Mayur Uniquoters Ltd (MAYURUNIQ) Q1 FY23 Earnings Concall Transcript

Mayur Uniquoters Ltd (NSE:MAYURUNIQ) Q1 FY23 Earnings Concall dated Aug. 10, 2022

Corporate Participants:

Vinod Kumar Sharma — Chief Financial Officer

Suresh Kumar Poddar — Chairman and Managing Director

Analysts:

Rahul Dani — Analyst

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

Mohit Khanna — Banyan Capital Advisors — Analyst

Aman Agrawal — Carnelian Asset Advisors — Analyst

Rajat Setiya — ithoughtpms — Analyst

Devansh Nigotia — SIMPL — Analyst

Peter Aggnen — CIMA Wealth Management — Analyst

Shalini Gupta — East India Securities — Analyst

Awanish Chandra — SMIFS Limited — Analyst

Rishab Bothra — Anand Rathi Shares and Stock Brokers Ltd — Analyst

Deepak Lalwani — Unifi Capital Pvt Ltd. — Analyst

Pritesh Chheda — Lucky Investment Managers — Analyst

Rohan Advant — Multi-Act Equity Consultancy Private Limited — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Q1 FY ’23 Earnings Conference Call of Mayur Uniquoters Limited hosted by Monarch Networth Capital. [Operator Instructions]. And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions].

I now hand the conference over to Mr. Rahul Dani from Monarch Networth Capital. Thank you, and over to you.

Rahul Dani — Analyst

Thank you, Yeshaswi. Good afternoon, everyone. On behalf of Monarch Networth Capital, it’s our pleasure to host the senior management team of Mayur Uniquoters. Today, we have with us Mr. Suresh Kumar Poddar, Chairman and Managing Director of the Company; and Mr. Vinod Kumar Sharma, the CFO of the Company.

I would now request the management to provide the initial comments about the results. Thank you, and over to you, sir.

Vinod Kumar Sharma — Chief Financial Officer

Thank you, Rahul, and welcome to all participants to the earnings call of Mayur for the quarter one FY’23. Good afternoon, dear investors and analysts. Ladies and gentlemen, it is a great pleasure to be here to share with you the performance of Mayur. Thank you for giving your precious time to join Mayur Uniquoters Limited Q1 FY ’23 Conference Call.

Mayur Uniquoters Limited, being a market leader in the synthetic leather industry and an organized player, has been able to leverage the emerging opportunities and delivered exemplary performance in past years, both in national and international business markets. I would like to start with financial highlights for Q1 FY ’23 under review. We will also reply your queries after our review on financial results for the quarter.

The Company has achieved revenue from operations on a stand-alone basis amounting to INR200.93 crores and PBT INR35.95 crores and PAT INR28.64 crores during the quarter, which is increased by 37%, 41% and 47%, respectively, from the last quarter. The revenue from operations on consolidated basis is INR200.44 crores, PBT to INR33.89 crores and PAT INR27.10 crores. And this number has increased by 24%, 4% and 9%, respectively, from the last quarter.

Our endeavor is to make the Company a preferred supplier for the leading OEM especially in the US and European regions. We are also pleased to share that the Company is already approved by Mercedes-Benz in South Africa, BMW in Europe market and Volkswagen in India. And supply also started from us to the Mercedes and Volkswagen for the newer models. And BMW — supply to the BMW is expected from March quarter this year.

The Company has also entered into the sale agreement with Datsun India for our product supply to Kia and Hyundai Motors within and outside India. And supply also started in India in last quarter. We have also decided to put up a warp knitting plant in Mayur for which necessary project equities are expected to start soon.

In automotive sector, we have been selected for many incoming new models in export as well as domestic auto OEMs for which supply will start in the year ’23-’24, and ’24-’25. So we are expecting a very good performance in coming years of ’23-’24 and ’24-’25, both years. And this year also, we are expecting better performance than last year.

The Company has also put up a foam lamination plant forward integration — in the form of forward integration and it is also doing well. While pursuing our business interest, Mayur Uniquoters has also been endeavoring to fulfill our responsibilities towards the society. Under the corporate social responsibility programs, we have also planned for booster dose to the nearby villagers and staff members at both the plants besides contribution towards food sources in plants and safety kits.

The Company has also adopted many schools, happy schools for education of children. The Company has worked on education especially for the girls and underprivileged education, various health care initiatives, especially child skill development, water for all, sanitization at school area, distribution of books, bags, clothes, etc, and most importantly, family planning and family welfare schemes.

The state government has recognized at various spaces — these initiatives on various platforms. I’m thankful to all investors for their valuable time to those who became the part of this earning call.

With this positive note, I’d like to conclude and request you all to open the phone for questions. And also request that due to time constraint, we need to end this call within next 45 to 50 minutes so therefore, request to kindly avoid repeat questions. And volume data we we’ll not discuss, so please avoid volume-related queries. Thank you.

Questions and Answers:

Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions]. We have our first question from the line of Amarnath Bhakat from Ministry of Finance, Oman. Please go ahead.

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

Yeah. Hi, sir. I have two set of questions. First of all, whatever is the raw material prices increased due to increase in the crude prices and everything, how much of that you are able to transfer to your clients? And how much approximately you have to absorb?

Suresh Kumar Poddar — Chairman and Managing Director

See, we have tried our best to transfer as much as possible. And… [Speech Overlap]

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

Can you please quantify, maybe 50%, 60%, 70%?

Suresh Kumar Poddar — Chairman and Managing Director

This is very difficult to say. So that you can recognize by our balance sheet. But of course, if we would have not pass on, how we’d get the profit in the Company? So definitely, the increase has been transferred to them. But maybe minimum 80% to 90% we have transferred. It depends on…[Speech Overlap]

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

Okay. So 80% to 90% over time you’ll transfer, maybe 10%, 15% you need to absorb over time.

Suresh Kumar Poddar — Chairman and Managing Director

Yeah. Maximum.

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

Yes, that’s the purpose. And second thing, sir, now if you look at the entire macro picture, now your main business segment, which is automobiles, whether it’s national or international, plus your footwear-related business, plus your furniture dividend [Phonetic] business, after it is opening up, everything is looking very solid especially within India because individual company who are working on those fields are reporting very strong numbers as well as their growth outlook is very strong.

Now considering that sector you are one of the input provider to them, how do you look at this particular opportunity going ahead for next two, three years? And if you provide some guidance with respect to your revenue visibility and margin visibility?

Suresh Kumar Poddar — Chairman and Managing Director

Yes, I tell you the most important sector is automotive sector. Now whatever we are doing in automotive sector, it is very minimal. So there is a very big scope in automotive sector and especially in export as well as in domestic market. Because Indian domestic market is also increasing. There was some drawback for a few months, then the chip shortage was there, and now it’s coming up in the line, but still there is some chip shortage.

Nevertheless, since I have told you that I have — we have plenty of scope to get into automotive business outside India and India also, so we have already got approval of a few models of different companies. As I’m talking about export OEMs, like for America, South Africa and Europe. And those articles will start from ’23-’24 and ’24-’25. You can expect fantastic sales in automotive in these two years.

However, this year is also going to be better than last year. So there is a very good chance and further we have started retailing with the furnishing business. You know, I was going through the article, like more than 48% of artificial leather used in furnishing, like sofa, like chairs, like office chairs. The problem is with us that we are B2B supplier in all the areas. Like if you talk about footwear, footwear manufacturers buy from us, if you go to buy a footwear you don’t know which artificial leather is being used in that.

So — but the furnishing is a big area. Where when you go for a furnishing for your house, we go with your interior decorator to the shop, see their material, sample and all that and then you decide. So this we have already started. We have a plan to — next 1.5 years to two years’ time to have at least 1,000 dealers all over India. So this work has started, 25 dealers we have already made. Now I think in coming years, it must be better. It will increase the margin also, and will increase the sales.

Every brand needs time to establish. And we are very much confident that we will be able to establish because Mayur is capable of making any type of artificial leather under the sun. You give Mayur any product, we will copy that or not only copy, we are capable of doing a product according to your requirements. Suppose you have particular item and there are some — criteria is not there, if people are telling us that, okay, we want this criteria also, so we are able to do that because we have very strong R&D. As in previous meeting also I have said that we have got a European lady, very expensive and very knowledgeable especially in automotive industry. Because of her, we’re able to get the business of Mercedes-Benz, BMW. So this is the situation.

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

So considering the things you said sir, so far, it is exactly matching with your end user outlook, whether it is automobile, furnitures and everything. Are you in a position to give us some kind of a guidance of your revenue visibility or profitability visibility? And last one, what is your capacity utilization as of now?

Suresh Kumar Poddar — Chairman and Managing Director

As of now, my capacity utilization is about 70%, 70-72%. And the increasing capacity is no problem because we have got a lot of space. We can increase, recently we put up one line, first — one year, six months back. So, because of that, capacity is spare. And furthermore, there is no issue because I don’t need any land to increase my capacity, we have sufficient area, and anything is required.

And one thing I’ll tell you, we are going — I’m going very fast. You know there is a saying that you can wait — manufacturers can wait for the customer, but customers will not wait for you. So you have to have always spare capacity. When customer comes for demand, you have to supply immediately at once. He will not wait for you that, okay, I will have the capacity after six months then I will supply. They will not wait. They will go to somewhere else. So I always keep spare capacity.

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

So with this last — if you can answer to my previous question that are you — what visibility you are saying in terms of your revenue growth and the profitability growth going ahead? Some color would be helpful.

Suresh Kumar Poddar — Chairman and Managing Director

See, it is very difficult at this moment to say what kind of — but as I told you that ’23-’24 and ’24-’25 will be very good. The profit of margin will be also very good. It is very difficult to excel in the quantum. When I’m saying good, that means it will be definitely more than what you are seeing. You know…[Speech Overlap]

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

One last question, sir, which is, they’re already in the investors’ mind. It is a little sensitive, but I need to ask this. What is this succession planning in Mayur Uniquoters? We have seen how you have done this Company, from where and where this Company it is there. A little a lot of family related issues boggled about this Company in the last few years. And as an investor, the governance structure, the corporate governance structure of Company is always utmost important accord with the Company’s performance.

And up to now, as an investor, we don’t have any real clarity how the succession of this particular Company and how the plan — how the Company is really thinking about that particular thing to take this matter, take this particular Company a little more straight than where it is now. And this is always in investor mind. So if you can give some kind of color on this question, it would be very helpful from a governance side.

Suresh Kumar Poddar — Chairman and Managing Director

Yeah, you see at the moment my son-in-law is already working here and my son has also come back. And he has also started attending the office and furthermore I have got big target. I always go high. So, most important thing in any industry is you have to, area-wise, good professionals, they run the company. We are the promoter. We just think what can be the market, what kind of investment we have to do, what kind of expansion we have to do.

Now, BMW and Mercedes, they’re [Indecipherable] are that Mr. Poddar start your plant in USA also. Because at the moment, we are supplying to South Africa, the Mercedes and BMW also will take for South Africa plant. Like Volkswagen has also told us, like Mr. Poddar, put up a plant in USA, and we will start. Because the tier 1 manufacturers, those who are making interior and all that, they are the person who supply to these OEMs.

Now there are limited, five or six very big interior manufacture all along the world. But now they know us when we are supplying to USA., South Africa, Europe. So in India also wherever new model is coming, they immediately come to us like in Hyundai, they have started new models, and that is going…[Speech Overlap]

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

You are the market leader, right, sir?

Suresh Kumar Poddar — Chairman and Managing Director

Who?

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

You are the market leader in this segment, right?

Suresh Kumar Poddar — Chairman and Managing Director

Yes, of course. In India, we are the market leader. In footwear and in automotive, although we are in all type of products like leather goods, furnishing, like automotive, footwear, — you see, garments, garment also it is sold. In leather goods, there are so many things, bags, purses, belts, so many things.

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

The market is very good, sir.

Operator

I request you to come back in the queue, sir.

Amarnath Bhakat — Ministry of Finance, Oman — Analyst

Okay. Thank you madam.

Operator

Thank you. [Operator Instructions] We have our next question from the line of Mohit Khanna from Banyan Capital. Please go ahead.

Mohit Khanna — Banyan Capital Advisors — Analyst

Hello, sir. And sir, if I just wanted to understand what is the current capacity under different businesses and when do you think you can use the full capacity, as you’re talking about this growth in ’24-’25?

Suresh Kumar Poddar — Chairman and Managing Director

See, as I told now that we are utilizing 70% capacity; 30% we have vacant. That can be used within maximum 1.5 year or two years’ time. Then we have got plenty of space to fulfill further requirements, there is no issue. The only thing is the investment in machine. Now, definitely, within one year time, as per situation, I will definitely order for another line. See, this I always do one year in advance. So there will be no problem, that on front of capacity, there will be any problem in sales.

Mohit Khanna — Banyan Capital Advisors — Analyst

Right sir. And what is the near-about cost for ordering a line?

Vinod Kumar Sharma — Chief Financial Officer

Sorry, can you repeat loudly?

Mohit Khanna — Banyan Capital Advisors — Analyst

Yes, sir, what should be the cost of the setting up or starting a new line?

Suresh Kumar Poddar — Chairman and Managing Director

Yes. Cost of the new lines. If you start the PVC line. Only the line with coating line, printing line, embossing line, there is a set of different kind of machines which is required to complete the whole thing. So from machinery point of view, if you look at it, it is about — for one line it’s about INR30 crores minimum. And furthermore, now gradually, we are increasing the automization of our machines and automization in manpower also.

You know, it depends on what kind of a machine you are buying. Suppose in my coating line if I have 12 people, now I can reduce that to eight or seven with certain modification in the machines, of course which costs more. But then it gives quality, good quality also, consistency also. So now, whatever machinery I’m buying that is with the best of machines.

Now at the moment, so far as printing machine and embossing machines, we have got sufficient capacity. Only the — when we start now increasing, we have to put up a coating line, for which I have told you that this much is expensive, then, of course, you have to make the shares and everything that will also cost you. So one line tactically, if you go greenfield, it is INR100 crores, right? But land is not a problem. The only thing that when we think is we have to make construction and get the machine.

Mohit Khanna — Banyan Capital Advisors — Analyst

Right, sir. So in terms of putting up a line that should take around six months or so, is that a good estimate?

Suresh Kumar Poddar — Chairman and Managing Director

So about nine to ten months. Suppose by today, I decide, then placing the order, then getting the machine, two months’ time is required to machine to come. Practically, you can take it ten to 12 months.

Mohit Khanna — Banyan Capital Advisors — Analyst

So that means that you will come back with the capex in six months or so?

Suresh Kumar Poddar — Chairman and Managing Director

Yes. Yes.

Mohit Khanna — Banyan Capital Advisors — Analyst

Okay, thank you.

Operator

Thank you. We have our next question from the line of Aman Agarwal from Carnelian Capital. Please go ahead.

Aman Agrawal — Carnelian Asset Advisors — Analyst

Good afternoon, sir and thanks for the opportunity. So my first question was like we have started supplying to Mercedes, Volkswagen and BMW — will start supplying BMW also. So once we have started supplying the initial quantities to these players? By when can we start looking at other geographies for these players, like in addition to the geographies which we are already supplying?

Suresh Kumar Poddar — Chairman and Managing Director

Automotive, you have listened and you have understood what we are going to do. Now in furnishing also we are starting retail and that has got a huge market, better off time. And second thing, there is a lot of leather goods like purses, bag, belts, these are exported like anything to European and American countries.

Just yesterday, I had a customer from Kolkata, and he is one of the largest exporter of these products. So we were talking from last two months, three months about introducing — he’s making at the moment only genuine leather, products made out of genuine leather. Now we have given him our PU material also with a world-class quality. He has taken those samples to his customers, and they have approved, and they like it.

And this is a very, very big market. Of course, it takes some time. Here I’m talking about one customer only, who is supplying to the top three, four big brands in the European market. Yesterday also, we are talking about some footwear — with brands. They are also interested in buying from India. Now it is one advantage is there that people are fed up with China, they want to shift to India because even if you go to, what you call, Vietnam and Indonesia and all these spaces, there are also a lot of Chinese are there. So they are not preferring Chinese. Now, it’s the question that how fast India can meet up their requirements? They’re ready to even give more prices.

Now the main thing is in PU. How to get PU chemical? Now so far, there are two things. One is PU chemical, one is fabric. Fabric, we are able to make it in India with a competitive price of China. Only PU, we are not manufacturing in India. That also we are talking with few suppliers to have a joint venture here in India. But since PU requirement is very less, they want big volume. So that will also happen very soon.

And then in PU product which is imported from China, we have worked out with the government of India and put up INR40 per meter, approximate, anti-dumping duty, which has already started three months now. So with also the gap between China and India will decrease.

And furthermore, as soon as the quality goes up, all the suppliers of raw material and everybody will come to India and start manufacturing. So it is just [Foreign Speech]. So we are trying our best, and I’m very hopeful that India has got a very, very big chance in every…[Technical Issues]

Operator

Ladies and gentlemen, we’ve lost the connection of the management team. Request you to stay connected, we’ll reconnect them. We have the management team back on the call. Sir, please go ahead. Mr. Agrawal?

Aman Agrawal — Carnelian Asset Advisors — Analyst

Yes. So, sir, my second question was regarding this other expenses. So like for the last three quarters, our other expenses seems to be around INR24 crores to INR25 crores. But in this quarter, it is around INR35 crores. So any reason why it has increased by this much in this quarter?

Vinod Kumar Sharma — Chief Financial Officer

Basically it has increased in proportion of the sales volume. And secondly, the transportation cost also increased to 30% to 40%.

Suresh Kumar Poddar — Chairman and Managing Director

It is fortunate that we are able to maintain the price. You know, the freight cost has increased by four times. America, we used to sell in INR18 a meter, our cost used to be, which has become onetime INR72, now coming back to INR35, INR36, is now gradually decreasing. But even then, we have faced the storm.

Aman Agrawal — Carnelian Asset Advisors — Analyst

Thanks sir. And one final question…. [Speech Overlap]

Operator

Mr. Agrawal, I request you to come back in the queue.

Aman Agrawal — Carnelian Asset Advisors — Analyst

Okay. Thank you.

Operator

Ladies and gentlemen, I request to restrict your questions to two at a time. We have a next question from the line of Rajat Setiya from ithoughtpms. Please go ahead.

Rajat Setiya — ithoughtpms — Analyst

Thanks for the opportunity. Sir, my question, if we look at our history, we have — early on we had got very big and old clients, like Ford and Chrysler. They have been with us for a long time, and they are actually very big on their own. But we have not been able to scale them up. Similarly, I think we also had General Motors with us. So I mean last few years, if you look at last many years, our topline is broadly stagnant. So if you can help us understand why is it so difficult to scale up with somebody with whom we are already working for such a long period of time?

Vinod Kumar Sharma — Chief Financial Officer

Can you give your line of questions more clearly? We do not get you.

Rajat Setiya — ithoughtpms — Analyst

Okay. I’ll just repeat. I’m saying we have some clients who we are working with like Ford, Chrysler, who are contributing a good chunk of our revenues. We also have a client called General Motors, again, for a very long time, they’re our clients, I think. But they have — they have not been able to — we have not been able to grow them.

But overall, if you look at despite having these clients for a long period of time with us, if we look at our topline over the last many years and in 2016, we had done INR500 crores of revenue — in fact, in 2015, we had done INR500 crores of revenues, but that revenue actually kind of stalled for a long period of time. So what is the reason why we couldn’t really grow with a client with whom we have been working from last many years? There are three such big clients that can really become big for us.

Suresh Kumar Poddar — Chairman and Managing Director

See, when you enter to the automotive industry, of course, today I go to General Motors and say I want a business. They will not give me business from their existing models. They will give the business only with the upcoming models. Now, General Motor was very much rigid that we will give the business to the supplier who has got the unit in America itself, then only we will get them business. Like Volkswagen has also told us. They are ready because we are supplying here about 30,000 meters very month to Volkswagen in India. And they are ready to buy there also. But they say we want to buy locally. So on that ground also, we are working very seriously to put up a line in USA., but we wanted to have, as I told you, ’23-’24 and ’24-’25, there are few models which are coming and which may have been selected. So what I’m getting, let me have another 100,000 or 150,000 meters of business from USA then only I will start working on that.

So there are so many reasons. Now a days, many companies in America have started preferring that the production line should be in the USA. And for me that is not a problem because I’m supplying to most of them. So even they are saying that if you start working on it, we’ll be ready to give you the business because then, in that case, in the business, immediately I think supply from India and then gradually convert it to USA.

But for that, I have to take a decision, which is put these new models which are coming up, once I start producing, then I will immediately take such [Indecipherable]. We have a line over there also because that ultimately we have to do. It’s a matter of time only.

Rajat Setiya — ithoughtpms — Analyst

Sure. Sure. So sir, you mentioned about GM that they want a line in USA. However, Ford — and you also mentioned that unless a company launches a new model, it is difficult to get into any agreement with them, which is fine. So over the — but if you look at our revenues actually from 2015 to 2020 or so, broadly flat. So, I’m assuming these companies, Ford or Chrysler, would have launched some new models during this time, isn’t it?

Suresh Kumar Poddar — Chairman and Managing Director

You see, one thing, we have just started ten years back supplying to USA in the automotive industry. And automotive industry, suppose like Mercedes. Mercedes, we are supplying since last one year. Now they are confident with our supplies and quality. And they are ready to give us a business in USA also. They have use USA this out of [Technical Issues].

The question is, if you go to every new supplier, first he’ll judge and especially automotive industries are very, very systematic, professional. They will just like that they will not give you the business. First of all, you have to approve the quality and the quality means there are so many things which has to meet their specifications, and that specification also, they’ll not only believe on our testings, they will guide, okay, you get it tested in the USA or Germany or somewhere wherever they identify their own reliable tester.

So these things take a very long time. So this is what we call about this Mercedes-Benz, do you know it took us two years. I had a German salesman in Germany, and I’m paying EUR8,000 per month. He was able to just get in touch whereas we were supplying genuine leather and he has contact with everybody. But just to get them agree that okay, you can give us the sample, you can move on, it took two years. Now you can understand how much time it’s required to get the approval.

And second thing, you have to be very, very fast because they generally keep two suppliers. One of the business, big business we lost one model, and that was a good business, so we are becoming now third supplier. But somehow they have accepted us, but it takes a long time. So it will — now as I told you, you will see from ’23-’24 and ’24-’25.

And our service is so good that they are getting frustrated with their existing suppliers also. That’s why when these guys are in the problem, then only they give a thought, and they push the supplier to supply them. Otherwise, if they are happy, they — it takes a very long time to get into. But I’m trying to get into the items which are not — were already done by someone else and that also are going to get entry in ’24’-25. Already, our product has started its approving.

Rajat Setiya — ithoughtpms — Analyst

Okay, sir. Thank you so much for the detailed reply. Much appreciated. Sir, one follow up… [Speech Overlap]

Operator

Mr. Setiya, I request you to come back in the queue.

Rajat Setiya — ithoughtpms — Analyst

Okay.

Operator

We have a next question from the line of Devansh Nigotia from SIMPL. Please go ahead.

Devansh Nigotia — SIMPL — Analyst

Yeah, sir. Thanks for the opportunity. Sir, for PU, if you can just highlight how much — if you can just quantify the ADB percentage? And have we seen improvement in… [Speech Overlap]

Vinod Kumar Sharma — Chief Financial Officer

Setiya [Phonetic]. Your voice is very low. Can you come near to your speaker?

Devansh Nigotia — SIMPL — Analyst

Yeah. Am I audible?

Vinod Kumar Sharma — Chief Financial Officer

Yeah.

Devansh Nigotia — SIMPL — Analyst

So, sir, for PU, if you can just once reclarify on the ADB percentage and how realization for PU has improved for us. And if you can just give a sense on how import substitution has happened over a period of time, let’s say, what was the quantum last year and how that import substitution is playing out in India? So some perspective, if you can give for these three, four things regarding PU?

Suresh Kumar Poddar — Chairman and Managing Director

So far PU is concerned, as I told and in the previous conferences also, I have said, there is lot of manipulation in import duty in respect of prices, even they are showing 20%, 30% prices. If you are buying something in $3, they are billing in $1. Nowadays, they have started playing with the quantity also. That is one container I’d say, 40,000 meters, we will show 20,000 meters. That’s why we have tried our best and put up anti-dumping duty. In that, whatever price you declare, certain amount of duty you have to pay.

And that has started coming up now because the market was already bad in COVID. And so the traders has got a lot of stocks. Now they have to clear that stock, and the new stocks, they have to pay more price. So what we have seen in last one month, the gap of the price between China and our material has reduced. So it’s a matter of time.

And I tell you now as in Mayur Uniquoters what I’m doing, I’m going for the technical client, I’m going for the client who are in medium range or high range. Because in this industry, with the bottom range, there is huge, huge, huge market. Every month I can put one line for the next ten years. But then you will get nothing.

I don’t want that. So, I’m already approaching whether it is export, because from India, there is not a single person who is able to export to the automotive industry. And even in China, China is exporting to these European and American countries, and they have also got a collaboration with either European or with Canadian or with American. We are the only — I’m the only Company who supply directly. Every now on then I get the offer from these guys.

But the problem is when you go for collaboration, from the beginning, everything is good. But gradually, they will start eating you up. I have decided, I will not go for any joint venture. Because in joint venture, what you need, you need — you are — you should able to make the quality of the product, which your best supplier is able and then you should have a capacity.

So that’s what I’m getting. What is — as today if any big company who is run with too much turnover and all that, that is run by the people. Main thing, you have to have people like R&D, like your machinery, those things, you have to have good machine and R&D. And you will definitely get successful.

Devansh Nigotia — SIMPL — Analyst

Okay. So when we say… [Speech Overlap]

Operator

Mr. Nigotia, I request you to come back in the queue.

Devansh Nigotia — SIMPL — Analyst

I just asked one question.

Operator

Sir, this is due to the [Indecipherable].

Devansh Nigotia — SIMPL — Analyst

Okay, I’ll just come back in queue.

Operator

Thank you. We have our next question from the line of Peter Aggnen [Phonetic] from CIMA Wealth Management Private Limited. Please go ahead.

Peter Aggnen — CIMA Wealth Management — Analyst

Hello, good evening, sir. Sir, I was wondering if you could provide the revenue split by geography and customer segment.

Suresh Kumar Poddar — Chairman and Managing Director

Yes.

Vinod Kumar Sharma — Chief Financial Officer

Yes, please note down. In exports, it is INR50 crores. And [Speech Overlap] We are talking about Q1, okay?

Peter Aggnen — CIMA Wealth Management — Analyst

Yes, sir.

Vinod Kumar Sharma — Chief Financial Officer

In export, we have INR50 crores. And out of that, export general is INR18 crores, and export OEM is INR32 crores. And in domestic OEM, we have INR36 crores; replacement is INR44 crores; footwear, INR63 crores; and furnishing is INR6 crores. And balance others you can take out of INR200 crores.

Peter Aggnen — CIMA Wealth Management — Analyst

So OEM is INR36 crores; replacement, INR44 crores; footwear, INR63 crores; furnishing, INR6 crores; and others, right?

Vinod Kumar Sharma — Chief Financial Officer

Yeah.

Peter Aggnen — CIMA Wealth Management — Analyst

And this is in this quarter?

Vinod Kumar Sharma — Chief Financial Officer

Yeah.

Peter Aggnen — CIMA Wealth Management — Analyst

And by chance can you provide us for FY ’22 and FY ’21?

Vinod Kumar Sharma — Chief Financial Officer

Yes, it is — you can drop your mail. I’ll send to you. Okay?

Peter Aggnen — CIMA Wealth Management — Analyst

Okay. And…[Speech Overlap]

Operator

Thank you. Due to time constraints we request participants to ask only one question. We have a next question from the line of Shalini Gupta from East India Securities. Please go ahead.

Shalini Gupta — East India Securities — Analyst

Yeah, good afternoon, sir.

Operator

Mr. Shalini, your voice is very low.

Shalini Gupta — East India Securities — Analyst

Okay. Can you hear me now?

Vinod Kumar Sharma — Chief Financial Officer

Yeah. It is better, but you can speak little louder please.

Shalini Gupta — East India Securities — Analyst

Okay, sir. What — Sir, can you hear me now?

Suresh Kumar Poddar — Chairman and Managing Director

Yeah we can hear you.

Shalini Gupta — East India Securities — Analyst

Okay. So sir, I just wanted to understand if an investor has any queries, how to get in touch with you? Because I’ve been trying for the last two or three months and have not been successful. So what is the best way to get in touch with you people?

Vinod Kumar Sharma — Chief Financial Officer

You can drop the mail to me and PA to CMD, and you can talk to me on phone also.

Shalini Gupta — East India Securities — Analyst

No, sir, the people at the reception do not connect to you because…[Speech Overlap]

Vinod Kumar Sharma — Chief Financial Officer

That might be because of some meeting or some busy schedule with some other work, because of that only. But you can talk to me over mail also.

Operator

We’ve lost her connection. We’ll take the next question from Pritesh Chheda. Please go ahead sir. Mr. Pritesh Chheda, please unmute your line. We’ll move on to the next question from Awanish Chandra from SMIFS Limited. Please go ahead.

Awanish Chandra — SMIFS Limited — Analyst

Congratulation Poddar sir and Vinod sir, for a strong sales performance. So sir, very quickly, sir, this PVC prices have come down from the last quarter. But we did we book any inventory loss during this quarter?

Vinod Kumar Sharma — Chief Financial Officer

No, not in this quarter.

Awanish Chandra — SMIFS Limited — Analyst

Okay. So more or less, our prices was similar to last quarter, quarter 4?

Vinod Kumar Sharma — Chief Financial Officer

No, no, it is better. Even better.

Awanish Chandra — SMIFS Limited — Analyst

Okay. And very quickly, sir, last question. How much was the PU performance? PU sales during the quarter?

Vinod Kumar Sharma — Chief Financial Officer

In volume, it is INR7 crores. [Speech Overlap] INR7 crores.

Awanish Chandra — SMIFS Limited — Analyst

Okay, sir. Thank you very much.

Vinod Kumar Sharma — Chief Financial Officer

Thank you.

Operator

Thank you. We have our next question from the line of Rishab Bothra from Anand Rathi. Please go ahead.

Rishab Bothra — Anand Rathi Shares and Stock Brokers Ltd — Analyst

Hello. Congratulations for good set of numbers. Sir, last quarter, you mentioned that there were some issues in terms of airbags in automotive space, wherein the OEM and in the replacement segment was not that encouraging. How do you see things going forward in this space?

Suresh Kumar Poddar — Chairman and Managing Director

See, the government is telling that you have to put airbag from this and this trick, but that is not practical also. So it will happen definitely. And — but it will take time. And in the meantime, you see, we have started new aftermarket business. The car seats, you have as [Speech Overlap] footmat. Now this — we have started footmat also in the aftermarket. And other suppliers also has also started working, this month we supplied more than 30,000 meters, and it is going to increase because we have just started.

I don’t think overall there will be much difference in aftermarket. And furthermore, mainly aftermarket, we were doing with Maruti, Suzuki. Now the other companies have also started working on the same. So gradually, number of players are increasing. Previously, if you have a Tata car, you go in the market and replace it. But in Maruti, they are — compulsory we have to buy from Maruti and sell aftermarket from their dealer. So the same thing we started with some other companies also like Tata has also — so this business will increase.

And the automotive market is increasing, there is only some drawback for a few months or one year, you can say because of chips problem. Now that problem is being solved, India is also going to make the chips. So I think it’s a matter of maximum one year. But however, we are not worried with because we are entering in many new models. Our business will automatically come.

Rishab Bothra — Anand Rathi Shares and Stock Brokers Ltd — Analyst

Okay. And lastly sir….

Operator

Mr. Bothra, I request you to come back in the queue. Thank you. We have our next question from the line of Deepak Lalwani from Unifi Capital.

Please go ahead.

Deepak Lalwani — Unifi Capital Pvt Ltd. — Analyst

Hi, sir. Thank you for the opportunity. Sir, for the PU plant, you mentioned INR7 crores for the quarter. So what ramp-up do you expect for the entire year? And similarly, if you could give the contribution of the Merck and Volkswagen business for this quarter and what do we expect for the full year?

Suresh Kumar Poddar — Chairman and Managing Director

See, that I can’t tell you immediately. You please write us, we will send you the details.

Deepak Lalwani — Unifi Capital Pvt Ltd. — Analyst

And sir, what gives you this confidence… [Speech Overlap]

Suresh Kumar Poddar — Chairman and Managing Director

[Speech Overlap] this year also, we suffered the business because of the chips. In between four, five months last year, it was like that they had to close down their factory, in some months for 15 days, in some months for seven days. But now, it’s improving in Europe also and South Africa also. [Speech Overlap] The advantage with Mercedes and BMW is the prices are higher at least 20% than USA. So actually turnover also increases and, you know…[Speech Overlap]

Deepak Lalwani — Unifi Capital Pvt Ltd. — Analyst

And sir, for ’24-’25, what will be the growth drivers apart from PU? Sir, what gives you the confidence that…

Suresh Kumar Poddar — Chairman and Managing Director

I’ve told you that it will be much better. It is very difficult now to say that this will happen. I’m very opportunist, and there is no doubt that the business is going to increase. There is no way out because [Indecipherable] there are now automotive industries are replacing genuine leather with artificial leather.

Now we are moving on to the PU business also. I mean there are two kinds of PU, one is what we are manufacturing in Gwalior, another is high-solid PU. Now the automotive industry are partly using PU in automotive industry is the replacement of genuine leather, right?

So fortunately, we are approved in Chrysler, on that PU also, which is $24. And here, the PVCs are $7.5, $8.0 or $8.5. I’m working very seriously on that also. Most probably from Thailand or Myanmar, Thailand, I think, we are going to get the orders because Chrysler has got their unit over there — supplier over there, who is making sheets for this material. And there are hardly any two or three manufacturers in the world of this kind of PU. And therefore, everybody was having monopoly. Now they are — everybody is interested with us.

Of course, we will give a little less price also, but still, it is very competent. I’m working very seriously on high-solid PU for automotive industry. Secondly, this SUVs, in the third row, we have started using PVC, even in the Mercedes and all those models, replacing leather.

And in general car also, in your sitting area and back area, they are using leather rest, they are using more artificial. So the artificial market will increase, and it is increasing, there is no doubt, especially in automotive industry.

And in footwear industry also, we have started contacting all the big models, those big names, big brands, which are sold in all over the world. We are in a very close contact with a few of them. That also, these things takes time, but the future is good because Mayur is not confined in one place. If you have to sell the better quality and the high prices, you have to go for these guys. And to going for these guys and then getting business and then starting supply, it takes time, but we are on that line.

Operator

Mr. Lalwani, I request you to come back in the queue. We have our next question from the line of Pritesh Chheda from Lucky Investment Managers Private Limited. You are requested to ask only a single question. Thank you.

Pritesh Chheda — Lucky Investment Managers — Analyst

Sir, what is the volume growth expectation do you have for ’23 for PU plus PVC leather combined?

Suresh Kumar Poddar — Chairman and Managing Director

’22, ’23?

Pritesh Chheda — Lucky Investment Managers — Analyst

Current year.

Suresh Kumar Poddar — Chairman and Managing Director

Current year. Last year [Foreign Speech].

Pritesh Chheda — Lucky Investment Managers — Analyst

This is PU plus PVC combined?

Vinod Kumar Sharma — Chief Financial Officer

Both. Both.

Pritesh Chheda — Lucky Investment Managers — Analyst

PU plus PVC combined. And after this PVC price correction, what is the expectation on realization change, if any, on the downside for us? So… [Speech Overlap]

Suresh Kumar Poddar — Chairman and Managing Director

Realization, it depends. And now the prices have started going down. The prices also, the resin price is also is going down. Fabric prices are stable or increasing. So the prices are coming down, we have also started reducing the pricing. So what we feel from current situation that within one year’s time, the prices should come to the whole situation if the things continue like this because there is a big sale problem also in the market.

Because of so much increase in the prices, the sales has gone down in a few areas. Like footwear, the sales are down compared to Q1, because the prices have increased so rapidly, I mean, between 30% to 35% price were increase on these times. So naturally it makes some difference, yes.

Pritesh Chheda — Lucky Investment Managers — Analyst

Okay. But with the mix change where you are going to supply on the export side, where it is higher priced, even Kia is higher priced, even Volkswagen is higher priced. Some total of all, do you see a price drop still or you don’t see a price drop? Realization drop, sorry, I’ll just clarify.

Suresh Kumar Poddar — Chairman and Managing Director

But why the realization will drop? Realization will drop means, main thing is the profit that how much percentage of profit you are doing. Suppose it was 30% increase, and when the prices decreases, your top line decrease, right? But — and still I am saying that in spite of this, the topline should increase 15% this year because already prices have started going down.

Pritesh Chheda — Lucky Investment Managers — Analyst

So volume growth will be — sir then the volume growth will be higher than the top line growth, right? I’m just clarifying. Let me clarify.

Vinod Kumar Sharma — Chief Financial Officer

Volumes growth will be higher than the INR70 crore. Volume growth, correct.

Suresh Kumar Poddar — Chairman and Managing Director

As I told, so many models are coming up, so volume will definitely increase.

Pritesh Chheda — Lucky Investment Managers — Analyst

Will be higher. Will be higher than your revenue growth?

Vinod Kumar Sharma — Chief Financial Officer

Yes. Yes.

Pritesh Chheda — Lucky Investment Managers — Analyst

Okay. This is enough sir. Thank you very much. Thank you, ma’am.

Operator

Thank you, sir. We have the next question from the line of Rohan Advant [Phonetic] from Multi-Act Equity Consultancy Private Limited. Please go ahead.

Rohan Advant — Multi-Act Equity Consultancy Private Limited — Analyst

Yeah, sir. Thanks for the opportunity. Congrats on a good set of numbers. Sir, just one question. In an answer to an earlier question on succession planning, you said that your son is back in the business. So just wanted to understand in what capacity has he joined and what are the key responsibility areas that your son is undertaking?

Suresh Kumar Poddar — Chairman and Managing Director

Right now, he is.. [Technical Issues].

Operator

Ladies and gentlemen, we’ve lost the connection of the management team, request you to stay connected. Please go ahead, sir.

Vinod Kumar Sharma — Chief Financial Officer

Yes, what was your question? Please repeat it.

Rohan Advant — Multi-Act Equity Consultancy Private Limited — Analyst

Yes. Sir, my question was, Poddar sir, in one of the earlier answers said, that his son is again coming to the office and is back in the business. So I just wanted to understand in what role has he joined and what are the key responsibility areas that he is looking at.

Suresh Kumar Poddar — Chairman and Managing Director

I told you that he has came back after a long time. First of all, he is observing. At least two, three months he will observe any area. And then I will start giving him one by one all the different areas. And to having that full control, it will take one to 1.5 years.

Rohan Advant — Multi-Act Equity Consultancy Private Limited — Analyst

Got it, sir. Good to know and all the best. Thank you.

Operator

Thank you. Ladies and gentlemen, due to time constraint, that was the last question of the day. I now hand over the call to the management team for closing comments. Over to you, sir.

Suresh Kumar Poddar — Chairman and Managing Director

Thank you all the investors for joining this call. And I can simply say that the future is good and which you can see. And if you have any further inquiry, anyone, please, you can write to my CFO, who will answer your questions. And I assure once again that future is going to be good. You will not regret buying Mayur shares.

Vinod Kumar Sharma — Chief Financial Officer

Correct. Thank you.

Operator

[Operator Closing Remarks].