Insecticides (India) Limited (NSE: INSECTICID) Q3 2025 Earnings Call dated Feb. 10, 2025
Presentation:
Operator
Ladies and gentlemen, you have been connected for Insecticides India Limited Conference Call. Please stay connected. We will begin shortly. Ladies and gentlemen, you have been connected for insecticides India Limited Conference call. Please stay connected we will begin shortly ladies and gentlemen, good day and welcome to Insecticides India Limited Q3 and Nine Months FY ’25 Earnings Conference Call, hosted by Orient Capital. 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. I now hand the conference over to Ms Rateria from Orient Capital. Thank you, and over to you, ma’am. Thank you. Good evening, and welcome to the Q3 nine months FY ’25 earnings Call of Insecticides India Indeed. Today on this call, we have with us Mr Rajesh Agarwal, the Managing Director; Mr Sandeep Agarwal, the Chief Financial Officer; and Mr Dushyan Suit, the Chief Marketing Officer. Before we proceed the call, I would like to give a small disclaimer that this conference may contain certain forward-looking statements, which are based on beliefs, opinions and expectations of the company as on-date. Now, I would like to hand over the call to Mr Rajesh Agarwal for his opening remarks. Over to you, sir. Thank you. Thank you, Massoon. As you know, the CMO, Mr will be joining this call for the first time. So we have a very vast experience of marketing and sales in large companies of more than 30 years and he will be there to reply to all your queries, whatever will be there after my session. So good afternoon, ladies and gentlemen. On behalf of Insecticides India, I’m delighted to welcome you to today’s results call. We truly appreciate your time and keen interest in our company’s performance. I trust you have had the chance to review our Q3 and Nine-Month numbers of FY ’25 financial results and investor presentation, which are available on the stock exchanges and our website. We are delighted to present these numbers and which underscores the strength of our operational performance and successful execution of our strategic initiatives. The numbers we share with you today are testimonial of the resilience of our business model and effectiveness of our growth strategy. So the premiumization strategy has played out very well. The efforts to make it is in-full swing and we are continuously working around these new products, which is responsible for increasing the profitability of this quarter and taking it to 42%, though this is a lean quarter and we cannot take it as the full-year number and to consider or to plan our performances, you should look at nine months more than this quarter in particular. And if I talk about the industry situation, then the industry was little impacted in this quarter, which has also hit our B2B sales, particularly in this quarter. But the important thing is that we have generated a total PAT margin of INR128 crores, which is the highest in the history of the company. Even in the full-year, we have not generated this type of PAT margins in the past, which is a 35% growth if you look at the previous year. So this is the ever highest profit for the company. And the premium products, the growth are — we have taken it to 62% of B2C with a growth of about 12%. And in the Y-o-Y, if we look at the nine months. So from 50 odd percent, we have reached to 62% and this we are going to continue in future also and the target for future will be to 30% to 65% in next one to two years. The volume growth has been around 19% in the premium products and overall volume growth in the B2C segment is about 12%. The focus on the new-generation products, the value-added technologies has been the key essence here. I would also like to talk about the recent launches, which we have done in the previous years, which has proved very successful. Here, I would like to talk about these two Nissan products in particular. Number-one is. So
Questions and Answers:
Operator
Still is number-one product in our portfolio and it is doing very well followed by Yuki. Is the next product, which is the next level of pulsa, which we got from Nissan. So this product has also performed very well. And then some of our new products which we had launched in this year, particularly and revenues. We have performed very well. Sofia, it has also performed really well and followed by Hachiman and. And all these products are the part of our focus range. So I’m glad that generally we have only in the previous year or the current year, we have 11 products in our focus range. And the new launches, which has happened this year, I see at least four to five new products entering into the focus, which is a signal that our premium product business is going to increase in future. So products like San Bran,, Supa, Torex will be the new things to look at and there will be a new addition from the staple of also this year, a new ice herbicide which we are going to add to our gains, which would be known as Ulta and which will be available for the Khari season in this year itself, means April, May, it will be launched into the market. Our rice herbicide green expert Green mix, they are doing very well, Green and Green expert is also a very special mixture which we had launched into the market 2.5 years back and this is going very good into the market. And this year, we wish to establish it into a big brand and it will be our effort to bring this product also in the FM range. So the total number of launches in this fiscal has been almost 10 and there is a very strong pipeline. I see at least more than half a dozen products also, which will be coming in the — for the next year and the focus on the new launches is going to be continuously there from the company side. And particularly all these products, the new products which will be launched, they should be qualifying in Maharatna. That is the intention of the company. I would also like to discuss about the industry trend. So we see the favorable tailwinds be there is stability in price, the monsoons have been quite good. So the water availability in the reservoice is there. And if you look at the price in particular, I can say that it is not only stable, but we have also started seeing the northward movements in the prices in the international market, which is now also visible in the Indian market. So this will have a good impact on the B2B business and also on the IVD business, though the 4th-quarter it would be big, but I will surely say that you see — you are going to see the positive impact on all the three businesses in the 4th-quarter also. So I can say the international business and the B2B business and the B2C business, all three will be in this 4th-quarter. So there has been a good point and the government support, particularly for agriculture, a special focus on pulses, edible oils, hotriculture, cotton, all these are going to do good for the industry. And I can say that in future we can expect a decent growth from the company. This year, the closing should be good with the double-digit margins. We are able to maintain already 11.7% of EBITDA margins in nine months and I believe that the closing should be a decent double-digit margins in this entire year. So going-forward, the strategy of premiumization is going to be our key strategy where we are going to make minimum 20% growth from the premium products, which means Maharatna products. These are all value-added products. The growth will be continuously — continuous in next four to five years, where we’ll be targeting particularly focusing these projects, these value-added products and the target of the gross margin in next one to two years of time, we can say is 30% to 35% with the EBITDA of about 12% to 13%. So the vision is that Marathna numbers or premium product numbers should cross 65% very soon. So we can say in one to two years of time. We are also working on building out the organization. So we are trying to work-out some CX acquisitions and there will be appointments soon for the next three season. We are going to see some new places entering into the country on the senior-level, which are going to make our teams stronger. And this movement or strengthening of the team, we are doing across segments. We are looking at marketing, sales, R&D, manufacturing and operations in all the directions. Along with this, we are also working on the working capital. So we have improved over the March numbers. In next year, we are again working to improve our working capital cycle by at least 20 to 25 days. So you will see the continuous good performance. Our focus will be to move toward the stronger, better products, better technologies, build the systems and a very strong pipeline for the future. So with this, I’ll hand over the call to Sandeep Agawal, CFO, to explain the numbers of this quarter and nine months will now share the highlights of the company’s performance for quarter three and nine months for the quarter. Revenue from operators stood at around INR758 crores. EBITDA raised at around INR51 crores, a significant increase from INR26 crores in the last quarter of — from the 3rd-quarter of FY ’24, reflecting a year-on-year growth of around 18%. The EBITDA margins for the quarter stood at 8.6%. Our profit-after-tax was reported at around INR17.4 crores, making a substantial year-on-year growth of around 42%. In terms of product composition, which exercise for green around 49% of the total sales. Sorry to interrupt, Sandeep, sir. Can you please be a little louder? Okay. Breaking down by the sales segment-wise, B2C sales contribution around 82%, B2B sales represent around 11% and exports around 7%. In-quarter three FY ’25, the premium products contribution is around 55% of the total B2C sales and 45% is from the general side. Looking at the performance over the first-nine months of FY ’25, the revenue from operations stood at around INR1,641 crores. EBITDA stood at around INR193 crores. EBITDA margin is around 11.7% and PAT for the nine months stood at around INR128 crores with an increase of around 36% on year-on-year basis. For the nine months ever period, so we also are pleased to report a significant improvement in our working capital days. The working capital days has come down by-18 days or December ’24 as compared to March ’22. Yeah. Thank you. Thank you very much. So now I open the house for the questions. So all the three numbers, CMO, CFO and myself CF present. Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw 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’ll wait for a moment while the question queue assembles we have our first question from the line of Bhargav from Ambit Asset Managers. Please go-ahead. Yeah, good evening, team, and congratulations for a good set of numbers. Sir, my first question is that last quarter we did an acquisition of Curios for a consideration of about INR6 crores. So is it possible to know what was the net-worth of this company and what was the rationale for this related partly transaction? That is my first question. And the second question is that given that you highlighted that you’re looking at significant reinforcement on talent, wherein you did allude to the fact that you’re looking at a lot of senior management recruitment. What will be the long-term incentive plan to ensure that they stay back with us? These are the two questions. Okay, we go one-by-one. First is Cairos. So Cairos, it is a company with a paid-up of capital of about INR4.8 crores. So here we had purchased the land to build-up the plant. So where we are running our — at the moment, it is being used For green land for prior purposes. But we are planning in the long-run, we can use it in-plant and then multipurpose waste. So it was valued and on the basis of value, it was purchased at INR6.3 crores, which included the value of land and the value of business. Apart from this, we have also about one dozen import licenses in Cairos. The basic agenda is that insecticides India, we don’t import any technicals from China. Cairo gives the opportunity to import these technicals, which we generally purchase from our competition at a little higher price, so it will improve the profitability of the company. That is one possibility. Second is that we do B2B products or PAT products for some — some of the competitive partners or competition companies. So that business can be transferred to, which will decrease the competition in the market. And this way can be a good — I can say revenue car for insecticide India. So it can — it will increase the profitability of the company. So the purchase which has been done at INR6.3 crores. So that is done on the basis of the valuations done by the auditors. Second is the talent. So talent we are going to bring to the people who are the senior people and have the experience of various multinational companies and large Indian companies. So definitely, there will be the desired plans which will be set-up because when you are bringing the talent, the retention is also going to be a target because when the people their companies, they come with their agenda also that, yes, they will be performing and showing the performance, but there will be decent incentive plans for them definitely to retain retirement. And we are going to provide the atmosphere where the people are going to — will be able to operate and show their performances? And sir, sir, clarify on Cairos, is it possible to give some guidance in terms of next two to three years, when do you see revenue and profitability in this segment in the Cairos business. The details we are going to provide later because there are going to be discussions. We are — there are several plans with Cairos. So the revenue guidelines are not planned, but it will be a good profitable business that much only I can say as of now. So once the plans are freezed, I think by the next investor call, we will be ready with the plans of Carro. So we’ll be presenting the numbers. Okay, sir. Thank you very much and all the very best. Thank you. Thank you. Thank you. We have our next question from the line of Bharat Gupta from Fairvalue Capital. Please go-ahead. Hi, good evening, and Sandeepa. Sorry to interrupt, Mr Good evening. Can you please be a little louder? Sure. Sir, a couple of questions from my side. So can you just brief us about the volume growth over the Q3 and the nine months? And the sales kind of impacted due to sales returns during the quarter. The sales return was not huge. The sales return was nominal in this quarter because we had already taken the sales return in Q2. So there was some party-to-party transfer, which has to be routed through the process, which looks like the sales return. So that may be there. So it was not huge at all. Regarding the growth, I had the nine months number where we have shown a growth of about in terms of volume, the growth is about 90%, 19%. With the value — the growth in terms of value is about 12%. So this quarter, the growth was not much. The B2C growth was about — and B2C growth of about 7%, 8% in terms of volume, but when it comes to value, it was not. So it is important to see the performance of nine months. You cannot make it by quarter basically because this is a very lean quarter for us. Right. So during the nine months, we have grown by near about 19 odd percent in the B2C space. In terms of volume, right? So the value growth is about 12%. Total is growing 7% kind of impact on the on the pricing front. Right. Sir, secondly, with respect to the gross margin, so there has been a good amount of improvement and you also mentioned that you want to maintain it to 30% to 35-odd percent levels in the coming years. So just to want to get a bit of an understanding like looking at the previous trend also, there has been an improvement in the generic premiumization also, which you have mentioned in the presentation. So do you think the — there will be a good amount of shift towards the B2C side and particularly with respect to branded going-forward and the margins can sustain like over 32% or 35% levels? Yeah, we are working in that direction. We are continuously introducing new products and all our new products are doing well. Like if you see last four, five years performance, we were at 51% with our premium products. We came to 55% and 59% and this year we are touching 62% and the vision is to go to 65% in the next year itself. So we are continuously improving the sales of our premium products. And there also some of the products from are climbing the ladder to focus, which are our key product in the last — in the current fiscal, the total number of that I have are 11, which you wish to take to 15. So these are itself, I would say, are evident that we are going to increase the sales of our interest molecules or the premium products. So continuously, there will be continuous launches and these launches are going to come through our partnerships and through our mixture patterns which we are going to obtain and by reverse engine, there are various new products, which will be added, new technicals. So they will be profitable products. So I have the confidence that we will be able to do that. Sir, a question with respect to raw materials as well. Since you will be already procuring for the upcoming 3, how do you see the raw-material trend playing out at the moment? And there are uncertainties around the globe because of the tariff hikes pleased on China. So how do you think overall it can play-out for us because we are neat exporter as well. We do export to the Latin markets into other markets. So how do you think overall scenario can play-out for us? Overall scenari is a good scenario. As I told you that in this quarter for Q4, we saw the growth happening in all the three — again, it is the main quarter, but even in the lean quarter, I see B2B, IBD and also the B2C business or the free business growing, maybe whatever percentage will be there, it will be a positive year quarter for all. And looking at the long-term, yes, we have started planning for the next season and we have started procuring the raw-material and the plants have started manufacturing. There are already short — short like six months of shortages in the market. So looking at that, we have already started planning. So we are working in that direction. And since we are working more on the premium product, then we can be clear. So I’m confident that we should be able to do the desired things. And generally when it comes to export, we are exporting mostly — most exports are from the technicals which we are making. There are some exports where we have to import the technicals and then with the formulation, but mostly our maximum businesses of our own technicals. Which increases are we anticipating double-digit kind of overall contribution coming in from the export side? No, export is a small-business for us at the moment. 3% is the contribution, which is some in the nine months, which already explained. But in this year, we will be crossing INR100 odd crores. So last year, we’ll be BD, but I don’t see a very big growth, which will be coming into this fiscal. So we had a target of crossing INR150 crores, but we’ll be landing somewhere with at INR100 crores net level. So whatever investment in this year will be visible very shortly. But yes, we are confident that next year, again, we are going to keep a stronger target for exports and with the type of response we are getting and the type of registrations we are expecting to get through. So I’m confident that next year we should be able to grow our exports in a decent months. Last question from my side, sir, with respect to the depreciation in the currency, which we have seen. So like ultimately, do you think currently we are importing near about 20% of our RM requirements through imports? And do you believe that the industry is in a position where it can take a hike because the imports are getting expensive for us. So in a way, way overall with respect to industry, I’m asking, see, whether you are seeing a good amount of increase happening in the generics as well as in the branded side going-forward? And also to predictability also, there there will be a negative impact? No, there won’t be any negative impact. The prices have touched the bottom already and they have started going up. As the prices goes up, the market prices are also going to go up because it is going to increase for everyone. So this is the low season. In the low season, the prices grew as a — the things our discount, particularly in the last quarter because it is just the finishing season. But already we have started seeing increase in some of the prices over the Q3. So the market is going to easily accept the prices. That is my expectation. So as the market goes up, there starts, there will be some increase in the prices. So whatever changes are going to come due to change in currency or this is a change in the types of scenario that will be really by the market that is. All right. That’s it from my side. Thanks, for answering all the questions. Thank you. Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. The next question is from the line of Madhur Rathi from CounterCyclical Investments. Please go-ahead. Thank you for the opportunity. Sir, I wanted to understand for the next year-on an overall basis. Voice is not clear, please. Yes, sir, am I audible right now? Second, yeah, I’m better. Yes. So sir, I wanted to understand when I look at FY ’26 on an overall basis, the premium as well as our generic products, sir, what kind of volume and value growth as well as margin can we expect from that segment? And I’ve already explained that we are able to grow the premium growth by 19% in terms of volume. The value growth is about 12% in this fiscal in nine months. So last quarter is a quarter, but still I think we should be able to maintain this plus/minus. Sure, I was asking about FY ’26. FY ’26 we have not decided as like not closed the budget yet. So what will be difficult? I’ve already said that the target is to minimum growth of 20% of the premium Y-o-Y. So you can say it’s our continuous target that we have to increase minimum 40% production to V2C segment every year. Okay, sir. And this would be the 20% volume growth for the premium segment, right? Yes, right. Okay. Sir, a year, year and a half back, sir, we were doing this kind of a tail and reducing the exposure of the tail and lower-margin products and increasing the 9, 3 patent kind of products in our revenue. So has that scheme happened right now? And sir, if yes, what kind of margin percentage has that improved on our overall books? It is working out well. The thing is evident from our performance as we will compare the three years for four year season, season very well look at that. Premium products we made — so when I say premium product, these are all new-generation products which we are focusing and we are continuously increasing the percentage of our premium product sales in our B2C business. We have reached 62% already in this nine months and the resulting evident. We have closed all the margin. Okay, got it. Sir, so if I look at our generic product right now, sir, what percentage would be the products where we are not making any money or it’s very kind of a breakeven kind of products or everything is currently making some amount of that money coming. There will be very rare circumstances that if the market falls for something, then you get trap. So at the moment in any — nobody does the business for making losses. So even is not doing any business for making losses. So these are particular remote cases, which happened three years back when the market slashed to 50%, so we made losses in certain products, so which impacted our results. But now I don’t think there is anything which is really negative contribution. Okay, got it. Sir, just a final question from my side. Sir, we see this Nissan collaboration with Agri Bank as well as and. So how does — when we launch a new product with Nissan, sir, does it give some exclusive rights to us or it’s just that we can use technicals and just it’s the 9 3 kind of formulation work that we do that provides us the competitive advantage in this segment okay, you have to understand it in detail. Brings one-product and that product it gives to some of the partners. Sometimes it is exclusive, sometimes it is non-exclusive. So — or co-exclusive. When it is non-exclusive, then it gives to two companies or sometimes to one company. And then it also gives the opportunities these days, this is the time of. So you can prepare the which are exclusive to you and you can claim the patent also in the market. After making those missar, then you can start looking at your partners and make those partners in the market in the long-run with the concept of Nissan. So that becomes your distributors basically with the concept of Nissan. So that gives you opportunity to increase the volumes of your inventored or discovered or I can say your R&D mixture, which are better performance. So to give an example, like we had, which is a mixture of and a. So this is a herbicide. I had started with with Missang in 2013 and this was launched three years back, which is a super product for me. Similarly, was launched in 2013 and was launched three years back with the. So that is again exclusive. So for, I have no partner, for, I have made four partners in three. So they are my partners digitally and I am selling that product to the market to them with the concept of, of course. So the new product which I’ll be bringing now, which will be the new launch for the season, which I already announced, that will be exclusive product for the first year. And then in the later stages, we will see that if we have to appoint the partners for partners. And now the time has come. When at the time of launch of the product or even before the product, we started — start rupee mixture source. So we are already working on its mixture. So in the long-run, the mixtures are going to come and then we’ll select the products. Okay, sure. Got it. That makes sense, sir. Thank you so much and all the best. Thank you. Thank you. We have our next question from the line of Narendra from RoboCapital. Please go-ahead. Hi, sir. Thanks for the opportunity. Am I audible? Yes. Clear. Yeah, yeah. So, yeah, sir, so I’m new to the company. So sorry if my questions seem a little naive but are we doing any capex in the company? Yes, we are doing a lot of capex. There is already expansion which is happening at Sutanala, which is in Rajasthan and there is also the expansion which is happening in Dahej. So Dahej is going to start — the plant is going to start very soon in this quarter. So for the technical — and there is one expansion which is going to happen for the formulation also. So the formulation should be — should be coming up by the middle of this season, somewhere in June, I think it should hit the market. So we will be doing both. And plant, it is a little longer-term. So it will take one year. So 2026 is the target to start the manufacturing in the Sotanana site. Sam, what major which are. And in the subsidiaries, of course, there will be some work-in Karos and IL Biologicals also. Yes, please. Okay, sir. And what are the amount that we are spending on these capex? Capex is like we have not — I can say about INR125 crores is going to go in the next two years, this year and next year, the majority of which is going to go in the next year from here because now we are going to order some of the plant parts, but they will be coming in tranches. So the major expense is going to go to the mix system. Okay, sir. Understood. And the plant, right, I’m supposing that’s a big capex. So what kind of timeframe are we looking to ramp — ramp the production to say 80% and what kind of revenue or any number you could give that we will be able to do after it reaches 80%? Yeah. So Sotanala, we are making in two-parts. One is the formulation. Second is the technical. In the technical, we are going to construct one building and we will start the manufacturing with one building. Second building, we are going to put in Part 2. So first building, we are going to start at — in the first go itself, we’ll come to 70%, 80% production because that is going to be a DCS plant and it will contain certain products, which we are already — we are the experts in making. So we’ll be transferring some of the products from the other plants and the new technologies are going to go to the other plants and then we’ll establish those technologies at the other plant and then we’ll bring it to Sutanada again for the new plant actually which we’ll be making later. So — and in terms of formulations, yes, we are again going to establish a big facility here for the formulations to strengthen our formulation business because we have launched a lot of new products actually a lot of new variety of formulations. There are a lot of both for these formulations, WDGs, ECs, all types of formulations are there. So we are going to set-up all these activities. So the total quantum of business it is going to generate is going to be a Reasonably good. So when in terms of number, I can say that if it achieves even 65% 70%, it will be crossing INR500 crores in the first year itself. Okay, sir, great. That’s great to know. Yeah. Yeah, so sir, those are my questions. Thank you and all the best. Thank you. Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Kartik from Sumatwa Capital. Please go-ahead. Thank you. First of all, congratulations to the India Limited team. My question is on the — for the first-nine months of this financial year, I believe you mentioned that we made 10 new product launches. And could you please elaborate on the plans for the upcoming quarter as well as for the entire FY ’26 — the new launches, please. I told you that there is a plan of about six — more than half a dozen launches, which will be coming in this — for the next fiscal. So now we don’t wait for the season. We’ll launch the products like the 10 products which were launched in the last fiscal also, even in the last second of the season, we have launched the product. So now also as the product will come in, as we get the registration, as the packaging is everything goes ready and sometimes we wait for the patent also. So as everything gets ready, we immediately launch the product. So there might be — you can see two to three launches happening in this quarter itself and some launches might happen in the first-quarter for the. So yeah. So there are four insecticides which are coming and there is one herbicide and one fungicide. So precisely, there are at least six products which are clearly visible now and there can be further additions because we are looking at certain more biological products also and some other segments. Thank you, sir. And sir, recently, you have also mentioned that you — with partnership with another firm, you have launched a biological product in the market. Could you please help us understand about the potential of this product and what is your long-term vision for this product and the category? Look, it’s a very interesting product. Seaweed. It is the most popular PGR in the market. So it’s a very common product if you look at the product category and mostly all the companies are the marketing, but it has a huge potential. This product is a product differentiator because most of the popular seaweed, they come from foreign countries, particularly USA, Canada and some European brands, which are very popular in. But when we compare the result of this product with all the international and domestic brands, we found that this is the most superior product. So we chose this company as a partner because that was a startup company which has developed this product, which is a mixture of two C-wheels and also has a, which is a nuity and it was having very good results for the product. So we have chosen this. So we believe that we should be able to make it a brand leader in this segment with the potential of 1 million liters of this product. So I can say it can generate a sale of about 50 crores 60 crores 70 crores in the long-term in four to five years’ time. So we have just begun this product two, three months back. So this will be a beginning. But in next fiscal, again, I believe that we should be able to cross at least 1 lakh liters of in the next full-year, year ’26. Thank you, sir. Just a clarification, sir. Is this C-wheel product part of your focus Maharatnam portfolio currently or is it outside of it? Like to qualify the focus Maharatna product has to do a net sale of INR35 crores. So it is a part of, not a part of focus project. So INR35 crores is the net sales, which it has to qualify and 35% is the gross margin. So it is qualifying the gross margin, but it is not qualifying the sales. So even in the first year, if I sell 1 lakh liters of 1.5 lakh liters, which will just reached 10 crores. So INR10 crores more of the small. Thank you very much, sir. And my last question. In the last con-call, you have also explained the rationale of why acquisition will help us with our supply-chain, especially from import standpoint because it already had — your voice has become — what did I talk about? Sir, you have mentioned — you have elaborated on the acquisition rationale of Cairos, where you have mentioned about the import licenses that it already has, which will be accretive to insecticides will be much useful to insecticides going further. And you also mentioned that there is a INR100 crore plan immediate to make the business out of it. Could you please help us elaborate the plan of Cairos of INR100 crore? How will we even achieve that INR100 crores, sir? It’s very easy. Actually, the import which is going to happen in this fiscal will be more than INR100 crores. So there will be value addition on this INR100 crores when is going to import the technical, it is going to make the formulations and it is going to supply B2C also. The plan will be much bigger. So since the plan numbers are not released, they are not budgeted, I’m not discussing it much because we are not fully ready at the moment, but I can just give you the assurance that the net business is going to be INR100 crores plus with a margin — double-digit margin. That is what I can say. Thank you so much and all the best for the future. Thank you so much you. We have a next question from the line of you are not hearing anything. The next question is from the line of Kunal Chokas from Fairvalue Capital. Please go-ahead. Hello, am I audible? Yes, sir yes, yes. Now you are open. Okay I just had I want your confirmation first and then I’ll ask my question what hello, yes, yes, please. Okay, just want you to the 20% growth that you were talking about, was it for the B2C category as a whole or for the Maharatna as a whole or only for Focus Marathna? Focus and are part of the premium products while we actually grow, we see — we give a commitment of premium products. Premium product is B2C, focus and both put together. Okay. And it is volume growth. Okay, sir. And another quick confirmation, what was the contribution from Maharatna and focus Marathna in overall revenue for the nine months, 62% this year, 62% expected in first-nine months of our total B2C sale. Number because 78% has been the formulation sale. So out of our total number you can make 78% and then you can make 62% calculation. So about INR800 crores. Okay, sir. And another question I had was about biologicals. How do you see this product segment evolving over the next couple of years and especially for in there. It is a very futuristic business actually. So we are applying for a lot of patents and we are working on R&D of biological products in many new ways. So these are secret things I cannot declare too much. But I can say that we are working on nanos, we are working on consortias. We are working on many new injecticides, fungicides in the biological segment. We are working on having the products more potent because generally the problem with the biologicals is the efficacy, generally the problem with the bio biological products is implies and then the results which the person gets from the chemical product is very fast from the biological is very so slow. So we have realized all these concerns and we are trying to bring up the solutions by our own R&D and also by tying up for R&D at various places. Soil biological is especially set-up for doing such activities. So as I was telling that has some land — sorry, as Biologicals also have some land in. So we are going to set-up the new plant for biologicals at site itself. Our already has one biological plant at that location. So we have a big piece of land, which is purchased in various subsidiaries of. So there we are going to set-up the plant for iron biologicals and it will keep on expanding as we bring in the new products and as we get the success in the biologicals. So my vision is that in the future, the biologicals are also going to contribute in a big way, both in the domestic market as well as the international markets. There is very-high interest of the competition in some of the products. So let’s see how we proceed. I don’t want to give any big numbers, but I’ll definitely say that if we look at the medium-term, then definitely the biological business should show a big growth. Thank you very much. That was all I have. Thank you. Thank you. A reminder to all participants, if you wish To ask a question, you may press star and one. The next question is from the line of Narendra from RoboCapital. Please go-ahead. Hi, sir. Thanks for the follow-up. So sir, I wanted one clarification. So the 20% Y-o-Y revenue growth that you are internally targeting for ’26, right? So is that on an overall business or in the premium segment? Again, this is — please note, B2C, this is the growth of B2C. The other growth will be different. So from the B2C business, particularly from the premium products, we are targeting 20% growth. Rest is all engine. Okay. Okay. So the vision is to grow the premium products along with the premium products like when I say sometimes that the train runs the — the engine runs the train. If the engine is running, then everything runs along with the engine because it gives the reason. So when people are moving in the field or they are promoting one-product of focus range or a premium range, then he has to give other solutions also to the farmer. So ultimately, we are — what we want is that our people should move-in the markets more, they should contact more farmers. We are giving them the tools in terms of product and in terms of the scientific tools also. So we are trying to provide that so that they are able to promote tractor man more-and-more into the market. So the focus is around the premium products, but other incidental sales will also grow. Okay, okay, understood. So any number that you would — you would like to share regarding the overall numbers that would be growth, I’m talking about B2C itself, it should be enough. And when I’m saying that my vision is to grow to 65% in one to three years of time, I think we can conclude it better. Okay, okay, sir. Understood. Yeah. Thank you. Thank you so much. Thank you. Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Devan Hera from SKB Capital. Please go-ahead. Thanks for the opportunity, sir. Sir, I have a couple of questions. So my first question is the new automated plant in Rajasthan sounds like a significant investment. So what are the timeline for the completion and how do you see the impact in your production capacity and cost structure once it is operational? Let’s go — make it smaller, smaller, which will be easier for me. So as I told you, 2026 is the period when we see that this plant is going to start. The investment plan from here is about INR125 crores. Majority is going to go into the next fiscal. There may be some spillover into the next fiscal also out of this. So yes, it is going to be a DCS plant and it is going to have the formulation facilities also for liquids, for the removes, for, everything. So of course, the state-of-the-art plant is 50 acres of land. So yes, we are very, very enthusiastic about this plant. And as I already told that whenever we get the full-year of production, so in first full-year of production, it should — even if it operates at 70%, it should be able to generate a volume of INR500 crores, both formulations and put together. Okay, sir. Got it, got it. And sir, can you share how new launch products have been received market so-far and what is the average timeline for the new product to be become profitable? And what number of new launches are you planning for the upcoming period and if you look at the past three years, every year there has been at least 10 launches which have come from this table of IL, eight to 10 launches, okay, let’s say. And in the next year again, I see about six launches. The product become profitable from day-one. So there is no gestation period for a profitable because if you are launching something in the segment or focus segment, you are very, very clear that it has to qualify the minimum gross margin of 35%. So it is not qualified and it is not, that is not a premium product. So yes, it becomes profitable, but it depends on the size, how much profitable. Because if AAV, if it qualifies for focus, then that’s yes, then profitability is INR10 crores, I can say I get INR10 crores, INR15 crores from the — of profitability in terms of gross margin. But if it is just with INR5 crores of sales volumes, then INR11.5 crores, which is a small amount actually for anybody. So sometimes you launch the products in the second of this year, even if the market response is good, you don’t get that big response in the market. Like if I talk about — I’ll give you example,. Santran is a new launch which I have done last month. In one month was sold pursued 300 tons of. So for next year, I put Centran into the focus because I’m confident that I’ll be able to achieve a Centran’s number, which will qualify focus more of my numbers. So this year, it was like it will do 500, 600 tonnes, 5, 600 tons will mean INR709 crores of sales. So yes, whenever we get the full-year of operation, then we can say that it will start using good self-central. Okay, sir, thank you. Thank you. We have our next question from the line of Sahil Vora from MNS Associates. Please go-ahead. Good afternoon, sir. Thank you for the opportunity. I have a couple of questions. Can you provide details on your plans to expand your network of dealers and distribute — distributors over the course of the next one year. It’s a continuous process actually. So we don’t count, but what we are doing is that we have tied-up with SFBC and we have launched our own program where we are trying to tap the farmers, we are trying to tap the retailers, we are trying to tap the distributors. So this — in this, we are touching the points more-and-more. We are trying to move through the — this SLBC system, which is a CRM and all our social media networking, we are trying to move it through it. So ultimately, by all these efforts and by the more-and-more foots in the market because like my FA budget or the, the crop advisor budget has increased into this — in this year, my marketing expenses have increased in this year. So all these are evident that we are spending more money into the market. So we are spending more money then definitely there will be growth. So broadly, you can say that in my total network, there might be about 5% increase in the number of distributors, maybe 4%, 4% to 5%. In the number of retailers, there may be a little higher increase because at the moment, we have these retailers are not covered by our ERP system. I think just like where they are — so now we’ll have the CRM. So CRM is going to control and when we are going to continuously hammer these retailers. So we should be able to enhance our retailer network and our farmer network, particularly the high-net worth farmers who are purchasing more metal farmers. And similarly, the retailers who are selling our new products, who are selling more product, they will also be focused. So this should ultimately result in our performance. So that is the strategy with which we are pursuing. So it is not behind the numbers, it is behind giving the better services to the people who are the real sellers of the products, who are the real people who love our products. So we are identifying the consumer, we are identifying the retailers, we are identifying the right distributors and trying to provide the right services to them. And then again CAS. The CA generally around third-party room. So generally, they are not connected with the company. So through our CRM, we have also connected the CAs and we have brought them into the mainstream. So now we have all the information about the activities of the company, about the retailer network, about the pharma networking that is their area through the app. So this app is again going to strengthen them about the companies or the on when there is a training module also which is available to them. So overall, it is an effort to increase the strength of the organization, increase the strength of our sales and marketing team. So it’s not behind the number of people, number of distributors. It is important that we increase our relationship with our customer more. So that will be — there is going to be the key focus. And of course, retailers and farmers will be adding in a bit more. Okay, sir. Thank you for quantifying it. My last question is, what specific steps does the company intend to take to grow its B2C business relative to its B2B operation? The B2C business is the brand business. So whatever steps are just told, they are to grow my brand business. B2B business, yes, B2B segment, when we are launching new products, then we have the opportunity to make some partners. So generally in the first year, we don’t want to make many partners actually. But yes, since we are launching more-and-more AIs, we are launching more-and-more new formulations. So there is interest of the completion because we are doing a lot of R&D, we are making a lot of registrations. So they are interested in our products. We have to make the selections of our partners . So we are trying to select the right partner and try to do the right payoffs so that our business in also. Okay, sir, that’s it from my end. Thank you and all the very best for the upcoming quarters. Thank you. And then continuously, we are making more-and-more investment into the B2C, B2C so that it grows in a big way. And all this investment is into market and into the facilities and also into the systems so that our team is. Thank you. Thank you. Ladies and gentlemen, that would be the last question for today. And I now hand the conference over to the management for closing comments. Over to you, sir. Thank you. Yeah, thank you very much for being definitely very interesting questions. And ask the questions. I think that will also get-out. So thank you very much for taking so much interest in IL and always your suggestion. Thank you. Thanks a lot. Thank you. On behalf of Insecticides India Limited, that concludes this conference. 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