SHAILY ENGINEERING PLASTICS LTD (NSE: SHAILY) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Mr. Amit Sanghvi — Managing Director
Sanjay Shah — Chief Strategy Officer
Analysts:
Unidentified Participant
Shaleen Kumar — Analyst
Vishal Manchanda — Analyst
Harsh Shah — Analyst
Ritesh Shah — Analyst
Nirali Gopani — Analyst
Kunal Bhatia — Analyst
Pritesh Chheda — Analyst
Lucky Agarwal — Analyst
Akhil Parekh — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 earnings conference call of Shiley Engineering Plastics Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 10.0on your touchtone phone. Please note that this conference has been recorded. Before we begin, a brief disclaimer. 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 are not the guarantees of future performance and it may involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Amit Sanghvi, Managing Director of Shiley Engineering Plastics Limited. Thank you. And over to you sir.
Mr. Amit Sanghvi — Managing Director
Thank you very much. Good afternoon and a very warm welcome to all of you to our quarter three earnings call. I have with me Mr. Sanjay Shah, Chief Strategy Officer and SGA, our Investor Relations Advisors. I hope you’ve had a look at our financial results and the investor presentation that is uploaded on our website as well as the stock exchange. Let me begin by giving you highlights of our key business development over the quarter. In Q3 FY26 we delivered strong revenue growth along with meaningful margin expansion. Revenue stood at 251 crores, up 27% year on year and EBITDA came in at 66 crores up 43% year on year with a margin of 26.5% representing an expansion of 310 basis points year on year.
The growth was driven by the continued momentum across our business verticals. Importantly, the healthcare segment’s contribution to our overall revenue mix which has now doubled to 42% compared to last year. Reflecting the increasing scale of this business. During the quarter, there have been two important updates in healthcare that strengthen our future outlook. First, and the most important, I’m very happy to announce that we’re establishing a new scalable facility in Abu Dhabi for manufacturing of pen and auto injectors. This is a strategic move to build capacity in the fast growing drug delivery segment and places us in close proximity to our international clientele.
The planned investment is in the range of 130 to 150 million AED translating to about 300 to 350 cores to build a capacity of approximately 75 million pen auto injectors per year. We expect this facility to be operational by Q4FY28, significantly scaling our global manufacturing footprint in GLP1 and other advanced therapies. With this addition, our total pen injector capacity will increase substantially to 150 million units from the current 80 million units per year. We are also in discussions with the government in Abu Dhabi for potential financial support and we will provide an update as those discussions progress.
Second, we are very pleased to announce the appointment of Mr. Joe Kam as Chief Operating Officer of Healthcare Division in Shirley effective 1 March 2026. Joe brings over 20 years of international experience in manufacturing and operations across highly regulated process driven industries. Prior to joining Shelley, he held senior leadership roles at SHL in Taiwan, managing their entire device manufacturing operations across seven sites and he’s also had previous through SHL he’s worked at Flextronics in manufacturing of medical devices of high end medical devices including electronics. He holds an Executive MBA from the Chinese University of Hong Kong in Advanced qualifications in Automation Systems and Engineering Management.
At Shiley, Joe will lead our global healthcare operations with a clear mandate to drive operational excellence, further strengthening quality and compliance, accelerating automation scale up and building high performance teams to support our next phase of growth in the healthcare segment. Beyond the upcoming facility, we have onboarded two new customers for GLP1s and have also additionally signed two new contracts with Global Pharma for the manufacture and supply of pen injectors. In the consumer segment we received a new product mandate from an existing home furnishings customer and within industrial segment we commenced supplies of power tool components for a new client and added applications in LED lighting as well.
With that, I will now hand over the call to Mr. Sanjay Shah to take you through the operating and the financial highlights of the quarter. Thank you very much. Over to you Sanjay Bhai.
Sanjay Shah — Chief Strategy Officer
Thanks Amit. Good afternoon everyone. I will start with the operating metrics for the quarter and the nine month period and then move to the financial performance. During Q3FY26 we processed 5,541 tons of polymers as compared to 6,308 tonnes in Q3FY25, a decline of 12% for nine months. FY26 polymer process stood at 19,209 tonnes versus 18,396 tons last year a growth of 4.4%. Machine utilization was flat at about 47.1 in Q3 as compared to 47.818 for nine months FY26. With the ramp up of new programs, we expect utilization to improve going forward. Exports continued, remain strong and contributed approximately 71% of total revenue in both Q3 and 9 months.
FY26 Let me now summarize the consolidated financial highlights for Q3FY26 Revenue stood at 251 crores as compared to rupees 198 crores during Q3FY25 A growth of 27% year on year. EBITDA has doubled to rupees 66 crores as compared to rupees 46 crores. During Q3FY25 EBITDA. EBITDA margins stood at 26.5%, an increase of 310bps over Q3FY25 PAT stood at 37 crores as compared to rupees 25 crores during Q3FY25A growth of 48%. Year on year PAT margins stood at 14.9%, an increase of 220 basis points over Q3FY25. Coming to segmental revenue breaker for Q3FY26 in the consumer segment, revenue stood at 123 crores as compared to 141 crores during Q3FY25, a decrease of 13%.
In the healthcare segment, revenue stood at 104 crores as compared to 44 crores during Q3FY25 a growth of 139%. In the industrial segment, revenue stood at 23 crores as compared to 13 crores during Q3FY25a growth of 87%. Now coming to 9 month FY26 consolidated highlights Revenue stood at 754 crores as compared to 569 crores during 9 month FY25 a growth of 32%. EBITDA stood at 218 crores is compared to 124 crores during 9 months FY25 a growth of 76%. On a yoy basis, EBITDA margins stood at 29%, an increase of 720 basis points over 9 point.
FY25 PAT stood at rupees 130 crores as compared to rupees 65 crores during 9 months of 525, a growth of 101% on yoy basis, PAT margins stood at 17.2%. An increase of 590 basis points over 9 month FY25. Cash PAT for 9 month FY26 was reported at rupees 166 crores as compared to 96 crores during 9 month FY25, a growth of 73%. Year on year our ROCE and ROE stood at 38.4% and 29.1% respectively as on 31st December 2025. The growth in business has been achieved with different use of capital. Our debt to Equity stands at 0.3x and fixes a turnover ratio at 2.0x as on 30th December 2025.
Now coming to segmental revenue breakup. For 9 months FY26 in the consumer segment revenue stood at 409 crores as compared to 413 crores during 9 month FY25A degrowth of 1%. In the healthcare segment, revenues stood at 280 crores as compared to 109 crores during 9 months FY25A growth of 158%. In the industrial segment revenue stood at 65 crores as compared to Rupees 48 crores during 9 months FY20 fund a growth of 36%. That concludes the update from my side. We can now open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Shalin Kumar from UBS India. Please proceed.
Shaleen Kumar
Yeah. Hi. Thank you so much. Congratulations to the management for a fairly good set of numbers. So Amit, Sanjay, my two questions. First on the capacity side. So can we get an update if I missed miss the initial part? So we are having two lines coming up, right? Of 25 million each. So is the first line is operational?
Mr. Amit Sanghvi
The first line is going through Operational qualification should be completed next week and then we’re going to supply immediately after. The second line is scheduled to arrive in May end of April, beginning of May 26th. So it will get commercialized by end of July 26th.
Shaleen Kumar
So fair to assume, Amit, that our commercial production from that the new line will start in like we’ll do building commercial production in March onwards.
Mr. Amit Sanghvi
Yeah, we will have some commercial production in March, but we’ll do the proper scale up from April.
Shaleen Kumar
And for that, that one may be August. September, right?
Mr. Amit Sanghvi
No, that one end of July we should be in production. So yeah, I guess consider a month for, you know, getting the line up to speed that it’s intended. We typically start at, you know, 50, 60 parts per minute on an 80 part per minute line and then scale it up to 80.
Shaleen Kumar
Got it. So Amit, you know, we were setting up two lines with 50 million and now we have also setting up, you know, 75 million line which we’re coming up by end of FY28. And you have also highlighted that you have signed up two more customers, etc. So is it again fair to assume that these, you have pretty confident on the, these at least these existing lines, 15 million to be able to fully utilize in next 12 to 24 months. And that’s the reason you’re looking for 75 million line.
Mr. Amit Sanghvi
All the capacity expansion we’re doing, I mean, let’s look at the capacity expansion in India are more or less fully backed by what do you call it, commercial contracts. The Abu Dhabi expansion I would say is somewhere around 50 to 60% secure in terms of capacity commitments. Not fully, but you know, it’s anticipated to be 18 months out from now. So yeah, we anticipate that we will be fully backed by contracts even on the Abu Dhabi setup.
Shaleen Kumar
Yeah. So basically you’re saying that 50 million is fully backed. But so that’s the point is like we should be fully utilized in 12 to 24 months, right?
Mr. Amit Sanghvi
Yes, yes. Right.
Shaleen Kumar
And 75 million, you’re saying that you already have a commitment for more than 50%?
Sanjay Shah
Yeah, around 50 to 60. But somewhere in between that now, you know, sometimes you will see, you will sometimes see 10 cannibalizing auto injectors or vice versa. But that’s a risk we have to live with.
Shaleen Kumar
Got it, got it. And you know, on the GLP1 side now, how should we think about your supply given you know, there’s a likelihood of Launches coming in 1Q should we expect that you will be started supplying GLP1 injectors in this quarter? Fourth quarter.
Mr. Amit Sanghvi
We’Ve already started supplying in the last quarter itself for commercial launches which are planned in Canada, Brazil, India, Middle East, Turkey. So supplies have already started. You know, we’re just, we’re struggling right now because our high speed line is still not up and running. It’s still in qualification. So as soon as that happens, you know, we’ll be in a better position to supply the volume that is needed.
Shaleen Kumar
Right. So basically you think it will only ramp up from here? You already have a demand coming from customers.
Mr. Amit Sanghvi
Yeah, absolutely. I mean, customers breathing down our necks for supply.
Shaleen Kumar
That’s the good news, Canada, like, we have a lion’s share, right? Can we say that, like, are you possible for you to quantify, like, what kind of a share you have amongst the customers you have signed up or the other number of customers who are. Filed
Mr. Amit Sanghvi
without, you know, without breaching any confidentiality? I believe Canada, we would. If I look at the. Potentially the first 6, 7, 8 filers, I would say we have upwards of 65, 75% of that share.
Shaleen Kumar
Do you think 75% of the customers will file are with you?
Mr. Amit Sanghvi
Yeah, if I look at the first again, yeah.
Shaleen Kumar
So effectively, basically, there’s a likelihood that anyone who gets an approval will be using a Shelley’s man in Canada. Most likely. There’s a good likelihood.
Mr. Amit Sanghvi
Very good likelihood.
Shaleen Kumar
Good to hear that. Now, moving on to the consumer electronic bit. If we can get to know, like, what’s the status on that front? Like, when are we probably. Are we done with the qualification? When can we expect commercial deliveries to go for the consumer electronics client?
Mr. Amit Sanghvi
I think we’re coming to the. Coming closer to the end of the qualification cycle, but I don’t have anything that I will be able to share beyond that. So we should come to an end of qualification either end of this month or early March and hopefully from there on we will have a little bit more visibility on supplies.
Shaleen Kumar
So most likely you’re saying the supply will probably begin fourth quarter, end of the 1:1. Q. Can we assume that?
Mr. Amit Sanghvi
That’s also my assumption at the moment, but like I said, I don’t have any. Yeah, yeah, yeah, but you.
Shaleen Kumar
The product is mostly qualified, right? Most of the qualifications are done if our understanding is correct.
Mr. Amit Sanghvi
I mean, there’s a. There’s a long qualification cycle. You have to always consider, you know, that one, one is to qualify a component, then it’s to qualify the component at site, at the assembly site. Then beyond that, there’s a testing period for verification that everything works. So it’s not a very short process, especially for a new supplier to enter. We assume that we’re at the end of that cycle at the moment. Hopefully we will start supply soon.
Shaleen Kumar
Got it. Last question from my side and then I’ll go back in the queue. Last two questions actually, on the semiconductor casings. That’s another excitement area you highlighted. If we can get Some status update on that as well. Right. Where we are like what kind of customers are we looking at and when can we start seeing the commercial supplies happening on that front?
Mr. Amit Sanghvi
Look, plants in India are still, you know, are not up, right. So the chip manufacturing companies are not fully up and operational. I think it’s going to be likely be 12 months before they come up. We should see some small quantities in the current, in the new FY for sure. But I think any scale up will largely depend on how quickly these capacities come up and how quickly they then scale from after setup. It’s a direct link. Can’t do anything else with the product except supply to chip manufacturers.
Shaleen Kumar
Can there be an export opportunity in that beyond the domestic supply?
Mr. Amit Sanghvi
Not at the moment. Not at the moment. It’s not friendly to international shipping. It’s quite, quite, can be quite expensive. So in most regions these are manufactured close to the end customer.
Shaleen Kumar
All right, all right, last bit on the financials. While I can observe that your gross margin has been stable, but I could see there are some cost increases to a little bit on the employee side and other expenses. Just, just want to understand like what were they pertaining to.
Mr. Amit Sanghvi
Largely admin. Admin and selling expenses have gone up. So Sandeep, if you want to take it, that’s, that’s fine.
Sanjay Shah
Okay, you go ahead. Yeah, yeah, yeah.
Mr. Amit Sanghvi
But as you can imagine, quarter three this particular year ended up with three very large obviously exhibitions, which is a very significant cost for us. Plus we’re doing these setups in Abu Dhabi and elsewhere in the world. So you’ve seen a temporary cost increase on that. But the reason it’s reflecting on the margin is because who had some income, the one time income which has, which has been delayed from quarter three to quarter four.
Shaleen Kumar
Okay, so can we get like what kind the nature of that income? Like what was it like? So you say the cost is already booked for that.
Sanjay Shah
So Shalin, what happens is that basically from UK and Abu Dhabi, we basically license or give access to people to our platforms where the fees are recovered over 12 to 18 months or 21 months in terms of agreed milestones with the customer. Now we would have submitted papers to the customer, customer would validate that and then confirm it and then invoices would be raised. In this case there have been some income which has not been booked in the quarter three because we have not got confirmations from the customer. So we expect that we should basically be able to do that in quarter four.
Shaleen Kumar
So Sanjay, you think that the cost has been incurred but the income has yet to receive for that.
Sanjay Shah
Yes, actually you’re right. So what happens is as I mentioned earlier, you basically release income once the customer confirmations come in. Now these are long term contracts with different agreed milestones at the start of the contract. Now if a customer. Basically we were expecting the customer approvals to come in for that milestone in say quarter three. Some of them would have been deferred to quarter four or something like that. So that’s the reason that income is not coming. You would see that when you look at the difference between the consolidated numbers and the standalone numbers, you would see that the revenue compared in quarter one and quarter two and quarter three, the revenue in quarter three from UK and Dubai operations is lower as compared to quarter one and quarter two.
And that’s the reason for that. While expenses have been there, you don’t have corresponding revenue which is coming.
Shaleen Kumar
So basically as we move into 4Q, we will not have these exhibition cost and also we will have a revenue coming from the work we have done in Q3.
Sanjay Shah
Just to add to what Amit said with exhibition costs, we also have had expenses on labor code implementation in terms of gratuity and leave and test. So that expense was about 90 lakhs to a crore.
Shaleen Kumar
And any sense on the exhibition cost, sir, if that can also you can figure out quite a figure
Mr. Amit Sanghvi
that was. Substantial because there were three large exhibitions which we took part in. One was CPHI in Europe and then POD and pda.
Shaleen Kumar
Okay. All right, sir. All right. So thank you so much, sir. That’s it from my side. I’ll join back again,
Mr. Amit Sanghvi
thanks. Thanks Charlene. Thank you.
operator
Thank you. Before we proceed with the next question, participants, please limit your questions to two per participant as there are several participants waiting for their tone.
Mr. Amit Sanghvi
Thank you.
operator
We take the next question from the line of Vishal Manchanda from Systematics. Please proceed.
Vishal Manchanda
Good evening and thanks for the opportunity. Sir, regarding the consumer business that continues to decline. So if you could share whether we can expect a rebound there sometime soon.
Mr. Amit Sanghvi
Subhasha, when you look at the consumer business, the consumer business, we have seen some decline because of overall demand slowdown which is happening in Europe and US as and when economy improves there, I think you should see a rebound. The other thing is with the US FTA or US agreement happening and the EU FTA happening, once this gets signed and implemented, you should basically see some advantage coming to India as compared to its peers in terms of exports. So you would see probably couple of quarters. But post that you should see improvement happening on that part of the business.
Vishal Manchanda
Would this stabilize at current level or there can be further downside from current. Numbers
Mr. Amit Sanghvi
which are very difficult to say because again it depends on how things pan out globally in these economies which would be difficult for us to predict sitting here. What you will see. Yes. So if you see, if you see, if you look at quarter one, quarter two, quarter three, while we have taken on additional new business from home furnishings space, from our customers, on existing businesses, we are seeing on drop in volumes. So that’s something which will again depend on how does the revival happen in Europe and us?
Vishal Manchanda
Is there not annual commitment that these customers give you or these are more need based orders that you get from your customers?
Mr. Amit Sanghvi
They would be, in some cases there would be commitments. In a lot of these cases this would be regular orders which would be based on the demand. So we do have a 52 week rolling forecast. So we’d have some sense of it. But then, but forecast also will change with time.
Vishal Manchanda
And IKEA kind of, there are press, there are press articles saying IKEA is looking to source more, more from us for the US market. Any, any signals that you’re getting on this?
Mr. Amit Sanghvi
We have not seen that. So. Okay, see what happens is when you look at it with tariff coming down from 50 to 18%, India will have a significant advantage against its peers for exports to the U.S. okay, got it.
Vishal Manchanda
And so just one final one. On the commitments that you say you have commitments for 50% of the capacity at Abu Dhabi. Are these commitments in form of capital advances? So like do they fund 50% of your capex? Is that the way these commitments work?
Sanjay Shah
No, I think I mentioned this in two of my previous calls. But with every customer it’s different. In some customers we do want to structure with an advance is given. Advance can range from anything from 20, 20% to 40% and in most cases it will always be a take or pay contract. So every year there’s a certain volume guaranteed, a minimum volume guaranteed by the customer which they have to purchase.
Vishal Manchanda
And this volume guarantees for multiple years that they provide. Let’s say for the next, since, for the next five years since inception. Okay,
Sanjay Shah
yeah, I mean look, it’s in the customers, you know, it’s to the customer’s benefit to do that. Because if we, if someone’s taking a pen from us for semaglutide and they only have a contract for one year, next year I may not have supply for them because you know this market is like that there’s more demand than supply.
Vishal Manchanda
Right. And just I’ll come back in the queue. Yeah, thank you.
Sanjay Shah
Thanks.
operator
Thank you. We take the next question from the line of Harsh Shah from GM Financial pms. Please proceed.
Harsh Shah
Yeah, thank you for the opportunity. A few questions from my side. So firstly once again on the consumer business I understand as you mentioned that you know demand is kind of changing both in US and Europe. But from a modeling, from a modeling perspective, would it be right or assumption to kind of take as mid single digit kind of growth annually in this business or you probably feel that post this treaties things could materially change in our favor.
Mr. Amit Sanghvi
So harsh. It will depend. So I think it’s a little too early to talk about it. The EU needs to be ratified in that we are still the India US is still a lot of discussions going on while there’s some, some sort of framework agreement agreed upon but there’s some discussions which are going on. So it’s a little too early to talk about it.
Harsh Shah
Got it. Okay. No worries. Only Penn’s guidance in terms of volumes which you had given probably at the start of this financial year of almost around 30 million odd. Would you retain that guidance for FY96?
Sanjay Shah
Yes. Okay.
Mr. Amit Sanghvi
It’ll be a little lower given our qualification activities are delayed by three months. So it’ll be a slightly lower but.
Harsh Shah
Generally it’s the same. Broadly the same. Right?
Mr. Amit Sanghvi
Yeah.
Harsh Shah
Okay.
Sanjay Shah
Yeah,
Harsh Shah
got it.And on the new capacity expansion in the uae, right if you could you know kind of walk us through in terms of the why UAE was chosen as the location. So correct me if I’m wrong. So it is it that you know, your focus would be more on the regulated market. Spare the IP protection on the pens would be much stronger vis a vis market strike. India, you know, wherein there is a lot of Chinese competition as well coming in and also something some color on the revenue and the payback period you would have assumed at the current juncture for the UAE plant.
Mr. Amit Sanghvi
We will not talk about revenue and payback in this call. I think when we get closer to taking a call on finalizing this, maybe we can announce it then on the rationale for the UAE plant, you know, if you look at the business for healthcare particularly we import resin, we import equipment, we import and in Shani’s case we’re also importing people. Right. So Tea senior engineering talent within Shilee running the healthcare business are expats now maybe you know, there’s certainly a savings when you do all of these imports within the country. But more than anything else, the expats we hire come from regions in Asia where personal income tax is a lot lower.
It’s less than 50% of what it is in India. So we actually end up paying someone 2x what they should be getting paid just to bring them to India. So our cost is not, you know, we’re not able to at the end of it justify the cost of, you know, gaining this capability, you know, given the scale that we want to grow at. So there’s a lot of benefit of being here. There’s also. I never wanted to mention this, but we lost out on a particular, on a particular, very large contract a year ago when Operation Sindhur happened just because the customer saw risk in their clinical program.
So we have a very nice base in India. We’ll continue to operate and grow that. But we need to have a business continuity plan in place and, and there are large customers who will look at that very, very, you know, very closely and not put, not want to have all their eggs in one basket. So that’s the last one.
Harsh Shah
Got it. And one last question before I get back in. Thank you. So the thing that you all mentioned in the PPT with respect to the two new contracts with global companies for pain injectors. So would these be completely newer? How should one read? This.
Mr. Amit Sanghvi
One’S an existing customer, new project. Once a completely new customer.
Harsh Shah
Got it?
Mr. Amit Sanghvi
Yes.
Harsh Shah
Sure, sure. That’s it. From my side. Get back in. Thank you.
Mr. Amit Sanghvi
Thanks.
operator
Thank you. We take the next question from the line of Ritesha from Investech. Please proceed.
Ritesh Shah
Yeah. Hi. Thanks for the opportunity. Quick questions. Sanjay bhai, you indicated around 30 million pence this year. Can you give guidance for 27, 28? If it’s possible.
Sanjay Shah
There’s probably, I would say wait till the end of the year and then we can probably give an idea on that.
Ritesh Shah
Okay. Second question is the consumer business has actually it has reported a decline of on a year, on year basis. Now in a way this should be a good thing for a gross margin if we look at it on a sequential basis. So despite stellar growth, what we have seen in healthcare, how should we comprehend the gross margin profile on a sequential basis?
Sanjay Shah
So if you look at on a standalone basis, the gross margins have improved on a sequential basis. So the Q2 margins were at about 55%. The Q3 margins are at about 56%. So you have seen a 1% increase in terms of gross margins. So it’s been marginal. But yeah, it has been there.
Ritesh Shah
Correct. And on consult basis, basically you did indicate about the revenue which has not been booked. The cost was there. If it is possible for you to quantify that number. Basically probably at a console level. It will help us better appreciate the number.
Sanjay Shah
So I already indicated the number on the labor cost which is about 90 lakhs to a crore. And then there will be cost related to exhibitions and other costs which is there. Which I think when you look at the numbers you should be able to. Arrive at the number
Ritesh Shah
I’m referring to at the gross margin level. You indicated there was a revenue which was there between Consol and standalone. You were explaining which was not booked in Q3 and that some income will be actually booked in Q4. Would it be possible for you to qualify that income number?
Sanjay Shah
Again, Ritesh, I would basically refrain from giving a number here because a lot of this is milestone based. But you will see some of this revenue getting booked in quarter four.
Ritesh Shah
Sure. Okay. A few questions for Amit. Amit, you indicated the high speed line under quality. This was respect to the first question that you answered about the next line by next week and the other one by July end. Okay. Can you detail like what are we referring to over here?
Mr. Amit Sanghvi
Sorry, I didn’t understand the question. What are we referring to in terms of the line or.
Ritesh Shah
Yeah, you said high speed line under qualification. So which qualification? Okay, okay, okay. Okay. So it’s. It’s more procedural. Okay, that, that’s fine. And with respect to the UAE capacity, what we have announced, how should we read into this capacity? Is this like on a 4 capacity cavity mold or an 8 cavity mold? And how does it stack up versus the facility that we have in Baroda from a technological standpoint?
Mr. Amit Sanghvi
So Baroda we currently run a combination again different on different products. But it’s a combination of 4, 8 cavity. 4 cavity, 8 cavity and 16 cavity. Right. So any. So 16 cavities only there for the lines which are supplying for GLP1s and there’s only two lines doing that. Right. All the rest of our products would be 4 and 8 cavities. In Abu Dhabi we’re looking at only 16 cavities. There will be no 8 cavity production lines. So it’s basically all high speed lines in Abu Dhabi. So line tool, each line is capable of producing, each set of capacity is capable of producing somewhere around 25 to 28 million pen or devices per year.
Largely automated. Even our India facilities fairly automated. But this would be much higher level of automation than that. Sure.
Ritesh Shah
And in the presentation we have indicated Q4FY28 as the commissioning. If we had to read on the dispatches for FY29, FY30. I understand you won’t probably give the number but hypothetically if we are 100% booked, what is the dispatch? Quantum. It can happen. I’m not looking at it from a commercial standpoint, I’m just looking at it from a manufacturing standpoint. Can there be any startup issues or is it something which is very, very smooth?
Mr. Amit Sanghvi
That’s what we’re having right now. We’re having startup issues. Right. That’s why qualification which should have happened in possibly in October last year, we’re in Feb this year, it’s still ongoing because the line, a very, very, very complicated line and it’s taking. A lot more than we anticipated.
Ritesh Shah
Sure. And would it be possible for us to give some more flavor on the consumer electronics supply that we already started? Basically how we entered in this business because historically we have looked at high margin, high rock skus. This could be high volume, probably low margin. What is, what is the thought process and what is the scope of revenue margin profile opportunity that we have over here?
Sanjay Shah
Look, it’s a very, very big opportunity and very scalable opportunity. Right. So look at maybe if you look at supply chain in China, each of these plastic guys that participate in consumer electronics opportunities, especially the high end, more high precision small parts, high complexity. Each of them do revenues between 300 million to half a billion US$600 million. Right. Annually and they’ve all kind of grown to that level maybe within a span of 10 years really. So what we see is that this particular opportunity is highly, highly scalable in terms so it’s long term scalable. There’s a very high amount of revenue that you can generate and because of the complexity which takes out a lot of your competition, not everybody can do it.
First of all very, very difficult. You’ll find a handful who will actually be able to do this. So which means that there is also margin to be earned. The margin is not going to be health care margins but I’d say certainly higher than our home furnishings, higher than our home furnishings business. So you’ve got better margin, high complexity which means there’s deterrent for someone else to enter and better margin profile. I think it’s a good mix. Sure.
Ritesh Shah
And what sort of capex will be look for this particular business? I would presume like we’ll be running out of capacity very quickly over here. So how should we look at incremental capital allocation for this part of the business?
Sanjay Shah
We’re working on the capex plan. I think we don’t have a very concrete answer yet but it will be, it will be available shortly.
Ritesh Shah
Sure. I’ll turn back. Thank you so much for the answer.
Mr. Amit Sanghvi
Thanks.
operator
Thank you. Before we proceed with the next question, a reminder to the participants, please limit your questions to two per participant. We take the next question from the line of Mirali Koppani from Unique pms. Please proceed. Yeah.
Nirali Gopani
Hi Amit and Sandraba and thank you for the opportunity. Congratulations on good set of result. My first question is on the capacity timeline. Now when we expect to sell around 30 million pence few here and there in the very near future and the capacity to come up in towards the end of FY28 do you see any capacity constraint that we might see in the next two years and do we have any. Is there an option to add further capacity in India as steeded?
Mr. Amit Sanghvi
No, no. You know we did not intend to add the 25 million line which I. The 25 million pen line which is being delivered in end April beginning of May. We never intended that in India but we had to do it because I mean essentially because you know you can’t execute a full project in a foreign country in 10 months. I mean we can do it in India in 10 months but outside of India it’s not possible to do it in such a short time. So we decided to max out the capacity in India. We don’t have any more building space left.
We don’t have any more factory space left in India so we’d have to build new. Anyways. When we talk about capacity Rupal, you have to understand that most of our contracts will stipulate a upside of 20 to 25% depending on what a customer is potentially signing. So for example if we have a capacity of 80 million pens in India, the guaranteed volume that we have is 80% of that. Right? So we always have, we have to have spare capacity available for managing launches, managing, you know, seasonality, managing a sudden spike in demand from on an X product versus a live product.
So capacity essentially never gets 100% utilized and you expect that it will be around 80% utilized.
Nirali Gopani
Perfect. Very clear. And secondly Amit on Exim, I understand that the launch will be three years out and it’s still far. But any directional update that you would like to share on onboarding of customer or signing any contract, any timeline that when can it happen?
Mr. Amit Sanghvi
We have quite a few advanced stage discussions ongoing. Two in particular to be honest regarding GLP1s for novel molecules. Hey all of you keep your fingers crossed and pray for us. It could be this year. So you know we could look at potentially signing on a partner, a customer for One of our more innovative products this year. Sorry, this year. This calendar year, not financial year.
Nirali Gopani
Right, Very interesting. And Amit, not looking at the quarterly numbers, but uk, we have a pipeline to grow substantially over the next two, three, four years. Right. The pipeline in your view looks strong for the UK subsidy to deliver numbers?
Mr. Amit Sanghvi
Absolutely. We’re. We’ve got 1, 2, 3, 4, 5, 6. We’ve got seven new projects in the pipeline and each of them could have multiple customers. So we’ve got seven new products in the pipeline. In fact, we are discussing how quickly we can implement this. We don’t have the resourcing available. UK pipeline is very strong. I don’t see any challenges for the next three, three to four years.
Nirali Gopani
Okay. Okay. And one last question on the numbers.
operator
I would request you to join back the queue as there are several participants waiting for their turn.
Nirali Gopani
Absolutely fine. Thank you so much.
Mr. Amit Sanghvi
All right, thanks.
operator
Thank you. We take the next question from the line of Kunal Bhatia from Dalalan Brocha Stockbroking limited. Please proceed.
Kunal Bhatia
Yeah, thanks for the opportunity. Sir, I. I just had two questions. One was in regarding the Abu Dhabi facility which we have, which we would be starting a. You’ve mentioned some bit about the funding on that but if you could be more elaborate on how are we going to find that. Secondly also will this facility be used only for the GLP1 opportunity or even for other therapies? And the final question is also if. You could give some sense now since. That global capacities have also increased, how are you facing the pricing end for the pens? Yeah,
Sanjay Shah
so I’ll probably answer the first part of the question. In terms of funding. We basically look at funding it by a mix of internal accruals and debt. The implementation time as Amit indicated in his opening remarks is 18 months. So we will have enough of accruals which we will be able to generate and we will be approaching our bankers as well as bankers in Abu Dhabi for funding the same.
Mr. Amit Sanghvi
Thank you. Sanjay bhai. On the other two. Pricing. Yeah, there is pressure on pricing but you know, it’s not crashing down or anything. Anyways, large volume pricing was, you know, if we look at our. Of course you guys don’t have this information and we cannot provide it. But from what we had quoted when we first submitted proposals on high volume offtake, it’s not a whole lot different. We’ve seen essentially a 15%, 10% to 15% price erosion on those numbers. But that’s a given. When you sit down to negotiate large volume contracts, you will see that happen anyways, Pricing will be under pressure for sure.
But I think most companies now have their cogs for semaglutide somewhere in the range of five to seven dollars or six to eight dollars. So let’s take a low point of six, high point of eight. I’m not sure if a 30, 40 cent difference really makes that much of an impact and is it worthwhile taking the risk? So you know, to be honest, yeah, we anticipate some further price erosion but it’ll probably stabilize after, you know, after the first 24 months of supply. So this was much lesser than what was anticipated earlier if I’m not wrong.
It’s a lot. So did you. Can you repeat that?
Kunal Bhatia
So I’m saying the erosion is lesser than what we were anticipating earlier, right?
Mr. Amit Sanghvi
Yeah, the erosion is lesser. You see, 10 capacities are limited as we look at API. API prices eroded very significantly. But. It’S difficult on the most complex part of the entire combination product is the device.
Kunal Bhatia
Right. Sir, thank you so much.
Sanjay Shah
There are too many players also who are there on the device front.
Kunal Bhatia
Right. Thank you.
Mr. Amit Sanghvi
Thanks.
operator
Thank you. A request to all the participants. Please limit your questions to per participant as there are several participants waiting for their turn. We take the next question from the line of Pritesh from Lucky Investments. Please proceed.
Pritesh Chheda
Yeah, hi. So I have two questions. One on the bridge of the capacity addition in India, you were supposed to add 25 million 2 lines and take it to 80. Did I hear correctly that 1 of the line is slated to come in quarter 1 of 27, is that correct?
Sanjay Shah
Right. One line is already at Shilee Pradesh and it’s under qualification. It arrived in Shilee in December. It’s currently under qualification. The second line will arrive end of April, beginning of May and should be qualified by end of July.
Pritesh Chheda
So the line which was supposed to be qualified in quarter three, current quarter is yet to be qualified. And then there’s another line will come in quarter two next year. So. So that will take you to the 80 million, correct? Correct.
Sanjay Shah
Okay. Correct. Correct. That’s right.
Pritesh Chheda
Second question is we are seeing some movements on the oral. Oral GLPs. So you know. No. What did that? No launched the Vegovi one and then there was a rip off in the form of hims and hers. There was a launch there. So you know, you had some assessment of the oral GLP or a market of the SEMA or of the G of the glp. Any, any comment there? Any observation, any changes on the oral as a percentage of the total glp?
Mr. Amit Sanghvi
Look as Far as him and hers is concerned, there’s ongoing litigation. My information is that it will be very difficult for them to come out with that product again. I don’t want to speculate, but we’ll see what happens. Basic, the fundamental is that the oral GLP1 is not as effective and has more side effects because of bioavailability and the API content that goes in a product. Right. So it’s a daily API content of 14 milligrams versus once a week of 2.4 milligrams. So you can imagine you do 14 times 7 and you have your math of API comparison between oral and injectable.
Oral will have a market share, they even currently do, but it’s not going to impact our business.
Pritesh Chheda
And this qualification is what you’re mentioning about these lines. So what are you referring from the qualification? Basically what, what has to happen?
Mr. Amit Sanghvi
Oh, so much. First you have to assemble the whole line, then you have to qualify each and every station. So an 80 parts per minute line conducting, you know, 25 to 30 operations on the line has a lot of equipment and you have to qualify each of those equipment.
Sanjay Shah
Amit, we lost you. Hello.
operator
It seems like the line falls or has been disconnected.
Sanjay Shah
Yeah, can you just, you please connect it.
operator
The line for the management has been connected. Thank you for waiting patiently so you can go ahead.
Sanjay Shah
Thank you.
Mr. Amit Sanghvi
I don’t know if Pritesh is still on. Yeah, so it’s a very complex piece of equipment. So you have to qualify each and every operation separately and then you have to qualify the whole thing together. Right. So we’re at a stage right now where the line runs. We’ve been running the line at 60 parts per minute. 70 parts per minute. We’re not getting, we’re getting high levels of rejection. 30, 30% rejection. And that doesn’t have to do with the quality of the product but it has to do with the settings of why the machine is rejecting it.
So we’re, we’re probably in the last stage of that process right now. We should be able to get that up and running over the next few. Line. Qualification of the line.
Sanjay Shah
So Pritesh, this is an internal qualification which Shailey does and certified that the product is meeting our specification. So this is a qualification which we end up doing it internally.
Pritesh Chheda
My last question is on the margins. Let’s say.
operator
Sorry to interrupt. Mr. Pradesh, I would request you to join back. The queue
Pritesh Chheda
is just. I’ve initiated. Maybe you want to allow me sorts of questions.
operator
Participants waiting for their tone.
Mr. Amit Sanghvi
That’s okay. Let him, let him continue. It’s okay. Yeah.
Pritesh Chheda
Okay. So just on the margin side and I did some assessment of the margin, you know, based on the 30 million. Devices that you are selling, you know. When you move towards a larger scale, you know, and this, this line is obviously fully utilized and also when you move towards a larger scale of volume between what is today and then will there be a margin differential?
Mr. Amit Sanghvi
Sorry, Pritesh, are you talking about between India and Abu Dhabi or.
Pritesh Chheda
No, no, just health care. I’m talking about health care in general, the healthcare business in general. When you move from the current scale to the higher scale and then will there be a margin differential between what you’re doing, a margin difference between what you’re doing today and what you do then, considering the scale, on the other. Hand, considering pricing of the product.
Mr. Amit Sanghvi
Yeah. So if you look at just manufacturing mark, if you look at just manufacturing margin, what will happen is we know that manufacturing higher volume product is at a lower price. Right. But because of the scale, once we stabilize the operations, it’s fully automated, not a lot of manual intervention. So far we’ve been doing a lot manually. Right. So the overhead cost is high. We should essentially be at a point where we’re able to maintain the same margins or you know, there could be a time that we increase them.
But generally speaking these are the margins that we will maintain on the pharma business.
Pritesh Chheda
Perfect. This was very helpful. Thank you guys. Thank you very much.
Sanjay Shah
Thank you, ma’. Am.
Mr. Amit Sanghvi
All right, thank you.
Sanjay Shah
Thank you.
Mr. Amit Sanghvi
Thank you.
operator
Thank you. We take the next question from the line of Lucky Agarwal from Equity Securities. Please proceed.
Lucky Agarwal
Hello.
operator
Yes sir, go ahead, we can hear you. Hello, Mr. Lucky, are you on the line?
Mr. Amit Sanghvi
Let’s go to the next one.
operator
Yes, I would request Mr. Lucky to join back the queue again. Till then, the next question is from the line of Aman from Aspute Investment Management. Please proceed.
Unidentified Participant
Yeah, good evening, sir. Yeah, yeah. So my question is on the India launch, so how many customers of ours do you expect do we have today in India and how many do you think will be able to launch in March itself? And are they using mostly Harmony or are some of them also using neo?
Mr. Amit Sanghvi
No, they’re using both. We have customers that use Harmony, customers that use neo. We have. I think if I look at this the guys will been who have received approval from cdso. I think there’s both Harmony and Neo. So I mean whether it’s March, Harmony will go live March for sure. In India. Neo might be April, could be March, could Be May. I really don’t know. But. But sometimes in the. In the first three months of launch.
Unidentified Participant
Continuing with this. We had read about that after India launch it’s like automatic approval in almost 5,200 countries except the big ones. So do you expect that after India launch in March, most of our customer is also launching in whatever 51 geography which is opening up directly after that using the same copp?
Mr. Amit Sanghvi
I would assume wherever these guys have reach and partnerships already in place, they will launch. Everybody will prioritize volume for Canada. But beyond that I think they will launch in all countries.
Unidentified Participant
Sure sir. And any update on Teddy launch in EU or us?
Mr. Amit Sanghvi
I think we have approval is there but. But focus is on SEMA right now. Terry. Launch will happen at some point. Some, some point once this SEMA launch is completed. That is my assumption. Possibly the latest information I have.
Unidentified Participant
Sure. And among the other geographies like Turkey and Brazil, do you expect it to be launched in quarter two or do you see there can be further delays in that?
Mr. Amit Sanghvi
I’d say this is very high probability of quarter one launches, but I don’t think it will get delayed beyond quarter two.
operator
Sure. Sir, final question.
Mr. Amit Sanghvi
But you have to understand my information is probably just as accurate as yours. Same similar sources. So I’m assuming that everybody will be able to launch will get approvals.
Unidentified Participant
Sure. So that that makes sense. On the semiconductor side you talked about that the product has to be near the fabs and in my understanding there are like four fabs in Gujarat. So are you in talks with at least two to three of them because some are maybe expected to commercialize their fabs in CY27 itself. So I’ve been conversation with all and do you think that do we require all three or four for this product to scale or even one is good enough for it to scale massively?
Mr. Amit Sanghvi
You want to take this? Yeah.
Sanjay Shah
So basically we would be looking at. Working with all the four is where. We would talk about it. Most of these guys basically, as you. Rightly said, will look at starting commercial. Operations by next year. So that’s when we would basically be looking at supplies. There’ll be some supplies which can probably. Happen towards the end of the year.
Unidentified Participant
Okay. But we are in talks with all four.
Sanjay Shah
Yeah.
Unidentified Participant
Sure. Final question is on the margin side for this quarter in healthcare. I understand that one off because of delay, but was there any mix change also and maybe more contract manufacturing and more insulin versus GLP ones And do you expect say quarter four with the GLP one scaling and maybe quarter one back? Maybe Even more so. Do you expect it to go back like quarter to the margins of overall?
Mr. Amit Sanghvi
I’d expect quarter one to go back for sure. Quarter four, we’re still, like I said, we’re still qualifying the line. You’re not going to have a lot coming from the high speed line in quarter four. So margins will certainly go up in quarter four. But you will see full normalization only in quarter one. Sure.
Unidentified Participant
Sir, these were my questions. Thank you.
Mr. Amit Sanghvi
Thank you.
Sanjay Shah
Thanks.
operator
Thank you. We take the next question from the line of Akhil Parekh from BNK Securities. Please proceed.
Akhil Parekh
I. Thanks for the opportunity. I have two questions. You couple of times mentioned that there is a difference between the supply and demand, right? The demand that seems to be way higher for the JQ1 devices. Any ballpark difference between the supply and demand you would like to highlight specifically from a near term like next 12 to 18 months, what that percentage would be?
Mr. Amit Sanghvi
So demand is higher. I mean look when we, you know, when we, when we look at capacity build and demand we always look at sort of a minimum offtake plus an upside, right? Given that you look at players in, in globally for pens, you, you really have, barring maybe some new Chinese entrance which will supply into limited markets on account of IP infringement, you know you really have only four for four players globally. So I would assume that supply is limited and supply will only happen with firm commitments.
Akhil Parekh
Big capacities will be coming at least in near term.
Mr. Amit Sanghvi
Basically we know the capacities which are already set up or in progress of being set up. But even with those capacities you’re not necessarily looking at a scenario where there’s an over capacity.
Akhil Parekh
Okay, okay, that’s helpful. And second and last question. You mentioned that capacity expansion is backed by orders from our clients. So what are the terms like if a client don’t oblige and they don’t buy the required order? Any penalties which are there as a. Part of the contract? And that’s my second and last question.
Mr. Amit Sanghvi
They’re full take or pay contracts. Now that doesn’t mean that we’re not going to help our customers out in periods when they need it. But essentially if you don’t buy, you still have to pay the same value.
Akhil Parekh
That’s all from my side. Best wishes for Karam Corpus.
Mr. Amit Sanghvi
Yeah, thanks.
operator
Thank you.
Akhil Parekh
Thank you.
operator
We take the next question from the line of Pankit Gupta from Bamboo Capital. Please proceed.
Unidentified Participant
Thanks for the opportunity sir. On the Turkey and Brazil market, you know, when do we expect to see Shirley Devices been launched? There any, you know, update that we have from our Clients?
Mr. Amit Sanghvi
Not really. We assume quarter one, quarter two, next year. Don’t, don’t know. I don’t, don’t quote me on that.
Unidentified Participant
But are these like, do you think we’ll have a significant market share, Our partners will have significant market share in this market or. And how many players are you planning to supply there?
Mr. Amit Sanghvi
I think, look, you know, certainly, you know, three, four of our large customers have partnerships. So we would assume that they would be able to, they would be successful in those regions.
Unidentified Participant
Sure. And you know, both the lines commenting operations by Q1 of next year, should we expect that, you know, for the expanding capacity in India, we should be looking at at least 70 to 80% capacity utilization for FY27.
Mr. Amit Sanghvi
No, 28. It takes time to scale up. It’s not, it’s not easy, technically, also not easy.
Unidentified Participant
And by that time we’ll also have the UAE expansion coming up by. At least by the end of FY20.
Mr. Amit Sanghvi
Yeah, yeah. You know, with expansion, expansion lead times are just equipment lead times have now become 15 months. And if you have to build a facility, it goes to 18, 18, 20 months. It’s hard to predict. You could always have a scenario where you have very low utilization in the first year. But I think generally the business plan is solid. We need the capacity. So, you know, that’s what we’re doing.
Unidentified Participant
One last question. On the Innovator side, you did talk about, you know, keeping our finger crossed on getting some contracts with at least one of them for, in this, you know, in this current year. But in terms of, you know, scalability and the timeline, if you can give an indication, you know, how big can this be for Shailey and, you know, when can we expect some supplies to start for that.
Mr. Amit Sanghvi
You know, with Innovator from the time you engage with them on. With an official agreement in place, minimum timeline for launch will be three years. You know, two to three. Somewhere between two and three years. And then it really depends on their success and how well the molecule does. But we’re bullish. You know, we think at a minimum 50 million pens to 100 million pens is the potential for innovators to come in. Now, we don’t know whether it happens in 30, 29, 31. I really don’t know. But, you know, that’s part of the journey.
Unidentified Participant
Okay, okay, one, follow up on this. So, you know, with this UE expansion coming in, so let’s say for the Innovator also, we might have to, if hopefully we get the contract for Innovator supplies also, are we looking for further expansion apart from the Abu Dhabi or this expansion might also be to do that.
Mr. Amit Sanghvi
If a very large volume commitment comes in where we have to do 50 million additional pens, then we will need to expand that also.
operator
Thank you. We take the next question from the line of Bhavika Jain from Nivas Shai. Please proceed.
Unidentified Participant
Thank you for taking my question. So basically I want understanding on the consumer electronic side. Want to understand management view what exactly they are going they are planning to. Do in the consumer electronic and from which region this is expected to come. The business.
Mr. Amit Sanghvi
We are planning to participate in anything in consumer electronics where there is high complexity, high precision and small parts, including combination parts where you have metal and plastic. And the business is obviously going to come primarily from, you know, customers setting up their final assembly in India.
Unidentified Participant
Just to follow up that, because of. My understanding, like there are a lot of value chain shifting happening like because. Of China plus one and a lot. Of things are coming to India. So basically understand that are we participating in that thing or we are doing. Something totally different like are we trying to cater this shift happening in the value chain or we are going to do something other than this?
Mr. Amit Sanghvi
We are, I would say a combination. We certainly are a part of the shift, wanting to participate because of the shift. And I think what’s different is only the, you know, the parts or the type of products in which we participate. So we likely will not do simple stuff because. Simple stuff. Yeah. You know, so we usually look at, relatively speaking, yes, you know, high is a very, you know, it’s a loaded statement. It’s a loaded statement. It’ll be higher than our current consumer business. And that’s where I will end up.
Unidentified Participant
Okay. And when we are expecting this consumer electronics segment coming live.
Mr. Amit Sanghvi
Hopefully, hopefully over the next 12 to 18 months.
Unidentified Participant
Okay. Okay. Thank you so much.
operator
Thank you. We take the next question from the line of Shubham Agarwal from Berman Capital. Please proceed.
Unidentified Participant
Hi sir. Thank you for the opportunity. Sir, I just want to understand the supply and the competition side globally. Like, you know, who are the large players? If you comment on that and since you mentioned, you know that the demand will outstrip, you know, supply in the next 12 to 18 months, then just, I just, you know, want to understand why Denver is talking about price erosion in the large volume contracts. And from that, I mean, what if you could help out?
Mr. Amit Sanghvi
Sorry, Shubham, you were very choppy. I actually didn’t get all of it. You asked something about price erosion.
Unidentified Participant
Yes, that’s want to understand the competition and supply globally Specifically for The, you know, GLP1 drives. And you know, why are we looking at price erosion? If you are, you know, kind of mentioned that the demand for these GLP one dreads will, you know, outstrip the supply part. So just want to understand both of these angles together.
Mr. Amit Sanghvi
Price erosion will not happen because of a demand constraint. The reason for price erosion will be end market competition. Right. So you need to support your customer so that they get more market share. They get more market share, you get more market share. It’s as simple as that. And if you look at the number of filers and GLP1s in general for semaglutide, the number is exceptionally high. So everybody, the end customers are going to fight for volume, for market dominance. And that’s why you will see all of this play out in the first 24 months.
After 24 months, it likely will consolidate and stabilize.
Unidentified Participant
Understood, sir. Got it. Secondly, sir, if you can comment on what’s the capacity utilization that is you currently have of the 30 million, you know, capacity currently for the healthcare space.
Sanjay Shah
We don’t report.
Mr. Amit Sanghvi
Yeah, but you can assume that we’re adding 25 plus 25, 50 million, which takes us to a total of 80, 80 million capacity. And if we’re planning to supply 30 million, then we’re nearly capped out.
Unidentified Participant
Understood, Understood. Got it. Lastly, I think you mentioned that the similar type prices for most of your customers will be at six to eight dollars. This is like the price per pen.
Sanjay Shah
I didn’t say prices, I said cogs, I did not cost of goods.
Unidentified Participant
Understood. So six to eight dollars including all the fill finish, you know, cords as well as the pin device and any other constraint.
Sanjay Shah
That’s the current cogs cost.
Unidentified Participant
Yeah, understood, Understood. Thank you sir. And all the best for the future.
Sanjay Shah
Thank you.
Mr. Amit Sanghvi
Thank you.
operator
Thank you. Ladies and gentlemen, due to time constraints, we take that as the last question and would now like to hand the conference over to the management for closing comments. Over to you, sir.
Mr. Amit Sanghvi
Thank you. Thank you everyone for joining the call. We 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 advisors. Thank you and have a great evening.
Sanjay Shah
Thank you. Thank you everybody.
operator
Thank you. On behalf of Shiley Engineering Plastics Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your line.