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Gujarat State Fertilizers & Chemicals Limited (GSFC) Q3 FY23 Earnings Concall Transcript
GSFC Earnings Concall - Final Transcript
Gujarat State Fertilizers & Chemicals Limited (NSE:GSFC) Q3 FY23 Earnings Concall dated Feb. 09, 2023.
Corporate Participants:
V. D. Nanavaty — Executive Director, Chief Financial Officer
Unidentified Speaker —
Sanjeev Varma — Executive Director, Agri Business
Analysts:
Nitesh Vaghela — Anurag Services LLP — Analyst
Vikram Kotak — Ace Lansdowne Investments — Analyst
Unidentified Participant — — Analyst
Govindlal Gilada — GG Securities Ltd — Analyst
Kalpesh Shah — Individual Investor — Analyst
Saket Kapoor — Kapoor & Company — Analyst
Aman K. — Aman Investments — Analyst
Ramesh Subramanian — Nirmal Bang Equities — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Gujarat State Fertilizers & Chemicals Limited Conference Call to discuss the Q3 FY ’22-’23 Financial Performance Earnings.
[Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Nitesh Vaghela from Anurag Services LLP. Thank you and over to you.
Nitesh Vaghela — Anurag Services LLP — Analyst
Thank you and good afternoon. Welcome to the third quarter earnings conference call of Gujarat State Fertilizers & Chemicals Limited, hosted by Anurag Services LLP. From the management, we have Mr. V. D. Nanavaty, Executive Director, Finance and CFO; and Mr. Vishvesh Vachhrajani, Company Secretary and Senior Vice President, Legal, and Investor Relations; and other senior dignitaries from the management.
I would like to thank the management for giving us the opportunity to host this call. We will begin the call with opening remarks from the management, post which we will have a Q&A session. Thank you and over to you, sir.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. Thank you. Welcome to the Q3 post result con-call of Gujarat State Fertilizers & Chemicals. Hope you have seen the results. And as per the demand of the few of the stock analysts, we’ve are also uploaded the analyst presentation and other media release, as well as the production and sales volume data on our website and one of them on the stock exchange filing, stock exchange also. And we hope you have seen it, or you can see it now also.
So the — as far as the revenue is concerned for the nine months period we have almost reaped the last year’s revenue. And as far as the net profit is concerned, we activated the net profit that was achieved for the whole of last year in these nine months. So, this is a common level achievement with the good management guidance.
As you are all knowing, government is declared its intention of protecting the farmers from the vagaries of price rise. So, what we saw at post-Russia-Ukraine was whatever rising in input costs and subsequent in previous calls cost of production or import, the government has absorbed the subsidiary and kept the of MRP of various fertilizers in almost the same level. So, we have seen in ballooning subsidiary in for FY ’23. And definitely with the efficient player like GSFC. We have been part of that. We’re spending back of India, we have our own share of subsidy received and it is reflected in this good result also.
Apart from that, other thing were normal. Subsidy received were also normal. For urea, we have received subsidy up to second week of January and for P-N-K it is up to November, and as you all know in the last one or two months government don’t have mandatory funds. So, for February or March, we may experience some cashflow from subsidy recieved. And that we will decide over by the short-term working capital borrowing and however from 1st April when the new budget is available, government generally immediately clears the past dues.
But as far as cashflow is concerned and there is not much of it prominant. Our stock flow are also at heavily available, and we have seen that. We sell whatever we procure at the earliest. To save on marketing cost, we have tried to maximize our sales in Gujarat region. And for ammonium sulfate we are going to sell large quality. We also sold in the as Southern pockets of Southern India. That does help to contain our marketing cost. As far as investment profile is concerned we experience a huge decline in price of investment products.
And particularly in melamine which gave us very good realization about the others. Suddenly, in pricing we were substantially down, mainly because of lower demand, as well as our supply from the China. But we speak to our two more exports and now our exports are very regular. That helps us to improve the top-line and bottom-line of IP products to some extent. For caprolactam, it does not include the demand in short term, we will also be reporting to our export of caprolactam and just like melamine.
As said from Industrial products marketing, we are getting some low debt. They will be implementing the sentiment in the market and we look forward to improve prices of industrial products and that has remained subdued for at least two quarters. So hopefully next year it will be kind of the normalized situation. And other details we have already given in the — in this slide presentation and media release about capex, plant, its timeline, and some input-related data. And of course, share price in all these things. So, there is nothing much to added from my side.
Thank you. And now all our welcome to ask questions.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] We have a first question from the line of Vikram Kotak from Ace Lansdowne Investments. Please go ahead.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Thank you. I am audible?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yes. Yes. Yes.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Hello?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yes. Yes. Please go ahead.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Let’s just.
Operator
Sorry, sir. Now, we are not able to hear you. Mr. Kotak?
Vikram Kotak — Ace Lansdowne Investments — Analyst
Am I audible?
Operator
No. Your voice is breaking.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Hello?
Operator
Yes, sir.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Because of my network. Yeah. Yeah. Sir, my two questions. One question is, how do you see the capro benzene spread now in the current quarter in the event of China opening and how — what’s your view over a period of next one year? That’s question number one. And question number two, sir, where are you planning to start the new melamine capacity of 40k which you are under evaluation. So, when and what’s the plan there? That’s two questions from my side. Thank you.
V. D. Nanavaty — Executive Director, Chief Financial Officer
So capro benzene spread for at least quarter coming Q4 we received the under stress, it will not grammatically or I mean improving there the grade. Although, that is the signal that as I said, it is improving so next year it will be definitely more than what is so subdued.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Right.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Right now for Q4, we have I mean for FY ’24 company’s budget is still under preparation. Maybe next time will be able to give more clarity on FY ’24 different numbers.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Sure. Sure. And sir, how is the demand-side position in melamine and capro. What’s your view here? Is demand is enough or you will see a Europe slowdown impacting us as well?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Well, demand is enough. Only thing is that — but we should also get good price, no? So, if we don’t get good price, then we export more and we know in Europe a lot of plants are closed.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Right.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Melamine as well as caprolactam.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Yeah.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Because there is a low spread. Nobody can operate only on this line.
Vikram Kotak — Ace Lansdowne Investments — Analyst
That’s what.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Only we can operate on this one line. So, is…
Vikram Kotak — Ace Lansdowne Investments — Analyst
My last — only question about what’s the cash balance as on 31st December in the books? What is the net cash, including liquid investments?
V. D. Nanavaty — Executive Director, Chief Financial Officer
That is it around INR700 crores to INR800 crores.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Can you repeat, sir? Sorry I missed that. Yeah.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. INR700 crores to INR800 crores.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Okay.
V. D. Nanavaty — Executive Director, Chief Financial Officer
That is cash and liquidity deposit.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Okay, sir. Thank you so much. All the best to you, sir.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Thank you.
Operator
Thank you. We have our next question from the line of Ankur Sanwal, an individual investor. Please go ahead.
Unidentified Participant — — Analyst
Hello.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yes. Yes. Yes.
Unidentified Participant — — Analyst
Sir, there was news about this investment by Gujarat Government of various businesses it holds. Is there anything we have received information from government also?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. No. No. Not at all — the first reports have been submitted in past also many times. And but nothing has moved in such direction.
Unidentified Participant — — Analyst
Thank you, sir.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Thank you. [Operator Instructions] We have our next question from the line of Govindlal Gilada from GG Securities, please go ahead.
Govindlal Gilada — GG Securities Ltd — Analyst
Thanks for the opportunity, sir. I have only one question. In your press release.
Operator
I’m sorry, sir. There is an echo coming from your line. Can you use your handset, please?
Govindlal Gilada — GG Securities Ltd — Analyst
Yeah. I am using handset only, madam. Is it clear now?
Operator
Yes, please go ahead.
Govindlal Gilada — GG Securities Ltd — Analyst
All right. Thanks for the opportunity, sir. In press release regarding capex, it has been mentioned that the available length of INR4,000 crore capex and future — further good plants are there for another INR4,000 crore.
V. D. Nanavaty — Executive Director, Chief Financial Officer
All right.
Govindlal Gilada — GG Securities Ltd — Analyst
So net mix, you are talking about INR8,000 crores capex and just when you told that you have got cash in hand is INR700 crores, INR800 crores. Just I want to understand, sir, how we are serious about these capex and how we’re planning cashflow — such big cashflow of INR8,000 crores.
V. D. Nanavaty — Executive Director, Chief Financial Officer
No, our results are around INR11,000 crores. Cash on hand is that because February, March the government subsidy don’t come in time. So, whatever deposits we have that we use it to pay our vendors. Because we pay everybody in time, we don’t say that I don’t have money, so I will not pay you. We pay everything in time as for the contextual term, whether we have money, or we have to borrow the money. So we don’t give excuses of this or that.
So, as we said, the government don’t have the money, so subsidiarily it is taking some time. So, cash will again — and coppers will again be full, maybe say prior to end of the year. But although the financial institutions they evaluate debt equity considering equity as your net worth. So, our net worth is INR11,000 crores. So, you can very well calculate that for INR11,000 crore equity how much data I can contract. It is a much, much more amount that we can borrow for our capex. So, INR8,000 crore is not a big amount, plus today’s close will take time for just then you saw the results. We had earning like INR1,000 crores, INR1,500 crores even if we add-up the appreciation and major non cash item, so by the time I do the Dahej project. Again, at the speed of INR1,000 crores per year, I will have INR4,000 crores out of my profit only I don’t have to borrow anything.
So, we are in — right now, we are a zero debt company. So. from that perspective, we will not have any strain on our cash deposit.
Govindlal Gilada — GG Securities Ltd — Analyst
Okay, sir. Sorry. Regarding these INR11,000 crores you told there, but most of the — what you have told there is there follow in investment in our asset which all that maybe that investment in others is almost INR6,000 crores. That I don’t think we will unlock — and they are planning to unlock the investment in GNFC all that. They are the major ones. If we give offers when there is subsidiary of INR2,000 crores as for the last quarter balance sheet submitted and price all that– not much, sir. They are all fixed to your INR1,000 crores on cash and subsidy around INR2,000 crores, but later these investments there in associates all that other sir. So also are we planning to exit capex in pipeline any plans of unlocking these investments in our Gujarat companies, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. No. Basically, there is no question of offloading our investment, but we can borrow wherever it is required we can borrow at a very competitive rate.
Govindlal Gilada — GG Securities Ltd — Analyst
Yeah, that is very clarity there because we ar taking a loan of INR1,000 crores including investments is that is the legit question that is INR5,000 crores, INR6,000 crores.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Right there.
Govindlal Gilada — GG Securities Ltd — Analyst
I followed, sir. So, one more thing, sir. You said these kind of capex already concrete al those capex out of INR8,000 is in pipeline, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Around INR4,000 crore is under various stages of implementation and INR4,000 crore in Dahej is still at the very preliminary stage.
Govindlal Gilada — GG Securities Ltd — Analyst
So this would INR4,000 crore, when it will be a let’s assume three, four years stages you will be existing all of this INR4,000 crore, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. We have already given the details in the investor presentation on our website. So you can see the timelines are mentioned there when these projects are going to be permissioned. So, you can see that in our website at Slide number 9.
Govindlal Gilada — GG Securities Ltd — Analyst
Then last, my question is sir, what kind of assets are lower return ratios we are expecting on these investments, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
So, generally, we don’t invest in risky or low-return investment, we from this open commercial evaluation of all the projects. So, anything — of course, so far rate of interest was low for allocation of minimum ROI or all those spends expenditure were on lower side, but now with the rate of interest going up, naturally, our expectation of minimum return is also high. So we generally don’t take a project giving less than 13% to 15% IRR.
Govindlal Gilada — GG Securities Ltd — Analyst
No, no. 13% to 15%, let us say, six, seven years payback for it?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. And all these plants or whatever plants we have set up. They are already 50 year old, so our plants last for a very long period. So five to six years is not net payback.
Govindlal Gilada — GG Securities Ltd — Analyst
All right, sir. Thank you very much, sir.
Operator
Thank you. You have a next question from the line of Kalpesh Shah, an Individual Investor. Please go ahead.
Unidentified Participant — — Analyst
Hello.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yes. Yes.
Unidentified Participant — — Analyst
Yes, sir. Are there any plans to demerge our investment company into a separate company, whatever investment we have in a — our subsidiary?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. There is no demerger. No. There is no such proposal.
Unidentified Participant — — Analyst
Okay. And our…
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah.
Unidentified Participant — — Analyst
And our chemical division and our fertilizer division should be separated?
Kalpesh Shah — Individual Investor — Analyst
No. They will work in one umbrella only.
Unidentified Participant — — Analyst
Okay. Okay. And sir, right now, what is the rate of caprolactam is going on in this quarter and last three quarter, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
So those details are given in our website, but still I am repeating it. And just one moment.
Unidentified Participant — — Analyst
Yeah.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Okay. Caprolactam price were worth $2,000.
Unidentified Participant — — Analyst
Current quarter?
V. D. Nanavaty — Executive Director, Chief Financial Officer
[Foreign Speech] Current quarter.
Unidentified Participant — — Analyst
And then last three quarter, sir, average?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Last three quarter, it was more and now, recently it has come down. It was $1,800 and around $2,000 earlier.
Unidentified Participant — — Analyst
Okay. Okay. We can see approximately $2,500 in a first quarter of ’24?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. Not so much. It steadily increases in the $20 to $100.
Unidentified Participant — — Analyst
There will be reliable to get a good profit.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yes. Yes. The profit will improve definitely.
Unidentified Participant — — Analyst
If we did’t cross about $2,000 then we shall get more profit?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yes. Yes. Definitely.
Unidentified Participant — — Analyst
And sir, is there any turnover idea for Fertilizer Division in Q4?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. It will be around INR2,000 crores.
Unidentified Participant — — Analyst
Okay, sir. Okay. Thank you, sir.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Here we expect INR11,000 crore turnover for FY ’23.
Unidentified Participant — — Analyst
For fertilizer?
V. D. Nanavaty — Executive Director, Chief Financial Officer
For company as a whole for this full year ’22, ’23, our turnover is expected to be INR11,000 crores.
Unidentified Participant — — Analyst
Okay. And right now we have antidumping duty on our caprolactam or not, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. There is no antidumping duty on any product.
Unidentified Participant — — Analyst
No. No products at all?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No products at all.
Unidentified Participant — — Analyst
Okay. Okay, sir. Thank you, sir.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Thank you. Thank you.
Unidentified Participant — — Analyst
Best of luck.
Kalpesh Shah — Individual Investor — Analyst
[Operator Instructions] We have our next question from the line of Ankur Sanwal, an Individual Investor. Please go ahead.
Unidentified Participant — — Analyst
Sir, during this budget Government of India has emphasised a lot on nano urea, which we are not making. So, any idea of impact in future two, three years, two years, three years of the quantum of nano urea on our products?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. There is still no farmer acceptability issue for nano urea. So it is not going to make any impact on our present fertilizers. Nano urea is only stay on the full year, so and all these things is done same time and it was like normal field urea. So ones help from flowering, then only they spray it on the full year. But these are new things, of course, government is popularizing it in a big way, but farmers, they are traditionally doing farming for so many years with some kind of fertilizer. So, they will not reach all the things in 3Q.
Unidentified Participant — — Analyst
Okay, sir. Sir, secondly, you told about good prospect of our industrial division section in the coming next year. Can you elaborate on that?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. So mainly China factors players everywhere around the world. So, China was almost close because of zero-COVID policy and recently their new year was going on. So now they are out of this COVID policy as well as the — their new year activities are also over. Now their market is opening up. And when there is a good demand it will — the prices will also increase. So, that is how we see that improvement in the caprolactam and other pricing in the Q4 as well as the next year.
Unidentified Participant — — Analyst
You also supply it to China?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. China is a major puller or pusher in — for anything in the world. So, if the China demand opened up what happens, if they don’t have demand, they export to everything that means everywhere in the world. So, that lower down the prices. But when they consume their caprolactam in their own country for garments and nylon products, they don’t export so much.
So, then export market prices also improved. In India, also now we are all doing business on IPP basis in the sales coming from an international price parity. So, whatever is the price in the international market and that clipped into Indian price. So, when there is a good international market price. So, we also get better realization in India. So, that is how it is all linked.
Unidentified Participant — — Analyst
Thanks a lot, sir.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Thank you. We have our next question from the line of Saket Kapoor from Kapoor & Company. Please go ahead.
Saket Kapoor — Kapoor & Company — Analyst
[Foreign Speech]
V. D. Nanavaty — Executive Director, Chief Financial Officer
[Foreign Speech]
Saket Kapoor — Kapoor & Company — Analyst
Yes, sir.
V. D. Nanavaty — Executive Director, Chief Financial Officer
[Foreign Speech]
Saket Kapoor — Kapoor & Company — Analyst
[Foreign Speech] Right. I will come back to my observation on the coming back. Thank you, sir. Firstly, to quickly. And note of our request and implementing the same. Sir, you mentioned firstly that for Fertilizer segment, we are looking for a revenue, INR2,000 crores for the fourth quarter. So, could you explain? Elaborate more about from [Foreign Speech] how are we coming with that figure? What kind of volume are we expecting because for I believe for December quarter, we did around INR2,880 crore.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Our Marketing Fertilizer Officer Mr. [Technical Issues]
Unidentified Speaker —
Yeah, sir. Our expected volumes are based on 4.50 lakhs ton. Basically, we got 1 lakh ton imported urea in this quarter. So, that has helped us to increase the availabilities. And our is also operating well for last few months. So we have the inventories of phosphatic fertilizer also. So, almost volumes will remain as per with the Q4 of last year. And value will go up because of the higher subsidy and MRP of fertilizer.
Saket Kapoor — Kapoor & Company — Analyst
But net — the margin per ton will remain constant. So that is INR1,500 only?
V. D. Nanavaty — Executive Director, Chief Financial Officer
I think the margin because government also wants to reduce subsidy burden. So since the input prices are coming down, they may decrease these subsidy from 1st January, ’23 effective. So if that is the case, then margin may come down a little bit.
Saket Kapoor — Kapoor & Company — Analyst
What was the margin per ton, sir, for the third quarter in the Fertilizer segment? They are manufactured and the trading part.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Trading, so as you know of urea here is the spot handler and BOTs for that our report would we hardly get INR500 to INR1,000 per ton. And other manufactured fertilizers, we have not really come out with what is the per tonne margin now. So much volatility is there that per tonne margin can certainly go above it.
Saket Kapoor — Kapoor & Company — Analyst
All right. Okay, sir. Can you give some more color on how for this quarter the raw material basket has shaped up and going ahead what are that trend would be for the raw material basket, and then towards the power-infused part?
V. D. Nanavaty — Executive Director, Chief Financial Officer
So we have shown into our presentation about kay input cost moment. So if you see the December processing price in rupee terms, it is going from INR1,17,000 per tonne. So that is almost equal to $1,175 per ton in USD terms. That cost has reduced by at least $1,050 per ton from $1,123. So [Foreign Speech] I think $125, $150 deduction [Foreign Speech]
And these prices are also down. We have shown it at a INR60 per SNQ. Now, it is around and except urea. Urea is their pass-through, so we don’t get affected. Except urea, it’s around INR50 to INR55 per SNQ. And benzene, it keeps moving along with the crude. So there is nothing specific about Benzene, but September ’22, it was INR96,000 per ton. It has gone for INR75,000 in December quarter. But now it is steady around that figure, INR75,000 per ton.
And ammonia prices are going downwards among the net sale prices. So, it was around $800, $900 per ton in Q3. Now, it is around $700 to $800 per ton. But it is showing further input tax showing, we do see trade. So and going forward also they will keep on coming down. So that is why the government is thinking that why subsidization must be reduced But let us see what do they do.
Saket Kapoor — Kapoor & Company — Analyst
So sir, in that case, then there will be a reversal of the same amount as currently involved? What we are telling, how will that inviting will then come into play if it will keep happening on a retrospective basis?
V. D. Nanavaty — Executive Director, Chief Financial Officer
So, invoicing is on MRP only. So MRP is not changed. Well, we when we raised clear outlined bill for subsidy. And we’ve obtained INR48,000 for DOC for ton. This maybe INR45,000 or maybe INR43,000 but over the period decided. It is not that they are going to do it, but they were seeing something as coming.
Saket Kapoor — Kapoor & Company — Analyst
And on the power and fuel aspect, sir, how are the gas prices and other power influence components trending?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Farmers, those will have only three are buying and doing this fuel. So it is coming down along with the gas cost, but the power that we buy from set utility. There is no cost. This is not getting down so fast. It is as sticky or maybe sometimes it increases is also. So, but overall, there will be some refund reduction in Q4 in power and fuel cost.
Saket Kapoor — Kapoor & Company — Analyst
And sir, regarding this raw phosphate prices, what is the price trend whereas this debt that is not mentioned in this presentation?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. Because, we don’t think this much about raw that U.S. standard available. So we buy raw from the RSMML that is Rajasthan Mines and Minerals only. We decided price in their own way, which is also state PSU. So they have certain rules to be followed. So, little bit here and there, but rock is also used to processeed sales price. So processing price is coming down, gross price also should come down. And upfront comp prices are also coming down so.
Saket Kapoor — Kapoor & Company — Analyst
You should — just to get an outlook on how the coming quarters is shifting — has shifted. So, we are on 40, 45 days — 40 days into the quarter. The fertilizer is going to remain stable. And for the industrial products, there would be equipment. There will be positive increment in the Industrial Products segment. This is how things can be summed up, kind of now?
V. D. Nanavaty — Executive Director, Chief Financial Officer
It will not be for as bad as Q3.
Saket Kapoor — Kapoor & Company — Analyst
Okay. Got it, sir. So for me phosphoric is the part lastly. What are the price trend there, sir? I think to that we are sourcing of that we are importing.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. So that I said no? $1,175 was October, December price in dollar terms. It has gone down below $1,050 from value added. So there also $125 reduction has taken place.
Saket Kapoor — Kapoor & Company — Analyst
Okay. So the net debt translate into the end product as by our prices also or the end product prices margins have remained intact?
V. D. Nanavaty — Executive Director, Chief Financial Officer
So,it directly transfers into end product cost. So, because the MRP as I said we are not really seeing MRP. So if government does not reduce subsidy then before an advantage comes in our pocket.
Saket Kapoor — Kapoor & Company — Analyst
Thanks, sir. Sir, in our expansion plan we have mentioned about this green hydrogen projects also?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Correct. Correct.
Saket Kapoor — Kapoor & Company — Analyst
So what are we emphasizing here, sir. I think so, and it is mentioned in — it will come up in ’25, ’26, sir. That is for…
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. Because it depends on the government policy also. So right now, the ammonia is made from the natural gas and natural gas — most of the natural gas is imported into India. Now with this green hydrogen. They’re natural, I mean, the ammonia will be made from electrolysis of the water. So instead from gas, the ammonia will be made from water. So water will be divided into two, hydrogen and oxygen. And hydrogen is right now made from natural gas and further processed for making ammonia.
So now, hydrogen will be taken from water and then that hydrogen will be further processed to make ammonia. So going forward now India’s dependence from natural gas can substance recently come down if we are successful in this green hydrogen project. So this is a small start. So our plant also has big technical capability to ensure of this green hydrogen immediately as soon as it is produced. So no need for delay.
And we have lot of wind energy and solar energy hasn’t been maybe knowing. So this hydrogen is not green, if you will make from the coal based power or any other form of power. But it is what we call green if you do from renewable sources. So, we have renewable source of power. We have these electrolyzers. And then by turning the water we produce hydrogen and then hydrogen is used for nitrogen. I mean that ammonia.
So that is how if evaluated, right now, electrolyzers are costly and so, it is expected that there will be this green hydrogen is a little costlier than with gray hydrogen. But over a period of time, just like we have seen in water and solar power. And with the large scale solar cell and all the costs comes down. So, going forward green hydrogen will be much cheaper than grey hydrogen. So we are just the maybe the first fertilizer company to start this in a 10 megawatt capacity.
Saket Kapoor — Kapoor & Company — Analyst
What is the capex that we have envisaged for this 10 megawatt?
V. D. Nanavaty — Executive Director, Chief Financial Officer
That is the INR100 crores to INR120 crores.
Saket Kapoor — Kapoor & Company — Analyst
Okay. Lastly sir, of this consolidated and facilitated projected has picked up.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Right.
Saket Kapoor — Kapoor & Company — Analyst
That having biggest — is the largest — longest gestation period, so when are we actually sir on this project I think though which would be around — above INR2,000 crore that’s given with us?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Correct. So, we provisionally we have sort of a large — double the capacity for phosphoric acid and sulfuric acid plant has picked up, but we have now after COVID we have getting down to half. So now new drawings and everything is being made with the — by the temporary suppliers. And all those work is going on. So once we have the engineering drawings, then it will be coming out with the tender to invite participation for the vendors for setting up this plant.
Saket Kapoor — Kapoor & Company — Analyst
So, cost of production? Since we have lowered down the…
V. D. Nanavaty — Executive Director, Chief Financial Officer
It will be INR1,600 crores to INR2,000 crores.
Saket Kapoor — Kapoor & Company — Analyst
INR1,600 crores to INR2,000 crores. Right, sir. And lastly, sir, on this tax benefit part, if you could, in brief, explain to us exactly for how was the calculation being made and for nine months, what have been the tax outgo on account of the profit of INR1,234 crores? What exactly have been the net cash outgo on account of tax expanses paid?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Right. Whatever we pay now is on the advanced state, so — because…
Saket Kapoor — Kapoor & Company — Analyst
On the advanced stage. Right.
V. D. Nanavaty — Executive Director, Chief Financial Officer
So this year’s computation with that one have to file the income tax return. That is in the November ’23 or October ’23.
Saket Kapoor — Kapoor & Company — Analyst
Correct.
V. D. Nanavaty — Executive Director, Chief Financial Officer
So, what we have paid is on the advance, right? But just like individuals have now two tax regimes, old one and new one. So for other than individuals also this option is given that you don’t claim any deductions and then you give full statement for the new tax rate which are low. So we have gone for that from this financial year ’22-’23.
So, whatever had tax rate was made up to September. That have been reworked and now current quarter we have planned new tax rate. So, that pre-tax is INR109 crores reversal that is deferred tax liability and INR10 crores in OCI. So this means ous tax liability will be lower, and therefore the tax payment will also be lower on going forward basis.
Saket Kapoor — Kapoor & Company — Analyst
Our tax rate will be 25%?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. Hardly anything willl be allowed as a deduction. So, but then whatever certain adjustments are there income tax versus books of account. Those will be made and balance over taxable income is calculated, you have to pay that 25% straight away.
Saket Kapoor — Kapoor & Company — Analyst
Thank you. Thank you for all the elaborate answers, sir, and for the presentation part and actually and the volume data. Definitely, sir they will add value, but except there. What steps can we take to increase shareholders value? That should be deliberated. The dividend payout ratio we would — we are now coming to the end quarter of this financial year. How the difference payout works out? What steps are taken, so that the interest — investing interest in that the big organization continue, sir? It is there in the public domain that type of language sentiment we have four GSFC stock price even event being catch having diversified set of for chemicals in our portfolio and so many import substitute item, but still the awareness, still the understanding in the investing community is — it’s not promising, sir. So steps should be taken.
We should hire the proper IR teams to create the right awareness and deploy the agencies that can help us in building in giving the ideas that will create shareholder value. You can look at yourself as what have the investors gained in investing in GSFC over a period of last four to five years and where the other players and the markets have moved.
So, which will — we will remain with the business, sir, but there it is every company should have a intrinsic value also for these investors are reposing the faith on management. I hope, these steps will also be deliberated, and all the best to you, sir, and Vishvesh, sir for its future endeavors, sir. Thank you.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Thank you. Thank you.
Operator
Thank you. [Operator Instructions] We have a next question from the line of Vikram Kotak from Ace Lansdowne Investments. Please go ahead.
Vikram Kotak — Ace Lansdowne Investments — Analyst
Sir. Yeah, sir. I have some [Technical Issues]
Operator
I’m sorry cut down, your voice is breaking. We are not able to hear you, sir. We’ll check his connection. Meanwhile, we’ll move onto the next question from Mr. Aman K from Aman Investments. Please go ahead.
Aman K. — Aman Investments — Analyst
Yeah. Hi, gentlemen. Am I audible, Vishvesh, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yes. Yes. Yes.
Aman K. — Aman Investments — Analyst
Yes, sir. Sir, first of all, congratulations on these set of numbers.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. Thank you.
Operator
Aman, you are not very clear, though. Can you use your handset, please?
Aman K. — Aman Investments — Analyst
Okay. Sure. Sir, hello.
Operator
On handset please? Yes. It is clear.
Aman K. — Aman Investments — Analyst
Yeah. Yeah ma’am. Yeah, sure. Yeah, first of all, congratulations Vishvesh sir for a good set of numbers.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. Thank you.
Aman K. — Aman Investments — Analyst
I think we have come to your side. So just had couple of questions multiple questions, sir. First of all, regarding the development of this as mentioned by the previous annual report that we are developing certain Chemicals and some Fertilizer segment like nano urea and which will be more efficient than the regional fertilizers that which you are providing into farmers and farme communities.
So what is the update on that, sir, are you feeling that while ensuring that potential will be also because these are low-cost items and also these will substantially reduce the subsidies which government have companies and also the are they scalable at the same time, what’s your view, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. Our agri officer will answer to you.
Sanjeev Varma — Executive Director, Agri Business
So basically, it is still in — we can assume that it is still in a intensive this nano urea. It is helpful to it throughout on the pharma field. So, yes, the government has come with a big bang, but finally, farmer, and — is accelerating farmers’ level is yet to be tested. So we are quite cautious on this project. Right now, we ar e — we’ll be initially trading nano urea taking from IFFCO, which is a manufacturer, or so our own depos, and we will have to correct these marketing and then we can decide on this. Right now. As a product under Indian conditions, it has although low auto acceptance at farmers’ level.
Aman K. — Aman Investments — Analyst
Okay. Sir, I mean, what’s your opinion on the cost part of it — is like 30%, 40% reduction in the cost burden for the farmers and — or is it the same cost which we have to pay.
Sanjeev Varma — Executive Director, Agri Business
Basically it is claimed by the government under the ideal condition, but as I say to you, it has yet to prove its efficiency at the farm level.
Aman K. — Aman Investments — Analyst
Okay.
Sanjeev Varma — Executive Director, Agri Business
Yeah. Yeah. Yeah.
Aman K. — Aman Investments — Analyst
So there are no also going forward, how we as in past many capex projects and also we have a huge resale earnings which has been accumulated over the year. Are they calling to capitalize it or I mean going forward taking on — like raising the equity from the market or how are we seeing the debt structure going forward, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. So of course, that will be decided by the Board of Directors. There is a recently got our capex 2% to 3% are short outcome that is easily available at the very competitive rate. So that is not a question of that does not hamper or provide any capex plan. So as far as capitalization parity, inparity is a concern, as I say, it is and what we will get you and they will decide at the suitable time.
Aman K. — Aman Investments — Analyst
Okay. And what is our mix of power because our power and fuel rates are most clearly INR1,000 crores of our revenue which is going out…
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah.
Aman K. — Aman Investments — Analyst
Of the power and fuel. So going forward, how we do list that like converting into it little because we have already set up the solar plan of 15 megawatts.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Right.
Aman K. — Aman Investments — Analyst
Going forward, how are we reducing our dependence on Gujarat’s coal? What do you think, sir, on this?
V. D. Nanavaty — Executive Director, Chief Financial Officer
So, we are still have both our solar power 15 megawatts capacity plant.
Aman K. — Aman Investments — Analyst
These 15 megawatts is how much? How many or what is the value of this capex, sir?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. That is around INR85 crores.
Aman K. — Aman Investments — Analyst
INR85 crores transaction. Okay. Have you guys seen it…
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah. So it’s reduce our dependent on the utility step, utility power.
Aman K. — Aman Investments — Analyst
Okay. Sir, how much proportion will revenues are dependent. This has been installed, like 10%, 15% of requirement, or is it much more than that?
V. D. Nanavaty — Executive Director, Chief Financial Officer
Our renewable power is 25% to 30% of the total consumption.
Aman K. — Aman Investments — Analyst
Okay. And this project has been completely a setup, sir, or is it in the phase in line?
V. D. Nanavaty — Executive Director, Chief Financial Officer
That is in 15 months our project is going on. We already have wind power of 153 megawatts. And another 11 megawatts of solar power is already there. We have when 153 wind, 11 solar and another 15 solar is going on.
Aman K. — Aman Investments — Analyst
Sir, also in this quarter is our financial statements, we have seen our finance costs also coming up. Are we — I mean because, as mentioned, we have already and just a suggestion, if we use our retail earnings as well. But are we have we taken any what is the average cost of borrowings, sir, which you’re handleling?
V. D. Nanavaty — Executive Director, Chief Financial Officer
It is around 5%.
Aman K. — Aman Investments — Analyst
Around 5%. Okay. Mostly government subsidized?
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. We — what we borrow is also because they will even want to reason want to break our deposit for some low payment. So we also have borrowing, and we also have deposit, so both things working together. If you’ve seen net basis, income was much more than interest cost.
Aman K. — Aman Investments — Analyst
Sir, and two things here. Our inventory has also come up substantially. And second, our government subsidies review has also have been accumulated. Are we — Is it a little bit — Is it the in the same — just to rephrase it our government subsidies are also increasing and accumulating? What is your view about, sir, of the realization, when do we expect it to be realized?
V. D. Nanavaty — Executive Director, Chief Financial Officer
So to meeet the the fiscal discipline government provides return in subsidy, what is actually required, so that the — they exhaust the budget provided maybe in February or March. So they don’t have budge, so they don’t have the subsidy. But on 1st April, the new budget, so funds are available. So, immediately in the first week of that they pay all the past dues, so it is a matter of some month or more and month and a half as subsidies dues are accumulated.
Aman K. — Aman Investments — Analyst
We have this and as in the point some of these projects will be funded after a…
V. D. Nanavaty — Executive Director, Chief Financial Officer
Right.
Aman K. — Aman Investments — Analyst
Sir and one more thing in solid funds, what is — as the charcoal is also coming up as fertilizer. If ai am not wrong, sir, 10% to 15% of the sulfur fertilizer that — sorry fertilizer composed of sulfur and the major part is ammonia, which is that fertilizer industry. So the sulfur is also picking up and you think, sir the proportion will be changing in future or the proportion will be remaining the same and the demand for sulfur is will attracted somewhere else apart from fertilizer segments?
V. D. Nanavaty — Executive Director, Chief Financial Officer
For which products are you saying?
Aman K. — Aman Investments — Analyst
This one which we produce the fertilizers that it what would be specifically the two to three — the two/three grades of fertilizer which you produce.
V. D. Nanavaty — Executive Director, Chief Financial Officer
No. We are thinking about that.
Sanjeev Varma — Executive Director, Agri Business
For the — we are talking about what can be the scenario of fertilizer, moving forward.
Aman K. — Aman Investments — Analyst
Yeah. Yeah. What will be the scenario the fertilizer moving forward in terms of sulfur, sir.
Sanjeev Varma — Executive Director, Agri Business
Sulfur. Yeah. Yeah. Sulfur is emerging as a fourth major nutrient in Indian soil. And fortunately, we are one of the largest producer of sulfur-based ingredients. So and Government of India is also pushing for more usage of sulfur, you must be knowing that apart from nitrogen, phosphorus, and potash, government is also giving subsidy for the sulfur. So yes, replenishment of sulfur deficiency has now become inevitable and that will definitely benefit to us, it is benefiting to us.
Aman K. — Aman Investments — Analyst
Sir, are we net exporter of sulfur or net importer of the sulfur sir?
Sanjeev Varma — Executive Director, Agri Business
Sulfur as a element?
Aman K. — Aman Investments — Analyst
Yeah, as a element.
Sanjeev Varma — Executive Director, Agri Business
Consumer. We are consumer, we are also — country as a whole, we are importer.
Aman K. — Aman Investments — Analyst
We are a net importer?
Sanjeev Varma — Executive Director, Agri Business
Yeah.
Aman K. — Aman Investments — Analyst
Okay. We have a dependency on sulfur. Sir, and also in the sulfur which we use in the raw format or we have been converted to acid in liquid format and then use in the fertilizer.
Sanjeev Varma — Executive Director, Agri Business
In acid form, it is sulfuric acid.
Aman K. — Aman Investments — Analyst
Sulfuric acid.
Sanjeev Varma — Executive Director, Agri Business
Yeah.
Aman K. — Aman Investments — Analyst
Which is used in the our system. Okay. Sir, and finally, one last question. And as we have seen there’s very slow divergence spillage testing, sir because I think the cost pressures have reduced a bit and the government’s trajectory for these complete subsidiaries as rightly pointed out by you is also slowly degrowthing. So what do you feel the cost pressures even zoom in further or we are expecting a reversal of costs to be coming in future?
Sanjeev Varma — Executive Director, Agri Business
What was…
Aman K. — Aman Investments — Analyst
The cost of ammonia.
Sanjeev Varma — Executive Director, Agri Business
Yeah. Yeah.
Aman K. — Aman Investments — Analyst
The cost of other — yeah — element sir, which are used in mixing…
Sanjeev Varma — Executive Director, Agri Business
Sure. Sure. You must-have seen that after September ’22 there is a downward trend still it has continued in Q4. So, ammonia has gone down, it was registered to almost $900 now, it is below $800, it is around $750, phosphoric acid it was $1,175 now it is $1,050. Similarly the prices of sulfur are also going down. So, it depends there — all across it has a downward trend for all the group of raw material and similar trend is also there on the finished fertilizers, which are being imported.
Aman K. — Aman Investments — Analyst
Okay.
Sanjeev Varma — Executive Director, Agri Business
Yeah.
Aman K. — Aman Investments — Analyst
Sir, and just one final question. Our major supply goes to MHP side or do we do private supplies also, sir?
Sanjeev Varma — Executive Director, Agri Business
Yeah. MHP is applicable on six or seven identified crops. And government is all subsiding at that rate all across the state. So it is, yes, the rise all the time, it is in the range of 6% to 8% which definitely benefit to the farmer.
Aman K. — Aman Investments — Analyst
Okay. And what will our proportion be of sale, sir? Or like what will government and private. Is there any private player it’s — what is the proportion of sales like just government and them private? Is it just 40%, 50% — 40%, 50% or is it proportion or majorly goes to the — through government medium in these.
Sanjeev Varma — Executive Director, Agri Business
Sorry. Sorry. Can you repeat? Can you repeat?
Aman K. — Aman Investments — Analyst
Yes. Yes, sir. So, I was asking of the total shares for the quarter or for the year as well. Sir, is there and so is there any proportion of our sales like shorten 50% goes to government and then the government has a price limit on it or is it we have to sell it to other players? We sell the raw substance to other players and then other players, their own manufacturing of fertilizer and sell it across again to the — is it meet you as an intermediary business also or is it direct-to-consumer, direct to farmers or government? Okay, sir.
Sanjeev Varma — Executive Director, Agri Business
It is directly going to farmer. It is directly going to farmer Because government is all set and the subsidy after the VPP, the subsidies will be admissible to companies only when farmers buy on the POS machine. So obviously, it is — there is no brain in the — subsidy it is going to the farmer.
Aman K. — Aman Investments — Analyst
Okay. So, it’s directlty. Sir, and also have you applied for more carbon credits or do we have, because it’s very manufacturing expensive business to produce fertilizer and also we use other non-renewable energies also [Foreign Speech] do we think the carbon credit placed which government has brought for the — which government has been bringing for past three years, does it more regulatory implication on our business or is it more reliable, more ease of doing business going forward?
Sanjeev Varma — Executive Director, Agri Business
We do take care of the environmental issues in all our plants and they are under the clearances of the environmental pollution control. If we do not foresee anything — concern that regards to the environmental issue.
Aman K. — Aman Investments — Analyst
Okay and last final question, sir. Is there any arbitration award, which is yet to be received in our case? For which will be — which quantifies on that?
Sanjeev Varma — Executive Director, Agri Business
Arbitration, what?
Aman K. — Aman Investments — Analyst
Arbiteration. Any reasons preceeding the cases of interest which award has been issued? Any arbitration cases?
Sanjeev Varma — Executive Director, Agri Business
No.
Aman K. — Aman Investments — Analyst
Okay. Sure. Thank you, sir. Congratulation, sir.
Sanjeev Varma — Executive Director, Agri Business
Thank you.
Aman K. — Aman Investments — Analyst
Thank you, sir. Thank you. Thank you.
Operator
Thank you. We have our last question from the line of S Ramesh from Nirmal Bang Equities. Please go ahead.
Ramesh Subramanian — Nirmal Bang Equities — Analyst
Thank you very much and good evening, and congratulations on your good results and thanks for the call. So I have three broad questions. One is in terms of the segment numbers, can you share the EBITDA per ton for phosphatics and the same number for urea in terms of EBITDA per ton. The second question is when do you see the Chemicals business turning around because, that’s where, I think you are not able to perform the fertilizer is delivery growth. And third question is in terms of the hydrolyzer — electrolyzer project, is it JV with GNFC and what is the capital cost for the 5 megawatt electrolyzer you are planning to setup? And have you any indications in terms like what price you will be producing Hydrogen, so if you can answer these three questions that’ll be great.
Sanjeev Varma — Executive Director, Agri Business
Regarding your first question, that EBITDA, I’ll say that we ar within the range of including this in the range of 10%, as we have not calculated with respect to product wise, but then overall Fertilizer segment — our segments is in the range of 10%.
Ramesh Subramanian — Nirmal Bang Equities — Analyst
10% margin on sales? Okay. But in urea, are you getting positive contribution, because in the GNFC they have mentioned, urea is a bit negative in third quarter. Is there any challenges that urea margins?
Sanjeev Varma — Executive Director, Agri Business
Urea, yes, you are right. It’s always been the challenge, because what’s the subsidy that help in filing the competition price, which has been given by the government, if with respect to all the variable cost, which still released towards irrespect is to which was they have maintained it from the very old rate about — I think it — this was 2012, so that fixed cost part which most of the companies do not get recover and many — all the industrial players have requested them to look into this part so that because they can also — so something can be also taken care if this was fixed one part. Yeah, there’ll be margin issues, but not that much.
Ramesh Subramanian — Nirmal Bang Equities — Analyst
So, you can move to the question on chemicals, and the fertilizer?
Sanjeev Varma — Executive Director, Agri Business
What’s the chemical one over here?
Ramesh Subramanian — Nirmal Bang Equities — Analyst
So, if you see this year this quarter and this year, basically driven by the improved performance of fertilizers whereas chemicals has been a bit of a drag. So, didn’t you see the Chemicals business turning around in terms of adding to your profit growth and where is the challenge. And the next question was on the 5 megawatt electrolyzer project because GNFC also talks about similar project, if you can give us an indication of what is the kind of cost per ton of Hydrogen, we expect? And what is the the capital cost for the 5 megawatt electrolyzer?
Sanjeev Varma — Executive Director, Agri Business
With regard to your capital but IT industrial products still. There’s a — in Q4, I’ll say, but there is an issue with respect to realization price, because it’s already been suppressed a lot, but what we see some improvement there from next year onwards. Q4 will still be under pressure with respect to realization and over and above this capital benefit which is increasing. So, that has an impact of — there is an impact on the realization straight away in the input costs.
So Q4, yes, definitely Industrial products will be under a little pressure. But again, we are looking from the perspective of how we can maintain and adjust it from the domestic to export market like we have done in Q3. So on the same basis, we’ll try to do our product mix in participation. So, that we get by in better realization payer we have our market in the — in abroad.
Ramesh Subramanian — Nirmal Bang Equities — Analyst
Understood. And if you can give your thoughts on the electrolyzer?
Sanjeev Varma — Executive Director, Agri Business
Electrolyzer cost, it’s in a very early stage to comment on what the cost will be. More. How many. Electolyzer.
Ramesh Subramanian — Nirmal Bang Equities — Analyst
Can you at least share the capital cost because that’s an information, which is totally lacking sir, everybody is talking about electolyzer, but there is no visibility on the capital cost.
Sanjeev Varma — Executive Director, Agri Business
All right, it will be roughly around INR100 crores actually.
Ramesh Subramanian — Nirmal Bang Equities — Analyst
INR100 crores or 5 Megawatts that useful. And lastly, if I can just squeeze in a question the phosphoric acid and sulfuric acid expansion, what is the capex required, and to what extent it i sreducing the requirement of outsourced sulfuric acid and phosphoric acid for your future growth?
Sanjeev Varma — Executive Director, Agri Business
Sir, It will be around INR1,500 crores to INR2,000 crore for India in expansion. We have teared on some of the requirement. So, earlier requirement was around INR3,000 crores, now it is spent at around INR2,000 crores.
Ramesh Subramanian — Nirmal Bang Equities — Analyst
And to what to reduce your requirement of imported phospharic acid and okay, sulphuric acid?
V. D. Nanavaty — Executive Director, Chief Financial Officer
It will be around 4 lakhs metric ton annum for the plant. So, we will have that in house acid available that can make 4 lakh tonne of acid.
Ramesh Subramanian — Nirmal Bang Equities — Analyst
Okay, okay right sir, thanks a lot. Wish you all the best, and congratulations and look forward. Thank you very much.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Thank you.
Operator
Thank you. As there are no further questions. I would now like to hand the conference over to Mr. Nanavaty for closing comments. Over to you, sir.
V. D. Nanavaty — Executive Director, Chief Financial Officer
Yeah, thank you. As we deliberated the growth story is intact on some segments performance here and there it’s part of the life. So, that will keep on happening. But the company will steadily work both in terms for top line and bottom line, and it’s new projects and all. We will be including AatmaNirbhar Bharat and generating employment which is the dire need of the country. Well, thank you.
Operator
[Operator Closing Remarks]
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