SHAILY ENGINEERING PLASTICS LTD (NSE: SHAILY) Q3 2025 Earnings Call dated Feb. 10, 2025
Corporate Participants:
Amit Sanghvi — Managing Director
Sanjay Shah — Chief Strategy Officer
Analysts:
Harssh K Shah — Analyst
Ritesh Shah — Analyst
Nirali Gopani — Analyst
Anand Jain — Analyst
Mohit Surana — Analyst
Ritwik Sheth — Analyst
Aman Vij — Analyst
Rupesh — Analyst
Ashish — Analyst
Pritesh Chheda — Analyst
Ankit Gupta — Analyst
Unidentified Participant
Manjeet Buaria — Analyst
Dhwanil Desai — Analyst
Nirvana Laha — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Q3 and Nine Months FY ’25 Earnings Conference Call of Engineering Plastic Limited. [Operator Instructions]
I now hand the conference over to Mr Amit, Managing Director from Engineering Plastics Limited. Thank you, and over to you, sir.
Amit Sanghvi — Managing Director
Thank you very much. Good afternoon and a very warm welcome to all the participants to the post-results earnings call of Engineering Plastics. I have with me Mr Sanjay Shah, our Chief Strategy Officer and SG, our SGR Investor Relations Advisors. I hope you’ve had a look at our investor presentation that is uploaded both on our website as well as the stock exchange. Let me start by giving some highlights on the operational performance of the quarter. We delivered a robust top-line growth of 25% to INR197.6 crores in Q3 FY ’25 and have also — and have improved our gross margins and EBITDA margin, which stands at 47.5% and 23.4% respectively.
This is mainly due to increased sales from our Healthcare segment, which grew by 52% on a year-on-year basis. In the healthcare space, during Q3 FY ’25, we have successfully signed six additional contracts with different customers for pen injectors and autoinjectors for GLP-1 and other therapies. We have also taken part in CPHI in November of 2024, where we had excellent three days of traction and meetings with several potential and existing customers on new projects and new molecules. We anticipate that our medical device business will compromise about 30% of our revenues over the next three years, enhancing organization — organizational value significantly. In January 2025, we have incorporated Innovations FGCO as a wholly-owned subsidiary of the company in Dubai. Presently, we’re extending our reach to global markets through our subsidiaries, UK and Innovations. We’re seeing growth on our IP-led platforms going-forward. We are in discussions with customers regarding volume commitments and capacity commitments for the next three to five years and would be aligning our manufacturing capacities accordingly.
Our focus is in-line with expanding our guidance to include contract manufacturing for medical devices and products featuring our own intellectual properties. The dedicated efforts invested in advancing our injection system platforms are beginning to show favorable outcomes. Within this industry, we remain committed to continuous growth and innovation. In the consumer segment, we’ve been awarded new business from two global retail chains. Supplies for the same will start from Q1 and Q2 FY ’26. Secondly, we successfully participated in Cosmo — in Kosmo in Mumbai to showcase our expertise in specialty packaging as well as decoration. Despite the ongoing geopolitical challenges, revenues from this segment grew by 20% year-on-year to INR141 crores in Q3 FY ’25. In the industrial, sorry, there is an error in that number. I’ll have correct that number. I apologize. In the industrial segment, we’ve unfortunately had a small amount of regrowth by 8% year-on-year to INR12.5 crores in Q3, but we expect the growth to come back at a steady pace. That is all from my side number is correct, 141. I call that. T
Hat is all from my side. I shall now hand over the call to Shah to give you the operating and financial highlights. Thank you very much.
Sanjay Shah — Chief Strategy Officer
Thank you. Thank you, Amit. Good evening, everyone. I shall share with you the highlights of our operational and financial performance of Q3 and nine months FY ’25, following which we will be happy to respond to your queries. During the quarter, we processed 6,308 tonnes of polymers as against 5,223 tons in Q3 FY ’24. For the nine-month period, we processed 18,396 tons of polymer compared to 16,718 tons in nine months FY ’24. The machine utilization rate was at 45% in Q3 FY ’25 and 43% for nine months FY ’25. We expect this to increase in the coming year. We expect to increase utilization levels to around 80% in the next two to three years. Exports during Q3 FY ’25 and nine months FY ’25 stood at 79% and 71% respectively of total revenue. I shall now brief you on the consolidated result highlights. Revenue stood at INR197.6 crores during Q3 FY ’25 as compared to INR158.4 crores during Q3 FY ’25, a growth of 25% year-on-year. EBITDA stood at INR46.3 crores during Q3 FY ’25 as compared to INR33 crores during Q3 FY ’24, a growth of 40% year-on-year. EBITDA margin stood at 23.4% for Q3 FY ’25, an increase of 260 bps over Q3 last year. PAD stood at INR25.2 crores during Q3 FY ’25 as compared to INR14.5 crores during Q3 FY ’24, a growth of 73% year-on-year. Our PAT margin stood at 12.8%, an increase of 360 bps over Q3 last year. Cash PAT stood at INR35.9 crores in Q3 FY ’25 as compared to INR23.9 crores during Q3 FY ’24, a growth of 50% year-on-year.
Now coming to Nine-Month FY ’25 consolidated results. Revenue stood at INR569 crores in FY ’25 as compared to INR473.3 crores during Nine-Month FY ’24, a growth of 20%. EBITDA stood at INR123.8 crores in nine months FY ’25 as compared to INR87.2 crores during FY ’24, a growth of 42%. EBITDA margin stood at 21.7%, an increase of 330 bps over nine months FY ’24. Compared at INR64.5 crores in nine months FY ’25 as compared to INR38 crores during nine months FY ’24, a growth of 70%. PAT margin stood at 11.3%, an increase of 330 bps over nine months last year. Cash PAT stood at INR95.6 crores in nine months FY ’25 as compared to INR63.6 crores during nine months FY ’24, a growth of 50% year-on-year. Our ROCE and ROE stood at 22.8% and 18% respectively as on 31st December 2024. The growth in business has been achieved with disciplined use of capital., our debt-to-equity stands at 0.43 times and long-term debt-to-equity stands at 0.09 times as on 31st December 2024. Now coming to consolidated segmental revenue breakup for nine months FY ’24.
In the Consumer segment, revenue stood at INR4007 crores during nine months FY ’25 as compared to INR364.5 crores during nine months FY ’24, a growth of 13%. In the Pharma segment, revenue stood at INR108.6 crores during — in nine months FY ’25 as compared to INR69.1 crores during Nine-Month FY ’24, a growth of 57%. In the Industrial segment, revenue stood at INR47.7 crores as compared to INR39.7 crores during nine months FY ’24 across INR24. This is all from our time. Now we can open the floor for Q&A. Thank you.
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 chart and one on the touchtone telephone. If you wish to remove yourself from question queue, you may press char and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, wait for a moment while the question queue assembles. Your first question is from the line of Harsh Kesha from Galal. Please go-ahead.
Harssh K Shah
Yeah. Thanks for the opportunity. Congratulations on a strong set of results. So a few questions from my side. So firstly, do you envisage any sort of impact on us, if US kind of implement certain tariffs considering that USA is a large geography that we cater to, if not the largest? That was my first question.
Amit Sanghvi
Could you repeat your question here from the new investment administration. So maybe it’s a little too early to talk about it. Really, we have just as much information as you do. Probably you might have better information. So at this point or normal?
Harssh K Shah
Okay, got it. And secondly on the thing wherein we signed six healthcare contracts. So any sort of period in terms of execution by when do we have to complete this? And is it purely related to manufacturing or there are certain projects that would be even be developed in Sheri UK or it is the combination harsh of.
Sanjay Shah
Part of it would be development, part of it would be supply. And once a customer basically signs-up, you would basically be taking those devices from us on a long-term basis. So these would be contracts that would be long-term. And as Amit mentioned in his speech, these are — some of them for GLP-1, some of it are auto injectors and some of it for other therapies. So this is basically the basket of offerings which we have. We have contracts across the basket or the portfolio which we have with different customers.
Harssh K Shah
But if you could quantify the size of the orders if possible in terms of or two.
Sanjay Shah
So in terms of putting in a number right now would be very difficult. A lot of it will depend on how successful is that customer when the drug moves off-patent and when he gets his FDA approval and then he launches it, what this basically what represents or clarifies is that we have a lot of customers who are signing-up for devices with us, which is good for us.
Harssh K Shah
Got it. Any number you would like to put say for the number of pens that you have sold-in the first-nine months of this financial year or if you have it handy?
Sanjay Shah
Really don’t have that number handy, probably right. But I don’t have a handy performance. We will send a number of yeah. We don’t. Tough.
Harssh K Shah
Last question from my side. So the thing that you mentioned in the investor PPT with respect to the two global retail chains. So are there — are these completely new customers or have we supplied to them earlier also?
Sanjay Shah
We have not done any business with either of these customers over the last five years with one of them, we have done some business prior to five years. So I think we would take it as new possible.
Harssh K Shah
So then related question, how big this can be in terms of office that we can to?
Sanjay Shah
So we have been in discussions with for a long period of time and so something we were able to close on something. So that’s how we would look at it.
Harssh K Shah
Okay, got it. That’s it from my side.
Sanjay Shah
Thank you.
Operator
Thank you. The next question is from the line of Hitesh from Investec. Please go-ahead.
Ritesh Shah
Yeah, hi, sir. First, congratulations on a good set of numbers. Amit, you made in your initial remarks or comment around volume and capacity commitments for next three to five years. Is it possible to elaborate this, are we facing any constraints on the capacities when the vendors come to us and they ask for dedicated supplies, how should we look into this?
Amit Sanghvi
Within the constraint, there is an ex capacity we built on every product on day-one, which would of course be single-digit millions. A few of our products — two of our products particularly have higher capacity because we’ve built that knowing the — knowing the commitment from customers. Now when you look at and potential semablutide launches coming up for ’26, ’27, ’28, etc, then we need to — we will need to build capacity. And for that we’re working with customers to get kind of volume commitments.
Ritesh Shah
Okay. Okay. So you’re more most positive on Sema followed by Lida and Terry. So you indicated, 26 27 28 launches are there. I think in the prior calls, you had indicated a capacity that we will be looking at around 35 million tons. Are we sticking around with the same number?
Amit Sanghvi
Yes. Now, Terry, I don’t — we don’t need any more capacity on Terry because from a volume perspective, small product, but value is quite good. Lira, we scaled-up — we scaled-up the Lira and the insulin tenants the same. So we already did the scale-up. We created 112 million capacity last year, therefore, we’re not looking at any capacity increase on that. So the only capacity increase we’re looking at is for the pen and the auto-injector on the side.
Ritesh Shah
Okay. So if — just correct me if I’m wrong. Our current pen capacity would be around 40 million and I think we had indicated a roadmap to, say, 100 million — million pens, but we have not given any time horizon over here. So possible like so when we say three to five years, it’s like 40 to 100 over three years, five years and basically how does one bifurcate this 40 to plus 35, 75 and the balance and how does the insulin fit-in overall on the bastard of 100 million pens hello sorry it.
Amit Sanghvi
Look I think I think communication we’ve done earlier is still very much the same plan. Not a whole lot has changed. We — from having about 35 million capacity right now, we’re looking at adding another 50 million to 80 million over a period of time. So between now, let’s say, between now and December 26, we’re looking at adding another 50 million to 60 million capacities on pens and auto-injector combined. And of course, if we’re adding capacity, then we should assume that sales should start shortly after the addition of capacity, probably within the 12 months or okay.
Ritesh Shah
And the question on insulin. So I think 35 million tonnes right now, I don’t have a breakup of how much incident contributes. You did indicate incremental 35 will be semi. So if I assume all of it is, I don’t know-how to break it up, if you could help us comprehend that.
Amit Sanghvi
So 35 million includes contract manufactured and our own IP, right, right, which is a majority at the moment is.
Ritesh Shah
Okay. So incident percentage will continue going-forward or is it something that will decline based on profitability? How are we looking at it.
Amit Sanghvi
Look, every year, lot of these are depending on launch years, right? So launch here you obviously have higher-volume of another product, which means that insulin could potentially as a share, percent share come down. But it balances out over a few years. So it’s not that every year you keep seeing a single-product continuously grow. You will have — you will also reach a stage on a single-product where it eventually plateaus out.
Sanjay Shah
Can I probably rephrase that answer a little bit. So Ritesh, the way we would look at it is as we move forward over the next three to five years, you will see our own IP-led platforms contributing much higher revenue as compared to contract manufacturing.
Amit Sanghvi
That also — our IP-led platform also includes in.
Ritesh Shah
Sure. Just a follow-up, a quick one. Do we have the brownfield optionality at the current place in Gujarat or will we have to slout for a new land building, what will be the capex corresponding to that? And the second question is, what sort of regulatory approvals do we require as we look at the scale-up from, say, 40 to 100 million tons with respect to certain US-FDA approvals or are there any other regulatory bodies we need to approve us or are you already done with the process?
Amit Sanghvi
I think we will we will obviously get back to the — to the shareholders in due time on capacity expansion plans, where warehouse, etc. But on the second question, there is no further regulatory approvals needed for enhancing capacity. And all the work required to enhance capacity is internal to and then you just have to file the work that you’ve done, including design verification in-part of your update to the filing.
Ritesh Shah
Sure. That is quite helpful. All the very best. I’ll jump back the queue. Thank you so much.
Operator
Thank you. The next question is from the line of Nirali Gopani from Unique PMS. Please go-ahead.
Nirali Gopani
Yeah, hi, thanks for the opportunity and congratulations on very good set of numbers. Sir, Amit, my first question is on the Dubai subsidiaries. So you briefly spoke about it in your opening comments, but if you can share some more details that the work we are planning to do there is similar to what we have been doing in our UK subsidiary, the opportunity side and the reason why did we choose to do it in Dubai when UK is doing so well briefly on that reasons.
Amit Sanghvi
We don’t you know, upfront on day-one, we’re not going to start doing any inventive work-in Dubai. What we’re planning to do is setting up kind of a global test lab where you can run as an independent. So what happens, right? Today, lot of the test — all the testing we do, we only do up to design verification. Then customers still want us to do their end-of-the verification, but we often refuse because now we don’t want to handle drugs that fairly. We don’t often have the license to handle drugs that. There’s one aspect is also that while customers from an agency and regulatory perspective don’t feel comfortable doing design verification at the same-site where, you know we’ve done our engineering kind of or exhibit batches. So this is kind of — I started a plan to create this test lab where you — which also becomes like a part of the innovations that we do in the UK and also kind of you know, when you actually start shipping product in the market, you will have market complaints, whether it’s related to us or not, but oftentimes devices will be sent to us for analysis.
So from a logistics standpoint, it just becomes easier to get things in and out-of-the UAE. Even today, we have significant logistics constraints when we — when customers ship us cartridges, CFS, etc. So that was the idea, but it might — it might be something larger than that as of today, but we’ll of course inform the community when we have more information.
Nirali Gopani
And then just a new two new consumer retail chains that we have tied-up. So this will be — the model of working will be similar to what we are doing with home furnishing, right? This will not be off-the-shelf speature we have always avoided to do. And the product will be similar to what we are doing for the home furnishing today.
Amit Sanghvi
So products will be similar to the home furnishing customer, but we will be offering them off-the-shelf product sort of a.
Nirali Gopani
So then we’ll — won’t it lead to inventory problems and because they have always avoided doing and hence we never work with any other retailers.
Amit Sanghvi
These are fixed orders. So I don’t think from an inventory standpoint, there is an issue. We will need to make some minor investments in tooling where we have some agreements with the customer in terms of how do we make the recovery for that? So that that’s what it is.
Nirali Gopani
Okay. So we don’t see any negative impact on our numbers because of this model, right?
Amit Sanghvi
No.
Nirali Gopani
Okay, perfect. And Amit, a few quarters back, you had spoke about working on three new sectors. One was consumer electronics, one was telecom and healthcare. So healthcare is for sure doing very well. Any update on the other two sectors? Are there talks going on? Any updates would you like to share on that?
Amit Sanghvi
I mean, we’re going through the process of building that business. We unfortunately do not have an additional update apart from the fact that we’re scaling up the capabilities that we need to enter that business successfully. As and when we have an update, we’ll certainly let you know.
Nirali Gopani
Yeah. And if I’m not wrong in this call, you just mentioned that the medical devices may form 30% of the revenue in the next three years. And in the last call, that number was 25%. So is this because of this new orders or the contracts that we have signed or you see that growth ramping-up very fast and you’re being a bit conservative.
Amit Sanghvi
Is a 30%, not 40%. You know the thing is there is enough just as much information in the public domain as we have. Having said that, we certainly see a really good opportunity to ramp-up over the next two, to three years. And if it’s not — if it’s not GLP once could be — I mean, GLP ones ramp-up, but if it’s GLP-1 is not going to be the only contributor to that share of revenue we’re talking about. We will also be ramping-up maybe a few other normal side normal modules on the on the business. It could be some very nice one-off projects, information that we cannot put out in the public domain at the moment, but some potential innovative projects would be looking at also.
Nirali Gopani
Okay. Very much. And one last question. So Amit, healthcare has been doing very well for the past few quarters and it is still definitely at an inflection point. So can you talk about how have you built a team on the healthcare side over the last two years? Any hirings that you would like to highlight? How is the team build-up there?
Amit Sanghvi
It’s a of old talent at. Of course very good engineering talent at Charlie probably higher than the last 36 months from the pharma industry to come with a lot of regulatory you know GMP kind of know-how. In fact, our head of Operations is from the pharmaceutical background and hiring of very-high level of engineering talent from countries like Singapore and Malaysia. So this is how we’re kind of building up on the capability side. And then all the support staff, which is business development, product strategy, including our R&D in the UK, we have now scaled-up to 14 people in the UK and we’re looking at adding another three to four in the current calendar year. So the UK scale-up is also something that my wife manages, of course but you know it’s going exceptionally well. So we’re really, really focused on the business, we’re really focused on creating very significant value and always being on the forefront of technology.
Nirali Gopani
That’s great no, congratulations once again and it is good to see how the company has shaped up in the last two years. That’s it.
Amit Sanghvi
Thank you.
Operator
Thank you. The next question is from the line of Anand Jain [Phonetic] an individual investor. Please go-ahead.
Anand Jain
Congratulations on a good set of numbers. My first question is on the consumer electronics side. Are there any updates there in terms of the number of customers or the clients that we are working with? Is there a definite agreement that we are looking to sign, any timelines around that? I’ll come to the healthcare questions later on.
Amit Sanghvi
And no, we don’t have any contracts in-place. We are working on a roadmap with customers to eventually get there, but we don’t currently have any contracts in-place.
Anand Jain
And are we working with multiple customers?
Amit Sanghvi
Yes.
Anand Jain
Great. Now on the PEN side, we have signed six contracts for PEN injectors. Would it be possible for you to tell which therapies these are.
Amit Sanghvi
And are these for GLP-1 or some other therapies then you have you have insulin, you also have fair thyroid hormone and you have a migraine medication.
Anand Jain
Okay. So these are like well spread over. Okay. Yeah. The next — the next question is like we are looking at expiry of GLP-1 patents in Middle-East in middle of ’25. We are looking at Canada, rest of the world expiring Jan ’26. Now all of these markets, we need to build the supply chains, you know much before the patent expiry. So is it fair to assume that our Sema Lira volumes will start building up for these markets from, let’s say, Q2 of this calendar year? Is that a fair assumption? Do you think?
Amit Sanghvi
I don’t think of that. I think Q2 of financial year for sure. So let’s say an overlap between Q2 calendar and Q2 financial Q2 calendar Q2 financial year.
Anand Jain
Yeah. In terms of capacities of Sema, I think we were doing one-line 40 parts per minute, 12 million capacity. What kind of capex do we expect for Sema ROW demand for next year? And are we looking to add bigger lines like 18 parts per minute kind of 25 million kind of annual capacity per-line Anand, let me correct you.
Amit Sanghvi
The 40 parts of line we have is for the protein pen, right? So that’s we have 80 effectively we’ve been running it for some time. So effectively about 12 parts per minute line for semi. So we are building an 80 parts per minute line for and second 80 parts per minute line also in the coming 18 to 24 months. So we’re looking at approximately, let’s say, creating capacities. I don’t know-how much of that exactly will get sold-in the exact same timeframe, but we’re looking at about 40 million capacity buildup 40 million to million.
Anand Jain
So looking at where we are in terms of our capabilities and devices, do we have are we — like are we talking to customers in terms of dedicated lines, taking advances from customers for those dedicated lines, any arrangement of the types of take or pay kind of agreements that we are kind of building with clients because we are putting up large capacity. So are we going to have these kind of, agreements with the customers. We had any of them will.
Amit Sanghvi
Short answer, yes, we will.
Anand Jain
Sorry, I could not hear. Can you just repeat?
Amit Sanghvi
I said yes, we will. That’s what I mentioned in the speech that we’re looking at basically negotiating volume commitments — capacity commitments with customers.
Anand Jain
And one last question, capex plans for FY ’26 and FY ’27, if you could just elaborate on that because we have more clarity in the last.
Amit Sanghvi
So Anand, it’s a very — it’s right now our age as changing quite fast. So we’re going to consolidate all the information, come up with the strategy and make a decision and probably inform everybody on the next call. Thank you.
Anand Jain
Okay, great. Thank you and all the best.
Amit Sanghvi
Thank you. Thank you very much.
Operator
Thank you. The next question is from the line of Mohit Surana from Monarch Networth Capital Limited. Please go-ahead.
Mohit Surana
Sir, congratulations on a good set of numbers. Got it. Very general question, sir. So this quarter, I see the utilization has been up compared to last year as well. I can’t hear you. I’m sorry. Am I audible now? Hear a little better, a little bit better so I just wanted to ask that the utilization has improved this quarter versus last year as well as the last quarter, but our revenue has been flat for this quarter compared to the last quarter. But still we were able to increase our margins. So just wanted to understand how did we execute so that we achieve this kind of results?
Amit Sanghvi
Was when you look at utilization number, you’re looking at utilization number across the company. You’re not looking at — we don’t report individual utilization numbers. Yeah. There would be pockets where you would have had better utilization, there would be pockets where you would have the same utilization numbers. That’s the way to look at it.
Mohit Surana
Understood. Okay. So sir, the margin expansion that we saw this quarter, was that mainly because of the healthcare segment? Was mainly because of what mainly because of the healthcare segment, pharma segment?
Amit Sanghvi
Yes. Yes.
Mohit Surana
Yes, sir, I mean, the rest of my questions have already been answered. So thank you.
Amit Sanghvi
Thank you very much. Thanks.
Operator
Thank you. The next question is from the line of from Ritwik Sheth from One Up Financial Consultants. Please go-ahead.
Ritwik Sheth
Yeah. Hi, good evening, sir. Sir, my question is to understand the opportunity of. Sir, you mentioned that we are adding about 35 million capacity for pens and autoinjector for semaglutide. Is that did I hear it right?
Amit Sanghvi
Sir is the total pen capacity which we are adding will be totaled into the number which you talked about.
Ritwik Sheth
Yeah. Okay. And sir, so the pen and the autoinjector is for the fill and finish, is that understanding right? Fill and finish or we are not doing the filling of the API.
Amit Sanghvi
So we don’t look at. We are only a device.
Ritwik Sheth
Okay. So we’ll be just doing the plastic molding of the pen as it is, right?
Amit Sanghvi
No, we will basically be supplying the device. But yes, we will be supplying the device, okay. The fill and finish day will basically put in the power of the drug into the device.
Ritwik Sheth
Okay, got it. So you will be supplying it to the player who will be doing a fill and finish.
Sanjay Shah
So we will supply to our customer. If a customer might have contracted with somebody for a fill finish, then we might be required to deliver it to the full.
Ritwik Sheth
Got it. And sir, what would be the cost of PEN realization, any sense currently?
Amit Sanghvi
So it’s very difficult to put in a number. There will be — different pins will have different pricing volumes, volumes, what is the commitment level from a customer, what are the slabs, what is the MOQ colors, activities involved. There’s a lot of it, but broad range could be something as low as $2 to maybe $7.5, $8 right for different therapies. So could be anywhere from $2 to $7 per pen. Yeah, all — I’m not saying just could be any therapy any therapy.
Ritwik Sheth
Okay. Got it. Okay, sir. That’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of Aman from Asut Investment Management. Please go-ahead.
Aman Vij
Yeah, good evening, sir. My first question is on UK. So did the exhibit batches start in Q3 or we are expecting it to start in Q4? And then do we expect a good bump-up in say UK numbers in Q4?
Amit Sanghvi
The exhibit will be supplied from India. So they will start now, but you will see the revenue in India.
Aman Vij
Okay, okay. So the platform season, everything is already as a part of UK already in the numbers. Only the manufacturing —
Amit Sanghvi
The portion of it is already captured and portion the balance — I mean it’s milestone-based in Chale UK. So as we execute the project and achieve the milestone, we raised the relevant invoices.
Aman Vij
Sure. And now given we have ramped-up our team in Chile UK, so we have a good growth in this year. But for the next year or next two years, what kind of growth should we assume in Chile, okay?
Amit Sanghvi
You know,, UK will focus on two things. You have a set of teammates or set of the team, which will focus on the lifecycle management and scale-up of all the products that we’re scaling up, right? So there’s a lot of — there’s a lot of development activity still involved when you go from 48 to 16 or 32 categories and similarly, when you scale-up the assembly line. The portion of the team and the focus is going to be doing a lot more with innovators. So we want to take on potentially larger, longer-term commitments, larger projects, longer-term commitments and focus on developing devices for the innovator. And the pipeline — anyways, our own pipeline is — we still have about four devices in the pipeline, which will happen over the next 24 months.
Aman Vij
So for — so from around 5 million pound run-rate, can we expect it to scale to 10 to 15 million kind of run-rate in the next two, three years.
Amit Sanghvi
Look, hard to say again, but the short answer is that you should be able to scale it every year. Some years you will have higher-growth, some years the growth rate will come down, but over a period of time, it should average out and we should expect growth year-on-year.
Aman Vij
Thank you. Sure. Next question is, if you can update on the and the Lira launch, which was expected in this calendar year ’25. So any rough timeline can it happen in the next quarter, it will take two, 3/4? And if there is a delay, is it mostly on the customer side? Because there are some other generic companies who are launching these products. So won’t our customer miss the bus if it is delayed in terms of launch in both Terry and Lira, if you can talk about both of them individually.
Amit Sanghvi
Good question. I’m also constantly engaged with the customer to find out what has been going on. So let’s hope next three months or four months for both launches again but I’m not giving a guidance and this is — there’s nothing in-place as a impediment that prevents loss. So we should hope that they can launch in the next two quarters.
Aman Vij
Okay. And is it like one, two customers or there are like maybe three, four customers. So if one doesn’t launch, then other can launch both Terry and Lira combined.
Amit Sanghvi
I mean some other advances in terms of filing than the other, we have multiple customer on both molecules, some are more advanced, some are not quite as advanced. So they will have to wait in queue until their files are approved.
Aman Vij
Sure, sure. Next question is, you’ve talked about we are building this now 80 ppm line for. So any timeline when it will be completed? And does it include autoinjector line or autoinjector line will be a separate line? And when can we see a ramp-up in say auto-injector sales for us?
Amit Sanghvi
I think autoinjector ramp-up, you will see some ramp-up because we have a line right now, which where we can manufacture about 6 million to 7 million a year. It’s roughly 6% to 7 million. Yeah. So we’re going to — we’re going to see some in the current upcoming 12 months also, but the larger line will come up in ’26, middle of ’26 to Q3 calendar ’26. That line will obviously be a kind of a 25 million capacity line. So 20 to 25 million. I have not figured out the exact math yet, but somewhere around — consider 20 million as capacity for the injectory, which will come up in Q3 calendar ’26.
Aman Vij
Okay and the first-line which you are talking about which we are already building when will that be coming up ATP and first-line.
Amit Sanghvi
Yes. As early as September, October of this year.
Aman Vij
Okay. Just final few questions. First on, so we have a very good string-based device with us, which I think is — there is no other competitor as such in generic industry. So when can we expect the, say, market launch of that product, whether it can be Lira, it can be semi, but when can we expect and maybe which markets if you can talk about it.
Amit Sanghvi
I think spring the will first be launched in Canada, India and Brazil.
Aman Vij
Okay, okay. And say in a year’s time, say Canada’s expiry is happening. So say one year to around one year time we expect this pens to be in-market.
Amit Sanghvi
I’d say for 18 months kind of a window. So we should expect NEO to be on the market in 18 months.
Aman Vij
Sure, sure. And we were sir, expanding our capacity in insulin to eight cavity two lines. So is this operational or from which one will it be operational?
Amit Sanghvi
This is specific to us to the spring device?
Aman Vij
No, no, no. The insulin one, right? We were increasing from I think 4 cavity to eight cavity. We were trying to double our capacity, which you said it might happen in this quarter.
Amit Sanghvi
We are under — we are under the last phase of qualification. People — we’re trying to do our best to complete it this quarter, but it could spill-over into April. So between March and April, we’ll get some qualifications on the increased cavitation.
Aman Vij
Sure. And on the patent challenge for our drugs, you said we were expecting something, but will it happen at the time of say regulatory launch of US or can it happen with ROW launch also in the next one, two years?
Amit Sanghvi
I mean look, Canada, there’s always a potential because the innovator supplies into Canada, but the innovator doesn’t exist in India, doesn’t exist in I doubt very much of the innovators there in Brazil. There in Brazil. Some markets you might see a challenge, some markets you but at this point there is enough information in the public domain so the innovator would have figured out a strategy on how to prevent others to enter. I think it’s difficult. The sheer size of filers is just too high. So and there’s multiple devices one can go-to-market with. So we ourselves have two devices which can go to — which people can go-to-market with. So I don’t — I don’t think they can fully prevent it. There might be litigation, but I think it’s a little difficult to predict it.
Aman Vij
Sure. One final question on non-pharma side, sir. On the consumer segment, after a long-time, we have seen kind of 20% kind of growth. This segment was like not growing much — I mean, was growing, but much slower than the company-level growth. So now with these two retail chains coming up and I believe we had some contract won recently in gas, and everything. Do you expect this consumer segment with 20% 25% growth or company-level growth will continue for next couple of quarters?
Amit Sanghvi
So I don’t think we should basically look at a 20% 25% growth. So the two new orders which we have taken on are small orders. We are trying to make a start with these guys and we’ll see how it goes forward. So we have seen some growth on the home furnishing business. That was because of some new products being starting and everything. So let’s see how that does go in terms of forward.
Aman Vij
Okay, okay. Thank you. Thanks a lot. Thank you.
Operator
Thank you. The next question is from the line of Rupesh [Phonetic] from Intelsense Capital. Please go-ahead.
Rupesh
Am I audible sir?
Amit Sanghvi
Yes.
Rupesh
Yeah. Thank you. Thank you for the opportunity, sir. My first question is which all platforms you expect will be commercialized for semaglutide, I mean 4TN NEO, Toby, Tristol, can you maybe list there?
Amit Sanghvi
Neo and Harmony.
Rupesh
Okay, and on auto-injector side.
Amit Sanghvi
Yeah.
Rupesh
Okay, okay. And sir, I mean you have talked about by December 26, let’s say this 50 million 60 million of let’s say GLP capacity comes online and then existing we have some capacity for, some capacity for autoinjectors, some capacity for Sema. So let’s say, calendar year ’27, let’s say December ’26, everything was fine, capacity comes on. And is 50 million number a — you know, I mean in the realm of possibility or a decent probability number, 50 million devices on GLP.
Amit Sanghvi
A lot of it will depend on how the market response is there from customers and everything. So we need to understand that in the pharma part of the business, you would need to create capacities upfront, customers would want to come and audit your facilities and everything. So there would — there has to be a time lag between from the time you create capacity to the time you start on manufacturing and supply. But to — again, what I mentioned earlier, I will again reiterate the same thing is that a lot of it will depend on how does the customer is and when the customer gets his approval and how — what the customers respond in the overall marketplace that will decide. So utilization will happen.
Rupesh
Sorry for those things I understand — sorry to interrupt, I understand those things that API challenges, filing challenges, supply-chain challenges, all of that I understand. I mean, there are things which are not in our control but let’s say customer does a good job, then is, I mean, 50 million is it possible or it’s like completely, you know, I mean off the mark estimate?
Amit Sanghvi
It is possible. I’m not saying it’s not possible, but there’ll be a lot of factors of gaining this. And the reason why we are creating capacity is based on what we are seeing based on discussions which we are having with customers.
Rupesh
Okay, okay. And then sir, this — I mean, another coming to this customer, what I understand again is the supply-chain is very complicated, API is very difficult to make on both synthesis and on purification, the whole filing process is very complicated. So do you see that this approval risk for customer turning into a customer concentration risk for us. So we have multiple customers on the same therapy.
Amit Sanghvi
So if you look at, we have multiple customers on SEMA. We have multiple customers on the auto-injector for or other therapies which we are looking at.
Rupesh
But let me say, let’s say one top one maybe, let’s say also top two, maybe one customer doesn’t get approval, then do your estimates go down by, let’s say, 50%, is that or it’s not like that in at least your view?
Amit Sanghvi
It’s a little too early to talk about it.
Sanjay Shah
I mean, I mean, to be honest, we don’t have any. We are in discussions with customers, as Amit mentioned earlier to look at what sort of volume commitments are there, what sort of capacity commitments and take or pay which customers are giving in. So there will be those discussions which we’ve been having and capacity would basically be built based on some confirmation from customers based on that.
Rupesh
Okay. Okay, okay. And then sir, this insulin, I think you had announced this 10 million order. So where are we on that? Because you’re saying now qualification will be in April. So this — I mean, how many we have delivered and then how much do you expect to deliver in FY ’26?
Amit Sanghvi
We have been supplying these. We will not get into individual volumes, but we have been supplying these from the existing capacity which we have. And once we have the qualified capacity online, we will look at supplying the increased volumes.
Rupesh
But you have there maybe some 4 million, 5 million this year and 4 million, 5 million next year. That is the kind of split we were expecting. So that now has shifted significantly.
Sanjay Shah
So it will be a little less this year, a little more next year, because I think we want to get the eight it can be linked online before we do anything else right now.
Rupesh
Okay. And where are we on the repeat order, sir for this.
Sanjay Shah
Not just the tooling, the assembly capacity also goes hand-in-hand in-hand. So there is kind of — you want to make sure you run both at the same time.
Rupesh
Okay. Okay. But whereas on the repeat business for insulin, I mean this can insulin business also become, let’s say, a 50 million 60 million kind of number in calendar year ’27, 50 million to 60 million tons.
Amit Sanghvi
And Vitesh — sorrysh from a therapy perspective, all of these businesses, there is enough market size available to become 40 million, 50 million 60 million, but whether it becomes for us or not, we don’t know. And how long it takes is also another question. So opportunity is there and we’re doing everything we can to capitalize on it. But hard to answer the specific question. The business is still in a — in a nascent stage.
Rupesh
Okay. Okay. And then sir, final question from my side is on the commercial manufacturing of GLP pens. I mean, can you indicate a range of gross margin, a broad range will do, sir. I mean, I’m not asking any specific number, but a broad range like let’s say, can our gross margin be between, let’s say, 60% to 80%, just a.
Amit Sanghvi
No, it would all be fair for us to communicate that. But you know you can. You can estimate it.
Rupesh
Okay, okay, thank you for answering my questions.
Amit Sanghvi
Thank you.
Operator
Thank you. The next question is from the line of Ashish [Phonetic] from JM Mutual Fund. Please go-ahead.
Ashish
Yeah, hi, am I audible?
Operator
Yes, sir.
Ashish
Yes. Yeah. Sir, on this capacity, by what timelines do you expect a good 70%, 80% utilization number?
Amit Sanghvi
What we’ve said is, you will see improved capacity utilization from FY ’25 to FY ’26 to FY ’27. I think talking about it on a quarter-on-quarter basis or something will be very difficult for us. But if you were to look at from FY ’25 to FY ’26 to FY ’27, you will see utilization levels improved as volumes going up?
Ashish
And if I might have heard it correctly, you said the commercialization should start by quarter two of FY ’26, right?
Amit Sanghvi
We should start manufacturing and supplying by quarter two of FY ’24.
Ashish
Okay. Okay, fair enough. Sir, you also made a comment saying that possibly there could be — you are in discussion with some of the innovators. So are we also exploring on something with biosimilar — on those biosimilar lines as a therapy.
Amit Sanghvi
We’re exploring innovative molecules with the innovators we’re already in discussions with biosimilars. So yeah.
Ashish
Yeah. Okay. Okay. So potentially, this could become very big all the pens and the auto-injector setups. Okay, got that. Thanks and all the best.
Amit Sanghvi
Thank you.
Sanjay Shah
Thank you.
Operator
Thank you. Thank you. Thank you. The next question is from the line of Pritesh from Lucky Securities. Please go-ahead.
Pritesh Chheda
Yes, sir. Just a clarification on all the capacity figures that you shared. So just to conclude that the current capacity is 35 million and over the next two years, you are looking to add 50 million. Is this correct?
Sanjay Shah
Yeah,. The current capacity is somewhere between 35 million to 40 million depending on the combination which is 35 million. Yeah, and we are looking at adding another 50 million 60 million as capacity.
Pritesh Chheda
Okay. Now the other thing in this 35 million did you mention that about 7 million to 8 million is autoinjector capacity?
Amit Sanghvi
Right now, no, we have about 6 million autoinjector capacity. Is that number I don’t know, but would be between 6 and 7 million. I can actually calculate for you just a second.
Pritesh Chheda
It’s okay you are not way of that 8 million, 7 million.
Amit Sanghvi
5.9 million at 6 million.
Pritesh Chheda
And to which you said you will be building a capacity which will take it to 40 million.
Amit Sanghvi
Not only auto-injector. On the autoinjector, we will add another 20 million. On the debt, we will add the —
Pritesh Chheda
So in that 50 million additional, 20 million is auto-injector basically.
Amit Sanghvi
Correct. Okay.
Pritesh Chheda
And all auto injectors, the application as of now is SEMA or there are applications in auto injectors other than?
Amit Sanghvi
There are applications in auto-injector other than also there are applications other than also.
Pritesh Chheda
And lastly, sir, in this six in your presentation, the six signed six contracts, signed six contracts. If you could tell us how much — how many are semi in this, how many non-SEMA, any indication or on therapy areas.
Sanjay Shah
Sorry, three are semi, the balance are.
Pritesh Chheda
And all the semi have to be auto-injectors, right? Semi is or semi has administration via non-injectors also.
Amit Sanghvi
No, semi is both auto-injector. It’s not just semi-injector. Is only in the US market.
Pritesh Chheda
Okay, okay, okay. Understood, sir. Thank you very much.
Amit Sanghvi
Thanks for that. Thanks.
Operator
Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go-ahead.
Ankit Gupta
Yeah. Thanks for the opportunity. Sir, you know, some of the large generic companies, which are expected to be first-to-file entries into Canada as well as you know, India and Brazilian market, they seem to be extremely bullish on the prospects of semi or semi and it seems that they are — like they are clear with the regulator — regulatory authorities on the PEN as well as on the API side. So any indications from some of your customers that you know-how big these markets can be for PEM suppliers like us and what can be the expected volumes from them?
Amit Sanghvi
I think the same question has been answered half a dozen times various of various different forms. So market size is very large, could be 40 million 50 million 60 million for us. We don’t know when and when that happens. But as we have conversations with customers, get commitments, we are building the capacity and churn.
Ankit Gupta
And will some of our platforms like Harmony be for the Canadian markets as well or it will be for other markets? Harmony will be for Canadian market — Canadian market, which is expected to be launched in, let’s say, Q4 FY ’26.
Amit Sanghvi
How many will be for all upcoming launches will be a cross-market.
Ankit Gupta
Okay, but. But okay. We’ll be launching in Canada as well through this. Okay. Okay. And sir, on the — like the new two customers that we have added — added on the consumer side, although as you have been indicated that these are small contracts, but do you think this — the entry that we have got into these customers, any — like any potential side that you can indicate how big — if you’re able to you know supply to them and you know what can be the potential scale from this new customers over the next three to five years?
Amit Sanghvi
These customers are very large and the potential with these customers is large-enough. We will have to see how it plays out over the period of next one month, 12 months-to 12 to 18 months.
Ankit Gupta
Okay, okay. And any update on the carbon steel plant, how is the utilization, how is any new orders that we have done?
Amit Sanghvi
Plant is steady in terms of business.
Ankit Gupta
Any new contracts that we have got and like how is the capacity utilization currently?
Amit Sanghvi
Do we currently continue to? Yeah. So we have orders which we basically currently execute. We talked about commercializing four new products which we have commercialized in the last quarter. We talked about it earlier.
Ankit Gupta
So we’re looking at basically scaling upon that is the capacity utilization currently for the plant?
Sanjay Shah
We don’t give out individual capacity utilization, so it will be very difficult for us to talk about that.
Ankit Gupta
Okay. But have we seen increase in the utilization this year and next year?
Sanjay Shah
Again, we — what we would look at is — if you would look at more from a year-to-year basis, we have seen improvement in capacity utilization.
Ankit Gupta
Okay. Thank you.
Operator
Thank you. The next question is from the line of Manish Sharma from [Indecipherable]. Please go-ahead.
Unidentified Participant
Yeah, hi. Am I audible?
Amit Sanghvi
Yeah.
Unidentified Participant
Yeah. I think most of my questions have got answered because I was last in the queue. I have only one question. Do you see any conflict of interest because you would be supplying the pens to both innovators as well as generic companies? If the device is same, will it create a conflict of interest or you’re developing separate devices for them?
Amit Sanghvi
No. There is no conflict of interest. We never tell anyone we’re going to exclusively work for you unless there is a very significant commitment to given by the person. But otherwise there’s no accurate conflict of interest.
Unidentified Participant
Sure. And in terms of volumes, what would be the breakup between innovator company supplies and the generic companies you are planning to supply after the total penn GLP is the innovator companies except.
Amit Sanghvi
The all-star that we do for Sanofi, all the other are still conversations, innovators will take a long-time to get to-market. It’s not something that will happen in 12 or 24 months, likely — likely things that take-over between 24 and 48 months or 60 months-to get to-market in the first-place. Volumes could be a very, very significant, but a lot of it is unknown at the moment.
Unidentified Participant
Sure. No. So what I’m trying to understand is the volumes which you are forecasting for GLP how much of that will be supplied to innovators like and how much will be supplied to generated zero to innovators, also generics.
Sanjay Shah
So Mahesh, I think you’re confused on your question. Whatever we are talking about with the innovatory school to be a different device for a different set of different molecule. That’s what Amit mentioned. We are trying to see how we can work with innovators on some innovative molecules. Novel, not the same — not side.
Unidentified Participant
Okay, understood. Okay. Thank you. That was my last question. Thank you.
Operator
Thank you. The next question is from the line of Manjeet Buaria from Solidarity Investment Managers. Please go-ahead.
Manjeet Buaria
Hi, thank you for taking my question. I just wanted to get one clarification again. The generic companies with whom we have partnered right now for trial on semaglutide, are we the sole partners for them or do they, you know, partner with multiple device companies and then take a call finally as to which one will they take commercial?
Sanjay Shah
Okay, so our partnership with the customer would be a sole partnership. But you know customer itself, so for example, customers not all of them but some of them they kind of hedge their own beds, so they could run a program in of they would piggyback of someone else’s program, they could use in a particular region a separate file, someone else’s files to go-forward in that region. There’s lots of things happening in the GLP-1 space. I would say that I think with most of our customers, we would be the sole device suppliers.
Manjeet Buaria
So Amit, just following-up on this to get the technicality right, the way it should function is, let’s say, there is a company A, they would have different filing for, let’s say, USA or different filing for, let’s say, UK or different filing for, let’s say Brazil and for each of these countries, they may choose one supplier or they may file with three different suppliers. Is that the way to think about that?
Amit Sanghvi
Yeah, no, no, that’s not how it works. What — what they would likely do again, you know everyone is different, but what they would likely do is say company X is running a program with company-wise device, which is not sharing its device. Now customer is running a program also with running a program internally with device. The company X is also — the customer could do a deal with Company X that, look, I’m going to some of your development or give you X amount of money, but I will have access to your buyers to-market the product in so-and-so-and-so regions. So what they do is they kind of hedge their beds. And I know companies who have three on three programs that are running simultaneously or companies are only running one program or companies are not running their own program at all and just piggybacking off someone else. So there’s a lot of variation between customer-to-customer. But company — just one company will not take device — different devices for the program because it financially doesn’t make sense. You have to create all these lines, run all the stabilities, run the verifications again and again. So it doesn’t make sense.
Manjeet Buaria
Got. So Amit, what you are telling me is, let’s say a generic manufacturer of semaglutide would choose to partner with one device vendor at the initial stages, basically till they get their approval. Right. And after they get their approval, how easy it is for them to sort of use another device supplier or it’s practically then only us they can use for all practical purposes?
Amit Sanghvi
I mean, look, every market is different. You have ROW markets where it could be well. I mean, it’s never simple, but complexity-wise, low complexity to change. You’d have some ROW market where it is still very difficult to change. Some that follow the same EU or the US standards, we have to conduct trials again, especially human factors or usability studies or formative studies to change the device. In the US, I would say it’s practically you’re looking at — essentially looking at running the whole program again, so or at least a significant portion of the program again?
Manjeet Buaria
Got it. And last question, Amit, we would have visibility as to which country we are being tied-up for, right, by our customers when they take trial on us or we don’t have that visibility.
Amit Sanghvi
No, we have the visibility.
Manjeet Buaria
So you had mentioned a few calls back that probably 60%, 70% I think of players may have tied-up with us. So this 60%, 70% is all US or were you referring to across all geographies?
Amit Sanghvi
I mean most — most partners — I mean most customers that are working with us will go to the US, but we also have partners that don’t intend to go to the US.
Manjeet Buaria
Okay, got it. Very helpful, Amit. Thank you so much.
Operator
Thank you. The next question is from the line of Dhwanil Desai from Turtle Capital. Please go-ahead.
Dhwanil Desai
Hi, good afternoon, everyone. Am I audible?
Operator
Yes, you are. Please go-ahead.
Dhwanil Desai
Yeah. My first question is, I think this discussion around a volume tie-up, but I think the dynamics that we are describing is that customer also may not have a line-of-sight in terms of volume that they may be able to generate in a market. So given that, how does this dynamics work-in terms of they giving commitment to us? And if our incremental second-line on semi, it’s contingent upon those volume tied-up, how should we think about it?
Amit Sanghvi
Could you probably repeat your question? I think we lost you somewhere in-between.
Dhwanil Desai
Sure. So essentially, what we are saying is that the consumer also when, let’s say, our customer, they may not have a line-of-sight in terms of how much volume they may be able to sell-in a particular market. But we are looking for some kind of a volume commitment from them, right, on the semi and other products. So you know, how will they do that volume commitment in first-place? And second, is our incremental semi line, which is going to come in FY ’26 is contingent upon those volume tie-ups coming through, that is how we should think.
Amit Sanghvi
I mean all of these guys have various business scenarios, right, from start of launch to, let’s say, three years on the market or four-year — kind of a four-year plan or a five-year plan. So when we ask for commitment, it’s not that we’re telling them that you commit whatever your best-case scenario is. But customers can certainly commit that, okay, we’ll buy X million pens over the next 24 months or over the next 36 months, all kinds of — all kinds of options are on the table. There are aggressive customers who want to the capacity upfront. So they will commit to a higher-volume upfront and take that risk also.
Dhwanil Desai
Okay. Okay. And is our capacity addition contingent upon those commitments?
Amit Sanghvi
Sorry. So our capacity will basically be contingent on a, the type of commitment which we have from and based on our discussions, what we think is the capacity which we should be created. So it will be a combination of that.
Dhwanil Desai
Got it. Got it. Sir, second question on healthcare. I think whatever incremental revenue 50% growth that we have seen from INR70 crore nine-month basis to INR1078 crores. So large part of that is coming from our own IP insulin and contract manufacturing insulin growth, right? Is that the right way to look for this growth the.
Amit Sanghvi
Large part comes from our own IP.
Dhwanil Desai
Got it. Got it. Got it. And on the base business, you know, I think you mentioned that 20% growth is probably too much to kind of factor-in going-forward. But on Nine-Month basis, we have done around 13% growth. Should we be in that range of 13% to 15% kind of a number on base business? Especially, I think we had bid for some large RFQs for the — for the our consumer customer. So have they come through and how should we think about that?
Amit Sanghvi
It looks like more from a three to five-year perspective, we can look at that sort of a growth the geopolitical, global, geopolitical situation with change of leadership in the US, I think we need to get a little more clarity in terms of how things are moving across the world.
Dhwanil Desai
Okay. Okay. So there is no clarity yet from your customer side as to how the FY ’26 may pan-out, right? That’s how we should look at it.
Amit Sanghvi
I would say we have clarity in terms of how FY ’26 will pan-out because we have that sort of a visibility, but this is more in terms of a long-term or a medium-term.
Dhwanil Desai
Got it. And any no significant updates on the consumer electronics side, right?
Sanjay Shah
I think you said you’ll come back to us. I think Amit already mentioned that.
Dhwanil Desai
Got it. Thank you. All the best. And yeah. Thank you.
Operator
Thank you. The next question is from the line of Nirvana Laha from Badrinath Holdings. Please go-ahead.
Nirvana Laha
Hi, thanks a lot for the opportunity. So my question is regarding the UK, the Shelly UK revenues. So there was a thought amongst some of us that the UK revenues could eventually sort of dripped off as the GLP1 development slows down and molecules get commercialized. But I think from what you’ve said to an earlier participant, not only do you expect the revenues to hold, but you’re actually expecting some kind of Y-o-Y growth to continue for several years. So this will come from a new program that we are doing outside of GLP-1 and GLP-1, right? So that’s the right way to think about UK revenue?
Amit Sanghvi
Yes.
Nirvana Laha
Okay. Thanks. And did I hear you right on insulin that you have paused the current contract supplies of insulin till the aid cavity line comes online?
Amit Sanghvi
Yeah. So not significantly pause, but we have to pause because there is an ex volume we can supply from the four cavities, which is not enough for them to meet even a requirement of, let’s say, one of their lines. So we need to finish the eight cavity program before we restart supply.
Nirvana Laha
Okay. I see. So in Q4, it’s possible there can be like some temporary volatility due to this changeover.
Amit Sanghvi
I don’t think so, but —
Sanjay Shah
Be something else which will make it out.
Amit Sanghvi
Yeah, yeah, yeah. There’s enough that makes up for it.
Nirvana Laha
Sure, sure. And last question on the GLP-1 semi space, I think for Toby, you mentioned that the Toby device is right now getting supplied only into regulated markets and we are expecting to ramp-up Toby significantly to 20 million. So does this mean that whether directly or indirectly, we are — we have visibility into supplying to the innovator at this point therefore?
Amit Sanghvi
No, we are not going to innovators. He is going to the generator who will eventually take it to whichever market they would like. But the innovator has an autoinjector semaglutide only in the US. So it would just make sense that you know, Toby goes to the US there could be companies who do Toby outside of US also, it’s not something we control.
Nirvana Laha
Okay. Okay. And would it be possible for you to confirm whether Toby is for Sema or for some other molecule?
Amit Sanghvi
We have — we have multiple molecules in Toby. So obviously will take the chunk of the volume.
Nirvana Laha
Okay. Okay. Got it. Thank you. Thanks and all the best.
Amit Sanghvi
Thank you. Thank you very much.
Operator
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments.
Amit Sanghvi
Thank you. Thank you, everyone, for joining the call. I hope that we’ve been able to answer your questions adequately. For any further information, I request you to get-in touch with SGA, our Investor Relations Advisor. Thanks once again, and have a great evening. Thank you.
Operator
[Operator Closing Remarks]