Prospect Commodities Ltd (BSE: 543814) Q2 2025 Earnings Call dated Nov. 12, 2024
Corporate Participants:
Vimal Mishra — Chairman, Managing Director and Chief Financial Officer
Analysts:
Rajnish Mishra — Analyst
Rohan Shukla — Analyst
Gopal Chandak — Analyst
Ravi Sharma — Analyst
Kajal Shah — Analyst
Bhuvan MG — Analyst
Mokshi Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Prospect Consumer Products Limited H1 FY ’25 Earnings Conference Call hosted by Ventura Securities Limited.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
Before we begin, I would like to point out that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict.
I would now like to hand the conference over to Rajnish from ConfideLeap Partners IR. Thank you. And over to you, Rajnish.
Rajnish Mishra — Analyst
Thank you. Good day, ladies and gentlemen. On behalf of ConfideLeap Partners and Ventura Securities, I would like to welcome you to the H1 FY ’25 earnings conference call of Prospect Consumer Products Limited.
We are joined today by Mr. Vimal Mishra, Managing Director; Mr. Ronak Khambhati, Finance and Compliance Officer; and Ms. Bhargavi Pandya, Company Secretary.
I now hand over the call to Mr. Vimal Mishra, Managing Director. Over to you, sir, and thank you.
Vimal Mishra — Chairman, Managing Director and Chief Financial Officer
A warm welcome to each of you as we gather for the conference call of Prospect Consumer Products Limited.
Today, we will be discussing our outstanding performance in the first half of fiscal year 2025. Before we dive into the specifics of our first half financial year ’25 results, let me begin with a brief overview of our company.
Established in 2022 and based in Gujarat, Prospect Consumer Products Limited, through its brand by foods specialized in processing, exporting and supplying premium natural cashew kernels to B2B wholesalers. With over 15 years of industry expertise, the company offers a diverse product portfolio of over 35 products, including valuable cashew byproducts like cashew husk pellets and cashew shells. With the production capacity of 1,200 metric tons, we as a Prospect sources high quality of raw cashew nuts from trusted suppliers in Africa, South Asia and India, ensuring consistent excellence. In state-of-the-art facility support an efficient end-to-end processing systems designed to raise the highest standards for both domestic and international markets.
We launched a new range of packaged flavor products in B2C segment as well, featuring popular varieties such as almonds, pistachio and flavored cashews, all carefully crafted to appease to a broad spectrum of consumer tastes. To further enhance accessibility, we have introduced convenient small pack size, making it easier for the end consumer to enjoy our high-quality offerings. This strategic move is designed to tap into the growing demand within the retail market. And we are already seeing the strong consistent growth in the segment, which aligns perfectly with our current market trends.
Our commitment to providing premium on-trend products remains at the forefront of our strategy. We have established strategic partnership with prominent retail platform like Amazon, JioMart, ONDC, ensuring all shelf placement and expanding our market footprint. Furthermore, our joint venture with Africa Negoce Industries has allowed us to achieve over 20% cost saving by sourcing directly from manufacturers. By maintaining weekly shipments, we optimize inventory levels and improve capital efficiency, securing a reliable and steady supply chain. We are also implementing new advanced high-tech machinery aimed to develop our production capacity while maintaining the same operational expenditures with full implementation scheduled for November 2024. The Indian cashew market is projected to reach at $2.9 billion by 2029 with a CAGR of 3.80% from 2024 to 2029. We are witnessing dynamic shift in consumption pattern with flavored and assorted cashew products gaining a significant share in the retail market. To facilitate efficient sourcing, the government of India has implemented various initiatives recognizing the industry’s reliance on imported raw cashew nuts.
Commenting on the financial highlights of first half financial 2025, Prospect Consumer Products Limited has showcased impressive financial strategic strength. During first half ’25, the company recorded a significant total revenue of INR13.17 crores, representing a year-on-year growth of 8.35%. EBITDA reached at INR1.77 crores with an EBITDA margin of 13.47%, making a strong year-on-year increase of 41.68% and highlighting our operational efficiency. Our profit after tax also showed significant growth, reaching INR1.10 crores with a PAT margin of 8.38%, a year-on-year growth of 58.45%, underscoring the company’s financial robustness and prudent decision-making. Earnings per share for the period stood at INR2.25.
Looking ahead, Prospect consumer remains optimistic, supported by a strong first half performance and strategic initiatives aimed at establishing industry leadership. The company’s steady growth and financial resilience position it well for the sustained success in the evolving market, driven by a commitment to continuous innovation.
And before we begin the question-and-answer session, I would like to extend my heartfelt appreciation to all the stakeholders for their essential role in our growth journey. Your support engagement have been pivotal to our success, and we sincerely value your continued partnership and commitment.
With this, I would like to open the floor for question and answer. Thank you once again for your presence and continued support.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Rohan Shukla from Wealth Impact Solutions [Phonetic]. Please go ahead.
Rohan Shukla
Hello. Sir, I am audible?
Operator
Yes, you are audible. Please go ahead.
Rohan Shukla
Yeah. Hello sir, good afternoon. So sir actually I have a question regarding the capacity. So right now, you mentioned your capacity is at 1,200 metric tons with utilization of 50%, and we are planning to add additional 1,200 metric ton of capacity. So what’s the plan or the reason behind this, sir? Does we not wait for — once we will increase the utilization to 80% to 90%, then we can plan for additional capacity?
Vimal Mishra
No, generally in cashew actually, it works in a different way because the capacity which we are installing that is for the cutting capacity, with raw cashew nut, which we will process. And after that, there is a further value addition to be done in that part. So even with the 1,200 ton capacity, we can go for 100% capacity utilization. However, on the back-end side, that process actually we won’t be able to complete within that time zone. That’s why in cashew industry, generally 60%, 70% utilization, that stand as an average, that is there. But the new facility which we are installing, so we are already going through 2,500 metric tons plus capacity. In the same time, we are expanding ourselves and we are making sure that in the same facility going forward, we can reach up to a level of 6,000 metric ton facility and with the utilization of 70% to 80% in that.
Rohan Shukla
Sir, I have a next question regarding the sales. So if you look at for last three results, your sales is almost flat around INR12 crores to INR13 crores. And even government come with a lot of initiatives that will help our business. So how you are looking forward, sir, how this number will be a growth in future?
Vimal Mishra
We are looking at our numbers on a very positive way right now. See, right now, there is a shifting mode is in the process at the moment because our old facility, which is already there for 1,200 ton capacity, and we are shifting at the new facility right now. Probably we are already late actually in the season, though we cannot do anything until and unless we have a specific government approvals in place. So the moment actually, we will shift there, definitely, government supports are there. And as far as we increase our production capacity, the numbers are definitely going to get increase in the same manner, what we have done so far.
Rohan Shukla
And sir, one more question, just last question regarding the — recently company entered into a B2C market also. So how you are looking forward to expand into B2C market and how the margin will be different from B2B and B2C, sir?
Vimal Mishra
If you have just seen our retail packaging, which we have just introduced actually in the market, if we have not got that chance, then I would request you to please visit our website as well or connect with us. Just try it once actually because we are focusing on the customer experience at the moment. We are making it cost effective, though we are using the most premium packaging solution available in the food grade industry. However, we are ensuring that our costing will be in the range, which is like rest of the processor or the players who are offering in the market. So we want to be cost effective for those people. At the same time, we want to give that experience to the customer of the premiumness. So if you see our — recently, we have introduced our 100-gram tin as well. See generally, no one is spending that much money in packing, but we wanted to ensure that the food what customers are buying, they are buying the experience from us. So we are ensuring full nitrogen filling in that so that the shelf life can be taken care in that even after they open that packet, I’m pretty much sure no one is going to eat 100 gram of cashew together. They may have four or five pieces at a single point of time and after that, they want to store it. So that’s why we have gone through that food grade tin as well, which will take care of the crunchiness of the product and the shelf life of the product. So even if you open that after five or six days, it will be in the same condition as it was prior to open the package.
So we have gone at a detail like this actually, which is convenient as well. If you are carrying probably 250-gram cashew or 400 or 500 gram cashew somewhere, you’re not going to eat everything on that particular journey at that time. So that’s why we have just come out with a solution because we got this feedback from the market as well. They wanted to have this compact solution. That’s why we tried with this. And so far, the experience is quite good. We are even coming up with a 25-gram pouches as well, which is cashew like they can carry at any point of time wherever they wish to carry. Apart from this, we have 250 grams packing tin available with us and 400-gram tin available with us. So why we are focusing on this premium thing, though we are spending too much on the packing at this moment. But this product is not there in the market. Because if you see anywhere, people they are selling in the pouches. We are coming up with a tin, though our packing cost is high, but our material cost when customer is buying, we are offering them on the same range. And we are not going actually right now more focusing on the profit margins to — basically, at this moment, actually, we are looking to have the experience from the customer. Definitely, it is adding the cost as well. But same time, we are gaining the margin in that as well. We can clearly see even after having this expensive packing, we are able to add at least 15% profit margin at a bottom line actually when we are going for the retail business that we can clearly see here.
Rohan Shukla
Understood, sir. So 15% will be coming at PAT, sir, correct, sir?
Vimal Mishra
Yes.
Rohan Shukla
Yeah. So sir, what will be our advertisement expenses because B2C is a lot — there is a lot of competition in the B2C market. So what kind of advertisement we are planning, sir, for the future, and what will be our budget for this?
Vimal Mishra
Sorry, yeah. At this moment, we are not focused that much on the advertising this thing, but we are trying to gather the experience while handing over this product to the customers. Like going in an event where a customer can feel this product, they can see this, they can taste it. So such sort of small events, which we are organizing like we have one event in Ahmedabad day after tomorrow. So that’s what actually we are publishing our product there. After that, there will be another function actually before Christmas where people can come, they can taste this product as well. So we are more trying to spend on the experience rather just going for the digital marketing at this stage, though that is already in planning, already in agenda, which we want to focus. There is no doubt in that. But first, if customers are able to have the experience, if we are able to gain the experience, then we are pretty much sure customers will come back to us based on the quality what we are offering in the market.
Rohan Shukla
Understood sir. Thanks. Thanks for the answers sir and I will get back to in the queue sir. Thanks.
Vimal Mishra
Sure. Thank you.
Operator
Thank you sir. Our next question comes from Gopal Chandak from ORIM Advisors. Please go ahead.
Gopal Chandak
Yeah, thank you. Sir, my question is what is the percentage of revenue from exports?
Vimal Mishra
Export at this moment, we are only doing for the US market because we have developed that customer, though because actually our manufacturing capacity, it’s pretty small capacity. That’s why actually we are unable to cater the bigger market share for the export at this moment. But we are pretty much sure with the new facility, definitely, our export share will definitely increase in this. If you see on a percentage-wise, so hardly, it will be somewhere around 3% something for the export at this stage.
Gopal Chandak
Okay. And sir, what is the current capacity? And what is our expanding capacity which you are —
Vimal Mishra
1,200 metric tons per annum that the current capacity we have. Expanding one is 2,500 ton plus actual capacity, which we are already installed. We are waiting for the boiler division permission along with the GPCB, pollution board control permission. That is in pending stage at this stage — at the moment. So by 2025-’26, we will have a ready installed capacity of 2,500 metric ton plus. We are targeting to reach this capacity, increase this capacity by another 1,500 metric tons, so by 4,000 tons in ’26-’27 and another 2,000 metric tons we are planning to increase by ’27-’28.
Gopal Chandak
Okay. And sir, after increasing the capacity, which market you are looking for US only or any other?
Vimal Mishra
We are already targeting actually all the segments, like we have gone through with the verticals. Like B2B segment is already there for us. We are targeting corporates as well. We are targeting export market, and we are targeting B2C as well.
Gopal Chandak
Yeah, okay. Thank you.
Operator
Thank you sir. Our next question comes from Ravi Sharma from Fair Wealth Advisory [Phonetic]. Please go ahead.
Ravi Sharma
Question is you are expecting the capacity to expand almost by — where the demand is from?
Vimal Mishra
Where is the demand from? See, cashew basically in India yearly, the cashew, which has been processed in India is 21 lakh tons. So demand is not a constraint as far as the cashew market is concerned. And it is actually increasing on a year-on-year basis with a 3.8% CAGR. We are the biggest consumer in the world. If you see nowadays, cashew is not only being used as a dry fruit. It’s been used in the restaurant industry, ice cream industry, cashew milk is also coming out, cashew butter is also there. So people are trying to find out new ways to use these products. So as far as the demand concern is there, actually, I don’t see any challenge in selling probably 10,000 metric ton capacity material as well.
Ravi Sharma
Okay. My next question is, can you differentiate between organized and unorganized sector? How many percentage is organized and how many percentage is unorganized?
Vimal Mishra
It’s difficult to put it in a number, but roughly, if I just say, though it’s not 100%, I’m not claiming anything in this. But if I can see this, probably hardly 5% is the market share actually in India, which is organized and rest 95% is unorganized.
Ravi Sharma
Okay. And how do organized manufacturer would capture the market share? What is the edge organized sector have over unorganized sector?
Vimal Mishra
Please come again, I couldn’t hear you clearly.
Ravi Sharma
I mean, what is the edge that organized player like you have over unorganized sector?
Vimal Mishra
See, it’s the visibility and the trust. Basically, once you come in the public domain, so people know with whom they are dealing, right? Even if you see before five years or 10 years, when even you are going to buy the cashew, so generally, those local shops, they will give you in a plain white plastic. You’re not going to know that from where it has come, which is the manufacturer, what sort of quality assurance they have taken in this. Now when people are coming in organized sector, so they are buying to follow the compliances. In that case, we have to follow certain protocol, certain compliances, which are set for the food product. We are claiming what we have done. So we have to ensure those safety measures while processing the material as well, while packing the material as well. So if you really see the difference between organized and unorganized, so mainly is trust, what people can get it actually in that. As you know here, who are the processor, whom to ask if any issue is there and someone is there to listen to you.
Ravi Sharma
Okay. Can you talk about your key customers?
Vimal Mishra
We are mainly selling in the B2B market. So like the capacity what we have, we will clearly tell you actually, even a small customer, a small B2B shop in the market actually, we are able to consume all the material what we are producing, it’s main B2B market at this stage.
Ravi Sharma
What about the competition, can you talk about a bit about your competition in the organized market and also any risk that you see because you have provided a guidance of around 60% CAGR for the next three years. So what are your competition and what are the risks that you see?
Vimal Mishra
See, as far as the demand is increasing and the market share is quite huge, so I don’t see any challenge from the competition because everyone has their own market share to grow at this stage. We have not — especially in cashew industry, we have not reached on the stage where people have to eat the others market share in organized sector because still we have a lot of scope to grow. So I don’t see any challenge in that particular zone at this stage because even if you go to the corporate who are regularly buying the dry fruits or cashew, they’ll always complain about the quality, they are not getting the material, the quality material on time or probably the same quality throughout the year. So there are so many things which needed to be sort out first. And then probably you can look once you reach on a certain level, where probably the competition start to take the business of others. So I don’t think so in cashew industry, we have reached on that level at this moment.
Ravi Sharma
Okay. Sir, what about the risk —
Operator
I am sorry to interrupt you sir. Could you please join back the queue for more questions.
Ravi Sharma
Thank you.
Operator
Thank you so much sir.
Vimal Mishra
No worries. I’m okay to answer it. Actually your last question was about the risk. See, the risk is basically to have the raw material. So like this year, we have seen a very, very sharp jump in the raw material prices, though the finish market has not supported initially that much. But later on, they have no other option except to go with the market price actually. So it has actually pushed a lot in this financial year. But everything is dependent on the raw cashew nut basically. If season is quite good, we have a smooth coming of raw cashew nut, then probably the market is there to grow. Selling is not a concern. So risk is only availability of raw cashew nut.
Ravi Sharma
Thank you.
Vimal Mishra
Sure.
Operator
Thank you sir. Our next question comes from Kajal Shah from Arora Fin. Please go ahead.
Kajal Shah
Hello sir. [Technical Issues]
Operator
You voice is not clearly audible.
Vimal Mishra
Sorry. You are not audible. Yeah.
Kajal Shah
Hello sir. Am I audible now?
Operator
Keep your speaker a bit far away and speak ma’am.
Kajal Shah
Yeah. Hello. Am I audible now?
Operator
Yes ma’am. Clear. Please go ahead.
Kajal Shah
Okay. I wanted to know like the Prospect Consumer shift over B2C, so what operation initiatives have been implemented. So optimize supply chain, delivery and customer experience.
Vimal Mishra
You’re talking about shifting from B2B to B2C and the operational shift? Okay. So firstly, actually, we have gone through the automation in this because when we are shifting to the B2B to B2C market, it’s all together a different thing. So in B2C, we have to be more on the quality side. We have to ensure this thing. So the packing, we have gone for 100% automation in this, where we are going for the automatic packing machines where actually we are able to pack our 250-gram or 400-gram tin or 100-gram tin or 25-gram pouches, whatever will be there. Actually, it will be 100% shift towards the automation.
Secondly, on the supply side. So right now, we are actually focusing on the Amazon, Flipkart, ONDC platform. So this is where we are actually having our shelves with them, and we are putting our material there. Going forward, we are about to start with Zepto and Blinkit that’s what is the agenda. So that’s where, again, actually, we will have our material stock ready with them, and they will sell it. More in this, we will target on a distributor end. We will approach few distributors, and we will just see how things go with them. And if things are working well, then probably we will have a weekly dispatch or probably every dispatch in three or four days something with them, as per the demand or as per the orders what we are getting from them. So on the supply chain part, we are, as of now, out of Gujarat or out of Ahmedabad. We are shipping through Shiprocket at this stage, whatever the material requirement we have. Sometimes if the order size is quite big, then we are preferring to send the material directly to them. So we are mainly targeting on a weekly schedule at this stage. We prefer to have weekly orders and weekly dispatch.
Kajal Shah
Okay sir. Thank you.
Operator
Thank you sir. [Operator Instructions] We have a follow-up question from Ravi Sharma from Fair Wealth Advisory. Please go ahead.
Ravi Sharma
Sir, my question is about your margin, EBITDA margin. Can you confirm whether we can sustain this EBITDA margin or can you increase EBITDA margin going ahead?
Vimal Mishra
I think it should get increased as we increase the capacity because our operational cost will always remain in the same area where we will be able to increase our capacity with automation because the new plant, actually, new facility which we are coming up with, it’s mostly automation in that. It’s hardly manual work will be there on the cutting section. So earlier where we used to have 20, 25 labors, now we can complete that work with five or seven labors in that particular part of the processing. After that, the grading machine is also fully automatic, which we used to do manually earlier. So the labor part, actually, the manual work which we had to do earlier so that has been reduced. It has gone into automation, which gives us more clarity or probably on the automization, which will help us to increase our quality of the product, the same sort of quality actually, we will be able to supply them. So the costs should not get increased more where actually with the additional production, we should be able to increase our EBITDA margin as well on this.
Ravi Sharma
Okay. That is great news. Sir, just a question, now since what about growth this year because a lot of your capacity, as you mentioned, will come about in ’26. So what kind of growth are we expecting for this year, FY ’25?
Vimal Mishra
Sir, this capacity will start probably within a month only. We have already started operation from this facility, but that is on the back-end side actually for a packing side, actually, we have started from this new facility. We are just waiting for approval from pollution board and the boiler department to start cutting from this facility as well. So we will have this installed capacity in this year itself in this financial year, probably next one month something we should have it. And the numbers, we have already delivered somewhere around INR13 crores revenue. We’re targeting somewhere around INR30 crores, INR30 crores is something, this is what we are targeting for this financial year because we have lost a very crucial phase of Diwali in this shifting. So yes, it may give us some setback, but still, we are far better than the previous year.
Ravi Sharma
Okay, got it. Thank you.
Vimal Mishra
Yeah, sure.
Operator
Thank you sir. Our next question comes from Bhuvan MG from Tiger Assets. Please go ahead.
Bhuvan MG
Thank you for the opportunity sir. Sir, can you provide your medium term plan?
Vimal Mishra
Please come again.
Bhuvan MG
Can you give us your medium term plan?
Vimal Mishra
See, we have made this plan till ’27-’28. So 6,000 ton capacity, which we want to utilize by ’27-’28. So we may achieve this target even in ’26-’27, then we will be more than happy. But we have kept this on a very, very conservative side at this stage, so that 6,000 metric ton capacity that we want to utilize. The more we do the production, the numbers will get increase, that is for sure. So probably we are targeting to cross INR100 crores revenue in next two to three years for sure.
Bhuvan MG
Okay. Sir, can you provide any guidance on margins and revenue year by year?
Vimal Mishra
So EBITDA is somewhere around 13% to 15%, that’s what we are targeting, and we are targeting PAT at the 8% level.
Bhuvan MG
Okay. And revenue to reach INR100 crores in next three years?
Vimal Mishra
Yeah, two to three years, we should be able to achieve those numbers because we are actually already heavily invested in this capacity expansion at this stage, the new capacities. So definitely, we are looking — we are very positive for this at this stage.
Bhuvan MG
Okay. Sir, as your new product is on B2C side, what are your exact distribution plans? How are you planning to reach it to the end consumer? Apart from e-commerce —
Vimal Mishra
No, if you have any distributor, you are more than welcome to approach us, because we are looking for a distributor at this stage. But more in this, actually, we are looking for the online platforms like Amazon, Flipkart, more in this, we are going through Blinkit, Zepto that’s what is in pipeline at this stage. So whatever ways are there to reach directly to the end consumer, we are definitely trying to reach there. And the distribution channel, that will be next in agenda as well because we want to go with the market size, like basically, if initially, we are going by city, so we will target the metro cities in the first go. After that, we will go to the second phase with Tier 2, Tier 3 cities that will follow later on. So we will go in that sense at this stage. Otherwise, directly, we are not going aggressively for pan-India basis at this stage.
Bhuvan MG
Okay. And going forward, what would be your working capital needs? Because in B2C, you might be giving them on credit basis. So what are your plans regarding that?
Vimal Mishra
See, working capital is always a very, very demanding thing actually as far as the cashew is concerned. It’s not only on the sales side. It’s mainly on the procurement side because actually, raw cashew being a seasonal product, we have to store the raw material or probably to finalize this actually well in advance. So that’s where the capital comes into play. We need to secure the raw material at a competitive cost and that’s where we may require expanding actually increasing this working capital. But at this stage, the fund which we have raised last actually, so we are managing with it, which is quite comfortable at this stage for us. At the same time, whatever the profit margin we are generating in the company, we are utilizing it.
Bhuvan MG
Okay. So going forward, you might have to raise funds or take short-term loans for working capital?
Vimal Mishra
Yes. We may require that. But as of now, whatever we have is more than sufficient for us.
Bhuvan MG
Okay. So presently, what is the working capital days?
Vimal Mishra
See, that is mainly on the raw material side as mentioned because when we are importing from Africa, so when we transfer the payment, the process for loading, it takes 10 to 15 days after that loading and the transit time from Africa to India is roughly around 45, 50 days. Here another 10 days for the custom clearance. So in 65, 70 days something, we are getting the material here actually available in India. [Speech Overlap] Yeah. So after that, we start processing the material, then processing cycle will take time of a month to complete because at any point of time, somewhere around 30% of the cashew, which needed to be taken care by the labors manually because the husk part will be there. So they have to remove those husk by hand. So that will be there actually. So at any point of time, that chunk will be there. It’s not only with me, anyone actually who is in the cashew industry, they are facing this problem. So capital is something which is required in this business, but that is mainly on the procurement side.
Bhuvan MG
Okay, sir. Thank you.
Vimal Mishra
Sure.
Operator
Thank you sir. Our next question comes from Mokshi Jain from Jain Limited [Phonetic]. Please go ahead.
Mokshi Jain
Hello sir. Am I audible?
Vimal Mishra
Yes ma’am.
Mokshi Jain
So I wanted to know like as sustainability and ethical practices have become increasingly important like to both the consumers and investors, how are you all incorporating the ESG principles into its operations? Like what are the initiatives you are all undertaking to reduce the environmental impact or improve the social outcomes or enhance government structures?
Vimal Mishra
See, right now, we have gone for the solar power generation. So we have installed this capacity at this stage in our new premises. Apart from this, we have gone for this water treatment plant in our new facility as well where reduction will be less than 10% in that because in [Indecipherable] when we are using, so we will need a TVS [Phonetic] less than 300, where actually in our premises where the new factories has been shifted, the TVS level is somewhere around 3,000 in that. So there is a lot of wastage of the water is there. So to avoid that, actually, we have installed not in one, but two water treatment plant there, so that we can utilize the maximum in that. And same time, actually, the reduction level is less than 10% in this. The power generation part, as I just mentioned, we are going for the solar at this stage. So 100 kilowatts, that’s what we have installed and another 100 kilowatt will follow by next year mostly. That’s what we are planning at this stage. So that will take care of our power requirement as well. So it will be 100% going forward, not at this stage. We are targeting 100% renewable energy, what we can utilize in our factory. And the water level actually that we are trying that 10% reduction is there. How much further we can reduce in that will also be a possibility as well. There is no air pollution in our products. So these are the two things actually which primarily I wanted to address before starting the new facility.
Mokshi Jain
Okay, thank you.
Operator
Thank you sir. [Operator Instructions] We have a follow-up question from Rohan Shukla from Wealth Impact Solutions. Please go ahead.
Rohan Shukla
Hello. Yeah. Sir, so I have one question regarding the capacity utilization you mentioned regarding the expansion plan. So right now, you are planning from 1,200 to 2,400-2,500 metric ton, then our target is to be 6,000 metric ton by ’27. So how much the capex we need for this, sir, because we already need a fund to manage our working capital also. So what amount of the capex we need and how we will fund that, sir?
Vimal Mishra
See, the existing infrastructure, which we have set up right now, considering the 6,000 metric ton capacity only, so that’s how we have designed right now. So going forward, capex will be very less what we need to infuse to increase the capacity though working capital part will be there, that will be needed in the future as well. But at this stage, what we have planned for 2,500 ton, that is based on the funds available with us and with the planning of that only, we have considered. So what is the margin we will generate actually the operational margins and the profit margin what company generates. So with that, additional fund will get generated in the company and that we will utilize further actually going forward.
Rohan Shukla
Understood, sir. Sir, one more last question. So what will be our revenue potential on 6,000 metric ton capacity, sir? And one additional question on this, sir. Are we able to pass on our raw material price, sir, for example, if we buy from India or any other nation. So if there is any sudden drop or increase in the prices, are you able to pass on that thing, sir?
Vimal Mishra
We are able to pass on because we have sufficient margin while actually having the process in place. And when you are in the agro business, we cannot be assured with the market price, actually, whatever there in the market, maybe you will do something plus/minus there, and you will just prefer to offload the material and probably to focus more on the production side. Like suppose if I’ll give you an example, if I’m able to process 1,000 ton material and on a particular one lot, like 100-ton lot, if I’m able to not generate even actually breakeven cost in that just because of the sudden drop in the market, so I’ll prefer to sell that material. I may end up probably in 2% or 5% loss in that, but I will ensure at the same time, I’ll buy another 100-ton material, which will be very much less because the market has gone down, and I will prefer to generate additional profit from that and to recover our profit margin because my operational cost will remain the same. It is not going to get increased a lot because we have a fixed infrastructure. So I’ll more focus on the increasing my production capacity there, rather actually just looking at the market price.
Rohan Shukla
Understood, sir. Sir, just one last question, sir. So we are also entered into B2C, as you mentioned, but it is in initial phase. So the capacity is interchangeable, sir? Can we use the same capacity for B2C and B2B with some extra addition we have to do in [Technical Issues].
Vimal Mishra
See, it’s only on the packing side actually because the process remains the same. Only at the last stage, whether we need to ship this material on a B2C side or probably we want to utilize this on a B2B side, that’s needed to be taken care. So once we have the advanced planning in place, so we can just take care that this material needed to be shipped on the B2C side because we need to pack this 250-gram tin or 100-gram tin. So that’s what actually we do. Otherwise, the process remains the same from beginning till before packing. And only at the packing time, it will get shipped.
Rohan Shukla
Thank you sir. Best of luck.
Vimal Mishra
Thank you so much. Yeah.
Operator
Thank you sir. We have a follow-up question from Ravi Sharma from Fair Wealth Advisory. Please go ahead.
Ravi Sharma
You mentioned about achieving INR100 crores. Hello. Can you hear me?
Vimal Mishra
Yes, I can hear you.
Ravi Sharma
Sir, you mentioned that you would try to achieve INR100 crores in next two to three years. Any other products that you’re planning apart from cashew processing or you are focusing purely on cashew to achieve the targets?
Vimal Mishra
No, we are actually also looking to expand our portfolio in different dry fruits as well. So we are in the trial stage at this moment for almonds. So if things go well as per our plan, then probably the next one, we will get into the almonds as well. And after that, immediately, we will shift our focus on pista as well. So other dry fruits are already in planning. The work is already ongoing at this stage. It’s just that we gain that much confidence that we are able to process this as per the customer expectation, and we will be able to deliver those. So in those cases, that INR100 crores will be — I can say probably I can — if things go well, then we may achieve our target well in advance.
Ravi Sharma
Does the other dry fruit offer similar margins with current EBITDA margin or is it better? Is it less?
Vimal Mishra
The margin — EBITDA remains almost the same, EBITDA level and this PAT level actually, but the processing cycle will get increased in that. So that will be short cycle. So probably the rotation will be on the higher side because cashew is the only product where it takes so much time. Otherwise, if I take for almond, so probably within a week, I can complete the entire container and then sell the material in the market for selling as well. So that cycle will be fast. So that will help us to increase our revenue as well. So margin may be a little bit less compared to the cashew, but that’s okay. We are actually looking to have a combination of everything.
Ravi Sharma
Sir, my final question is what is your vision for Prospect Consumer Limited, where you want to see your company in the next five years?
Vimal Mishra
See, as I just mentioned, the first thing we want to cross the INR100 crore mark as far as the revenue side is concerned. On the customer experience, we are focusing more on the experience side at this stage because we have never seen anyone actually who are spending so much on the packing or the customer experience as far as the dry fruit industry is concerned. We just want to sell the material in the market and just to collect the money from them actually, whether it is through distributor, retailer. I’m focusing on the experience part because I’m pretty much sure if I’m able to deliver the good product to customer, people are there who are willing to spend money on that. They are looking to have the quality product in hand because it’s unorganized sector. So no one has focused that much on particular this area, which we intend to target. We will succeed or not, that’s only time will tell us, but we don’t want to leave any stone turning here actually for our effort where we want to try our level best to give the best experience to our customer. So to answer your question, to gain better experience of our customer going forward, that’s particularly one of the vision, what I’m looking and to be in the top three companies in India as far as the organized sector is concerned.
Ravi Sharma
Thank you. All the best sir.
Vimal Mishra
Thank you so much.
Operator
Thank you, sir. That was the last question. Now I hand over the floor to Mr. Rajnish for closing comments.
Rajnish Mishra
Thank you, everyone, for joining the conference call of Prospect Consumer Products Limited. If you have any queries, you can write to us at info@confideleap.com. Once again, thank you, everyone, for joining the conference.
Operator
[Operator Closing Remarks]