J.G.Chemicals Limited (NSE: JGCHEM) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Anirudh Jhunjhunwala — Managing Director and CEO
Anuj Jhunjhunwala — CFO
Unidentified Speaker
Analysts:
Dheel Shah — Analyst
Unidentified Participant
Radha — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earning conference call of JG Chemical Limited hosted by Philip Capital Private Client Group. As a reminder, all participant clients 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 this 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 Mr. Dheel Shah from Philip Capital PCG desk. Thank you. And over to you sir.
Dheel Shah — Analyst
Yes. Thanks Buddha. Good morning all. On behalf of Philip Capital Private Land Group, I’ll welcome you all to the maiden and Q1FY26 earning conference call of GG Chemical Limited today. From the management we have Mr. Aniruddh Jindwala, Managing Director and CEO of the company. Mr. Anuwala, the whole time Director and CFO of the company. EOF And Mr. Amit Agarwal, the GM and Accounts and Finance. I thanks to the management of JG Chemical to allow us for hosting this call. And now without further ado I hand over the conference to Mr. Amit Jindal. Thank you so much. And over to you sir.
Anirudh Jhunjhunwala — Managing Director and CEO
Good morning. Thank you. Good morning everybody and a very Warm welcome to JG Chemicals first earnings call today. This is for Q1FY26. I would like to thank all of you today for joining us. For those who may not be aware about the company much and may be new to our company, let me begin with giving you a brief overview of the company’s activities followed by our performance for the quarter and then some key operational highlights and then the floor would be open for questions. JD Chemicals today is India’s largest manufacturer of zinc oxide and and amongst the top five globally and also the country’s leading zinc recycling company. We primarily serve industries such as rubber tires, pharmaceutical chemicals, ceramics, paint, lubricant, animal feeds and nutrition amongst a wide variety of other industries. Geographically we are very well diversified with customer base across India and also exports to over 10 countries including the regions in Southeast Asia, Europe and Middle East. We Cater to over 200 domestic customers and more than 50 international clients.
This includes nine of the 10 top global tire companies and also all the 10 Indian leading tire companies. Our manufacturing infrastructure includes three advanced plants across West Bengal and Andhra Pradesh today with a combined capacity of about 70,000 metric tons per annum of zinc chemicals. We just announced yesterday a fourth facility in Dahej, Gujarat. As you may be aware, more details on the same would be given by our CFO Anuj in due course. Unlike many other chemicals in which there is a standard globally accepted grade in zinc oxide, there is no one size fits all formula. Each customer has a different specification for the product and it has to be tailor made completely for their requirement.
Currently the company is producing over 80 specialized grades of zinc oxide. Our Naidu Beta facilities which is our largest facility today is globally recognized as the only IATF certified zinc oxide plant and we are also two GMP approved. This enables us to cater to regulated and very quality conscious industries. And like pharmaceutical and cosmetics in the pharmaceutical and healthcare space we are catering to few. Large global names who are working solely with us as the global supply partner. Due to NDA being in place, we are unable to share more details and names for the same. Now coming to sustainability and recycling, these two aspects remain key pillars of our growth strategy. Today we are actively evaluating several exciting opportunities in the recycling space that align with our core strength. These initiatives will not only support long term business expansion but also reinforce our commitment to esg. Additionally, we are also investing in the development of new products tailor made for our existing tire customers and industry R and D efforts are already underway and these initiatives perfectly align with our objective of increasing the content per tire. This further deepens our value proportion in this critical segment. We intend to expand our presence very aggressively into the non rubber market also and expect to increase the share of non rubber products from the current 15% to over 30% over the next four to five years. The company is planning to undertake greenfield and brownfield expansion for the same. However, we would like to once again reiterate that the company feels there is ample and enough opportunity for growth in the tire segment due to the shift from unorganized and smaller vendors of zinc oxide to large producers like jd. Today JZ has continued to grow and gain market share in the tire segment and we expect this momentum to continue in the future also. Now speaking a little bit about our main segment which is the global tire segment, the global tire industry is today undergoing an important structural shift with manufacturing gradually moving towards cost efficient regions like India driven by the need to optimize cost and enhance supply chain stability and visibility. It may not be out of place to mention that today India’s tire Export is almost 25,000 crores in FY25. Visa raised only 14,000 crores in FY21. Automotive industry, as we all know is amongst the key pillars of India’s manufacturing and economic growth contributing significantly to India’s gdp. India is today the third largest automobile market in the world. We are at JD very confident of our long term growth strategy supported by strong demand visibility, high entry barriers and our leadership in sustainable zinc recycling technology. With this brief overview I would now request our CFO Mr. Anu Dhimjanwala to share with you financial highlights of the quarter and also more details on.
Operator
On our capital expenditure plans going forward. Thank you.
Anuj Jhunjhunwala — CFO
Good morning everyone and thank you for taking the time to join this call this morning. I’ll begin by giving you a brief overview of our CAPEX plans, our financial performance and some other operational highlights. I’m pleased to share with you that yesterday our board has approved the greenfield capital expenditure of approximately INR100 crores fully funded through internal accruals for a 40,000 metric ton per annum zinc chemicals facility at Dahij, Gujarat. This facility has the potential to generate 900 crores in revenue. We have successfully acquired 11.43 acres of land at Dahej for this greenfield expansion. This strategically located site will serve as a state of the art manufacturing hub helping us expand our footprint in Western India. Even after the phased expansion of the zinc chemicals portfolio, the land parcel will offer sufficient surplus area for future products and used product lines which the company will evaluate in due course.
Additionally, we have acquired a 2.96 acre land parcel adjacent to our existing zinc oxide and zinc sulphate facility in Nigapeta for future groundfield expansion plans into advanced recycling products. Importantly, our current capacity at Nigopeta plant is sufficient to meet all anticipated demand for the coming year. Till the Gujarat plant gets commissioned, JGC is confident of growth in overall sales volume and over the next few years driven by expansion into new geographies, strategic investments in product mix diversification, moving up the value chain and launch of new specialty grades which is focused on solving the needs of our customers. This customer centric approach will help JG in the long term. As the company scales into higher margins, higher growth segments, it continues to demonstrate discipline in capital allocation and agility in responding to evolving market conditions.
Now coming to the numbers for this current quarter. Our consolidated total revenues for the current quarter stood at 221.4 crores and the EBITDA was 23.2 crores and the profit after tax was 16.35 crores. On the operational front during the quarter, the company continued to witness good demand across all end user industries. With a favorable monsoon seasonal outlook, we expect demand to remain strong in the upcoming quarters. Our continued focus on adding new customers across different applications has helped expand our overall customer base and drive our sales momentum. With this, we can now open the floor for the Q and A session.
Questions and Answers:
Operator
Thank you very much. We will now begin with 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 remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the. Line of Rajiv Shah who is an individual investor. Please go ahead.
Unidentified Participant
Good morning sir. Am I audible?
Operator
Yes ma’. Am.
Anirudh Jhunjhunwala
Yes please.
Unidentified Participant
My question was what are the complexities which are facing handling Z scrap and from where did you source the technology and how does it compare to the your Chinese and American places?
Anirudh Jhunjhunwala
Thank you for the question. So as the name suggests, it’s a scrap. So whenever you are dealing with the scrap, it is not homogeneous, it is not uniform and it is not similar from each one. The name scrap itself means that it is different kind. There are various shapes, sizes, purities, impurity levels, etc. In these scraps. Now to handle scrap, to manufacture grades which are highly pure and also with low levels of impurity, you need a technology which is IP which the company has developed over the last two decades. The right chemistry and the recipe has been built by us over the years. Depending on various R and D and sustainability things that we have done over the last two years. The trick is ensuring that we are able to produce these 80 plus grades by using wide variety of stacks which is available at our plant. Hence this now has become one of the biggest entry barriers for other people.
So grades which average manufacturer would have to blend virgin. Today JD is in a position to make them using only scrap. We feel that over the last so many years we have perfected this technology almost and today we feel our technology in recycling of scrap is actually second to none. And I would say it is best in the class technology whether you compare to any European, Asian or African competitors. So this is. Thank you. And there was another question that I had.
Unidentified Participant
What is the impact of tariffs on our DPs?
Anirudh Jhunjhunwala
Generally speaking we do not have any direct impact of tariffs because our sales to the US is next to negligible, almost zero. And the duty structure, the tariffs have not impacted the duty structure on the scraps that we import from us. So speaking generally, there is no impact of duty of these tariffs on our industry. However, due to these global tariff wars, etc. There is a lot of volatility. Be it in equity, be it in currency, be it commodities, etc. Such wide swings in prices sometimes do have a short term impact on the business. But over the long term and medium term these average out and in fact now coming to our customer base, most of our customers are also do not have a wide exposure to U.S. exports. Whether it is tires, ceramics, etc. Having said this, hence our business exposure because of the tariffs is not really impacted.
Unidentified Participant
Okay. Okay, understood. Thank you so much.
Operator
Thank you. The next question is from the line of Vishal who is an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible, sir?
Operator
Yes, please continue.
Unidentified Participant
Thanks so much for the opportunity. Sir. My first question is what is the growth that you are expecting from the entire industry going forward? Okay, and what is your second question? Second is like how large is the ceramic market in Rudyard? Like in terms of zinc oxide consumption, what is the size and what is the growth that we can expect from that?
Anirudh Jhunjhunwala
Okay, so these two segments are completely different segments. So coming first to your first question which is regarding the tire business. You know the tire industry today is fairly robust and all our customers have an extremely strong balance sheet. All tire companies are excessively and aggressively chasing growth and are announcing CAPEX plan. If you would have read a recent report which was released by the ATMA which is the apex body regulating the tire business and also I think BWC mentioned it, the tire industry is actually expecting a double digit growth over the next few years. Further, as I mentioned in my introduction that today exports from India in the tire segment is also growing rapidly. So this also augurs well for the growth of the tire business.
So we are very confident of achieving higher volume growth from the tire business due to our very strong and long standing presence with the tire business. Now coming to your second question which is regarding the ceramics market. The ceramics market according to our estimates is approximately about 25,000 to 30,000 metric tons per annum. Again, India is turning out to be a large ceramic hub. This industry we expect should grow well in double digits in India over the next few years due to a sharp rise in housing market and exports of ceramic products from India.
Currently the company share in this segment as we have mentioned earlier also is very low. With our Gujarat CAPEX coming into stream and the plant is becoming operational sometime next year we hope to capture at least 15 to 20% of the market share in this segment. Currently our company JG enjoys an overall 30% market share in India. So we are confident of at least making the 15 to 20% indoors in the ceramic business also. Okay, I had one more question sir, that what is the pricing model that we have.
Unidentified Speaker
For zinc oxide and also across our RMs like what is the pricing strategy?
Anirudh Jhunjhunwala
I will let Anuj take this question.
Anuj Jhunjhunwala
Sure. So the price of zinc scrap and zinc oxide is directly linked to the price of zinc on the London Metal Exchange. Changes in the price of zinc metal directly has a corresponding impact on the price of both zinc scrap and zinc oxide. So our customers formulas are based with the LME average of the month or a specific period as the case may be. And every month we are purchasing our raw material on monthly averages, contracts or on spot basis. So we basically end up with an RM cost which is the average of the month. So for example in the month of July, if we have bought say 100 tons of zinc scrap bases the LME average of July, the price at which we sell the zinc oxide in August is also basis the LME average of July. Hence our buying and selling is basically the same mother index and and fortunately for us the price of Hindustan zinc which is the apex producer of zinc in India, their prices are element exchange rate into the custom duty. So the exchange rate is also automatically taken care of and it’s a natural hedge. I hope I’ve been able to explain this point clearly.
Unidentified Participant
Yes sir. Thank you so much. That makes sense.
Operator
Yes, thank you. The next question is from the line of Akshata Deo from NI Vishai. Please go ahead. No ma’, am, can you please be a little louder?
Unidentified Participant
Yeah. Hello. Am I audible?
Operator
Yes, much better.
Unidentified Participant
Okay. Okay. New to the company. So pardon the rudimentary question. With 100 crores of capex we will be able to do incrementally roughly 900 crores of revenue. That’s like nine times turnover as a turnover, is that right? Absolutely. Is that the case with all of our products or would this be better than what you’ve already been doing?
Anirudh Jhunjhunwala
No. So if you. If you see historically asset turnover ratios, the fixed asset turnover ratios have always been in the 10 to and we expect this momentum to continue going forward. So I understand that this is not bulk commodity at all because it has to be specialized otherwise these are not the type of numbers that you would see. What type of margins are you expecting from this? So as we’ve always indicated, our core business has an EBITDA margin of between 10% to 11%. We expect that similar products and newer value added products in the revenue stream, the overall margin profile. Of the company should increase going forward,
Unidentified Participant
Any range. Would you be willing to share?
Anirudh Jhunjhunwala
Could you repeat your question please?
Operator
Hello, I think I lost your audio for a bit.
Anirudh Jhunjhunwala
Yeah, please go ahead with your question once again.
Unidentified Participant
So sir, you mentioned 10 to 11% core margins that have been done. So going ahead, even after the Capex and value added product, what would be the range that you are expecting?
Anirudh Jhunjhunwala
We expect that the EBITDA margin should increase by 200 to 300 basis points over the next few years.
Unidentified Participant
Okay, so this would be other than like. I mean this would lead you to what? Going and getting more into ceramics should get you better margins, is that right?
Anirudh Jhunjhunwala
So the Gujarat project is a very holistic project in the sense that we have traditional zinc oxide. We have zinc oxide for ceramic. We have specialized waste for the specialty chemicals business. We would also have zinc sulphate for the agriculture market. In addition to that, we will also be making some high performance zinc oxide for some critical and specialized applications. So what Anuj was just mentioning is that the blended EBITDA is expected to improve by 200 to 300 points. This is because obviously some other grades which may be slightly low in volumes, but the EBITDA aggregation in those grades would be much higher.
Unidentified Participant
Okay, so incrementally, what type of margins are you expecting on this Capex?
Anirudh Jhunjhunwala
So that’s what we just mentioned, that the blended. No, no, no, that’s it. That was blended. I just wanted to know on the 100 crore capacity, the new one. So the 100 crore capacity. 100 crore project spend is to cover all these grades. So. So when we stop of 100 crores spent, we have to also speak of the blended ebitda. Doesn’t make sense talking about one single ebitda because ultimately this hundred crores is going towards manufacturing of all these grades. Hope I have been able to explain that.
Unidentified Participant
Okay, sir, so what about your payback time? What are you expecting?
Anirudh Jhunjhunwala
So see, internally we’ve always targeted a payback of about four years. And we expect that we should be able to achieve that for this project also. Or give or take a few couple of quarters.
Operator
Okay, I request you to rejoin the queue for the.
Unidentified Participant
Sure, sure. Thank you
Operator
. I request each participants to ask two questions. The next question is from the line of who? Romil from Electrum pms. Please go ahead.
Unidentified Participant
Hello, thanks for the opportunity, sir. Am I audible?
Operator
Yes, sir. Please continue.
Unidentified Participant
Yeah, my first question is what are the volumes in this quarter?
Unidentified Participant
I mean what kind of volume growth we saw and the utilization at which we are right now with the 70,000 ton capacity coming to volumes. As a company policy we don’t give clear number
Anirudh Jhunjhunwala
Or guidance on volumes due to competitive reasons. However, having said that, last year you would see that our revenues grew substantially from about 650 crore or to about 850 crore. This was due to deeper penetration and push in various new segments and customer bases. In the current quarter also revenues have grown year on year. However, we would treat this quarter as more of a consolidation phase after a very robust last year. And we expect that in the coming quarters the growth momentum should be similar. And we should be able to achieve similar figures to last year. Growth and utilization. Sir, utilization levels approximately we operate at 70% of achievable capacity. Historically also we like to do that. You must appreciate that our plant deals with scrap. And we make more than 80 grades of zinc oxide. So the installed capacity is one side of the picture. What is more important is what will be achievable capacity to run the plant efficiently and economically.
Unidentified Participant
Okay. And second question is on the non rubber and non tire industry. So when do we start seeing some meaningful pickup? There can be existing plant help us in ramping up that part of the business. Or do you need direct plant to come up with that?
Anirudh Jhunjhunwala
So as you been mentioning for the last year or so that the share of non rubber would gradually increase from what it was a year ago about 10% to about 20%. If you see our latest number, the share of non rubber revenue has almost reached 15%. So our Naidu PETA plant, our Calcutta plant is well equipped to cater to the non rubber industries. In fact, you’re aware that the Naidu PETA plant has a specific pharmaceutical line which is VU GMP approved which is catering to the pharmaceutical and healthcare industries. Obviously with penetration in Gujarat, the focus and the volume share to the ceramic industry would increase. So that also will add to the share of non rubber revenue. But holistically, as a company our existing plants are also very well equipped to cater to the non rubber industries.
Unidentified Participant
Okay sir. Thank you so much and all the best. I’ll come back to the team.
Operator
Thank you. The next question is from the line of Radha from BNK securities. Please go ahead.
Radha
Hello sir. Thank you for the opportunity. Currently the saleable capacity for zinc oxide is about 50,000 tons. And zinc sulfate is 8.5 K metric.
Operator
Little louder.
Radha
Yeah, sure. Is it better?
Operator
Yes. Please continue.
Radha
Yes. So with this new plant in Gujarat, what will be the final product wise salable capacity? And if commissioning is by 1 FY27 then the entire 100 crores will be spent in the first half of FY27. Is that the right understanding for.
Anirudh Jhunjhunwala
Thanks for your question. So coming first to the CapEx that has been announced, you see, as a company policy and as per our capital allocation strategy, the entire investment of 100 crores would not be done in the next one year. The capex would be done phase wise and the capacity addition would be there for each product in each phase. So we expect that this entire capex of 100 crores should be done in the next three to four years. And the entire capacity should come on stream by then depending on market conditions. So after the entire capital expenditure program is completed, we expect that the installed capacity of both the existing units and the Gujarat plant based on the plants that we have today would be about 1,10,000 metric t
Radha
Ons of zinc chemicals. Is that what would be the phase wise capacity expansion plan? If you can give in terms of phases, how much in this year, next year and also product wise between zinc oxide and zinc sulphate.
Anirudh Jhunjhunwala
So it would be over two phases and more or less. We expect that half off would be there for both the zinc oxide and the non zinc oxide chemicals. The exact numbers we will share with the market in due course.
Anuj Jhunjhunwala
So what was the volume growth for the company for FY25 and how much volume growth are you targeting for the next two years and what should be the roadmap to achieve this target?
Anirudh Jhunjhunwala
So we have already answered this question a short while ago. But just to give you a perspective, as a company, we’ve always maintained our objective to have double digit volume growth on a consolidated level, which is what we’ve been able to achieve in the last fiscal and which is what we aspire to achieve in the current fiscal as well. Double digits. Can we assume 20% volume growth for last year? I would not like to give any specific number, but I would just like to leave it at that.
Radha
Okay. And so your PPT mentions increasing focus on the non tire products. So with respect to that, are the production lines feasible to produce tire grade as well as the non tire grade products?
Anirudh Jhunjhunwala
Again, this question. We partly answered only a few minutes back. Our current facilities have production lines which are able to produce this. By those production lines we’ve already started to deep seed the market. We’ve started to invest in those markets. Gujarat will be an added fill to this because that will be closer to the customers in these specialty segments. So once the Gujarat facility comes up the pace of growth in this segment for JD would be much higher. But as of today our facilities are also competent to produce these grades. And we have already started to do it. And we are already entering customer accounts through this grid. So the work on these markets have already begun.
Radha
I understand the current facilities are capable to produce both the products. But what I understand is what I wanted to ask is can a single line produce the grade set is required for either of the user industry?
Anirudh Jhunjhunwala
No. No ma’. Am. There are special controls, there are special chemistry, that is special technology. So each line is not fungible to produce all grades.
Operator
But I request you to rejoin the queue for the follow up question.
Radha
Thanks for all the best.
Operator
Thank you. The next question is from the line of Urmi Shah from Moneyvisors. Please go ahead.
Unidentified Participant
Yeah. Thank you for the opportunity. Most of my questions have been answered. Just a couple of points. On your export revenue. Could you give a contribution for this quarter?
Anirudh Jhunjhunwala
Export revenues have historically been in the 10 to 15% range. And even for this quarter it was more or less in the same range. And we expect that this trend to remain in this range itself going forward as well.
Unidentified Participant
Okay, sorry. Geography wise, can you just give a bifurcation of your export revenue? The countries you saw?
Anirudh Jhunjhunwala
No. So due to confidentiality reasons we cannot disclose geography wise revenue contribution.
Unidentified Participant
Okay. Okay. Thank you sir. And all the best.
Operator
Thank you. Thank you. The next question from the line of D. KIA from SKP Securities. Please go ahead.
Unidentified Participant
Yeah. Thank you for this opportunity. Sir. I just wanted to understand how do we arrive at this raw material cost? Because on for this Q1 we see that despite our revenues increasing on a consolid basis the margins from an EBITDA level took a bit hit. And that was mostly because of the RM cost increasing. So I wanted to understand. Hello? Hello. Are you there?
Anirudh Jhunjhunwala
Yeah. Yeah. So coming to the EBITDA margins etc. If you see our overall EBITDA. For the current quarter is about 23 crores versus about 23.01 crores, sorry, 22.8 crores year on year. So the EBITDA on an absolute level has increased. Yes. On a consolidated level, if you see the RM cost as a percentage of revenues has gone up a little bit. So this is something which is dynamic and it keeps going up and down slightly depending on market conditions. As you know, we are also importing a certain percentage of our material. So. So there could be a lead and lag effect due to that. So overall these kind of slight variations could be there quarter on quarter. But on a consolidated level we expect that in the long term our EBITDA margins from our core manufacturing activity would be in the 10 to 11 percentage and which is what it has been even in this quarter.
Unidentified Participant
Okay sir, and with regards to the capex, I want to understand the 100 crore investment that we are doing. Does that include the land cost as well or is it just for the facility setup?
Anirudh Jhunjhunwala
The 100 crores includes the land as well. All right, and if it, I think you answered this question is asking it once again, I think I must have missed out. But phase wise, if you are looking at.
Unidentified Participant
So if we take it from FY27, 28, 29, how do we expect this, you know, capacity breakup? Like how is 40000 MTPA split up into these three years?
Anirudh Jhunjhunwala
I would say it will be 50, 50. It will be in two phases. That’s what we have planned as of now. So the first phase would start. The construction of the first phase would start now. Once that’s completed, once that’s, you know, utilized to a level which is commensurate with what we like, the construction of the second phase would start and we expect that the entire capex would be done in three to four years time
Unidentified Participant
. All right. Lastly you mentioned about this development of the new rubber chemical which is currently in the R and D stream. So would you like to give a comment as to when it will start contributing to our revenue stream at the moment?
Anirudh Jhunjhunwala
You see we are working on that and we would not like to share more information because it’s slightly confidential what we’re doing and we are working together with some of our customers on that. So as and when we are ready with more information on that, we will share with the market participants. But however, having said that safely, it may be safe to assume that from next year it should start contributing to the revenues of the company.
Unidentified Participant
Okay, any. Okay, so numbers, you won’t disclose it right now Will it be comfortable or we should wait and watch? How much contribution to revenue? Like, will it be like 10%, 5%? Broad figure?
Anirudh Jhunjhunwala
Roughly about 10%.
Unidentified Participant
Okay. Thank you so much, sir
Operator
. Thank you. Thank you. The next question from the line of Naman Golchar from Nirmal Bank Securities. Please go ahead.
Unidentified Participant
Hello. Am I audible? Yes, sir. Please continue. Thank you for the opportunity. So I have two questions. My first question is if it is possible to tell me about the content per tire as a percentage our product has. And the second question will be the title that we are giving of having a 30% mix of non rubber revenue. So what are the major drivers, what are the major businesses that will drive this growth in the future?
Anirudh Jhunjhunwala
So content per tire as far as concerned in terms of value it is about 1%. And in terms of weight it would be close to 3 to 4%. And as far as the second question is concerned, which relates to the non tire segment which is currently at, which was last year at about 10%, currently at about 15 and we hope to grow it to 30%. This segment will comprise mainly of ceramics, specialty chemicals, pharmaceuticals and cosmetics and agriculture. So these would be the four cornerstones. And apart from that, there are also certain initiatives which we have taken for zinc oxide in the batteries and also in the electronic segment. So these four to five segments would be the cornerstone of this non tire segment, non rubber segment.
Unidentified Participant
Okay, sir. And secondly, sir, the. You just mentioned that we are going to increase our. We are going to increase our product sharing in the tire itself. That will drive, that will increase our content per week tire. So what can, what can we expect as a CPV going forward for tire including all the new products that we are going to launch?
Anirudh Jhunjhunwala
We just, I mean what we mentioned to you was increasing content per tire. So this does not necessarily mean that it will only be in the zinc oxide segment. It could also be in related segments in which our R and D is going. The product could be slightly different from zinc oxide but ultimately used by the tire business. And as we have mentioned, due to certain confidentiality reasons, we would not like to disclose more on that. But as and when we are ready for the same, the market would hear about it.
Unidentified Participant
Okay. So thank you so much.
Operator
Thank you. The next question is from the line of Saurabh Manchanda from Aria International. Please go ahead.
Unidentified Participant
Hi, good afternoon, sir. Most of the questions were answered. Can you hear me? Y
Operator
Es, yes, yes, sir
Unidentified Participant
. Okay. But I have a small question regarding the IPO proceeds. Were all the proceeds from the IPO fully utilized as of now? No, the entire procedure.
Anirudh Jhunjhunwala
Is not utilized. About 45 crores is still left to be utilized which will be doing as per the utilization program which was shared during the prospectus.
Unidentified Participant
Okay. And does the company plan to do any qip, the rights issue, any fundraising in the near future? At the moment we have no such plans. The company is fairly cash rich at the moment. Should there be a need, we will definitely explore. But at the moment we don’t have any such plans. Okay. All right. Thank you so much.
Operator
Thank you. Thank you. The next question is from the line of Mohit Chug from Sug Labs Research. Please go ahead.
Unidentified Participant
Hi sir. Am I audible?
Operator
Yes, sir. Please continue.
Unidentified Participant
Sir, just a couple of questions. If you can share some detail on total demand of zinc oxide in India split between how much is imported and how much is domestically.
Anirudh Jhunjhunwala
Fulfilled today the estimated consumption of zinc oxide in India would be about a lakh and 40,000 tons on an annual basis. And as far as imports are concerned, it is absolutely negligible. Hardly about 5,000 tonnes would be imported, even less than that as of today.
Unidentified Participant
Okay, sir, got it. And so a follow up on this. Since our large part of the venue comes from tire manufacturers and a small or negligible, it comes from ceramics. So if you can share some details like who, but who are the players that are fulfilling the demand from ceramics.
Anirudh Jhunjhunwala
So as far as the tire business is concerned, we are the largest player in the tire segment today in ceramics we are not the largest because of locational disadvantage. Our Darrell facility would cater to that in a bigger way. Today there are a couple of next level zinc oxide players after us who are servicing the ceramic business. But we do not comment on competition and competition business. So we would refrain from that. But there are smaller zinc oxide producers who may be less than half our size also who are dealing with most of the ceramic business in that region. And that is primarily because of our lack of presence in that region and a manufacturing facility which the Dahej facility would take care of
Unidentified Participant
. Okay sir. And sir, if you can provide a figure from a volume of pharma business, can you come again with your question on this? So if you can provide a figure of volume from pharma business.
Anirudh Jhunjhunwala
So as you mentioned before, we bunch the non rubber revenue together which is about 15%. So we will not be able to disclose specific numbers on the volume. For the pharmaceutical segment due to certain confidentiality reasons as well as our engage with our customers.
Unidentified Participant
Okay. Sure sir. Thank you sir.
Operator
Thank you. The next question is from the line of Gaurav Gupta who is an individual investor. Please go ahead
Unidentified Participant
. Hi sir, I have a couple of questions and maybe repeating some of what people asked earlier. So one, I was trying to better understand the fixed asset ratio. So if I understand last year we did about close to 850 crores of sales with 40 crores of fixed asset which means about 20 times fixed asset turnover ratio. It seems very high and healthy. Is it comparable with other companies in similar domains? Because from a manufacturing company set of that seems very high.
Anirudh Jhunjhunwala
So if you see our gross knock was about 57 crores last year on which we did a revenue of about 850 crores. So roughly about 15 times. You will appreciate that some of the capacities which are there currently were made 20 years ago. 10 years ago, 15 years ago. The cost of making new plants and capacities has obviously increased. And we’ve always maintained that 10 to 12 fixed asset turnover ratio is something that we’ve, we feel is achievable and which is something that we can do going forward. But another important aspect of our business which is critical to understand is that it’s a working capital heavy business and the working capital cycle is about three months. So for any new entrant this is a very big barrier to entry because almost three months of working capital financing is also needed.
So the right way to look at it would be not just on a fixed asset turnover ratio but but also including the working capital requirement which is there.
Unidentified Participant
Okay. And I think you had tried to explain the deep tech around having 80 grades of zinc oxide. Can you give a little bit more color on what’s the key it behind this? Like is it what proportion of ingredients go into it. So I know you can’t share everything but just to give a sense of hint on what is the key secret sauce here you
Anirudh Jhunjhunwala
See any recycling business is about, you know, how do you process the worst qualities of scrap to make the best qualities of the finished product. In zinc oxide, if you see the specification of any customer there will be a lot of parameters which are critical. Whether it is the purity, whether it is the impurity of of various heavy metals, whether it’s the seeds, the particle sizes, the surface area, et cetera. So these are various parameters which need to be tweaked depending on the end goal that we have which is the customer for which we’re manufacturing. And as we mentioned the scrap that we buy and you must have seen in our investor presentations also, it. It comes in different shapes, sizes, qualities, purity and impurity levels. So a lot of R and D and a lot of effort has gone in identifying recipes, identifying certain operating parameters, etc. Which need to be maintained, depending on the kind of scrap that you’re processing, depending on the kind of finished goods that we’re trying to make. So this is something which is internal and which has been developed over the last two, three decades and which is integral to our company’s success today. And today in this technology, size also plays a vital part. Because it is very simple that for a smaller producer, it would not be possible for the plant to have various scraps of various quantities at one point of time. Because if your capacity is, say only 500 tons a month and you stock for one month, and this being scrap, it is not that when you want it will be available. You may not have the entire variety of the scrap profile to particularly manufacture a particular grade. So here, you know, at our end, because we are one of the largest today, I think, in the world zinc scrap buyers, the sheer size of and the availability of scraps at our manufacturing facilities also give us a lot of leeway to blend different materials to produce grades. So your size also starts playing a big role. And this becomes a big entry barrier for others who are unable to process the scrap to make the same grades which we try to make out of scraps.
Unidentified Participant
Okay, okay, got it. Thank you, sir. And my second question was around variability with zinc prices. So if I go back and look at our top line, say around June, September Quarters, 2023, when the zinc prices were very soft and you know, came down to around 2400 or so, our margins shrunk to, you know, 3 to 5%. And I think since then there was a spike in prices and things recovered. Last quarter we saw that again, the prices came down. Did that have any impact or would there be a lag impact going forward? What’s the right price range that you account for in your day to day working here? Please?
Anirudh Jhunjhunwala
Could you repeat your question once again, please?
Unidentified Participant
So I was trying to coordinate the zinc crisis to the margins that our company delivers, right? So if I look at first half of 2023, the prices crashed to 2400 or so. And I think you had mentioned in earlier investor presentation that that was the cause for the margins dipping from say 10% or so to 3 to 5% in those couple of quarters. I think as the prices recovered, the margins also came back. Last quarter again, I see there was a small dip in prices and I think the prices seem to be getting back to normal now. So was there any impact of decreased price in the last quarter on the margins?
Anirudh Jhunjhunwala
So let me rewind slightly. Let’s go back to 24 FY24 where you have pointed out that the margins dipped because of fall in zinc prices, which is absolutely correct. But before we tackle that, let’s understand how the business works. You know, our business, as Anuj had just explained a while back, is almost a natural hedge as far as zinc prices are concerned. So, so we are buying on the same benchmark index and we are selling on the same benchmark index. So there is an alignment of quantities on the buying side and the sales side. So technically it’s a natural head. But you would appreciate that any business carries an inventory which is almost a perpetual inventory. So if there is sharp movements in zinc prices, that inventory takes a knock and you could see the effect of that on the quarter performance. Having said that, the last quarter we didn’t really have much of an impact due to zinc prices. And as you have mentioned, the zinc prices did come down and are slightly back on track now.
Now having said this also, it is not only that the zinc prices, a fall or a rise in zinc prices impacts the ebitda. We also have to see what has been the pace of the fall, what has been the time period of the fall, what, what has been the recovery period, what are the lead times at that particular time for raw materials, especially transit times for imports, etc. So not always you can find the direct correlation between rise or fall in zinc prices. There is sometimes a lag also on the positive or on the negative side. However, we are very confident that over a long term, medium to long term period, this kind of unevenness gets averaged out which we exactly saw in 2024 and 2025. So, so when you say that 25 zinc prices were strong, but if you really see the graph of the LME in 25, we’ve also had spikes, we’ve also had lows. Again the pace of fall and the pace of drop wasn’t very significant. But if you take the trajectory, it will be there.
So if the pace is not very strong, then it really doesn’t affect the EBITDA performance quarter on quarter. But in our industry it’s always wise to see the performance over a slightly medium to longer term rather than be on a quarter on quarter analysis.
Unidentified Participant
Got it. Thank you. So that’s very clear.
Operator
Thank you. I request each participant to ask one question. The next question is from the line of Pratish Patil who is an individual investor. Please go ahead. Are you there?
Unidentified Participant
Yeah, I’m here. Thank you for taking my question. I have, I think maybe one or two questions on this very recently announced Greenfield Capex at the Haze. So my first question is, I think considering the size of the Capex, I understand, I think Company Incorporated better say.
Unidentified Participant
Years back. So with that I think company has a gross lock of some 55 to 60 crores till now and with this 100 crores of capex it is very, very, very large size of Capex. So what kind of management bandwidth I think we have and what kind of senior management recruitment I think we are planning to make this newly announced Capex successful.
Anirudh Jhunjhunwala
So good question. So as far as the Capex is concerned you would see bulk of the Capex is on lines which the company has already been operating. Not that we are trying to create a completely new segment or completely new product. Large part of the Capex goes into zinc oxide where today the company is a leader in this field and has been the leader over the last decade. Now almost we are amongst the top five globally. So the company has enough and more bandwidth as far as the management of the zinc oxide and the zinc chemicals facilities are concerned. We believe in nurturing talent in house and obviously when a Capex comes into play there is also recruitment from outside the company which the HR is duly taking care of and we are very confident that as far as these projects are concerned manpower should not be a challenge going forward for this.
Unidentified Participant
Sure, thank you. And one more I think the link question is I understand, I think the major focus with this new Capex at the hedge will be the ceramic industries. But I understand, I think ceramic market is crowded with the captive production of zinc oxide related chemicals. So what do you see how I think our company will make space for ourselves for the growth. So firstly as far as the Capex is concerned, yes one of the bigger segments that we plan to cater to is ceramics. But I would say today as far as ceramics is concerned the capex roughly about 20% or 25% of the investment of that Capex would be towards ceramics. There is also a large presence of tires in Gujarat. There is a presence of specialty chemicals, there is pharmaceuticals, cosmetics, etc. So although ceramics is a territory where we plan to gain more market share because of our almost next to negligible presence today in that, however not all investment goes into that. There is investments for other grades also. Plus there is also zinc sulphate which goes into agriculture which is again a completely different segment. There is also high performance zinc chemicals which again will go into very specialized industries. Now coming to the second part of your question wherein some ceramic manufacturers have in house processing of zinc oxide that you know that is not a major concern for us because there is only a couple of them who have that and as far as reports one of them have already kind of disassociated with the internal manufacturing. Now there is another one or two which has left.
Going forward, this will not be possible because of the sheer scale and size. And if you are trying to manufacture it at jg, we are trying to do all those.
Anirudh Jhunjhunwala
Grades from scrap and those existing producers are trying to blend. Then at the end of the day you know, whether you may have your internal plant or whatever, the need of the business would be to source which is more competitive. Now if I do have my own in house backward integration but from the market if I can get a better quality at a cheaper price. I mean this manufacturing of zinc oxide is not very critical to them. So today or tomorrow it may go out of the picture also. And that anyway is a very very small component of the business.
Unidentified Participant
Okay. And maybe last I think if you can
Operator
Interrupt Mr. Patel but I request you to rejoin the queue for the follow up question.
Unidentified Participant
All right, thank you very much.
Operator
Thank you. The next question is from the line of Siddharth from SM Dhaga. Please go ahead. I am audible.
Unidentified Participant
Yes sir. Please continue. Yeah, so my question is on the margin expansion. The management has guided that they want to target an increased margin of 2 to 3% over the few years. Now this comes in line with the contribution of non rubber segment increasing to 30%. So is it fair assumption to consider that the specialty or the zinc sulfate products are to the north of 20% the margin? If I do the. Could you please repeat that question?
Anirudh Jhunjhunwala
We lost you for a second.
Unidentified Participant
Yeah, yeah. So the management is guiding to increase the margin by 2 to 3% over the period of few years. And similarly the management has guided for increasing the share of the non rubber segment from 15% to 30%. Yeah. So is it fair assumption that the new products or the specialty chemical or the agri products such as zinc sulfate command an EBITDA margin of upwards of 20%
Anirudh Jhunjhunwala
. Yes. So some of the newer products which will contribute to increasing the revenue from 15% to 30% definitely has an EBITDA margin which is closer to the number you mentioned.
Unidentified Participant
Okay, so that was my only question. Thank you so much for answering.
Operator
Thank you. The next question is from the line of Duvin Kalarkia from SKP Securities. Please go ahead.
Unidentified Participant
So just a couple of questions related to numbers. First of all, the brownfield expansion that we are planning to undertake for expanding our zinc sulfate. Would you like to give any number or how much tonnes capacity are we looking at? So right now that’s on the drawing board. We are working on it and we will share more information on that once we are fully ready with all the details. All right. And lastly, would you be comfortable sharing as to what we assume our capacity utilization will be for zinc oxide and zinc sulfate? We have already shared the utilization number.
Anirudh Jhunjhunwala
Earlier in the call. And if you want any specific details, you can reach out to Valerim and they’ll be more than happy to answer your query.
Unidentified Participant
All right, so thank you so much.
Operator
Thank you. The next question is from the line of Radha from BNK securities. Please go ahead. Ms. Radha, are you there?
Radha
Hi Anisha, thank you for the presentation. Yeah. Yes. What is your target profitability from the FY25 base level in the next two to three years and where do you see the company in terms of return profile in the same period? Two to three years. You see, we have always mentioned that our target is to double our revenues every three years to four years. That’s what our internal targets are. And we mentioned that we have a certain amount of spare capacity available in Naidu Peter which will augment our sales. With the new capex coming up, that will also add to the revenues. And I think overall we should be targeting doubling our revenues and along with the revenues, other metrics like profitability, et cetera in the next three to four years time with the current initiatives that have already been outlined. Okay. Second thing is the company is working towards these rubber chemical grainers. So are you referring to accelerators and antioxidants in these products? And if yes, then this is a heavily competitive market. Then what is the thought process behind entering this business? So let me clarify
Anirudh Jhunjhunwala
. We are not at all looking at any antioxidants, etc. Which are already very crowded space. When we say content per tire, I think rubber chemicals has been slightly misunderstood. What we actually mean is, for example, even if you consider zinc oxide, we are taking certain specialized grades of zinc oxide, certain tweaking in the chemistry of our product to offer a better grade or a different grade wherein the tire business can absorb that. At the same time we are also looking at some other products which are not necessarily chemical in nature but is absolutely related to the recycling technology.
Now we would not like to mention anything more on this right now, but that will be more a recycled product, not at all chemical. It would be something else where the content per tyre will go up. So let us not confuse that when we say rubber chemicals it does not mean this question was pointed out by somebody in terms of rubber chemical and it’s our fault that we didn’t clarify that. So this is not related to any of the standard rubber chemicals that the market already is aware of. We have no plans to enter the rubber chemical space.
Radha
Yeah, thank you, sir. That was helpful. In terms of what is the China capacity for zinc oxide? And unlike other chemicals, why is there no dumping happening from China to India in these products? I
Anirudh Jhunjhunwala
T’s, you know, it’s very difficult to get an exact number on China capacities because it’s not publicly available. And in terms of their cost competitiveness, it’s a very important question and I’m glad that you brought it up. See, the competitiveness of any country or any geography to dump a product depends on their ability to source their raw materials or on them having a manufacturing edge in terms of cost or in terms of technology. As we’ve already mentioned, the prices of our raw material and our finished goods are directly related to, are governed rather by the prices of zinc on the lme. So for example, in India we have the MCX and the Hindustan Zinc which govern the prices, which is a correlation from the enemy. In China there is a Shanghai Futures Exchange which determines the price of zinc and zinc scrap. So given that the Mother Index is the enemy for both India as well as China and all other geographies, so there is no competitive edge which China has visible any Indian producer or any other producer from any other country. So that is why if you see this product, even our exports is hardly 10 to 15%. And we’ve always guided that.
We don’t expect this to increase to a much higher or a very substantial number going forward. So you would see that even in other Asian economies there is no dumping of zinc oxide from China. So it is not only India. Even if you were to pick up an economy like say Thailand or any other economies, there would be no dumping from China. Even though.
Operator
Thank you. Due to time constraints, we will take this as our last question for today. I now hand the conference over to Mr. Aniruddh Jinjunwala for closing comments.
Anirudh Jhunjhunwala
At the outset, I would like to thank everybody for joining in on this maiden phone call for our earnings update for JG Chemicals. I hope we were able to answer most of your questions satisfactorily and at the same time give you a fair insight into our business and our plans. However, if you have any further questions or you would like to know more about us, you may please reach out to our investor relations managers at Valorum Advisors. And once again I thank you all for sparing your time and joining us today. Thank you and have a good day.
Operator
Thank you. On behalf of Philip Capital private client group. That concludes this conference. Thank you for joining us and you may now disconnect your lines.