Kiri Industries Limited (NSE: KIRIINDUS) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Manish Kiri — Chairman and Managing Director
Jaish Hirani — Vice President Accounts
Ranjith Singh
Analysts:
Purvangi Jain — Analyst
Yashwant Rajput — Analyst
Harshit Kada — Analyst
Kevin Gandhi — Analyst
Manoj Bura — Analyst
Viraj Mahadeva — Analyst
Buram Shetty Suresh — Analyst
Desai — Analyst
Sunil Nangalia — Analyst
Bhavesh Khandelwal — Analyst
Bharat Kumar — Analyst
Tarun Kumar — Analyst
Govind Goyal — Analyst
Venugopal Chidurupa — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 earnings conference call of Kiri Industries Limited. 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 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 would now like to hand the conference over to Ms. Purvangi Jain from Velorem Advisors. Thank you. And over to you Ma’.
Am.
Purvangi Jain — Analyst
Good morning everyone and a warm welcome to you all. My name is Purvangi Jain from Valorum Advisors. We represent the industry relations of Kiri Industries Ltd. On behalf of the company I would like to thank you all for participating in the company’s earnings conference call for the third quarter and nine months of the financial year 2026. Before we begin I would like to mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward looking in nature. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated.
Such statements are based on management’s belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements statements in making any investment decisions. The purpose of today’s earnings conference call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. I would now like to introduce you to the management participating with us in the conference call. We have with us Mr. Manish Kiri, Chairman and Managing Director Mr. Jaish Hirani, Vice President Accounts and Finance Mr.
Suresh Gondalia, Company Secretary and Mr. Ranjit Singh Cho, CEO, Indo Asia Copper Ltd. I would now request Mr. ManishKiri to give us his opening remarks. Thank you. And over to you sir.
Manish Kiri — Chairman and Managing Director
Good morning everyone and welcome to the earnings conference call for the third quarter and nine months of the financial year 2026. I hope you are all keeping safe and well. Let me start first with giving you an update on the most important development that has happened in our company in the last quarter. Something which we have been waiting for more than 10 years. The last day of the quarter and end of the calendar year brought with it a moment of profound significance for the company and the growth on 31st December 2025. A day that will remain recorded in our corporate history.
The 11 year legal battle surrounding our diaspora Shareholding finally came to an end with the Singapore Court’s decision culminating on this date. The receiver remitted $689.03 million to the company, including 603.80 million towards the sale of shares and the additional amounts towards legal cost and discretionary payments. This exceptional value realization is net of expenses and is accounted at approximately Rupees 5854 crores marks not only the closure of the long standing dispute but also the beginning of a new strategic chapter. The timing of the resolution arriving at very close of the financial quarter and the calendar year provides a symbolic and practical reset, strengthening the company’s financial foundation as it enters the next phase of growth.
Thus, the quarter stands as a turning point, a period where resolution has strengthened the company and expansion has become both possible and imminent. The Board has deliberated extensively on the utilization of these funds and believes that the most prudent and value creative approach is to prioritize investment in long term strategic initiatives rather than declare dividends. At this stage, this was an important point. I would like to to highlight the beginning of my address. I understand that this has been a question and concern that many of our investors have expressed to us, but I think it is very important to understand that the Company has fought this court battle without any external equity funding and it has been a very long, tedious and expensive battle for the company.
So we sincerely hope that everyone understands that the first thing the Company must do is to put the current state of affairs of the Company in order, improve the financial and operational health and finally secure its future endeavors. Only after these things are put in place can the Company think of aspects like dividends and buybacks, et cetera. Please also understand that as the as a promoter of the Company, I have spent the maximum amount of time and energy fighting this legal back for the company. And yes, the easy and most obvious way out would be to pay myself along with other shareholders the dividend, but I support the Board in its decision to first secure the future of the Company.
Hence, I would sincerely request all participants today to refrain from asking questions regarding the same topic as this decision is final and firm taken by the Board of the Company after extensive deliberations. As you know, the Company has embarked on a large greenfield copper and fertilizer project which requires significant equity infusion, contingency buffers and working capital support during execution and ramp up. In addition, the material capital gains tax liability arising from DI Star transaction is required to be discharged before March 15, 2015 and the core dice business will continue to require working capital support. Considering these commitments and the transformational potential of the copper and fertilizer businesses, the Board believes that retaining earnings at this stage is the best long term interest of the shareholders.
Execution of the integrated copper and fertilizer product is well underway. Key approvals including environment clearances have been received and land acquisition is substantially completed. Site development activities including boundary walls, fencing, oil testing, initial silver are currently in progress. Major equipment orders for the rod and tube plants have been placed and advanced payments released. Construction already started at site. Tata Consulting Engineers limited has been appointed as the onus engineers to oversee detail engineering and execution of the project. Raw material sourcing arrangements covering over 4.8 million tonnes per annum of copper concentrate capacity provide long term supply visibility.
The project is progressing in line with the internal timelines and is expected to be a key long term growth driver for the company now. With that said, let me brief you on our financial performance followed by an update on operational highlights and our strategic updates. On a standalone basis, revenue from operations for quarter three FY26 stood at 162 crores, registering a year on year growth of 3%. However, the company reported an EBITDA of 58 crores including the quarter on account of dividend income and reimbursement of legal costs for the nine month period ended FY26 standalone revenue from operations stood at 537 crores reflecting 14% year on year growth and a beta of 65 crores during the period.
On a consolidated basis, revenue from operations for quarter three FY26 stood at 174 crores. Revenues declined sequentially in line with the standalone business reflecting lower volumes and subdued demand conditions across global markets. At the operating level, the Company reported consolidated a beta of 53 crores on account of dividend income and reimbursement of legal cost. As I mentioned, for the nine months ended FY26 consolidated revenue from operations stood at 589 crores, registering a 10% year on year growth during the period. The Company reported a consolidated EBITDA of 59 crores during the quarter. Profit after tax was significantly impacted by exceptional gain of 5854 crores arising from DI Star transaction.
In addition, profit was supported by positive contributions from associates and joint ventures. On the operational front, dies and dies intermediate business continued to operate in a challenging environment during the quarter marked by subdued global demand and comparative pricing pressure across selected product ranges. The Company maintained a strong focus on operational discipline, cost control and working capital efficiency, prioritizing margin protection over volume led growth, input cost volatility and limited pricing flexibility continue to impact margins. In response, company adopted a selective approach to production and order execution, optimize product mix and continue to drive efficiency improvements across its manufacturing operations.
The joint venture Longshan Kiri continued to deliver healthy operational and financial performance during the quarter. Improved capacity utilization and steady domestic demand supported strong profitability, contributing positively to consolidated results of both quarter three, FY26 and ninth month period. In summary, as FY26 marks a defining phase for Kiri Industries. While near term operating conditions remain challenging, the resolution of diastar matter has significantly strengthened company’s financial position and strategic flexibility. We remain focused on operational discipline, prudent capital allocation and disciplined execution of the copper and fertilizer projects which are expected to drive long term value creation. We appreciate the continued trust and patience of shareholders.
As discussed earlier, the proceeds from direstar transaction are being deployed for long term value creation and therefore topics such as dividends or share buybacks are not the focus at this stage. Accordingly, we would appreciate if the questions on this conference call are focused on company’s current business performance, its strategic directions, future expansions, et cetera, our new and existing businesses as well. With that, we can now begin the question and answer session. Thank you very much.
Questions and Answers:
operator
Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and one who on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR in two. Participants are requested to use handsets while asking a question and also restrict yourselves to two questions. If you have any more questions, kindly rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Yashwant Rajput from Nirmal Bank Securities.
Please go ahead.
Yashwant Rajput
Good morning sir. Now my question is some part of expansion of copper plant was expected to start in 2026 27. So when is it? When you expect that to start and what is the revenue target from the Indonesia or when you start? When do you expect revenue coming from Indonesia Copper?
Manish Kiri
So yes Shanji, thank you. We are on track as the earlier targets that we have set and we are expecting the, you know the first phase to start operations on April 2027 the 1st of April. That is the target date. It may be a month earlier but we are expecting the full first phase operational from April 2027 to March 2028 that is next year and that will generate the overall revenue of somewhere between 20 to 25,000 crores. That is the expected top line from the first phase which is almost half of the total revenue which we are expecting on a full year full operations.
Thank you. And this will be both from copper and fertilizer.
Yashwant Rajput
Both or you are just expecting this revenue from copper?
Yashwant Rajput
This is revenue is coming only from copper. And the fertilizer revenue will start in 2028. The current dates which are on track is a quarter from September to December 2028 where fertilizer would be fully operational. All other facilities, you know, precious metal refineries, all other parts of smelters, everything would be operational by that quarter. So that is the timeline which, which we are strictly following.
Yashwant Rajput
And what do EBITDA do you expect in this trial running the copper plant? EBITDA margins or somewhere if you can throw something the first year of operations for the vision light on downtrend.
Manish Kiri
So 20. Yes. 2028. 202728 financial year we are expecting the EBITDA of at least 1200 to 1500 crore. And of course once fully operational, you know part 202829 and then fully 2930. So gradually the EBITDA will ramp up year on year and within three to four years the projected target, a better to achieve is somewhere around 4,500 to 5,000 crores.
Yashwant Rajput
I have some questions and come back. Thank you.
Jaish Hirani
Thank you.
Yashwant Rajput
Thank you.
operator
The next question comes from the line of Harshit Kada from Robocap. Please go ahead.
Manish Kiri
Hello sir, thank you for the opportunity. I just want to understand that how much capex are we going to incur in FY27.
Manish Kiri
So FY 2720. I mean 2627 and 2728. These two years we would be deploying on capex almost somewhere close to 12,000 to 13,000 crores. That is the amount that would be spent both on copper and fertilizer project together as combined. Okay sir, thank you.
Harshit Kada
I’ll join back the queue for further questions.
Manish Kiri
Thank you.
operator
Thank you. The next question comes from the line of Kevin Gandhi from Cap Grow Capital. Please go ahead.
Kevin Gandhi
Hello. Hello sir, I hope my voice is audible.
operator
Yes, please go ahead.
Manish Kiri
Yes, yes, please go ahead.
Kevin Gandhi
Yeah, yeah. Sir, my question was basically on the financial side like sir, so basically just wanted to know what are the pending warrants, which promoter are yet to subscribe and how much amount of the total warrants has already been received.
Manish Kiri
I think 5% warrants are still pending to get converted in April this year. And Suresh Bhai can suggest the Suresh Bhai if you can indicate the Amount which is pending. I think it’s only the part of the last warrants which is pending. Correct. What is that amount in case if you. If no right away.
Jaish Hirani
Hello. 93 crore.
Manish Kiri
So 93 crores is pending.
Kevin Gandhi
93 crore is pending also. Sir, just one last question on the same. Sir, the PPD mentions that we have already invested like thousand CR of equity. Just wanted to know where this like where the amount comes from. The thousand share of equity already done.
Manish Kiri
So if you go back one and a half year we borrowed $130 million as judgment funding. And that was obtained from Singapore in our wholly owned subsidiary which was infused in the project in India. And that 130 million as soon as the NYSA proceeds are received in January beginning the entire lo was repaid. So that allowed us to save one year. And that is how we arrange by end of 2024 in fact close to 130 million like 1100 crore which we have been infusing in the project over a period of last almost one year and four months.
So that is how we could make progress on the project as well during this time. And that borrowed. That borrowing is repaid as we speak today. Okay.
Kevin Gandhi
So that is basically the funding which you have taken from the Singapore, right? $130 million.
Manish Kiri
Yes. Yes. Correct. Correct.
Kevin Gandhi
Okay. So sir this is apart from the 9,000 share funding which we are going to take for the project. Approximately 13,000 share project. 9,000 is something which we are going to take into date. So this is apart from the nine which are planning in two years.
Manish Kiri
Right. So this is the part of the total CapEx. So. So copper, fertilizer related infrastructure all put together will cost us around 12 to 13,000 crore. And this 1100 crore is part of that project of the capex and part of the equity which is being increased. Yes.
Kevin Gandhi
Okay sir, I’ll just join back the queue. Thank you.
Manish Kiri
Thank you.
operator
The next question comes from the line of Manoj Bura from Adinath Financial Services. Please go ahead.
Manoj Bura
Manish bhai.
Manish Kiri
Good morning.
Manoj Bura
Hello. Am I audible? Good morning. Congratulations on conclusion of the Diastar proceedings. Thank you very much.
Manish Kiri
Thank you so much for your patience and thank you for your consistency in every quarter Will appreciate my passport.
Manoj Bura
My first question was regarding Makilala Mining Corporation. Right? Any update? Any update that? Because 16th is the date. 16 February is the date by which they have to decide on sodor issue solder buyback. And 31st is the financial closure date for stake sale by Celsius Resources Limited. What is your update? Are we in the faith to acquire some mistake or some binding agreement for copper offtake. Because election is slated to start in December 27th. Exactly matching with our timeline.
Manish Kiri
Right. So we are right now in active discussion with Celsius, with Maharlika with respect to Makilala Mining. And there has been lot of deliberations and back and forth on the term sheets. We had also non binding term sheet executed with them earlier. But now you know there are other participants and other, other partners have also come which is a good thing and we are expecting the conclusion in about a month’s time. So we are, we are hoping to participate there and almost in the active state right now.
Manoj Bura
How much will be the financial stake in that? Can you just elaborate on that? How much we will be spending any gifts or any amount.
Manish Kiri
That is. That has not been crystallized yet. But the stake which is under discussion will range from somewhere around 20% to 40% in that range. That would be the stake that we are working on right now.
Manoj Bura
My next question.
Manish Kiri
Yeah, but the value of the mine as per the valuation, the latest and which you can see from the Celsius. Yeah, yeah.
Manoj Bura
The DFS is there.
Manish Kiri
Yeah. Definitive feasibility study is there. I have seen that. Yes. Right. And that DFS, yes. So you have seen the DFS, it is $780 million. Right? That’s the reserve. Annual production from that mine is slated to be around 1 lakh ton. 20,000. Yeah. 1 lakh 20,000 ton of copper. 1 lakh 20,000 annual production will be there which is, which is much more than what we have in Hindustan copper which is approximately 25000 ton annually.
Manoj Bura
Correct? Correct. Correct.
Manish Kiri
Absolutely. Yeah.
Manoj Bura
My second question was regarding finance. My second question was regarding financial closure for this fertilizer and as well as this copper plant. Have we reached any financial closure for that? For both the units?
Manish Kiri
Not, not a full financial closure. We have achieved the final. We haven’t achieved the final financial closure yet. We are working on it right now in active progress and the speed has already been expedited since the equity is in place now. So we are expecting before the end of March we should achieve the final financial closure. We do have certain commitments from financial institutions but we hope to achieve financial closure in the next couple of months.
Manoj Bura
Money is. By one simple request I was making.
operator
Those were your two questions I would request.
Manoj Bura
Yeah, yeah, yeah. That is. That is last question. Please permit me.
Manish Kiri
Yeah, yeah.
Manoj Bura
My simple request was there. Indian capital market is very robust. You could have taken money from the market. You should have paid some dividend although you have asked everybody to refrain from saying on dividend buyback, but still I can’t resist because all the shareholders are waiting and they have waited for long.
Manish Kiri
Right? I don’t think company has raised any money since 2010 from the market at all. But your assessment is well taken, right? And let me, you know, let me address it in a pragmatic way that you know very well that company has not been able to grow for last 15 years. If you go back in the history, you know, at least from 2011, 12 onwards till now, right? We have not, we have not been able to grow ourselves. So there is a backlog of growth which all of us have been facing for the 15 years.
And I’m sure that the shareholders who have waited for 10 years and who have been waiting to see the value creation in the company should be aligned with us or should be excited with us to see now exponential and transformative growth that I have highlighted during this call and that is where we have embarked upon. So we are covering up 10, 15 years of gap in a huge, huge upside and multi scale expansion which we have put all our efforts on. So if you appreciate that the future of the company would be completely different from where it stands today.
And not only that we are aligning ourselves with the growth of the country as well. When you look at the sectors and the products that we have selected, all are falling in the critical metal, mineral and the requirements of the country itself. So if we do not do right now and wait for five years, we might miss the sector which we have selected. So I think, I understand that the short term expectations on dividend could be there in the market. But as I mentioned, you know, the company, after long deliberations and decisions, the board members, all of us decided to strengthen ourselves first.
So that is, that is where we are. And I hope you support going forward, you know, in the journey of tremendous value creation which we can do.
operator
Thank you. The next question comes from the line of Viraj Mahadeva from Moneygroup. Please go ahead.
Viraj Mahadeva
Hi sir. I’m a little new to the company but congratulations on the big monetization. Two questions. One is for the copper smelting plant. Where do you plan to get the raw copper from? Smelt it?
Manish Kiri
I think there are four countries who are major suppliers to India and we would get from those which includes Chile, Peru, parts of Africa, you know, and Australia. So I think these are the places where the copper concentrate and copper ore supplies are based there. And we are in the process of tying up, you know, Our requirements with the miners in all these countries which has been continuously ongoing for almost last one year now.
Viraj Mahadeva
Understood. Sir, any reason why getting into copper smelting is there a supply demand mismatch in the domestic country in copper smelting and hence you’re looking to get into that.
Manish Kiri
Yes, that is correct. So we are less than half of our current requirement of 1.8 million ton approximately to 2 million ton of copper which is going to increase to at least 3 million ton by 2030 on the Conservative demand projections the research reports. And we are significantly lower in production compared to the. Compared to the consumption in the country.
Viraj Mahadeva
So it would be an import substitute.
Manish Kiri
Then it is 100% import substitute. And also the. The fertilizer which we are going to produce is 100% import substitute. So everything going to to be import substitutes which is going to come out of our facilities.
Viraj Mahadeva
Understood. So on the fertilizer front, my second.
operator
Sorry to interrupt. Viraj, please rejoin the queue. The next question comes from the line of Buram Shetty Suresh from Buram’s financial. Please go ahead.
Buram Shetty Suresh
Hello sir. Good afternoon. I’m from Andhra Pradesh.
Manish Kiri
Good afternoon to you. Yes.
Buram Shetty Suresh
I’m so many years. You remember that I’m. I’m participate so many conference calls. Yes. Yes sir. I am waiting for so many years from the kitty. Sir actually will win the case. Okay. Your is a good things happening. But shareholders is not happy. Sir. So many years you can at least you can think the shareholders positions so. Many years waiting for. I will purchase around 700 certain.
Manish Kiri
See we have deliberated exactly what you are asking. You know today also if you go through the detail management note which we have disclosed yesterday. And if you go through those numbers you would see that the entire objective of the company as well as management is to embark to create shareholders value. Right. And that is where the entire focus is for the next three years. So you are right. Along with you we as a promoters, principal shareholders also all of us have been waiting for creating a larger value for the company and its shareholders. So we will definitely deliver.
And we request you to have a long term view on the projects that we are embarking on.
operator
Thank you. The next question comes from the line of tanay Desai from 11H Advisors. Please go ahead. Tanay, please go ahead with your question.
Desai
Good morning Mr. Keedy. Very nice to.
Manish Kiri
Good morning.
Desai
Good morning. Good morning. This is Sanay, individual investor from Ahmedabad.
Manish Kiri
Welcome.
Desai
Congratulations on the long podcast and wishing you the best for the upcoming journey. Sir, the first question that I had was with regard to what kind of senior management we have planned to deploy across all these projects both domestically as well as internationally. If you can highlight that particular process, there has been a recent senior management resurface as well. So what is the strategy going forward and what is the competency that we are building into the company? And the second question sir is a more financial related questions with regard to the subsidiary structure of the company, particularly sir Claronex and whether the projects will be executed from Claronix or from the India entity.
That clarity would be very helpful. Thank you.
Manish Kiri
So let me address your second question first. Where you know Claronex infused the initial capital and that is the capital which we started with about one year and four months ago. So Claronites would remain continue to be a shareholder of Indonesia Copper Ltd. Again claronites being the wholly owned subsidy of Kiri Industries Limited and the rest of the equity. So beyond 1100-1300 crore, the rest of the equity is being infused directly from Kiri to Indonesia Copper Limited. So two principal shareholders would be there of Indonesia Copper Limited. One is the Claronex which is indirect shareholding of Krie and direct shareholding from Kiri as well.
So that is how IACL will remain wholly on subsidiary of Industrial Limited going forward. Same doesn’t apply to the fertilizer project which is parked under Indonesia Fertilizer Ltd. And that fertilizer entity is going to be a wholly owned subsidy directly under Kiri Industries Limited India. So that’s the second part for further clarification. Now as far as the management team is concerned, I have with me on the call today Mr. Ranjit Singh Jituk who is, who is the CEO of the business. And as we speak today we have already started hiring senior management team and the project strength today if I understand and Choop Sahib will highlight more if you need further clarification is more than 50 people only on the project side is already there deployed.
Second we have taken pce Tata Consulting engineers also on board. And they also have added significant strength of technical experts on the project execution side and engineering side as well. So both together on ground you are seeing almost 100 people on the project right now. This strength will continue to enhance month on month basis. So we are expecting every month 50, 60, 70 people will keep joining. So that’s how the total strength will continue to expand over a period of next one year. And when you talk about a senior, the chief operating officer of the company has already been hired more than 25 years experience in copper we’ll be joining soon.
CFO already in place. CEO Chuk Sahib is already there and the Chief Commercial Officer. The search has been going on and the interviews have been lined up that also will be decided soon. So I think the critical top team would be in place in a very short time. You know, majority are already on board as of today. Thank you so much sir.
Desai
As I conclude my comment, this is a once in a lifetime opportunity for the team to create a historical market cap. So just to on behalf of shareholders, if you can consider great governance standard going ahead and possibly a big four auditor in the future that would really enhance the visibility in the eyes of both domestic and international investors. Wish you and the team all the best, sir. Keep it up. Thank you.
Manish Kiri
Thank you so much. Thank you so much. Thank you so much.
operator
Thank you. The next question comes from the line of Sunil Nangalia from Arena Textiles and Industries limited. Please go ahead.
Sunil Nangalia
Good morning Maneet J. Good morning Sonal bhai. Manish, I congratulate. Congratulate you on behalf of all the shareholders for winning legal case again Longstand. For long time the company got a huge money. Company got a huge money the first time. And this is a very rare case in the Indian corporate culture. But sir, can you elaborate what was the reason why the price came down for 780 to 450 within a span of 30 days. I sincerely request your comments for the benefit of all the existing shareholders. Because what I feel is this is just circular trading and you. You won the case as minority operation.
But the way the passage has come down from 780 to 450 within a span of 30 days. That too after winning such a huge money is really you is I will say the minority operation against the returns retail shareholders. There is somebody involved and he was very much active in circular trading and taking the prices from 780 to 450 within a span of 30 days. I sincerely request you to please elaborate on this.
Manish Kiri
Hold on, hold on, hold on. Solenoid number one. It is not the management or company’s business to manage the share price. So I would. And whatever you are talking about, I have no idea on. On what is happening. Not happening. Why share price? We are not in the business of share price management here. I think you have. You have missed just. And you have. You know there is no point in raising any allegations either on the management or anybody. We completely deny any allegations. If you are trying to raise on minority office anything like that.
There is nobody involved. There is nothing from the company side. Here and we are not in the business of the managing share price. Sorry, I would, I would not need to answer your question. Market is supreme. Whatever market decide is the price. Okay. We did our best. We got money. Market didn’t like it. Market like it. Market likes our future plan. Market doesn’t like future plan. Market would reward the value at some rate to. To everyone who creates value. It could be 30 days, it could be 30 years, it could be three years. Right. 30 days is not a measurement of value creation or value destruction.
Right. So I’m sorry, I disagree with the allegations you have raised. I do not appreciate what you have just mentioned. It is. There is no need for me to answer any further. There are disclosures on the deployment of the funds, on the receipt of the funds. Everything has been transparently shared with the shareholders. It’s market which decides whether the price goes up or down and nobody else neither. I can answer your questions. I don’t think any of the shareholders will answer your question. Go ahead.
operator
Thank you. The next question comes from the line of Bhavesh Khandelwal an individual investor. Please go ahead.
Bhavesh Khandelwal
Yeah, hi. So sir, I wanted to check. So there’s a close to around further. I mean I think close to around 12,000 crores which we are planning to invest. Right.
Manish Kiri
This copper side. So 5,600 crore is like what we get. So what how do we plan to get the remaining. Is it through debt or we dilute the equity? What is the plan in the form of borrowing. So it would be 70, 30, 35, 65 depending on the final financial closure would be the, the equity and debt ratio and accordingly the, the borrowing will take place. Okay. And second, second thing, the second question is. So I mean I want you to take a little pinch of salt. So copper is like slightly, I mean it’s a.
It’s a slightly tricky sector.
Bhavesh Khandelwal
Right.
Manish Kiri
Because for example we talk about standard copper. It’s environmental issue people. Project protests, is it slightly risky? I mean of course the rewards are too high as well. So just wanted to check because we, we already fought a long battle so wanted to know your thoughts that why we picked this sector and how do we mitigate? Sure. So the, the number one as I addressed earlier the selection of sector based on the future demand, the requirement in the country, the home market and the import replacement. 100% import replacement. So these are the rationale and the logic points because of which we are entering into the sector.
And that also after a lot of deliberation for a few years before deciding into entering the sector number two as you, as you mentioned, copper being a volatile sector but on EHF side, environment and safety, the latest technology which we have adopted, the way we are setting up the entire facility is zero liquid discharge and zero pollution. So every waste is being converted into byproduct or used to make value added products. Let me put it this way. So that’s number one. Number two, the emission standards have been world’s best standard that we have adopted to achieve in this facility.
And the entire project is operating or will be operating on renewable energy without any coal handling any coal at the site. So on a global level such kind of facility would be a very high standard and high level EHS following facility. So from that point of view and which is very critical important point, we have ensured that from environment compliance, from health and safety standards we will achieve one of the highest global performance standards here that we rest assured. And accordingly we have selected our machineries, equipments, the technology and whatever is the latest and best available as of today.
operator
Thank you. The next question comes from the line of Viraj Mahadeva from Moneygrow. Please go ahead.
Viraj Mahadeva
Sir. Sorry, picking up on my question earlier regarding the fertilizer business.
Manish Kiri
Yes.
Viraj Mahadeva
So are there a lot of competitors in the field you’re getting into? Because generally fertilizers tends to be quite competitive, cyclical and volatile.
Manish Kiri
Right. So the, the logic of fertilizer here is the phosphatic fertilizer which is DAP and NPK on an average we import in the country around 8 to 9 million tonnes per year. And we would be making almost 1.1 million ton phosphoric fertilizer for replacing trolling imports. So from that perspective it becomes a domestic and the national requirement to sell and having opportunity to sell within the country itself. Gujarat, where the plant is located, the consumption is somewhere around 600,000 to 700,000 a year, less than a million. But it provides us an excellent base to distribute all across Saharashtra, South Gujarat covering a large part of that area.
And fertilizer being a core product for us, let me put it, you know, a value added product for us. Because smelting generates waste acid called spent sulfuric acid and spent sulfuric acid, it’s converted into phosphoric acid and then phosphoric fertilizer. So this value chain is being captured here by you know, by converting waste into value added products. And that’s how these both products are to some extent link by, you know, by using waste of one as a raw material into the others. So that is how they both are connected.
Viraj Mahadeva
Understood sir. And makes complete sense. Are there other players such as GNFC etc that are setting up these capacities for import substitution or even after your capacity will India still be importing the balance?
Manish Kiri
No, even after our capacity India would still continue to import at least 7 to. To. To 8 million ton. So yeah, just.
Ranjith Singh
May I speak?
Manish Kiri
Yes.
Ranjith Singh
Yeah. Good afternoon everybody. Good morning. And good afternoon. This is Ranjit Singh. As far as fertilizer is concerned as of today the only project which is coming up is from Industan Zinc in Zucchin. Zinc which again like us have embarked upon converting the sulfuric acid so produced in smelting of zinc into fertilizer again into the npk. Those that plant will be operational somewhere by this year end 26 and it will add around 7 to 8 lakh. So yes, zinc is coming up. GNFC as of now has not announced any project that will come up. So apart from that other serious players are still contemplating to add volumes.
But nothing concrete has come onto the horizon as of now.
operator
Thank you sir. The next question comes from the line of Kevin Gandhi from Cap Grow Capital. Please go ahead.
Kevin Gandhi
Hello. Thanks for taking my question again. My question was again to Mr. Ranjit sir. Just asking about the copper plant.
Manish Kiri
So don’t you think KD might suffer.
Kevin Gandhi
From the over capacity of copper? Because many big houses are actually enter into the copper smelting. So what is your view? How do you see the situation? Thank you.
Ranjith Singh
I mean who all are entering into copper today? Let me start again. Today India is producing including Adani’s production at around 0.8 million or 8 lakh tons. Today’s capacity, today’s requirement stands already Manish has said around 18 lakhs. And very conservative. In fact the market study which was done one one and a half year. I say around two years back which talked of 30 lakh tons or 3 million by 2030. That did not factor into the transitional, the transformation which India is going at present in last one or two years in manufacturing of. I mean in going into huge data AI data centers and manufacturing of chips.
So. And both of these are high guzzlers of power. And the moment we talk of power require power requirement straight away copper comes into play. I mean in each and every aspect of copper manufacturing. Sorry, power, power requirement, copper comes into play. Whether it is transmission, whether it is storage, whether it is putting up, you know, transformers, everything requires copper. And when we talk of any other player coming into the picture in next three years. Yes, we know Aztec, Birla Group is coming up with expansion which will be in in tandem with us. I mean they will also come into play by 2028.
As we come into operation they are adding 0.4. So right now we will be first phase we are adding approximately from smelting route around 0.35 to 0.35. But with scrap proof we are adding up to 0.5. So even if we consider 0.5 here and 0.54 from Birla copper plant it will be 0.9. So we will be at 1.7 million ton by 2028. And by that time our requirement I am pretty confident would have crossed 3 million. More than 3 million. But right now if the studies are saying 3 million let’s stick to 3 million as of now.
Kevin Gandhi
Okay sir. Got it. Sir, just one last question on your. Because I am actually new to this sector. So please. So basically 5 lakh ton is what we are planning for copper smelting. And under 5 lakh 10 which we are planning for I guess copper anodes and copper rods.
Ranjith Singh
No, no, no, no. Wait, wait, wait, wait. We are planning 0.35 lakh from spilting route and 0.15 from secondary route. So the total copper LME grid copper production we are embark. We have embarked at 5 lakh tons as of now which is phase one of our plan. And out of that 5 lakh tons of copper we will be converting in house to value added products to the tune of 3.2 lakh tons. I mean copper rods and copper tubes primarily. So that comes around three plus if we add, when we add foil which will be very small plant, 2 to 3000 tons.
So around 3 lakh out of 5 lakh tons 3 lakh will get converted into value added products balance. 2 lakh will be sold as cathode in the market.
operator
Thank you. The next question comes from the line of Bharat Kumar from bky Please go ahead sir.
Bharat Kumar
So my question is how positive we are in terms of getting the stake in the Celsius mining company. And what is the backup plan do we have if everything does not go well?
Manish Kiri
So let me address your question. Manishkiri here. See the primary feedstock that we will be receiving, you know from Chile, Peru and all other countries would be more than a million ton. As on today, out of our 1.2 million ton requirement of smelter approximately 1 million ton is a quantity indicative confirmation that we have already received from various miners in the form of supplies.
You know we have not invested either our equity. We do not plan to invest any of our equity into any of these other mining projects. We would be just having offtake agreements to purchase. Correct. The Celsius or the Makayla mining which was discussed, is an opportunity that we are exploring as a first initiative to have some equity into a mining project. Right. Where we can secure certain offtake on a much longer period and little bit favorable pricing. So the dependency for the copper project is not on Celsius at all. It is only the addition if it happens and when it happens, if it doesn’t happen, also doesn’t affect our project at all.
Zero. No impact at all. Thank you. And my second question is on the existing business now, since the AWS trade deal is done and the textile market should see improvement, do we see our existing business to grow and make better profits, better margin? Yes, because the entire legal cost is going to go away. So our operational EBITDA would now reflect quite positive earnings going forward and we hope to have good results on traditional and operating business as well for dyes and chemicals.
operator
Thank you. The next question comes from the line of Yashwant Rajput from Nirmal Bank Securities. Please go ahead. The participant has dropped off. We’ll move on to the next question. That is Tarun. That comes from Tarun Kumar. Please go ahead.
Tarun Kumar
Yeah, hi. Good morning sir. Am I audible?
operator
Yes, you are.
Manish Kiri
Yes. Tarunji, please. Yeah.
Tarun Kumar
Congratulations, sir. So Sir, I have two questions. I heard somewhere in this call you said first phase is going live in April 2027. Is it?
Manish Kiri
Right.
Tarun Kumar
Well, usually it takes three years to set up a copper smelter.
Manish Kiri
Let me address. Yeah, let me elaborate to you. We started embarking on project end of 2024 or beginning of 2025. Let me clarify further and what we are doing right now by 2027, as Mr. Chuk just mentioned, you know, we would not only be smelting but we would also be putting the value added finished products. So the first facilities to become operational in 2027, because delivery times for the for the equipment and machineries are also earlier, would be all downstream products and those downstream products plants would start arriving to facility three, four months from now.
So it is quite on track that the downstream products will become operational by 2027. April and actual smelter and fertilizer both need to start together in the same time frame that would become operational by end of 2028 calendar year. Okay, so next question, sir is I.
Tarun Kumar
Read somewhere about Indo Asia Copper participating in some copper component PLI scheme. So is this first phase related to that only. Okay.
Manish Kiri
So. So then as Mr. Tuk submission there are three products. One is copper tube, copper rods and there would be copper foils as well. Correct. Out of these three copper tube has been approved in PLI scheme. Correct. And that will be the first plant.
Tarun Kumar
Which will be operational by March April 25th.
Manish Kiri
And that will be the first.
operator
Thank you. The next question comes from the line of Viraj Mahadevia from Money Grow asset. Please go ahead.
Viraj Mahadeva
Hi sir. Back again. Thank you for your questions regarding the fertilizer business. You will be building your own distribution pan India or are you looking to partner with incumbents in the sector for supplying your npk?
Ranjith Singh
No, we will build our own channels. And we have. We have already planned on that that count. This year we launch our branded product by trading it to start with trading. So we have three years lead time to put our brand in the market. So this calendar year 26, next calendar year 27 and the third 10, 28 will be doing traded products. We will steadily go up. The plan will be to. Let’s say plan this year will be up to 1 lakh tons of traded products and only NPKs. Nothing else. And then we will move to maybe 2 next year.
And 3, 3, 3, 2, 4. Based upon the response and the based upon the speed with which we build our brand.
Viraj Mahadeva
Well understood, sir. And lastly, do you see any execution risks in either of these two projects? Copper or fertilizers. Whether in terms of technical know how, whether in terms of, you know, committed capital. Whether in terms of permissions and regulations.
Ranjith Singh
Permissions etc all are clear and all are in line. Then there will not be any same goes for technology also. Primarily we have embarked upon the latest and the best technology. When I say the latest means. In last 10 to 12 years 80% of the production of copper smelting has come from the technology which we have taken last 10 years. And luckily or unluckily in last decade the maximum spirit does have become operational only in China. Barring two or three which have come just recently, one, one year or so, Indonesia and India and that is where we are on to.
And as far as the financial closure is concerned, Manish has already given a clear line of thought that by March and will complete it. So we don’t see any reason that we will be delayed or we’ll have some hiccups.
operator
Thank you. The next question comes from the line of Govind Goyal, an individual investor. Please go ahead.
Govind Goyal
Congratulations to the team for such a successful completion of the such long drawn battle with the dicer. And Longshank, my question is regarding the acquisition. Are we considering any kind of acquisition of the companies like recycling kind of businesses which would complement our existing business? Not of now.
Ranjith Singh
Presently we are focusing on our smelter and the scrap within smelter utilization. So once those things are established that could be a organic growth which we can plan or and look into.
Govind Goyal
Okay. Thank you, sir. That’s from my take.
operator
Thank you. The next question comes from the line of Venugopal Chidurupa, an individual investor. Please go ahead.
Venugopal Chidurupa
Hello. Good morning, sir. Morning. Any proposal rights issue? Because fertilizer and Its cost is 12,000 crores. Now only you have 6,000 crores in bank account. Hello. Hello. Hello. Any rights issue proposal? Sir, can you hear me? Hello. Any rights issue proposal?
Manish Kiri
Sir, can you hear me? I think I have been put on hold. No, sir. I am old.
Venugopal Chidurupa
Can you hear Any rights issue proposal?
Manish Kiri
Sir? Money, sir. No.
Venugopal Chidurupa
No.
Manish Kiri
No. Right issue proposal. There will be no right issue proposal. Nothing. Are you audible? I’m. Am I audible? Hello. Am I audible?
operator
You are audible.
Manish Kiri
Hello. Hello. Whether he’s able to. Hello. I just mentioned few times earlier that we will be borrowing. The rest of the requirement would be by taking loans and not by having any right issue or anything.
Venugopal Chidurupa
Thank you.
Manish Kiri
Thank you, sir. Yeah.
operator
Thank you. Ladies and gentlemen. That would be the last question for today. I would now like to hand the conference over to the management for their closing remarks.
Manish Kiri
Thank you all for participating in this earnings conference call. I hope we were able to answer your questions satisfactory and at the same time offer insights into our business. If you have any further questions or would like to know more about the company Please reach out to our investor relations managers at Valorum Advisors. Thank you and wishing you all a great day. Thank you.
operator
Thank you, sir. Ladies and gentlemen, on behalf of Kiri Industries. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.