Praj Industries Ltd (NSE: PRAJIND) Q3 2025 Earnings Call dated Jan. 31, 2025
Corporate Participants:
Shishir Joshipura — Chief Executive Officer & Managing Director
Pramod Chaudhari — Chairman, Non-Executive Non-Independent Director
Sachin Raole — Chief Financial Officer & Director, Resources
Analysts:
Nupur Jainkunia — Analyst
Mohit Kumar — Analyst
Amit Anwani — Analyst
Deepesh Agarwal — Analyst
Sani Vishe — Analyst
Prateek Poddar — Analyst
Shailesh Kanani — Analyst
Aditya Mongia — Analyst
Vikram Suryavanshi — Analyst
Shyam Maheshwari — Analyst
Manish Goyal — Analyst
Prathamesh Sawant — Analyst
Abhijeet Singh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Praj Industries Limited Q3 and Nine Months FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms Nupur Jain Kunia from Valorem Advisors. Thank you and over to you.
Nupur Jainkunia — Analyst
Thank you. Good afternoon, everyone, and a very warm welcome to you all. My name is Nupur Jain Kunia from Valorem Advisors. I represent the Investor Relations of Praj Industries Limited. On behalf of company, I would like to thank you for participating in the company’s earnings call for the 3rd-quarter and nine months ended on 31st December 2024. Before we begin, a quick cautionary statement. Some of the statements made in today’s earnings conference 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 beliefs as well as assumptions made by and information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today’s conference call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. Now, I would like to introduce you to the management participating with us in today’s earnings call and hand it over to them for opening remarks. We have with us Mr Joshipura, CEO and Managing Director; Mr Satchin Rawle, CFO and Director, Resources. Without any further delay, I request Mr Joshu Pura to start with his opening remarks. Thank you, and over to you, sir.
Shishir Joshipura — Chief Executive Officer & Managing Director
Good day, everyone. I’m very happy to share with you that apart from Sachin, I also have — we also have on the call our Chairman, Dr Pramod today on the call and I welcome you to Praj Industries earning call for the quarter three and the nine months for FY ’25. Trust all of you had to go through our results for the quarter ended 31st December 2024.
Let me start with a very exciting news. Indian Chemical Society earlier this month presented the award to Dr Pramod Chaudhury on the occasion of the century of chemistry in India and we are all very proud that he is a recipient of this honor from the Indian Chemical Society. The dynamics of business environment is changing at a rapid pace driven from geopolitical developments, volatility and uncertainty in the global economy and ability of different economies to respond to these changes.
Our performance this quarter reflects the resilience of our business and strategy. All our strategic initiatives are progressing as per the plan and it is reflected in the growing order book with increased share of international business over the last 3/4. This quarter saw share of international order book at 40%. Our order book at this quarter also is the highest over the last 3/4.
On the domestic bioenergy business front, the EBP20 program is progressing well and the country is expected to achieve 18% blending during ongoing ethanol supply year ’24-’25. Praj is focused on enhancing value for the customers and as part of this effort, we have enhanced our focus on developing core products, which has resulted in development of, distillers, corn oil, rice protein, et-cetera as solutions. These core products will significantly alter the financial viability of bioenergy projects. These patented technologies will significantly differentiate in the market and create unique sustainable competitive advantage.
Last month, the Honorable Minister of Road Transport and Highways, Srinitin inaugurated India’s first national highway as the Nakpur Mansar bypass project NH44. This highway was constructed using technology-based biobitamin which has the potential to replace fossil-based bitumen while enhancing the financial viability of the bioenergy projects from agri-waste from which where agri-waste acts as a source of feedstock for production. We are witnessing starchy feedstock-based projects dominating the ethanol space.
Moving to the liquidity challenges and financial closure of these projects is taking longer time, leading to extension of average execution cycles moving from 12 months-to 16 months and beyond. In August ’24, the government had lifted restriction on use of cane juice, cane syrup and B-heavy molasses for ethanol production. During this quarter, there are two more positive developments in form of upward revision in the price of ethanol produced from sea heavy molasses and availability of FCI rice at reduced rates.
On the international bioenergy front, there is strong buildup of inquiry pipeline. Amongst important developments, the USA has permitted year-round sale of E15 in eight Midwestern states. Brazil has already passed the fuel of the future law, increasing ethanol to 30%. Argentina and Panama have announced their plans to increase their blending. These developments will create capacity in these markets and we are all well-positioned to participate in these opportunities.
During this quarter, we won a significant contract from a customer in Tanzania to set-up ENA plant-based on sugary feedstock. SaaS is developing rapidly and favorably. We expect ATJ Pathway to become preferred long-term solution in major parts of the world. This augurs well for driving demand for low-carbon ethanol solutions as well. On CBG front, respective boards of Praj and DPCL have given approval for formation of joint-venture, which will set-up CBG plants across India. The CBG ecosystem is developing positively with healthy buildup of inquiries expected to translate into firm business as we move forward.
This quarter, we received a very interesting order to set-up a CVG plant to be co-located inside a gas field. Our service business is witnessing healthy growth in order book and revenue from both domestic as well as international markets. Our order book for nine months for FY ’25 stands 80% higher than entire last year. We are witnessing increasing interest from our customers for solutions such as Biogenic CO2 capture, fermentation process management and O&M services.
On the SaaS front, the dialogue on accelerating cash production and deployment is developing constructively with all stakeholders. The International Civilization Organization invited to contribute as industry expert for the recommendations being drafted to enable a positive conclusion for the dialogue. Praj is further participating in the ICO symposium in Dubai plant next month. Moving on to engineering business. The facility is now fully ready with a total investment of over INR200 crores in capex and almost INR80 crore YTD in form of operating expenses.
The land acquisition and readiness of the facility was delayed by nearly two quarters, which has impacted the plant business activity for the GenX business in the current year. The order book for execution from this facility is expected to start building from this quarter, while revenues will start going-in from H2 of FY ’26. Our liquid — zero liquid discharge business is also gradually gaining momentum with increasing acceptance of our mobilized solutions. We are working on several innovative technological solutions, which will help us in offering a completely differentiated solution to customers in near-future.
Business after a long pause, the segment is showing some early signs of returning to capacity creation and we expect the movement to strengthen in the next financial year. The PHS business, our efforts of international and expansion as well as expansion of product basket is gaining momentum and we believe a healthy order book buildup as we move forward is a reality. Overall, we see a positive development for all our business lines and we continue to remain confident and committed to our long-term goals. I now have the honor and pleasure of inviting Dr to this year.
Pramod Chaudhari — Chairman, Non-Executive Non-Independent Director
Thank you, very good afternoon everybody. Let me share some of the important developments on the leadership transition at Praj. As you all know, we are embarked upon ambitious growth program for next five years, wherein we are aiming to grow the company three times in top-line and five times in the bottom-line. She has been steering for last seven years and now he is supermitting on 30th June 25.
With a smooth transition and succession planning for key provisions our Board has since meeting yesterday has approved the appointment of Mr Anish Ashish Gaikwar as Managing Director of Designate for a period of five years from 3rd February. Ashish bring wrote 34 years of professional experience in personal industry, digitalization and automation and in space with other global leaders. As flamed by, all preparations are going on and we are quite confident that this aberration of this quarter will be taken over by normal growth business from the coming period. Thank you for your patience and God bless you. Thank you.
Shishir Joshipura — Chief Executive Officer & Managing Director
Thank you, sir. I now invite my colleague, Sachin for his comments on the financial performance.
Sachin Raole — Chief Financial Officer & Director, Resources
Good day, everyone. Let me take you through the financial highlights for the quarter and nine months ended 31st December 2024. The consolidated income from operations stood at INR8.53 billion in Q3 of FY ’25 as compared to INR8.28 billion of quarter three of last year. PBT stood at INR588 million as compared to INR919 million in-quarter three of FY ’24. Similarly, profit-after-tax stood at INR411 million in-quarter three of this current year as compared to INR704 million in-quarter three of last year.
As mentioned earlier, demand radios of facility has resulted into lower revenue for our engineering business in this quarter. The lower-margin during the quarter was mainly due to the change in the sales mix. The change — the change in the sales mix is on account of lower export order execution and some engineering services order, which has resulted into the lower-margin for the current quarter.
If you compare the margin for nine months FY ’25, it is almost higher by 500 basis-points as compared to nine months of last year. Higher finance costs, depreciation and amortization expenses are on account of the new facility at Genix in. For nine months FY ’25, income from operations was INR23.7 billion as against INR24.4 billion in nine months of the last year. PBT stood at INR2.1 billion as against INR2.5 billion in last year’s nine months. PAT of INR1.8 billion in nine months of FY ’25 as against INR1.9 million billion in nine months of the last year.
Export revenues accounted for 21% in this quarter and on the total revenue, 73% is from Bioenergy, 18% from engineering business and 9% from PHS business. The order intake during the quarter was INR10.5 million with 60% from the domestic market. Of the total order intake, 77% came from Bioenergy, 77% from engineering and balanced 6% from PHS business. The order backlog as of December ’24 is at INR43.5 billion, comprising of 75% of the domestic orders. Cash-in hand as on 31st December is INR6.4 billion. I now conclude my remarks and I would like to thank you all for joining us on this call.
We would now be happy to discuss any questions, comments or suggestions you may have.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to withdraw yourself from the question queue, you may press R&2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take our first question from the line of Mohit Kumar from ICICI Securities. Please go-ahead.
Mohit Kumar
Yeah. Thanks for the opportunity. So good to see pickup in the order inflow. But my question is, it seems like the domestic ordering is still weak as far as bioenergy is concerned, it is international order, which are driving it. How do you think about the domestic order opportunity as we enter Q4 and FY ’26, given that we are very close to meeting our blending mandate of 20%.
Shishir Joshipura
Thank you for the question, Mohit. So we have stated as part of our long-term strategy that we would like to move to a mix of 50% from domestic and 50% from international. Now that is the share — percentage share of the pie, but the — each pie size is expected to grow. So we are not saying that this international business comes at the expense of our domestic business volumes. What we are saying is that as we grow, we expect to grow — the international business to grow at a much faster pace compared to where it is today.
And therefore, when we reach the 2030 situation timeline, we will be in a position to have a 50-50 split between the two. This is done with lot of thinking. We are a global — globally operating company. We — as I mentioned in my remarks, there are several governments in the international arena which has realized the importance of bioenergy and they are enacting laws in their countries, they are creating an ecosystem, they are pushing for inclusion of higher share for bioenergy in their overall energy mix.
We cannot having built a very, very strong base, as you are probably aware in over 100 countries there are 1,000 installations that is built over the last 40 years. It’s very, it’s but natural for us to go and leverage that opportunity. Apart from that, we have also worked on several dimensions of technology development in this particular space, which we can now actually take to the world because the technologies that we have developed are really benchmark technologies in respective space.
So given this disposition, I would say that there is no — we are not looking at shrinking any business. We are only growing, but obviously they are growing at different paces, but both the business is domestic as well as international.
Mohit Kumar
Understood, sir. My second question is, it has been a while that we have received the CVG orders. I think we received something last fiscal. In your opinion, do you think the CBG ordering will pick-up now? Now and how has been your experience in executing the first set of orders, which we won last year?
Shishir Joshipura
Yeah. So you’re right that the CBG ecospace is developing at a little differentiated pace space and that is leading to a situation that we don’t have a continuum flow. That’s the way we saw it on the earlier opportunity in the liquid biofuel side. But we are not a gas economy. So there are elements which need to — the interconnectivity elements, the retailing, the dfferent dimensions that come into play, that have to happen for the thing to become a very mature ecosystem.
I think what we have to understand is that this is a developing ecosystem and therefore there likely to be some time what I would call as a — not a uniform flow all across that will take some time to happen. Having said that, the four projects that you mentioned that we had announced last year are under-construction now and we expect them to go into commissioning phase towards the first-quarter of next year. That’s the plan as well. So that’s what will happen.
The contract that I mentioned about this particular quarter is a unique because here the feedstock is going — the plant is located in the — in middle of its feedstock. So the feedstock has no logistics of bringing from outside, it will be grown around the plant and then we fed. So it’s going to be very interesting because it does give a unique opportunity to design the plant differently, create a very different kind of footprint on both water and energy and we are very — we are very, very excited to work on this opportunity.
Mohit Kumar
Sir. Thank you, sir. Thank you and all the best, sir. Thank you. Thank you all.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to answer queries from all participants, please restrict your questions to two at a time. You may join back the queue for follow-up questions. We’ll take our next question from the line of Amit Anwani from PL Capital. Please go-ahead.
Amit Anwani
Hi, sir. Thanks for taking my question. My first question is on the GenX facility. You highlighted delay. So just wanted to understand earlier where we were building in revenue contribution from H1 FY ’26, what led to the delay? Is it the customers who are delaying — giving you the orders? And second is, what is the quantum of order book will be building in next three, four months for which the revenue is going is expected in H2 of next year.
Shishir Joshipura
Yeah. So Amit, what Sachin mentioned and I also mentioned in my remarks was the fact that the land acquisition and construction of the facility took six months — roughly six months more than what we had planned and that is and unless in this business once the facility is completely ready then the customer teams do a very, very detailed audit of the facility they give their comments and remarks and there could be a follow-up on it as well.
In some cases, before they approve the facility for the utilization as a manufacturing base. And that process of — unless this process is gone through, there is we cannot start producing anything in that facility. So just for example, sake and I’m just giving this to invest at the point. So Prad may receive an order, but unless Mangalore is approved facility, we cannot produce it there unless it is approved for that particular customer. And then we’ll have to produce it at a location where it is already-approved.
So for example, can’t line this case. So that is the process that we are going through now. And as we mentioned, and these are large contracts, so they take — that decision period is slightly longer. But not only that, their execution cycle is longer. So therefore, we mentioned that we expect that over the next six months, the order book will start to build for that facility because now we have approvals from — and from the customers who we have targeted that they should be able to move from there.
Yes. And then we will be able to move forward as the order book — because the pipeline for inquiry already exists, we are already in dialogue with customers that will start to move. And the readiness of the facility is not only about leveling the land and building the sheds and putting the machines inside. But after we do all of that, we also have to go through a series of certifications which are required from international agencies like the ISO certificate, the ASME certifications, the EN certifications because these are necessary for us to start work or even present our case to our customers saying we have this facility which is certified so and please allow us to use this.
So that’s the stage that we’ve gone through now. And now we are very confident that as we move forward, we start to see the change there. But till that time, we actually start to have revenue from there. As Sachin keeps reminding me, this is — there is expense that is required on this facility, both in terms of depreciation as well as the team that we have built there and all the expenses that we are associated with the facility. So that will happen till the time we actually start. So there is no revenue recognition right now from that facility. But as I was mentioning, over the last nine months, over INR80 crores is the spend that we have on the revenue side for this facility.
Amit Anwani
Sure, sir. But any thought on what could be the revenue contribution in FY ’26 from here?
Shishir Joshipura
No, I — it will not be proper for me to give you a percentage of revenue because then I’m saying what my next year’s revenue is then and that’s the guideline that we do not provide.
Amit Anwani
Yeah, sure, sir. And this expense will this continue or will this further increase the INR80 crore YTD at the run-rate of, for example, INR25 crore INR30 crores. So for the next three, four quarters, will this further increase or
Shishir Joshipura
Amit, we will definitely be having expenses coming up in the current quarter also, maybe whatever the proportion takes places are to be incurred for this quarter. Next year, rather expenses will grow, of course, but in-line with the revenue which is going to flow-in also. So it is not that only expenses are going to grow, but we will be seeing revenue also flowing in the next year. So we believe that the low of these expenses which we have seen in the current year will get up to a reasonable extent may look down in the next year.
Amit Anwani
My last question on the US now, since the regime change has happened and we were actually looking for the — under inflation reduction and opportunity for SAF? And also I believe, I think the engineering business to some extent catches to US. So any change in that pipeline, which we were highlighting for SAF in US and any change in your five-year vision post the regime change in US because we are largely focusing on increasing the exports drastically and the drastic changes have happened in the US with respect to the spending in renewables.
Shishir Joshipura
Yeah. So I mean, Amit difficult for us to predict the future with respect to the policy dimensions in the US government. But what we are — what we believe is there is a very strong focus, as you rightly put on jobs that get created locally in the local economy in the United States. And actually, if you go to see when we will build a project for, we will actually be building jobs in United States because any facility will call for people to be employed and deployed, but also not only that, even the feedstock chains are local, supply chains are local, so that will also create.
So this — from whatever we understood so-far and I’ve been speaking to our prospective customers, they have all mentioned to me that they do not expect any difficulty because their projects are based on the fact that in the US Midwest they will be able to provide not only investments, they will bring jobs, they will bring push to a local economy, they will provide additional food to the local farming community. So from all those perspectives, I think they believe that they are in a positive territory even with the regime change that has happened in United States.
Amit Anwani
Sure, sir, thank you so much. Thanks.
Operator
Thank you. We’ll take our next question from the line of Deepesh Agarwal from UTI AMC. Please go-ahead.
Deepesh Agarwal
Yeah, good afternoon team. Sir, my first question is on the RCM in — for PLA and, when should we look at ordering opportunity opening up and what would be usually the size of the orders which can come up from there? And apart from these, what is the progress on the other biochemicals which you were developing in the RCM.
Shishir Joshipura
So in the biopolymer and RCM space that we mentioned, we have progress dialogue with a significant number of customers on what can we do to help them establish a facility for PLA. That is a dialog that is currently underway with many, many number of customers, both in India and abroad. So our demonstration of capability and technology has actually enticed a lot of interest from the prospective customers. So that’s a dialog that is underway right now.
There is no conclusion as of yet, but this is a new technology for a very new area and therefore the gestation periods are longer because dialogues are obviously longer as well. In terms of biobitamin, we believe that this demonstration that we have done actually showcases the fact that we can create a high value-added product from a waste stream in a in a project, especially the ones where feedstock is rich agriculture feedstock.
We believe that as we move forward through the next 12 months, we will be able to see because this is a — this is a product that could financially alter the financials of the project very positively. And therefore, we expect that this has already created a lot of interest from existing people who are running CBG projects and of course in the new projects as well.
So — and this also solves one of the key, what I would call as challenge areas for these plant operators because this treats the very differently and creates — the government has already announced honorable minister mentioned support for biobitamin because we are currently importing 50% of our bitumen. So from all dimensions, this is something that will develop very, very positively.
Deepesh Agarwal
And any estimate even if say 20% 25% of the requirement moves to, what could be the ordering potential over the next few years for us?
Shishir Joshipura
So slightly early days for us to start pushing these numbers out. We are — because it is — this is an application-oriented product. So we are — it’s not just that you just producing, this has to be also developed for the application and we have done that. We have demonstrated the application. We have — we have showcased how it can be done. So probably in three months’ time when we meet again, we’ll be in a position to answer this question much better to you.
Just if I remember my number correctly, India will need 50% of its bitumen to be imported. Today, we do import that. And this will become a substitute. This is also not a 100% substit for. This is when you make the road, you need different elements to go in. There are polymers that go to provide certain characteristics and quality to the road. There is a quality of bitumine, there is a grade, there’s temperature conditions, multiple dimensions. That’s — but what’s exciting for us is we have a product-line that can go and meet all of these conditions at differentiated numbers. So we will be in a position to talk about it in more detail three months from now.
Deepesh Agarwal
Sure. And any kind of color you can give us on the capital commitment, which will go in given your tie-up with BPCL and IOCL in a JV form?
Shishir Joshipura
We had to still work it out because right now the Board has given an approval, both the Boards have given an approval for signing the term sheet, which will get converted into definitive JV agreement in the near-future. As we progress on that, because we are currently working on how many plants can come up under this JV, how many different feedstocks to be considered. So all that working is right now going on.
Depending on the number of projects which will come under this JV, the capital structure for this JV and the capital commitment from both the entities will come into the picture. So it is the first step which has happened for converting the dialog into a term sheet. And when we progress to the final signing of the JV agreement, all these elements will come through. So it’s just a matter of next three, four months as the work is already progressing on developing the projects for this JV.
Deepesh Agarwal
Fair to understand the — whatever the plants will come up there, a major portion of that opportunity will flow-through Praj.
Shishir Joshipura
So this JV has two elements, one naturally for offtake of this dance by BTCL and the technology to be provided by Prash. So yes, otherwise why there should be a JV from side. So we are entering into this JV to offer our technology.
Deepesh Agarwal
Right. And lastly, while I understand you mentioned in the beginning of the call during the quarter, there was a mix impact on margin. But fair to understand the margins which you were reporting over the last four quarters, those kind of margin, which works out to a roughly 12-ish percentage, that could be a margin we should look-forward as and when the mix normalize.
Shishir Joshipura
So Dipesh, the margin has not because there is an increase in the material cost. So the impact which I could have said that, oh, this impact is going to be forever is not going to be there. It’s a — it’s going to be always aim of what kind of a composition of sales is going to be and that we are repeatedly seeing every quarter that the margin is going to be dependent on what component of order we are executing. So we are not saying that there will be reversal of margin just because this quarter we have seen in the margin. On the year-end basis, on a cumulative basis, we definitely believe that our margin will show a positive trend as compared to the previous years.
Deepesh Agarwal
Okay. Thank you.
Operator
Thank you. We’ll take our next question from the line of Sani Vishay from Axis Securities. Please go-ahead.
Sani Vishe
Yes. Thank you, sir for taking my question. So I’m just trying to understand that as please say as appears to be an aberration of a quarter.
Operator
Sorry to interrupt, Sunny, can you handset mode, please? Your audio is not very clear.
Sani Vishe
Just bit. Hello. Yeah. Yeah. So is it better?
Operator
Yes, please go-ahead.
Sani Vishe
So I was trying to understand that as said, this appears to be an aberration of a quarter. So the delays that have happened this quarter, do you expect it to push other deliveries in the next quarter for the or downward, can we see an incremental delivery within the next quarter? In other words, can we expect revenue run-rate to normalize from Q4 or can we hope to have a better than usual quarter next one and then normalize from Q1 FY ’26 onwards?
Shishir Joshipura
So if you look at the reason which we have mentioned for the lower revenue during this quarter, we believe that there will be some impact in the next quarter too, because we have seen delays in the Genix orders coming up by almost two quarters. So we will see some impact naturally happening in the next quarter also. That doesn’t mean that other businesses revenue booking is not going to happen. But are we looking at complete reversal? For that, we said that FY ’26 is the one where we will see the order booking which is going to get reflected from this quarter in this engineering business, which will start flowing in the form of revenue from the next year then.
Sani Vishe
Okay. Okay. Understood. Thank you. Thank you.
Operator
Thank you. Next question is from the line of Prateek Poddar from Bandan AMC. Please go-ahead.
Prateek Poddar
Yes, sir. Just two questions. One is on IRA 45Z benefits, right, with IRA being almost.
Shishir Joshipura
We can’t hear you.
Prateek Poddar
Hello, am I audible? Yes. Hello. Am I audible, sir?
Operator
Yes, please go-ahead.
Prateek Poddar
Yes. Just on IRA 45Z, the benefits and incentives for ethanol producers, do they still stand after the IRS being repealed or how should we think about that? And in that context, how should we think about the ATG route, ATG route NSA production?
Shishir Joshipura
Yeah. So the 45Z provisions, there are two dimensions to it. In fact, and Sachin was talking, it’s about it today morning only. One is the tax credits that are available, should they be available to ethanol producers or should they be available to SAF producers? That’s the big debate. And then after some discussion, it looks like that they are most likely to be available with SAF producers.
What it fundamentally means is that ethanol meant for production now in what proportion it gets divided between the two between the ethanol producer and the SAF producer is a matter of an arrangement between two of them. But the tax credits are likely to be available — most likely to be available for SaaS production. That’s number-one. Number two, the SaaS story is still intact. It’s an international agreement that is in-force that will come on January 27 and will start to play-out from there.
As I mentioned, we have been — we are also a party two dialogue with ICAW. So we know-how these things are shaping up in terms of its positive moving forward and development and deployment of a common minium program for the international flights. So we do see — and also the fact that from a US perspective, since your question is very specific to US, it creates a very unique opportunity for Midwest and United States to actually see growth in farming opportunity as well as in the industrial opportunity and create local jobs. So these three are fixed as far as SaaS projects are concerned in United States and therefore, it’s likely drive — continue to build positively as we move forward.
Prateek Poddar
Okay. Perfect. The second question was, sir, we have seen an increase in the engineering orders this quarter versus last. Given that GenX was delayed by three, six months, which you called out, is it fair to understand that from here on the orders will only increase? And in the next year, the proportion of engineering orders will be higher than what we will exit at in this quarter.
Shishir Joshipura
That’s the perfect understanding, Pathi.
Prateek Poddar
Okay. Fantastic, fantastic. And sir, just lastly, you talked about Jan 1, 2027 being the year for SAF and the story being intact. That would mean that the inquiry pipeline starts building up, right? That’s a fair understanding?
Shishir Joshipura
Yes. So from — we don’t know the — what is likely to be mandated in different countries, but what is definitely mandated is that the international flights will have to move on that path of using. What happens domestic side, each country is providing its own treatment to this in terms of what they want to mandate in their respective geographies. So that’s a separate thing, but the interest is definitely, yes.
Prateek Poddar
Perfect, sir. Thank you so much and best wishes for the future, sir. Thank you.
Operator
Thank you. Next question is from the line of Shailesh Kanani from Centrum Broking. Please go-ahead.
Shailesh Kanani
Good afternoon, everyone. Thanks for the opportunity. Sir, sir had in the opening remarks, said that we maintain our guidance of 3x in revenue front and so it’s not just this quarter, but we have seen some muted revenue performance for last two years now. So can you just highlight some key milestones or monitorables for us, which we — we think we need to watch out for?
Shishir Joshipura
So Shailesh, I think what PMC mentioned was the fact that when we issued the guideline of INR10,000 crores that is 3 times growth in top-line and 5x in bottom-line of 2030, that is intact and that’s not changing. We are very confident and committed that will happen. As a company, as a team, there is absolutely no reason for us to believe that there is any other story. That’s number-one. Number two, in terms of markers, as I said, one of the key strategic initiatives that we undertoo for this purpose is to say how do we grow our export order book and that as you can see is already moving in the right direction. So that’s one clear indicator for you, whether things are happening or not happening. That’s number-one. I think already somebody asked me question and I’m talking now not next quarter perspective, but little longer-term perspective in terms of how the SAF opportunity develops for us and we are very, very confident that it will develop very positively as we move forward. And probably if not the next year or the year-after we’ll definitely see SaaS plants coming to life in several parts of the world. So that’s the second one. The whole — then we have discussed other things about CPG, biovitamin, I also mentioned the several initiatives that we have taken to actually start differentiating us in the domestic ethanol market as well. So as we start this journey from here onwards, I think the two dimension change that I see, one, very clearly, as we mentioned, customers will look for enhanced value of their operations, which is where the core product development, the new technological innovation that we are talking about will all start to come and play and will differentiate. And as at a global level, as we move forward, I think the carbon intensity of ethanol will start to become an important issue and that will also create a set of opportunities for us.
Shailesh Kanani
So sir, just sorry to hark on this, but because we have seen consistent delays in most of the molecules, be it SAF, bleeds, EBC. So that is the reason I was wondering, okay, any near-to-medium term? I understand not 1/4 or one six months, but in general, any monitorable key for us to watch out because there has been some delay, as you also mentioned in the earlier remarks that CPG has not picked-up as we were expecting. So just was wondering on that front.
Shishir Joshipura
So I think — so on SaaS, we have maintained that first 37 is the first time it kicks-in as a regulation across the world and there is no change in that date for SaaS mandate to be implemented. In terms of CBC, yes, as I mentioned, India is not a gas or was not a gas economy. We were more a liquid and solid fuel economy so the whole infrastructure development, the rules and regulations the last mile connectivity, number of issues that have to be taken care of, and I think that’s being addressed expeditiously by all concern. But yes, we are not ready, so they have to-be-built ready and that takes away some of the time. But I believe that as we go through the calendar year, we will start to see a very different kind of interest positive interest developed into CBG space is that.
Shailesh Kanani
That’s helpful. Sir, on CBG front, just to dissect it more, what is our current offerings in terms of feedstock like or various other feedstocks which we are kind of offering to clients? And as per your understanding which feedstock would pick-up initially and which would be coming in later half of the old CBG 5,000 odd or 2,500 plants, if you can throw some light on that.
Shishir Joshipura
Okay. So to keep the answer very simple, as of date, we are able to handle all feedstocks except that we are not offering solutions for NSW. Other than that, if there is a feedstock, we have a solution, whether it’s agri-based feedstock, industrial, organic waste, chicken per farm based, whichever the waste sources are. So I kept answer simply rather than give her list of all the feedstock that we could do, I’m saying the only feedstock we are currently not addressing is MSMU. That’s number-one. Number two, you asked about the fact saying how will this whole ecosystem develop around feedstocks and which is likely to be more preferred from the looks of it as of date. So initially the continues to be a feedstock that I think we’ll start acquiring prominence as we move forward from the sugar mix perspective as well. That’s number-one. Number two, grass is increasingly becoming a very preferred feedstock and that is where I mentioned that our solution and of providing biobitamin as a co-product out of processing of natural grass-based plants. It is also true that we can do this for other agri waste-based plants that will come up for CBG. From their waste treatment, we can create the biobitamin stream. But nature grass seems to be a preferred choice for many because of its own properties that you can get four crops in a year, you don’t need to store it for the whole year, etc, etc. So there’s some positives in its favor. So we believe Naple grass will be feedstock of choice. There is rice straw, of course, in the country we, we, we believe that these three will become the key feedstock as you address grass and.
Shailesh Kanani
And our offerings are — means in the top in terms of yields and other things for the client, right, in this?
Shishir Joshipura
Yes, yes, absolutely no question.
Shailesh Kanani
Sir, just one last question, one more last question. We had this budget announcement where there was some support for CBG plants and some allocation was done. Any update on that or any expectations from the budget what we are having? That’s all from my side, sir. Thank you.
Shishir Joshipura
No. So obviously, as I mentioned that the whole ecosystem is not mature because we are not a gas economy. So that’s under development is moved a lot from where it was, say, five years ago. So it’s moved significantly upwards. It’s not like a liquid biofuel ecosystem that is very, very mature. So it has some distance to go. But I can clearly see a lot of steps being taken, plus this new model that I talked to you about where the plant is located inside the feedstock area in the field that addresses many issues of which currently the industry is facing and allows a lot more flexibility. So I think that could also become a model of the future. We’ll have to see how that model progresses as we move forward.
Shailesh Kanani
Okay, sir. That’s helpful. Thanks a lot and best of luck, sir.
Operator
Thank you. We request participants to kindly restrict to two questions at a time. We’ll take our next question from the line of Aditya from Kotak Securities. Please go-ahead.
Aditya Mongia
Thank you for the opportunity and I move on my questions. So the first question that I had was more from — on the change at the hen that has happened at this point of time. If there’s a job, you could kind of chip-in and give us a sense as to what — what’s the thought process or whatever the pyramid has been thought through with the new candidate on it.
Shishir Joshipura
Aditya, can you use your handset mode, please?
Aditya Mongia
So on handset, is it a problem right now also?
Shishir Joshipura
No, now it is clear.
Aditya Mongia
Sure. No, so the question that I had was for Mr Chaudhury. The question that I had was, of course, this is an important transition happening at the CEO level. What were the important levels thought through while kind of thinking through the right candidate and how to kind of think through incrementally from a strategy perspective? That’s the first question that I had.
Shishir Joshipura
Aditya, maybe that’s a little detailed question because it will need us to illustrate some things for you as to where the business today is and how we want it to move, what are the likely interventions in future. So we happen to be in Puna, P&C says happy to dialog with you.
Aditya Mongia
Sure. Understood. And the question that I had beyond this was more on the CBG front. As we understand right now, it’s at a very nascent stage and lot of equipments are being imported today. But I wanted to kind of seek your guidance on, A, what are the prospects of that further cost reductions that can happen over here? And B, does it lead to Praj entering into adjacent revenue streams such as manufacturing of equipment today may be imported from outside?
Shishir Joshipura
Okay, so just to confirm to you we don’t need to import anything today for CBG you can import but you don’t have to import, if that was your question. So that’s number-one. Number two, the CBD business is interestingly developing into a very, very, very different dimension. So it’s no longer a single molecule business. It never was. But we earlier thought that, okay, there is CPG and then there is solid fertilizer that will come and now so that’s number-one.
And now we are — as I was mentioning earlier as well the solid fertilizer comes out of each processing of the feedstock, especially the ones that are in which is the grass, rice straws, other grasses, other straws, these feedstocks. There if you create a solid fertilizer and use very ballpark numbers here. The typical operating margin that plant will get, plant owner will get on the solid fuel fertilage of order of INR4 kilo of production of fertilizer okay against that if you convert instead of fertilizer you convert to using our process the margins can multiply 5 folds or even more.
So very different ecosystem that will emerge where it will become like — and we’ve talked about it in our different forums as well saying the concept is of multi-product, multi-field and multiproduct at the other end. So we manage multiple feeds. We manage multiple products at the end line, as core products, as main product-line. And the idea is to ensure that every waste stream that comes out is valid. So that’s the second dimension.
The third is, as I mentioned, this new plant type of plant where the plant is located. So normally water plants have been built so-far. They are not in the middle of their own feedstock area. In the sense, the field — fields are distant, maybe 20 kilometers or 30 kilometers, whatever the distance is. But now we are talking about plant located inside the field.
Now that is very different connotation because that allows you to create a very low water footprint, very-high rich water nutrients going back to the to the land. So there are many positives around it, which we believe could actually help to further enhance the attractiveness of these plants. So this is the first project that we have — we have just received the contract for. Of course, it takes 12 months-to build one. But that is something which is — which is very, very exciting development in this space and we will see how that develops.
Aditya Mongia
Sure. And just a question.
Operator
Given the response that you have to join back the queue, please as we have other participants waiting.
Aditya Mongia
I just had one question by the way, if I can. It is just a follow-up question to this one. Even I can fall-back into the queue.
Operator
Thank you. Please go-ahead.
Aditya Mongia
Thank you. As in just on the response that sir, you have given on CBG, when you think about Rajesh capabilities in this domain and that includes byproducts as well. So is going and becoming, let’s say an owner of the plant or developer of the plant a better way to monetize those capabilities or do you think the same level of monetization can happen even as an EPC player? And your sense of how much money then you may be willing to kind of put inside this venture?
Shishir Joshipura
So I would just say two things. Obviously, as a technology and equipment supplier, there is a margin that we — or a fee that we get for giving those services and products to a project developer. But the fact that he is putting a project means he further makes money on that. So from that perspective, it is — otherwise there is no project, right? What’s critical to understand is there are essentially four elements to this whole thing. One is the feedstock part of feedstock supply-chain. The second is the plant that converts the feedstock to these products and gas. And the third is offtake that is required to happen and of course, force is operation of the overall system.
So from that perspective, I think each player in the value chain would definitely if they add value they will be capturing some part of it for themselves some they’ll pass-on to their customers in the chain. So yes if we do become producers as well, then there is an additional play, but then there are additional capex, there’s different dimensions that sort of flow-in. And we believe that getting this whole ecosystem off its to its potential will require a lot more collaborative work between supply chains, between technology providers, operators and the gas offtaker. So by itself, there is no one model that fits-all.
Aditya Mongia
We will discuss this more later on, but thank you for response on this one. Very useful. Thank you.
Operator
Thank you. We’ll take our next question from the line of Vikram Suryavanshi from PhillipCapital India. Please go-ahead.
Vikram Suryavanshi
Yeah. Good afternoon, sir. Can you update on how is the progress on other 2G projects in India and particularly, we were expecting good traction from Europe and international market, but obviously because of the geopolitical situation that was deepered. But going ahead, how that outlook looks now.
Shishir Joshipura
So Vikram, two things I will say. One, that we are we are moving forward positively on commissioning of the IOCL project, which is important and it’s a step-wise process. Process so that’s happening which is the good news. We will also see the few other projects in the country go on-stream in due course during this calendar year. That’s another positive development that will happen.
We are also beginning to receive inquiries from different quarters because what-if you remember earlier, I had mentioned about SaaS being one of the drivers for a need for a low-carbon ethanol and 2G obviously fits that build perfectly well. So we are beginning to see a what I would call interest emerge on this space as well. As you rightly said, in the geopolitical situation has actually led to some delay or differing of these projects that were earlier on the NVID. But we are still in constant dialogue with them and I’m very hopeful that as we pass-through this calendar towards the latter half of this year, we’ll start to see a revival of those as well.
Vikram Suryavanshi
Got it. And in terms of bioplastic, we have seen some states are already announcing the policies, but a lot was expected from the central government. So how do you see that space evolving? Will it be more on like a state government pushing for the capex or we expect even central government can come out with the policy to fixtart.
Shishir Joshipura
The way we look at it is that I think it’s a very welcome thing that the state governments are taking lead-in providing the incentives for this very, very important technology for mankind. And I think that’s very positive development. But globally also there is a requirement to create a common understanding of treatment of plastics, what do we want to do, what’s the availability, how do we move forward. And there is a lot of very, very constructive dialogue that is taking place right now, United Nations is taking lead to create a common standard for all countries.
There are many dimensions to this plastic thing. It is an essential part of our life. It’s not going away, but can we make sure that it does not leave a harmful footprint and that’s what is driving all these actions. That’s where we are today. We don’t — I think we will see as time progresses, very constructive development on these sides as well as you mentioned, we expect national governments across the world to actually start thinking in terms of what they want to do to address this problem. In the meanwhile, the state government initiatives are obviously very welcome.
Vikram Suryavanshi
Got it. Thank you very much.
Operator
Thank you. We’ll take our next question from the line of Shyam Maheshwari from Aditya Birla Mutual Fund. Please go-ahead.
Shyam Maheshwari
Yeah. Thanks for the opportunity. I had a couple of questions, sir. So firstly, on the engineering side and I know you alluded to it. But if I look at our inflows, except for the last two quarters as well, we were averaging anywhere between INR250 crore and INR350 crores quarterly inflow. While our Kanda facility is still operational, I wanted to understand why there has been this sudden dip in the inflow side. Has there been some hesitancy from the client side or is it a conscious call from our side to probably not book more inflows till the Mangal facility is operational? So that’s my first question, sir.
Shishir Joshipura
So, Shyam, the way you look at it like this. So the nature of the equipment and systems that we will build at Mangalore are different. They are larger in size, so the project size are larger compared to what we handled so-far. That’s number-one. Number two, has limited capacity. It cannot produce an unlimited amount of equipment. So it has — it has limited capacity. In fact, we have also taken steps to — because the project got a little delayed, we had to actually move to enhance the facility also, which we did.
However, the essential is that as the Mangalore facility starts to scale-up, which it will as I mentioned earlier and Sachin did as well, we will start to see a constructive development on these inquiries. These are large-size and therefore they take a little longer destruction period. But — and this — but we also know them very, very much in advance. So we already know the inquiries, the names of the projects where they are required. And the good news, while they got a little delayed, some from our end, some from customers end, the fact remains that none of them have gone away, those all opportunities are there and we think that it will definitely move forward.
Shyam Maheshwari
Interesting, sir. And when you mention a large-size equipment, what would be typical order value of, let’s say one such order?
Shishir Joshipura
Yeah. Well, it could vary, but typically this will be INR3 digit crores.
Shyam Maheshwari
Interesting. And sir, secondly, on the international biofuel business, so we have won projects in Brazil, Latin-America and now in Tanzania as well. Wanted to understand the scope of our work there. So do we just do the product supply or maybe do we tie-up with a local company there to construct the plant or do we do the entire construction activity also.
Shishir Joshipura
No, we don’t do the construction activity overseas. We do not offer any construction services to customers. Each market all — has a different requirement of how they make the decision. So for example, in India, customers will say, I need this capacity plant, this is my feedstock, this is my site, come and tell me what you can do for me and give me an offer. And the discussions proceed. If we go to Brazil, the discussion is very different. They will say, no, I want you to do the engineering of the whole project cost. So this is the — this is what I want to do. This is my feedstock, this output I want, tell me the full engineering of the project.
Once the engineering is done, we will estimate the project to its full-cost and then we will decide to go-forward not to take the FID a step. So the — the third market will say, no, I want to go in-between. So there are different models that operate in different markets. In India, customers would actually call-out for us to hold construction responsibility for our scope of work. It’s very okay in international markets not to have construction or offering as a services offering. So we are good with that and we are not willing to. We are not planning offering that as well.
Shyam Maheshwari
Interesting. And sir, lastly…
Operator
We request you to join back the queue please as we have other participants waiting. Thank you. We’ll take our next question from the line of Manish Goel from ThinkWise Wealth Managers. Please go-ahead.
Manish Goyal
Yeah. Thank you and very good afternoon. And nice to hear Mr Pramod Chaudhury after very long-time. Sir, just two questions. One on the international revenue, as we are targeting 50% revenue by FY ’23 FY ’30. So just like the growth would be probably 8 times like the revenue from international was INR665 crores in FY ’24 and we are targeting roughly INR5,000 crores by FY ’30. So if you can just provide perspective as to how the contribution would look like, say, from GenX products from Bioenergy, from CPS, that would be very helpful.
And second question, just on a better understanding on the GenX plant, like as you mentioned that in first-nine months, we have roughly incurred expenses of INR80 crores, which is booked in the P&L. So like if the plant was commercialized recently, then why is it not capitalized and it’s probably taken at booked in the P&L. I understand that the land was probably reached out and it’s partly reflected in the depreciation. So if you can clarify on both these aspects. Thank you.
Shishir Joshipura
So maybe I will take the second question first. The — technically, the commercial production has already commenced in the month of February, okay, because the plant and equipment were kept ready for PC. So it’s not that we have not done anything. We have actually manufactured one equipment and dispatched in the last year. So as you know from the accounting principles point-of-view, moment you start the commercial production, after that you cannot capitalize anything. Okay.
So all the equipments were not technically installed at that point of time, but the commercial production has started for one equipment which we manufactured there and that’s the reason subsequent expenses are not capitalized and we had to take it through profit and loss account. Your first question was related to the growth which we are looking at in the international market. Yes, it is going to be 8 times.
Yes, there will be a larger portion of internationalization is happening. It is on two accounts. One, the GenX business, which is entirely export-oriented. And another one is the bioethanol business, which we mentioned earlier that the internationalization has started in a big way happening in that business. These two businesses are going to contribute in a big way. So the pie is definitely, as was mentioning, the entire pie is growing for domestic and international and that’s how the composition is going to emerge of 50%.
We have also mentioned that hyperity has also started showing its international business now. So these are the components which will contribute by 2030 in the overall of internationalization. The question of margin little tricky for a reason because as was explaining, the international orders will have all kind of colors and elements. In the sense, it will have the services element, it will have the equipment element and to some extent, it might have the EPC element also.
Just to give an answer for how the EPC will come into picture, the current Tanzania order, which we are going to execute, we will have some kind of a local construction work also to be taken care of. Naturally, we are not going to do it on our own. We will be having contractors to do that kind of a job. But in the future, in this business, if there is an element of construction, then that will also start playing a very different, what I can say flavor on the margin. So it will be little too early to tell you that what will be the margin in 2030 based on the composition of the business which we are looking at, which is supposedly to emerge.
We have not talked about — we have not talked about the other two businesses which are also going to contribute in the international business. One is on the RCM side and another one is on the side. So all these components put together are going to give us a top-line of INR5,000 crores, but the components of delivery are going to be very, very different, which will define the margin profile for us. I can only tell you that margin profile is definitely going to be better than domestic, that’s not sure.
Manish Goyal
Okay. And one more last question, I’ll squeeze in. On the Inflation Reduction Act, we were probably doing some engine related work as well as a couple of engineering projects. So will it get impact — impacted with probably IRA on back-burner or how should we look at it?
Shishir Joshipura
No, so as I mentioned, Manish meant for — sorry, ethanol meant for saf in United States because the current ethanol is at a high carbon intensity will meet the solution of going to low-carbon intensity. That remains intact. So as the SAF project starts to pick-up and I do remember that I had mentioned this that in the US the way when the IRA was defined and we said 3 billion gallons of SAF required by 2030.
The first billion — 1.5 odd billion, which is mostly there now in terms of capacity creation will come from a different route, high far route as it is called. And then onwards, everything will most likely come on ATJ route, which is where we are interested party. And we expect — and we see that movement. We are — our dialogue with customers are moving very constructively.
So those guys who are — who either own their own ethanol plants are now asking us to interactively speak, some of our guys are doing in audit for one of the projects to see how that plant can be converted to a low-carbon ethanol and low-carbon intensity intensity ethanol, because there are other issues about carbon capture and all that which need to be factored in. So all SaaS related ethanol projects will need low-carbon, no question about it and that is the development that is likely to take place.
But on the other hand, we also decided that we will not only position it is low-carbon solution, but because we realize that when we do low-carbon, we are actually reducing the operating cost of the plant. So we would also position these as operating cost-reduction and operating margin improvement solutions, especially in those cases where it is very clearly visible to our customers and then move this forward.
Operator
Thank you. We’ll take our next question from the line of Pratamesh Sawan from Mira Asset Capital Markets. Please go-ahead.
Prathamesh Sawant
Yeah. Thank you, sir. Thank you for the opportunity. Sir, just one question from my end. Just wanted to understand how much steam is left in the grain-based distillery projects in India because what we can clearly see from the government’s intention is that lately what they have done with the FRP of sugar has been increased by 10%, but the relative prices of ethanol have just increased by a 2.5% that too, just for sea heavy. So wanted to understand how much — because going-forward, we can only see that grain-based driving the momentum in the bioenergy business for the domestic markets. So how much scope is left for the same.
Shishir Joshipura
So Pratnesh, the way to think is like — I give a little elaborative answer, but please stay with me. So the challenge is this, can we create an ecosystem in which the feedstock costs go down because they are significant post — part of the cost of the ultimate molecule? And therefore, a lot of work is happening right now around alternative feedstocks, yeah, whether we do this through finding different technological solutions for existing feedstock or create new feedstocks themselves and how do we grow them to agriculture side of solutions for that, et-cetera can we can we simultaneously grow two crops in the same cycle, etc. So lot of working. So that’s one dimension that’s happening on the feedstock side and that needs to take care of this. As we move forward, then I think what is critical to establish is the fact that from a given feedstock, how the overall movement will happen and what is the prioritization of that feedstock within the overall economy. So we believe there is a lot of push that has come for start-based feedstock in India. So maize production, maize production going up, plant running on maize, plant running on broken and wasted rice. So we are seeing that progression. And I think we did mention and if I did, then I can share with you now that even this quarter that has gone by, all our order booking is for feedstock, there is no sugary feedstock in that from the domestic market. So that’s the second — the third play that will come. As we move forward and we were discussing about SaaS a little long-term is that SAF needs by definition ultra-low carbon ethanol or low-carbon ethanol. And for that to happen, then maybe feedstock will make a comeback. So on the feedstock side, it is I think a different priority at a different moment-in-time that will determine whether as to which feedstock will actually be moving forward, but there is no such thing that only one feedstock will move forward. I think a different lever for different feedstocks.
Prathamesh Sawant
In domestic market, I don’t believe we’ll have that kind of momentum for the benefit because we do not have that kind of a differentiated incentive structure in India. So — and the concerns over the food over fuel debit are much higher in India. So that’s why I was thinking, how much more steam? Okay, but I get your point. And sir, my second question is with respect to the existing — the bioplastic opportunity. So are we waiting for some JV model or probably waiting for some post-budget announcement. Any light on that?
Shishir Joshipura
I think what’s important, as I mentioned earlier in my answer that somebody said that states are doing lot of policies around promoting or supporting bioplastics and I think that’s a great step forward. But as in the same question I was also saying, so what’s happening at national level and I also mentioned at international level. So I think the whole regulatory framework will have to come into place for this to actually take-off from where it is now. A lot of very constructive and very deep dialogue is already taking place on this — across the globe within the country as well and within the states. So I think one is the — one is the focus of saying, okay, I’ll facilitate you to produce this and I think that’s a great step forward. But the second thing is also that the market creation has to happen for end-product where the national policies are important. And then of course, the international policy are important to drive across the globe mandate. So we’ll have to see how each of these three elements develop for the whole ecosystem to come into place.
Prathamesh Sawant
Okay, okay. Thank you.
Operator
Thank you. We’ll take our next question from the line of Abhijit Singh from ICICI Securities. Please go-ahead.
Abhijeet Singh
Yeah. Hello, am I audible? Yes, please. Yes, please. Thank you for the opportunity. Sir, in the event of this SAF opportunity in US not paying out as anticipated, so what is the recourse that we have, maybe some other market or any other product-line that can substitute this kind of gap that we have planned, any alternative strategy in case there is some risk to this SF opportunity that seems to be huge.
Shishir Joshipura
So Abhijit, there is a slight delay and I would admit to that, that there is a slight delay from the initial plans of the SAF producers in United States. But all of them are going ahead with their projects. Nobody is shelving, the opportunity very much exists. And I think the delay is behind us now. So as we go through the next 18 months, you will actually see this coming to Fusion as concrete projects.
Abhijeet Singh
Right, right. That is my question. Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management from Praj Industries Limited for closing comments. Over to you, sir.
Shishir Joshipura
Yeah. So thank you everyone for your time today. In case you have any more questions, feel free-to write us at info@praj.net. Once again, I thank you all for attending call today and have a good day. Thank you.
Operator
Thank you. On behalf of Praj Industries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.