and is very responsive. But as a very responsible government, they take their time to take the decision and I’m sure they’ll do it right for the industry. In the last two quarters — at least in the last quarter, I think both the pricing on sea heavy and the export quota from the government are positive indicators that the government is seized of the challenges that the industry faces. And we are really positive as we speak that the government will be responsible on pricing on behavior and syrup also and we hope for that as we go-forward. And as an industry participant, we will continue to work with the government on improving the sector profitability.
In terms of sugar pricing, I think the export code has been a welcome development. It’s — it’s really taken quite a bit of effort from both sides for the government to come up with that. As you can see, there is a shortfall in-production in India and I think the government has been responsive in terms of stepping in to help the industry. This export quota in a sense will help us pay our farmers on-time. Is continuing to be in the forefront of that. I think as an industry, this will help in that and that’s good for the economy. Our sugar pricing per se would be robust for some time, but I think will have to wait for the cushing season to-end to get a good indication of the sugar available in the country. Broadly, I do have a past-due view for the coming few quarters, if not longer. Thank you.
Sanjay Manyal
Right, sir. Sir, my last question on the branded business. So what kind of means non-sugar branded business would be the part of the sales? And how you see this business next three, four years from the margin perspective, from the size of the business and from the margin perspective what kind of EBITDA margin you can generate in this business?
Balaji Prakash
Thanks, Sanjay. This is Balaji here. I head the Consumer business. So as of — as of now for quarter three, the non-sweetener sale is about 37% of the total branded sales and it is expected to be at around that level as we go-forward. And this is the first year of operation. We’ve just been in operation for about nine months. There are several aspects of margins and contribution value-creation that still need to be done. I think as of now, it is in — as of now, the margins are in the single-digit number, very close to the double-digit numbers. I think as we go-forward, we’ll unit more value chain opportunities and grow the margins as we go-forward.
Sanjay Manyal
Right, right, sir. Thank you. Thank you very much, sir. I’ll come back-in queue.
Operator
Thank you. Participants, please press star and one to ask a question. The next question comes from the line of Rajesh Majumdar from B&K Securities. Please go-ahead.
Rajesh Majumdar
Yeah. Good morning, sir. So I think part of my question was answered. But could you give us the nine-month kind of profitability of the FMCG business as against last year nine-month period? Is that figure available?
Y. Venkateshwarlu
Rajesh, the segmental results are already available in our results. So from there, you can.
Rajesh Majumdar
I wanted to separately from the sugar alcohol actually.
Y. Venkateshwarlu
No, that is the segmental results, if you look at it, there is a separate line-item called as a CPG business. So there you can see the profitability.
Rajesh Majumdar
Okay. Fine. I’ll see that. My next question was that, sir, we have been contemplating some kind of reallocation of capital on refinery stroke nutraceuticals for some time as has been in the earlier calls as well. So is there any development on that front?
Muthiah Murugappan
Nice to hear from you again. So I think we’ve done those strategic reviews. I think on Nutra, you know, we perhaps realize that we’ll have to do some more work to discover the right value and I think we are focused on doing that right now. So that’s the — that’s the sort of strategy on the neutra front. We did do some work on that over the last two quarters and we realize that we have to do a bit more to discover better value. On the refinery front, yes, we do realize that we need to strengthen the business model perhaps by way of partnerships. It is complex, the business model is complex and the financials, of course, of the refinery are also complex. So hence these conversations they’re certainly on, but they are taking a fair amount of time.
That’s all I can report at this point in time, but it’s obviously top-of-mind for us to put this on a better track and position the refinery business appropriately. So as and when we have something to report on the funding, we’ll come back to neutral will be business-as-usual because of the fact that we need to do a bit more to discover the right value.
Rajesh Majumdar
Also this quarter the loss is reflective of the spreads, right? Nothing — no extraordinary event is there in terms of the refinery loss that we see this quarter, it’s just a reflection of the global spreads, is it?
Suresh Kannan
Yeah, principally, one here. Yeah, on the current quarter is concerned, we also had a little bit of deferment of volumes of shipments from the month of December to January. And of course, spreads are lower than what they were last year. But despite that, we were able to post a INR5 crores loss on a INR915 crores turnover. On a YTD basis, we remain a bit positive. Of course, the spreads of the external environment remain challenging, but I believe the other refineries also are moderating their operating rates. So going-forward, we look at the spreads recovering over a period of time.
Rajesh Majumdar
And if I could add, will we use the export quota for a refined sugar this time? Is that possible?
Suresh Kannan
The export quota has just been announced, so we are looking at all options. Currently because of the increase in domestic prices, the mills are more interested in selling the sugar externally. So we are actively looking into that.
Rajesh Majumdar
Okay, sir. And sir, if I could sneak in one more question. You have mentioned the sale of 6 lakh odd shares of Indian potash. Now that is an unlisted company. So what is the approximate value of this transaction?
Y. Venkateshwarlu
The transaction this transaction will be about INR180 crores and something Rajesh. But as of now, we are in the process of selling it, but not major stake is sold after.
Rajesh Majumdar
Okay. Thank you very much.
Operator
Thank you. The next question comes from the line of Ajit Dardha from Nizar Enterprises. Please go-ahead.
Ajit Darda
Hi, sir. Good morning and thanks for the opportunity. Sir, I have two, three questions. The first one is on our branded sugar and branded staple business. So sir, when do we expect to — this business to be EBIT positive? And what is our growth strategy going-forward for this particular business? And one more question relating to this is, in which states are we present in both of these business and what is our market-share there? And what is our plan to expand in those states as well as new states?
Suresh Kannan
Okay. Ajit, I’ll answer your questions in the reverse order. I’ll start with the third question. We are present in the four Southern states in the non-sweetener business and the sweetener business. We have some presence in Western e-commerce and modern trade and in East as well for modern trade alone, we are present. We intend to stay-in the South and consolidate our position for some time before we decide to move into the rest of the country. With regard to your second question, the growth plans for this business will be based on our distribution expansion plans. We are aggressively looking at increasing our presence in the number of outlets across the South of India. And as we increase the outlets, the business also will grow in a corresponding manner and that is our strategy for growth.
On your first question, this — the branded business, currently, the profitability is being something that we are working on and we will be — as we unlock the value opportunities along the value chain at different levels. And as we build the brand and move into more premium packs, I think this profitability will be in sight as we go along.
Ajit Darda
Okay. And sir, my next question is on ethanol. After a recent price hike in ethanol by the government, so what can be the impact on ethanol business margins?
Y. Venkateshwarlu
Ajit, the price increase which has happened is on the ethanol, okay. Basically, if you look at it, most of the, most of the alcohol are not producing us not supplying the CEVs and all. So the benefit, whatever the government has given may not have much impact on the profitability.
Ajit Darda
Okay. And your outlook on refinery margins.
Suresh Kannan
Currently here. Refining will be challenging as far as the 4th-quarter of the financial year is concerned. We are seeing some lighted bend as a tunnel going into the subsequent.
Ajit Darda
I missed your line, sir, sorry.
Suresh Kannan
So I’ll repeat the 4th-quarter margins will remain challenging because of the external situation. But subsequent to that, we are seeing recovery in the premiums globally. So going-forward, things should get normalized by in subsequent quarters in the next financial year.
Ajit Darda
Okay. Okay. Understood, sir. Thank you so much.
Suresh Kannan
Thank you.
Operator
Thank you. Participants, please press star and one to ask a question. The next question comes from the line of Raj Kumar from RK Investments. Please go-ahead.
Rajkumar Vaidyanathan
Yeah, good morning. Thanks for the opportunity. Sir, two things. So the first question, on recovery, started reporting better recovery from Jan onwards. So do you see similar trends in Taminad and Karnataka?
Abdul Hakeem Ashiq
Karnataka is looking robust and we believe we are getting benefits there and that will continue. Crushing will continue for some more time. I think that will come through this year. Our PM early indications are we will be better than last year, but we are still in the early stages of crushing. So I will just share a comment to observe and then come back on that.
Rajkumar Vaidyanathan
Okay. And sir, for the outlook for, given that it had a good range and the reserve full sizes, want to know, do you — can we expect a better sugar yield and performance for TN mills in the upcoming year?
Abdul Hakeem Ashiq
Tamil Nadu, as we did mention I think on the last call, was affected last year-by piss and adverse weather. There has been a turnaround of both the scenarios as we speak in the current year. But as you know, is a one-year crop, so the playout will happen in the coming year. We would be about a yield improvement anywhere between 1.5 to 2 tons on an average in Kamil Nadu. Recovery is something we’ll have to see and make it comment on. One concern obviously is that planting acreage in Tamil, which is an trend for all players because of competitive crop scenario. So that would continue to be a concern in Tamilla.
Rajkumar Vaidyanathan
Okay. Yeah. So the next question is on the export front, given that many UP are looking at selling the quotas, so will we be looking at consolidating that and looking at any export opportunity?
Muthiah Murugappan
Yeah. So wanted to come in here in — so I think this question came up earlier on, we have done this in Q1, we have exported. So maybe, we can cover the export has been — has been captive to the refinery. So we have actually — we received a certain quarter regular 15,000 tons. We have exported and closed this and we’ve done it captively to the refinery, which is in an active. So we’ve — we’ve taken-up on the export quarter and executed.
Rajkumar Vaidyanathan
Okay. Okay, great, sir. And lastly given that there is an uptrend in sugar prices, so can we expect a better performance in the current quarter.
Muthiah Murugappan
Okay. So Mr and Mrs Mutu here. Let me just address. I think Aashik had covered quite comprehensively to your question on TN and I will say that has been challenging in recent quarters and we are seeing planting dip and this is a challenge because of competitive crop I think we are obviously doing a lot of work to improve yields and improve recovery but I think the planting and dip, it is a challenge. And I think this is a challenge which we will have to be faced the coming quarters as well. In terms of pricing, I think you were — you were asking, yeah, we are seeing a an uptick in pricing just given demand-supply dynamics and we — we hope that this will hold and this will certainly help the sector at large.
Rajkumar Vaidyanathan
Okay, sir. Thank you.
Operator
Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question comes from the line of Rituik from One App Financial Consultants Private Limited. Please go-ahead.
Ritwik Sheth
Yeah. Hi, good morning, sir. Sir, a couple of questions from my end. Firstly, sir, you mentioned that crushings will be higher than last season. That was for Tamilado for the entire crushing area for us at a consolidated level.
Abdul Hakeem Ashiq
So I did not mention the crushing will be higher.
Ritwik Sheth
Recovery will be higher. Okay, recovery will be. Okay. Yeah. And so what kind of crushing are we expecting then this season?
Abdul Hakeem Ashiq
About Yamupu, please.
Muthiah Murugappan
So we don’t — we don’t give guidance, but crushing will be — will be lower than last year and this is on account of challenges in AP and PN largely. I think as said, while we’ve reported better recoveries in Karnataka, it is likely that the mills will close a tad bit earlier then and then last year, this would be cut. So we will cut lower and I think these lower prices are perhaps in-line with the lower deltas at large it seems in all of the states.
Ritwik Sheth
Right. And sir, what is the key reason for the lower crushing? Is it the crop or is it any specific reason because this seems to be a significant drop for the entire industry, not only for us but just trying to understand that.
Abdul Hakeem Ashiq
Think North has been essentially affected by pests this year that’s come as a surprise for the industry. South has, as we already discussed that these estates of has had competitive pressure from other crops and weather and pest related issues. In general, the only no effect on the other conditions probably has pulled down the yield compared to what the industry should have expected across the country. I think that’s having a significant impact on the crush numbers.
Ritwik Sheth
Okay. Got it. And sir, earlier in the — you call also mentioned that you know looking at some repricing for ethanol for BAV and syrup and green as well. So would it be a fair understanding that it would happen only before the start of the next ethanol season that would be November end of ’25.
Abdul Hakeem Ashiq
As this is a government policy, I think it may not be right to guess the timeline. What we would want to state is that we continue to make representations to the government and we really cannot comment on them, they will take the vision, if at all they want to take the vision. So I think it’s a question of and watch for the industry with all good intentions.
Ritwik Sheth
Okay. Okay, sir. That’s it from my side.
Operator
Thank you. Thank you. The next question comes from the line of Akshay Ajmera from Nizar Securities LLP. Please go-ahead.
Akshay Ajmera
Yeah. Thank you so much for the opportunity, sir. Am I audible?
Muthiah Murugappan
Yeah,.
Akshay Ajmera
Yeah. Thank you. Sir, first of all, I would like to thank you for a detailed presentation. It explained the various key metrics very well to us. So I hope that it will continue in the future as well. And you have also explained, sir, on this consumer product group business that our broad strategy, how we want to grow in southern states as well as expand in rest of the state. Any broad timeline or a roadmap for the profitability, what is the internal thinking around it? If you could just guide us on it? That would be very helpful.
Muthiah Murugappan
And I think we’ve given commentary in the past that we aspire to exit this decade with a much larger business than where we are today with a high-single-digit percentage EBITDA given it’s a food F&B business. So I think that aspiration and objective and I think all the work that we are doing is in that business.
Akshay Ajmera
Okay, okay. Sir, secondly, as a company, we have multiple businesses now this — we have an aspiration to grow and expand this business as well and we have a sugar business, which is seasonal in nature, cogen distillery, then we have nutriaceuticals. We are a holding company of as well. So is there any strategy or a thought process to value unlock in these businesses to increase shareholders’ value as well as to increase focus on respective businesses because refinery is one of them. And we have seen in the past that we were very good in taking calls when to you know, stop capital allocation to certain areas, which were not very profitable. So your views and your thoughts on it.
Muthiah Murugappan
So excellent question and I think that there’s some commentary on this earlier in this call as well. In terms of in terms of the standalone business and I think that’s really what we are primarily discussing today, I think our focus remains, we’ve done capex on the — on the ethanol side and our focus remains in the mills and the distilleries very efficiently. So the scale-up of the consumer business has from a perspective, I think we have to do a bit more to discover the right value. And again on the refinery position it appropriately in terms of what’s best for the business. I think this is where the focus is largely. From a capital allocation perspective, I think unless we really see a sustainable policy framework, it would be hard to keep capital allocation back into the distillery segment.
I think the aspiration from a capital allocation perspective would be more towards the consumer side going-forward. And I think really efficiently run the mills and distillery segment so that we get back into profitability. Of course, I think climate and regulation will also have to support us in this regard. I think doing four, five of these things on the standalone side are critical so that the group as you know has always been addressed strategic issues at the right time in-place and I think a sound set of standalone businesses will enable us to progress the progress things on these lines. So I think that’s where things will stand right now.
Akshay Ajmera
Very happy to know that. Sir, lastly, can you also share with us the share of sales value in terms of sales value, the value-added products in the sugar business, if you could just help us.
Abdul Hakeem Ashiq
So broadly our business today is around 55% is institutional sales and almost all of that is a value-added product. So that’s the split that will be there in the show.
Muthiah Murugappan
No, I think he was referring the SMPD side, right? So I had — I don’t know we miss putting it on the presentation. It was there last year again last quarter.
Akshay Ajmera
Right. Thank you.
Balaji Prakash
Yeah, it’s about 15% as of now.
Akshay Ajmera
Yeah, 15%. Okay. Thank you so much and I’ll get back-in the queue and wish you all the best.
Operator
Thank you. A reminder to all participants, you may press time one to ask a question. The next question comes from the line of Rajkumar from RK Investments. Please go-ahead.
Rajkumar Vaidyanathan
Yeah. Sir, thanks for the follow-up. So two questions. So first one is MSP increase which requesting the government. So anything? Third,
Muthiah Murugappan
MR., then can you repeat the question?
Rajkumar Vaidyanathan
Question is on the MSP increase with the industry requesting the government for many
Operator
You’re not quite audible. Can you come a little closer to that?
Rajkumar Vaidyanathan
Yeah, can you hear me now?
Operator
Yes, please go-ahead.
Rajkumar Vaidyanathan
Yeah. So the question is on the MSP increase for the sugar, which the industry has been requesting for many years. So I just want to know, is there any update? Do you hear anything coming up in the near annual?
Abdul Hakeem Ashiq
MSP is something that we continue to make representation to the government because as you can see, one of the stress the industry faces is a year-on-year increase in FRP, but that’s not commensurate with the MSP increase. I’m sure the government is seized all the matter and they are working on the various industry representations on how we would go on product. In terms of timeline, as I said as in the realm of the government’s decision-making, I think we should hope for the best run-rate.
Rajkumar Vaidyanathan
Okay. Okay. And sir, in terms of the ethanol part, I am not sure whether you have already covered it and I apologies if it was done earlier. So the question is, so given that there is no be — there is no price increase other than the sea heavy ethanol. So are we looking at diverting any of the ethanol to sugar given the prices? And then extending the same question, are we also looking at producing any ethanol through other grain mode like maize or rice.
Abdul Hakeem Ashiq
Okay. In terms of feedstock between BC and ethanol, we continuously keep evaluating on a very live basis as a system and we choose to produce what would be margin-accretive to the business. In terms of diversion to sugar, that’s part of the metrics. If sugar is profitable, yes, we would look at it. But we do have commitments to the ONCs which are locked-in terms of our supplies. And I think that’s a good assured business that we have on the ethanol side. I hope I have answered your question.
Rajkumar Vaidyanathan
Yeah. Sir, and how about producing ethanol through the grain mode? Are we looking at
Abdul Hakeem Ashiq
Out-of-the units we have, our unit has a grain capacity on grain, as we have outlined in the past, our intent is to make our distillery business multi-field, multi-product. So we would be looking at grind-based option in one of our other facilities also. So we’ll be flexible in terms of our approach.
Rajkumar Vaidyanathan
Okay, sir. Thank you.
Operator
Thank. Ladies and gentlemen, you may press star N1 to ask a question the next question comes from the line of Saha from B&K Securities India Private Limited. Please go-ahead.
Somnath Saha
Hello, sir. Thanks for the opportunity. Sir, you have just mentioned about the. Can you give you the numbers out-of-the total capacity you have for? What portion is?
Y. Venkateshwarlu
So today if you look at it as on second-quarter you were having a total 580 k KL per day is the total alcohol capacity.
Somnath Saha
I can’t hear you, sir.
Y. Venkateshwarlu
The total — ethanol capacity — total alcohol capacity is 582K. Out of that 120 k per day is the basically the the spot are 120K 120 which can produce either like either rice or mice or when it comes to the ethanol either it is okay.
Somnath Saha
Any more further plan for expansion or conversion of the existing juice base or even sugar of plan to.
Y. Venkateshwarlu
We have plans. Maybe at the right time, we will maybe disclosing it. We have a plan because looking at the challenges in the availability in and Karnataka. So we may be looking at the conversion of the existing plant into the — again, it’s a little thing, nothing. It’s not like exclusively.
Somnath Saha
Okay. That’s helpful.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing comments.
Muthiah Murugappan
Thank you, Sanjay, and thanks to everyone for logging into our quarter three calls. These are the challenging times for us as well so…
Operator
You’re not quite audible.
Muthiah Murugappan
Yeah. Thanks all for to the call. These are of course, challenging times perhaps for the industry as well as for us. I think we continue to work toward various strategies, which we have given commentary on and we look-forward to connecting with you in the next quarter. Thank you and have a good day.
Operator
Thank you. Thank you all. Thank you, sir. Ladies and gentlemen, on behalf of DAM Capital Advisors, that concludes this conference. You may now disconnect your lines.