Sheela Foam Limited (NSE: SFL) Q3 2025 Earnings Call dated Feb. 03, 2025
Corporate Participants:
Rahul Gautam — Executive Chairman
Amit Kumar Gupta — Group Chief Financial Officer
Nilesh Mazumdar — Chief Executive Officer, India Business
Rakesh Chahar — Whole-Time Director
Analysts:
Mohit Dodeja — Analyst
Rahul Agarwal — Analyst
Anushka Chitnis — Analyst
Dhananjai Bagrodia — Analyst
Rishi Mody — Analyst
Varun Singh — Analyst
Gaurav Khanna — Analyst
Resha Mehta — Analyst
Manan Madlani — Analyst
Viral Shah — Analyst
Nikhil Upadhyay — Analyst
Manish — Analyst
Rishab Bothra — Analyst
R. Sen — Analyst
Avinash Nahata — Analyst
Presentation:
Operator
Ladies and gentlemen, good morning, and welcome to the Sheila Foam Limited Conference Call hosted by Emkay Global Financial Services.
We have with us today Rahul Gautam, Executive Chairman; Tushar Gautam, Managing Director; Nilesh Mazumundar, CEO, India Business; Rakesh Jahar, Whole-Time Director; and Amit Kumar Gupta, Group CFO. As a reminder, all participant lines will remain 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 the operator by pressing star then zero on your touchstone telephone. Please note that this conference is being recorded.
I now hand the conference over to Mr Mohit Dudeja from Emkay Global Financial Services. Thank you, and over to you.
Mohit Dodeja — Analyst
Good morning, everyone. I would like to welcome the management and thank them for this opportunity. I shall now hand over the call to the management for the opening remarks. Over to you, sir.
Operator
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I join them Ladies and gentlemen, we have the management line connected. Please proceed.
Rahul Gautam — Executive Chairman
Yeah, hello. Hello, have you handed this over to us?
Operator
Yes, sir. Please go-ahead.
Rahul Gautam — Executive Chairman
I’m sorry there was a technical glitch for a while and we couldn’t — so hi, good morning to everyone once again. I just introduce myself. I don’t know if I was. This is Zahul Gautam from Sheila Form and along with me is Mr Rakesh Shahar; Mr Nilesh Majumdar; Mr Amit Gupta and the Company Secretary. So as always, we begin our meetings with our vision statements. So I would just request you to hold-on with me for a few seconds.
Our vision, we will continue to be recognized as a leading organization in quality comfort products, while practicing values of integrity, reliability, proactivity and transparency to do business with a smile for customer delight and a commitment to society. Thank you very much. So after my few remarks, Amit is here to take — take us through all the details of the financials for the Q3 earnings call that we are all attending.
I mean, let me begin with the highlights. So what — what we have seen in the industry is a lot of headwinds in the last two quarters for sure. And what was considered Q3, which is considered as one of our best-performing quarters relative to others, we saw those headwinds kind of continuing. But in-spite of that, let me say this that the strength of the brands and the distributions have held us in good stead and our performance has been definitely up to the mark.
I would also like to add that the acquisition that was done and the integration which has been going on is now in their final stages and we are well on our way to closing the acquisition accounting hopefully in — with definitely within this financial year. As far as the vision for the company business is concerned, we have decided to focus more on the Indian side. And then within the Indian side, we have decided to focus more on the B2C side, which is primarily the mattresses and all the other accessories, that kind of.
I will share with you that if I look at the India business and in-line with our vision, which has been there, for the last nine months or the beginning of the nine months towards where we are, the international business has actually as a percentage shrunk from ’22 to 27%. And similarly, the mattress side, we have — we have grown from 51% to 46%. Sorry, 46% to 51%. So we are completely in-line with our vision of growing the Indian business and of growing the branded mattress business that we have been following.
On the mattress side, there are primarily three sectors that we deal with, the traditional sector which is sometimes called as the offline sector, then the online one, which is the e-commerce one and of course, the new segment that we have started, which is the small-town initiative or the rural mattress which we are selling under the brands of Tarank and Aram.
Both these brands have been growing over the — from the time that have been — they have been introduced and we look upon them as something which is creating a kind of a base for us in the smaller towns is also creating an opening or a door opening for this mainline sleep well products to be acquired by consumers as and when they progress in-life. Most initiatives that we have done, the e-commerce seems to have responded very quickly. I guess that’s the nature of that beast that everything happens very quickly and very rapidly.
And therefore, you will see that the performance or the growth on the mattress side has been high. Currently, e-commerce, according to our understanding holds about 12% of the entire mattress business. And in that, we have made big strides and in the last quarter, that has been a big contributor to the growth. Our EBOs have also grown for us from a 5,000 odd number to about 6.7,000 that’s been there. In fact, the total touch points have increased to 12,000. But the real impact of the growth on it will come as time kind of goes by.
If I look at the entire — our entire portfolio in the last quarter, the volume has grown by 24% on a quarter-on-quarter basis and the value has grown by 16%. So I repeat that we are very much on-track with our vision of saying that India first and then B2C first-in that area. And this definitely helps in solidifying our position as a leader in this segment. Must also comment a little bit about the other segments which have been there, which are primarily the B2B and in that B2B segment, so the main industries that we supply to, the laundry shoes, auto, helmet, etc., they have all been growing.
Our share remains intact if it has not increased and we have experienced about a 12% growth on a quarter-on-quarter basis on that. In the other segments, the other area that we definitely look at and we believe that that’s a growing one for us, which is the furniture cushioning part. We have also grown about 12%. And in that the main initiative of Sati program continues to grow. That leaves us with the comfort business which we also which we also conduct ourselves in, there has been a drop of about 5% in the comfort business side.
Though if when we look at the entire nine months, we would see that there is a growth of about 5% instead of the — but this drop that we would see in the quarter three is also a reflection of the decommoditization that we are trying to push, which means that whoever was being sold as a mattress slab or just as a — as a mattress score has now slowly getting converted into the brands, into the branded side of the mattresses. And all this will pay-out in the long-run.
Let me now talk about our associated companies and subsidiaries that we have, our Joyce Foam in Australia has seen a comeback on the EBITDA side. It’s now at a double-digit number. We — as we all would recall, this is a high market-share. The market is reasonably small and not growing as time goes, but — and we also have a high share in that. Both our units are well in-place, commissioned and there is a new segment that we are opening up. Primarily we have been supplying to the segment, but now we are opening up the furniture segment also as we as we proceed.
Our other subsidiary in Spain, which caters to the entire European market has a different flavor altogether. It is a small percentage of market-share in a very, very large market that we operate on. And it’s a negligible market-share. So — but there are advantages of that when — even if the market contracts as the European market has been, we continue to grow. And happy to share with you that Interplast, our company in Spain are has grown — in this year has grown 15% on a volume basis. What we may not see is the same number getting reflected on the top-line and that’s primarily because the raw-material prices have fallen to their lowest in the last few months.
Our income sorry, the Internet communication company that we have, Staco, the IT company, there has been a healthy growth of more than 50% and there is also the margins continue to be large. It is still relatively small compared to the mainline business. But as a company and as a business, it’s growing at a good rate at a fast rate. We had made some investments into as we are all aware of, has also — Furlanco is the brand-name is also referred as the House of. And again, very happy to share with you that the profitability continues to be there.
There is cash being generated and that cash is being plowed back into the business of to get more assets to increase the top-line. Today, the annual run-rate would be INR250 crores, which is way above what was about seven months back. Also happy to share that the subscriber base for the company, which grows almost week-by-week, we are over 100,000 number at the moment. I must comment a little bit on the budget, which is which was presented about two days back.
We are all aware of the income tax savings that has brought about and we believe that this extra savings in the hands of the middle-class will help the consumer durable sector quite a bit. And I think added to that would be a small thing which is that instead of one dwelling or one house you can now have two houses and not be burdened by any suppose you are speaking with us. Hello, am I audible? Can somebody just respond to that? We’ve had a disturbance.
Operator
Yes, please go-ahead, sir.
Rahul Gautam — Executive Chairman
Yeah. Okay. So I was just mentioning that the two houses of proposition or a concession that has come from the government should also help as far as our sector, consumer durable sector is concerned. One more thing which is — which definitely relates to our industry is a reduction of basic custom duty on — on the import of mattresses. It was earlier at a rate of 25% and now has been dropped down to 20%. But our understanding of it is that it would be an insignificant impact on as far as our business is concerned, mattresses do not get imported on account of the size or sizes that vary across the country. And on account of the bulk that they that their mattresses are and therefore the freight — freights are very-high.
So with those remarks, I would — I would now hand over to Amit to take you through the financials.
Amit Kumar Gupta — Group Chief Financial Officer
Thank you, sir, and good morning, everyone. I’ll just take you through the financials for the quarter ended and the nine months ended December 2024. So for the quarter ended on a standalone basis, we reported a total revenue of INR791 crores, which grew by around 54% year-on-year.
EBITDA stood at INR71 crores, a growth of around 34% Y-o-Y. EBITDA margins were reported at 9% for the quarter and net profit was at 25%, which was 19% lower than the year before. For the nine months ended 31st December, the standalone revenues were around INR1,897 crores, which grew by around 36% Y-o-Y. EBITDA for the period stood at INR189 crores, a growth of 19% Y-o-Y. EBITDA margins were reported at 10%, net profit stood at INR100 crores, which is lower by around 11% on a Y-o-Y basis.
On the consolidated basis, for the 3rd-quarter, we reported revenues of INR967 crores, which is an increase of 10% year-on-year. Standalone maybe a little bit aberration because a lot of third loan sales are being routed through Sheila now. However, when you look at a consolidated basis, we see that in-spite of the headwinds, our business has grown by 10% on a Y-o-Y basis.
EBITDA for the quarter stood at INR88 crores, which was up by 15% on a Y-o-Y basis. EBITDA margins were reported at 9.1% for the — and net profit stood at INR19 crores, which decreased by around 40% year-on-year. The primary reason for this decrease is enhanced depreciation on as well as the additional interest cost which we had to incur because of acquisition.
For the nine months ended 31st December, we reported consolidated revenues of INR2,590 crores, which has increased by around 21% year-on-year. EBITDA for the period was INR217 crores, which declined by 1.1% — 1% Y-o-Y. EBITDA margins were reported at 8.4% and net profit was reported at INR75 crores, lower by around 37% on a Y-o-Y basis.
With that, we can open the floor to the question-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Rahul Agarwal from Asset Management. Please go-ahead.
Rahul Agarwal
Hi, very good morning. Thank you for the opportunity. Just a couple of questions, then maybe I’ll get back-in the queue. Firstly, as you alluded, Rahul ji, clearly focus is on B2C versus B2B. But just from an industry standpoint, it looks like market demand and supply trends are also pretty different for both products. So could you please share your thoughts on what kind of — where does this revenue growth settle down for B2C, B2B over more of a medium-term, let’s say, two to three year view and similarly on the margins, this is both for only the India business. And then maybe I’ll come back on the international business.
Rahul Gautam
Yeah. So thank you, Rahul. If I understand your question correctly, it is — you’re saying to comment a little more on the B2C strategy that we have and the question is that how would the mattresses or the growth in mattresses and the growth in the margin look in the — in, let’s say, two to three years’ time. Is that correct?
Rahul Agarwal
Yes. And similar question on the B2B side separately.
Rahul Gautam
Okay. So on the mattress side, we would — we would see at least about 18% growth, 18% to 19% growth in the coming two to three years’ time and the margins, so would be about 15-odd percent as far as the B2C segment and the B2C segment is concerned, that is the mattress side. So about 18% growth on our — on the top-line and about 15% EBITDA levels that we look at in the coming years.
Amit Kumar Gupta
Similarly, this is Amit here. I will complete the second part of it. So if you look on the B2B side, though it will depend a lot on what sort of profitability the market is giving and how are the End-User industries growing, but we anticipate broadly an 8% to 10% growth on in B2B and with some broad EBITDA margins, which could take the consolidated EBITDA margin somewhere between 12% to 14% in next three years. Okay. And that’s an estimate and what we are working towards broadly.
Rahul Agarwal
Got it. Got it., any comments on the India overall margins because I see some kind of declines there on gross margin on EBITDA levels.
Amit Kumar Gupta
So the improvement in gross margins had come because of the savings on material that we had reported last-time that continues unabited. Quarter three, we had two major challenges and I would say not challenges. One of them was an opportunity. The online segment had grown very fast and that was very important for us to regain our share as a leader on the online segment. You know profitability and gross margins on online segment are lesser, but for us, it was a little bit more denting because the volumes grew very fast and we had to accept a little higher-level of sales return, which we have taken care towards the month of December and now we are at normalized level.
And secondly, the local supplier of TDI, which is GNFC had a sudden plant shutdown in October, which resulted around 1.5 month for us in which we had to purchase TDI from open-market on an emergency basis because it was a festive season for us. So that also consumed some portion of it. But both these are normalized now and I can say that whatever margins we have been achieving in the past, more or less similar margins is our steady-state gross margin level.
Rahul Agarwal
Got it, Amit. Got that. And just lastly on — though on the top-line EBITDA consol levels, the direction is broadly right in terms of how you’re guiding for. When I look at cash profits and operating cash-flow for nine months, it doesn’t look like it’s at par at least to me. If you could just clarify that and how do we expect the cash-flow to behave going-forward, please?
Amit Kumar Gupta
So cash, cash-flow, if you see, it has basically I would distribute it into three components. And not only operating, I would refer to full cash-flow cycle of the company. And the first part is operating where if you have a higher profitability, you have a higher cash. So that will move-in tandem with EBITDA because the remaining component, which is interest on — which is a hit on cash is almost constant. When you come to capex, if you see — and I don’t know whether we share balance sheet or not at this level. But our capex this year has been very less small in comparison to last year and we have been very strict on capex going-forward in the next year, we should have almost only maintenance capex and nothing else.
On the working capital front, because of the consolidation of Karlon and, we have not been able till now to build further efficiencies, but we are in the process of doing so. So we also anticipate some cash coming out of working capital.
Rahul Agarwal
Got it. I’ll get back-in the queue. Thank you.
Amit Kumar Gupta
Just to add to that, we have a monetizable asset from some of the plants of, which we have closed down and that should be somewhere between INR100 crores to INR150 crores and we expect that to flow down in the last quarter of this year and the next year the total amount. So that would also augment the cash resources for the company.
Rahul Agarwal
Well, Amit ji. I’ll get back-in the queue. I have more questions. Thank you.
Amit Kumar Gupta
Thank you. Thank you.
Operator
Thank you. The next question comes from the line of Anushkar Chitness from Ariant Capital. Please go-ahead.
Anushka Chitnis
Thank you for the opportunity. I wanted to know if you plan to take any price hikes in this coming year? And also there was a sudden dip in other income. If you can explain that, it would be great. And I also have a third question, but I’ll ask that later. So yes, sir. Thank you.
Rahul Gautam
Sure. On the price hike, Nilesh, can you respond to that please?
Nilesh Mazumdar
Okay. Can you hear me? Are you able to hear me?
Rahul Gautam
Yes. Yes.
Nilesh Mazumdar
Okay. Yeah, Anushka, thanks for that question. On the on the price side, we have already announced a price increase in both the mattress brands of Karlon and and they will come into effect in the month of February at different points of time. So yes, we have done that for mattress as well as on the foam side of it also in certain categories, we have already taken a price increase to offset some of the inflationary pressures, which may have come in and also it’s been a while that we have taken a price increase in mattress. But as we are doing that, it’s also important for us to understand that we need to stay competitive in the market as we move ahead so that the momentum that we have still continues.
Rahul Gautam
Thanks, Nilesh. Amit, will you take the other second one.
Amit Kumar Gupta
So on other income, Anuskar, as you know, most of our cash is being parked in debt and the last quarter the yield on debt has gone up, which has instead of a positive impact, which has resulted into a negative impact on the income from other sources. But yes, that’s a part of the game. That is the money of the shareholders, which we have to keep in debt and that’s why you see a little drop temporary on the other income side.
Anushka Chitnis
Okay. Thank you. And I also have one more question if I may. Your Australia business a fair bit this quarter on a Y-o-Y basis, which did sort of dampen the consolidated growth. So what kind of headwinds are being faced in this market in Q3?
Rahul Gautam
Yeah. So Australia, yeah, I’ll take that,. So Australia by and large has been a market which is — which has been contracting a little bit. And this is — this is just totally an economy based aspect that is there, both inventory Australia is talking of Australia and New Zealand together. So I see that as a temporary phase, but it’s something that should get over by the — by the end of this financial year. And there is no specific reason except that generally the sentiment is being met. There is no reasons on the industrial side or the economic side, but it’s just a bit of sentiments that have not been proper on this quarter, which has kind of gone by.
Amit Kumar Gupta
But one thing, Alastair, you need — you can see in Australia, especially, we have been able to derive some benefits on account of raw materials. We have been also able to reduce our — some of the wastages and improve efficiency in Australia in this quarter. And hence, I would not refer to the quarter three, but if you see at nine months ended period, our EBITDA margins have jumped to 6% from where it was earlier around 2%, 3%, 4% where it was. These efficiencies are expected to continue. So growth will come when the industry grows there, but more important for us was the coming back of the profitability which we see coming back-in this quarter.
Anushka Chitnis
Got it. Thank you so much, sir. Thank you.
Operator
Thank you. Ladies and gentlemen, we request you to restrict to two questions per participant and rejoin the queue. The next question comes from the line of Dhananjay Bagrodia from Ask Investment Managers Limited. Please go-ahead. Dan Dananjay, if you can please unmute from your end and proceed with your question.
Dhananjai Bagrodia
Can you hear me now?
Operator
Yes, please go-ahead.
Dhananjai Bagrodia
Sir, firstly, congratulations on a very strong set of results. We’ve actually on a — like on a year-to-year basis, we would be one of the strongest growing companies on a consumer discretionary and segment. Any color on what we have done differently in rest of the market, not only why we’re seeing such strong growth coming to top-line.
Nilesh Mazumdar
Should I take that?
Rahul Gautam
All right. Hilesh.
Nilesh Mazumdar
Okay. Yeah. So, thanks for that question. You see, if you would be tracking both the durable and the FMCG companies. There are very few companies which have been able to announce or have volume growth coming in the in the last quarter. Yes. We have to understand our category of mattress. In the category of mattress, there is a significant opportunity that India as a country still has on account of two things that within the modern mattress segment, the local and the regional brands are still more than half of the market and there is still a large amount of non-mattress users, which are the very end-users who are there in this country. So therefore, the category penetration today is still a large opportunity in this country and therefore if we have our act together in our ability to address each of these segments, that’s what has really given us the volume growth vis-a-vis any of the other industries that you would be.
Dhananjai Bagrodia
So — but sir, this data which you mentioned was known, let’s say, a year or so ago, five years ago, 10 years ago. What has changed this quarter where we are seeing such strong growth.
Nilesh Mazumdar
That is two things — two, three things, there. One is that the entire initiative of, first of all, the Tarang and the RM is something that we have introduced in this financial year. We would have been — been — while we have been talking about it, but we made a strong play only in this financial year, number-one. Number two, our e-commerce strategy, we had till last year, we were trying to address that through a flanking brand like SleepEx, et-cetera and not leveraging the strength of Sleep fell as a brand. So we — as you would — if you’re tracking us for a time — sometime you would know that we did away with the SleepEx brand completely. And we said that our biggest strength is Sleep fell and therefore, that’s where we need to play. And therefore, a lot of work was done on that on the e-commerce space and perhaps should we are able to see some strong positive results on account of that strategy.
Dhananjai Bagrodia
Okay. Sir, and sir, margins going at for gross margins, you mentioned for this segment now as we enter more Tarang and RM and e-commerce, that would be trending low, although volumes will go higher. So we don’t look at on a GPM basis. If we look at GP plus cost, how do we look at it when we are internally tracking it?
Amit Kumar Gupta
Yeah. So I’ll take that, Nileji. So Dananjay, if you look at EBITDA margins, it will be better than or equal to our offline segment for this segment because they involve very minimal overheads and also lesser sales expenses or advertising cost. But if you refer at gross margin level, yes, they would impact a little bit, but that we have already taken into consideration to be offset by our efficiencies.
Dhananjai Bagrodia
Okay. So sir, congratulations. This has really surprised us, sir. Thank you so much. Thank you.
Operator
Thank you. The next question comes from the line of Rishi Modi from Marcellus Investment Managers. Please go-ahead.
Rishi Mody
Yeah. Hi, folks. Am I audible? Yes, please on the price hike piece, could you quantify how much price hike have you taken like on the B2C side and the B2B side.
Nilesh Mazumdar
So, yeah, we would not be able to give you specific details on that for obvious reasons, but as far as the mattress segment is concerned, the price hikes would vary across brands and the model. And that from a consumer point-of-view, the matter side because that’s something that one can share will be anywhere between 3% to 5%. But on the — on the B2B side, it’s confidential and we may not be able to share, please.
Rishi Mody
Okay, no problem. Second, I wanted to understand on the other income piece. So the decline in other income on a Q-o-Q basis when I look at it, you mentioned that it’s because of the interest rates going up. So is this a mark-to-market non-realized or loss on those investments that we have out here or it’s a realized loss? Just like does it impact our cash-flow realization.
Amit Kumar Gupta
It’s a mark-to-market thing. It happens every quarter when the results are prepared or not an actual realization, not an actual realization.
Rishi Mody
All right, yeah. So that’s it from my end. Thank you.
Operator
Thank you,. The next question comes from the line of Barun Singh from Alf Accurate Advisors. Please go-ahead.
Varun Singh
Am I audible?
Rahul Gautam
Yes, please go-ahead.
Varun Singh
Yeah. Thank you. Thank you for the opportunity, sir, and congratulations for such a super strong volume growth numbers. Sir, my first question is on the realization bit, given that you pointed out that we have taken a price hike and maybe by Feb it will come into effect. So given this context, will it be fair to assume that the realization for the India business would be better than the current quarter, what we have achieved?
Rahul Gautam
So obviously, as we progress, it’s always an attempt to make it better. Exact quantum we may not be able to share, but definitely, I can say that all the steps that we are taking with it will — it should improve.
Varun Singh
All right, sir. Good to know that. And secondly, like on the volume growth front, as you also pointed out that the focus has shifted to the India business and 18% to 19% is the growth that we are attempting. So, sir, in that context, just wanted to know that earlier our public guidance for consolidated revenue growth was around 14% to 15% and given 25% of our business is international, where maybe the focus would be relatively moderate. And if we assume, for example, earlier you guided 7% to 10% kind of a growth — sorry, 10% kind of growth in the international business. So if we assume that business grows by 7%-odd percentage, so are we pretty much confident to drive more than 20% growth in the in the risk, 70% of the business, which is India business, which also includes B2B rather than B2C.
Amit Kumar Gupta
So Varun, let me bifurcate it a little bit. International business is only 22% of my business now. And that is anticipated to grow somewhere between 5% to 10% depending on what the situations in those countries are. But the impact on the overall business will be minimal. Now if you look at India business, 55% of my business is mattress business, which I told you the rate — which Rahul ji told you, the rate at which it will grow and the rest of the business is expected to like 8% to 10 is what we are anticipating, but depending on End-User industry. So together, this should give you somewhere around 12% to 14% of growth. I think mathematics would end-up adding all this.
Varun Singh
Understood, sir. And sir, just last — yeah, yeah, sure. And sir, last question on the EBITDA margin front, I think earlier we guided for a 14% to 15% kind of a steady-state margin for the company. And I think in the current call, you guided for the range between 10% to 14%. So just wanted to understand, sir, like what are the margin levers for us given that the volume growth is a pretty good for us and even realization on realization front also we are we are expecting improvement. So if you can show some light on that on the margin part sir.
Amit Kumar Gupta
So broadly, Varun, if you see, we are a consumer brand with very strong brands in the category that we deal. Two of the best brands which are there in the country are owned by us. Rationally, we should be somewhere between 14% 15% sort of an EBITDA margin and that is what we target for ourselves going-forward. Yes, we have faced a little bit of headwinds in the last year, primarily because of integration of Karlon, but our direction is still remains the same and we are pretty hopeful that with the segment growing faster, which definitely has a higher profitability, we should be able to reach it, albeit will take a little bit of time to do that, but you should see a continuous improvement trajectory towards that level.
Varun Singh
Sir, so the glide path from the current 9% odd level of EBITDA margin, you think it will — I mean in two to 3/4, we should be most likely be able to reach the steady-state, I mean, post the integration, etc cost.
Amit Kumar Gupta
So Varun, I would not say two to 3/4 because that is also a function of the growth that will come into top-line. So if the top-line growth by, say, 12% to 15%, my costs don’t grow by that level, right, and which close to the bottom-line. So if you remember last-time also we had guided that by the year 2027, we should be able to reach that area. It may be plus-minus six months for a year, but yes, that is what we are looking at.
Varun Singh
Understood, sir. So 2027 around 15%. Sure, sir. Thank you very much, sir and wish you. Yeah, yeah, yeah. Thank you, sir, and wish you all the best. Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one the next question comes from the line of Gaurav Khanna from Capgro Capital. Please go-ahead.
Gaurav Khanna
Hello. Am I audible?
Operator
Yes, please.
Gaurav Khanna
My question is thought has been underperformer and trades at very-high valuations currently. So what do you think —
Rahul Gautam
We can’t hear you? Can you be a little bit clearer?
Gaurav Khanna
So I’m saying our stock has been an underperformer and has traded at high couple at high valuations. So what do you think would be required to improve the performance going ahead and especially the profitability? Can you throw some light on that?
Amit Kumar Gupta
So Gaurav, we have guided on profitability and the factors that will lead to profitability on a stock price movement, you don’t comment.
Gaurav Khanna
Okay. Thank you, sir. Thank you.
Operator
Thank you. The next question comes from the line of Reysha Mehta from Green Edge Wealth. Please go-ahead.
Resha Mehta
Yeah, thank you. The first question is on the growth. So I think you did mention that the Mattress India business will be growing at 18%. Is that correct or is it the overall India standalone business that we are guiding for 18% growth?
Rahul Gautam
That is correct. The India mattress business growing at 18%.
Resha Mehta
And what about the other businesses, the Comfort and the technical — the other segment? Basically the rest of the 50% of India business, what kind of growth rates are we expecting there?
Amit Kumar Gupta
Okay. So Resha, as we have already said, one, it depends on End-User industry. So if you refer to our technical foam business, it all refer leads back to the End-User industry. But given normal growth scenario and the optimism that we have in India, we hope that we should be able to grow by 8% to 10% in the remaining categories.
Resha Mehta
Right. And Australia business, you’ve commented that it’s a mature market and it’s a saturated market. So there we may probably see a muted growth, right? But Spain — Spain, the export opportunity to the rest of the Europe is high. So what kind of growth rates are we expecting in Spain?
Amit Kumar Gupta
So in Spain, if you see exports was primarily target for US, but US has put up anti-dumping duty —
Rahul Gautam
Talking about the export to the European area.
Amit Kumar Gupta
No, she is talking about exports…
Resha Mehta
About basically the Spain revenue growth potential, right? I mean that could be either the domestic Spain market or exports to Europe or US. So if you could just comment on exports to the Europe, that is —
Rahul Gautam
So you see the entire European market, yeah, the entire European market is one market. And in that Spain, like we said, is a small part of that. And we are in this current year that has gone by or that’s going actually at the moment, we are on a volume basis are growing at 15%. And the value terms, the top-line appears to be a little muted and that’s primarily because the raw-material prices are at their lowest. When they come — and they are beginning to climb, as they come through their normal — their normalcy, the value and volume growth will come become similar to each other.
Resha Mehta
Understood. And out-of-the INR180 crores INR190 crore quarterly revenue run-rate from outside India, how much of that — what would be the split between that in Australia and Spain of the INR180 crore INR190 crores?
Amit Kumar Gupta
So Resha, we had already given that in our investor presentation, you may have a look at it. We give Spain and Australia financials separately.
Rahul Gautam
Similar level.
Resha Mehta
Sure, sure. We’ll have a look. And if we look at the gross margins of Australia and Spain, so there has been a wide gap, right? So Australia, at least in the past used to be around 50% and Spain has around 20% 30%. So what’s the difference in the product mix there? And is there a B2B, B2C element difference as well?
Amit Kumar Gupta
So Risha, broadly, they sell same type of material. There is not much of a difference. Yes, pain is a little bit more diversified, but gross margin is a — is it result of the — is structure prevalent in a particular country, like what sort of volumes are being taken away because if lower volumes are taken away or it’s a smaller market, you recover more through gross margins to cover-up your fixed-cost. If you see historically, Australia has been at around 50% gross margin, plus-minus 2%, 4% and Spain has been at around 30% gross margin, plus-minus 2%, 3%. So those are typical structured in those countries.
Resha Mehta
But essentially, Australia is a B2C market, would that understanding be right or is it a B2B market for us? And do we sell there or?
Rahul Gautam
So Australia is, as Amit said, Australia is a little different market. There are there are consumers that we support our industries that we supply to. However, the relationship and all that cannot be called as a pure B2B kind of a market. Relationship, understanding, technology sharing and the R&D sharing and the safety, health, environment sharing is on a much, much higher-level. And that’s the reason that it’s not a pure B2B kind of a market. There is a bit of a decommoditization that takes place. That’s why the gross margins are so much higher in Australia.
Resha Mehta
Right. And in Spain, what kind of products do we manufacture there and sell?
Rahul Gautam
Products are very similar, which is form and form blocks and then form rolls and form sheets, which are supplied to the various industries. But as I said, because we are a part of an extremely huge market with a lot of production, lot of companies operating in that area and therefore tends to be a little more competitive and a little more — I hate to use the word commoditized, but definitely more in that direction.
And that’s why there are far lesser gross margins and that we have in Spain. You see if you just look at the products that we are selling, I mean in Spain, you would be selling more of foam blocks, which are not so much of value addition to them. While in Australia, we would be selling probably sheets which have been cut or even ships which have been cut and there is a bit of more value addition and that’s why you have a gross margin of — which is which is much higher.
Resha Mehta
Understood. And lastly, the guidance that you all have given for 14% to 15% EBITDA margin by 2027. So is that at a standalone or a consol level?
Amit Kumar Gupta
India business level.
Resha Mehta
India business, right? So it includes the comfort and the technical segments as well, right?
Amit Kumar Gupta
Yes, you are right.
Resha Mehta
Understood. And sir, purely in the mattress part of India business, what would our EBITDA margins be currently in what range?
Amit Kumar Gupta
So we don’t give out segment-wise EBITDA margins or profitability.
Resha Mehta
Understood. Understood. All right. Thank you so much. Thank you.
Operator
The next question comes from the line of Manan Madlani from Wealth Management. Please go-ahead.
Manan Madlani
Yeah, hi, sir. Good morning and thanks for the opportunity. Sir, my first question was on the realization part for the mattresses. So if I look at the realization from last four quarters, mostly it’s in the downward trend. So would it be fair to assume that the integration of is, you know, lowering the realization or is it the online or products are contributing to that? And when do you see it stabilize?
Amit Kumar Gupta
So I’ll answer that., are you there?
Nilesh Mazumdar
Yes, I’m there, Amit.
Amit Kumar Gupta
So would you like to answer why our average sales price is coming down?
Nilesh Mazumdar
Yeah. So, Manan, number-one, as we see the — if you’re talking of the average selling price, as we see the India business opportunity, the volume growths are going to be higher than the value growth rates because of two reasons. One, the opportunity at the economy end-of-the market is significant and the conversion of the non-user to user that we have been talking of, the Taran and the RM that is also at the economy end-of-the market. So those will give us larger volume growth as compared to value growth.
Number two, the e-commerce segment, the large part of that business is coming through price points which are sub, say, said INR10,000 and therefore that also that ratio moving up and that volume growth is going to be also higher than the overall value growth that we will see. But having said that, the value growth also is going to be strong and as we move ahead, the profitability that you’re talking of, we will be looking at it in a comprehensive manner so that we are able to deliver on the profitability objective also as — for the mattress as an overall segment.
Manan Madlani
Okay. Let. Let me ask it in a different way. So is there any pricing difference for a similar product between the brand and brand?
Nilesh Mazumdar
There will not be a difference in the pricing because the — as we have always said that we are not going to position one brand as a premium over the other because the strengths of the brand are very different in different geographies of the market. And when we have been discussing about the strategy, we’ve said that as a brand is very strong, stronger than in the southern markets and the Eastern markets. And when it comes to North and West, as a brand is stronger. Therefore, both the brands will straddle all price points and we will not different and we will position them as two independent brands in the consumer’s mind and we will not position one as a premium and one as a — at an economy end. That’s not a part of the strategy.
Manan Madlani
Okay, fair enough. And when you mentioned that on the mattress side, you are taking price hike. Does it also imply for the Tarang brand as well?
Nilesh Mazumdar
Right now, whatever current app margins that we are seeing, they are also healthy as we have been saying that while we are building the and the business and we also will be, as we move ahead invest on communication and demand-generation. As of now, we don’t see a requirement, but if it is required, we will take a price increase. I don’t think that’s going to be a challenge. And that’s not going to impact us from a — from a demand perspective because the products have been very well-established and we are seeing a good traction in both Taran as well as Aram.
Manan Madlani
Okay. And in terms of pricing, did you have any analysis of price difference between Tarang and the unorganized player, if you could tell?
Nilesh Mazumdar
Oh, yes. Yes, we have done that. So there is — I mean at the end of that day it’s a value for life equation, Manan. For example, if you buy a cotton mattress, it is going to cost you anywhere between 800 to 1,000 bucks whereas Tarang NRM will be almost 2.5 times that if you just look at the per unit cost, but we have to remember that we are offering a three-year warranty with these products and therefore, that gives you a far greater value for the consumer, far greater comfort for the consumer and also other associated benefits of the ability to use the product, both for sleeping as well as sitting when they want to.
Manan Madlani
Okay. And one last question on the first. So you mentioned earlier that from February onwards, we should be on the PBT level profitable. So I mean, how is the scenario going there? And what is our current run-rate?
Amit Kumar Gupta
February profitability level is from last year. So we are already PBT positive in and it’s February will be one year completed when we are PBT positive. Last year, we closed the top-line at around INR147 crores and current run-rate, rate, as Rahulji just mentioned, is around INR250 crores per annum.
Manan Madlani
Okay. Okay, fair enough. Okay, thank you. That’s it from my side. I wish you all the best. Thank you.
Operator
Thank you. The next question comes from the line of Viral Shah from Enam Holdings. Please go-ahead.
Viral Shah
Hello. Yeah, thank you for the opportunity. Sir, just one clarification on the mattress side that you said 18% to 19% growth. So this would be value growth or volume growth?
Rahul Gautam
So most of the similar. It would be similar.
Viral Shah
Okay. Okay. Yeah. Okay. Secondly, how big would our and Aram brand be at the moment and where do you foresee that to be in three years from now?
Rahul Gautam
It is currently coming up. Can you hear me?
Viral Shah
Yes, sir.
Rahul Gautam
Yeah. From a volume perspective, it is about 7.5%, 7% of the total mattress. But as we move ahead, there is a huge opportunity because the opportunity we see is not only in small town India, but we also see a large economy and then users also in urban markets, but we will need to play that game very, very carefully so that we don’t cannibalize. So as we move ahead, it will be — hopefully it should come to about anywhere between 10% to 12%.
Viral Shah
Okay. Okay. And sir, this last question is, what would be your net-debt position currently?
Amit Kumar Gupta
So net-debt would be before lease liabilities around INR1,100 crore, INR1,150 crores and including lease liabilities should be around INR1,400 crores at a consolidated level, including Australia and Spain.
Viral Shah
Okay. Thank you.
Operator
Thank you. The next question comes from the line of Nikhil from SIMPL. Please go-ahead.
Nikhil Upadhyay
Yeah. Hi, and good morning. Just one clarification. On the net-debt, how do you see the thing playing out over next two years? Because you mentioned there is some INR100 crores to INR150 crores of cash, which would be generated from non-core assets. And operationally also we are looking at reducing the working capital and also, where do you think our net-debt should be in next two years?
Amit Kumar Gupta
So whatever will be generated either from the liquidation of assets or operations or operational efficiency, all will go to reduce the net-debt. We don’t have any intent or plan for making any material capex.
Nikhil Upadhyay
And once this 100 — this non-core assets are sold, as a part of our synergies, we had talked about some factory rationalizations between the two. Would there be still more opportunities for rationalization or we would be done with whatever factory setup we want to have?
Amit Kumar Gupta
So this includes the entire rationalization plan that we’ve had. So for now, yes, it will be done. If some opportunity comes up in future, that is something we can’t advisage at this time.
Nikhil Upadhyay
Okay, fine. Thanks a lot.
Operator
Thank you. The next question comes from the line of Manish, an Individual Investor. Please go-ahead.
Manish
Hi, sir, good morning, sir. I hope — congratulations for the great numbers, sir. Sir, I have sir, three questions. My first question is, after acquiring Carlon, we discussed about that we’ll have some benefits of, for example, distribution benefits, storage benefits and all. So have you realized everything or they are still pending everything.
Amit Kumar Gupta
So a large portion of that has been realised. But yes, as we mentioned in our earlier call also, the rest would be realised by the end of this year?
Manish
Okay. Okay, sir. And I have two more questions. The second question is, sir, we are going for a price hike in Feb. So what is the percentage that will reflect on the EBITDA of the price hike? Will it be a significant amount or will it be minimum 1% or 2%?
Amit Kumar Gupta
So I think the EBITDA guidance that we have given on an overall basis, it will be part of that, okay.
Manish
But can you quantify that? Because now we are growing at 9%, will the price has a material impact on it or there will be no material.
Amit Kumar Gupta
You should see some improvement in this, but the EBITDA margin improvement will not only be a factor of price rise, it will have multiple factors. One, it will depend on the remaining realization of the synergies. Price rise, of course, is one factor. Another most important factor is gradual movement of B2B business to B2C business because B2C business has better margins. So there are four, five factors which together lead to the improvement in profitability.
Manish
Okay, sir. And sir,, sir, sir, I have one question. Last-time I asked you that you had an idea of foldable mattresses for a lower section of society or a lower-middle class. Sir, have you thought about targeting students, for example, if someone goes to university for the four years college or the three years college on medical for six-year college when I went when I went to Pune, what we did is we bought a mattress for INR800 rupees or 1,000 rupees, but we replaced it every two years. So do we have that an idea to target students because you will get the students every year, a certain percent of students every year if you target them and if they like it, then a volume can grow a lot.
Rahul Gautam
So Manish, thanks a lot. I think it’s a good idea. Nilesh, are you still there?
Nilesh Mazumdar
Yes, yes,, I’m very much there. Manish, thank you for that question. Yeah. So Manish, you’re absolutely right. There is a large opportunity in the — in the student segment and you will be happy to know that is something that we are actively working on. In many of these institutions where you have hostels, large hostels, we are doing small camps, promotion camps inside the colleges so that people are made aware of it and we have already started this initiative and fingers crossed which is giving us good results.
Manish
Sir, why I ask that question because I came from a small up for my engineering.
Operator
Manish, apology. Hello interrupt you. If you can please back the queue.
Manish
Just one thing, just one question. Please go-ahead. Hello. Hi, sir, why I asked that question is because when I was, when I went from a small village to Pune, I did not know about the big brands. You know, I only knew that there is a cotton mattress. So there will be 100% students who not know about these needs. So if you have that in college and all, that will help a lot. That’s it, sir. Thank you. Thanks so much.
Nilesh Mazumdar
Yes, you are absolutely right.
Operator
Thank you. The next question comes from the line of Rishab Bothra from Anand Rathi Shares and Stock Brokers, Institutional Equities. Please go-ahead.
Rishab Bothra
Hello, sir. Good afternoon. Two things. Firstly, we had an asset turn of around 5% on-net block up till 2020. Post that, I think there has been certain goodwill also. So excluding goodwill, that has dropped significantly. So as of now, I think our asset turn is at net block is around 1.1 or 1.2%. So by when can we scale-up to around, let’s say, 3.5, if not five.
Amit Kumar Gupta
So, I think asset is what you should take on tangible assets only because when we acquired Karlon, there we acquired it for a price of around INR2,000 odd crores.
Rishab Bothra
Yes, excluded goodwill, sir. I excluded goodwill and looking at tangible only.
Amit Kumar Gupta
Yes, there are other intangible assets also in the form of brand and other things. So if you see, we have added only around INR300 crores INR350 odd crores of fixed assets. And even if you look currently, our asset turnover should be around three to four times. Okay. Yeah. Please do it. And in case you need any help, you may get-in touch with our advisors, Valoram and we can set-up a call to explain you better.
Rishab Bothra
Sure. And secondly, on the margin front, we had around operating margin of somewhere around 31% or so. If I’m not wrong.
Amit Kumar Gupta
Sorry?
Rishab Bothra
Operating margin — operating margin of around 31% or so. So what do you my bad, my bad, my bad, my bad self my bad. Operating margin of around 14% in FY ’24.
Amit Kumar Gupta
So you seen gross margin, right?
Rishab Bothra
Operating margin, sir. Operating margin of around 14% from 14% to 15% in 2021. Post that it has reduced significantly to 10% 11%.
Amit Kumar Gupta
So you will have to give it some working Nikhil, actually I have — I don’t know what — which figures are you referring to. These are not standard figures which we’ve given our results. Maybe you can share your working and I can help you with the.
Rishab Bothra
We’ll do that. Thank you.
Operator
Thank you. The next question comes from the line of R. Sen from MAS Capital. Please go-ahead.
R. Sen
Yeah. Thank you for the opportunity, sir. So it’s a twofold question. We see many companies marketing on sterards during the Mahakum. Are we not looking at this opportunity? And part B of the question, this especially in the backdrop of your — in one of the earlier con-calls you had mentioned about the Jabalpur — Jabbarpur Jabalpur plant that would focus on the INR2,000 mattresses. We see the new rise of tents as a concept. Do we see a future of you all venturing in this space, especially in the B2B space? Thank you.
Nilesh Mazumdar
So I will take the first question, Raoji.
Rahul Gautam
Okay. Got it.
Nilesh Mazumdar
As far as far as Kumb is concerned, we have our presence very much in the Kum congregation. We have put up a stall both sleep — for sleep as a brand. We have put up a stall for as a brand with a small experience center also there going along with it. And we have also invested in doing branding around in that space. So we are very much present in the Kum. The second question,, I couldn’t understand if you could take that with something around Jabalpur that was being asked.
Rahul Gautam
Yeah, we have — listen, could you just repeat that question? I mean, I understand on Jabalpur and the quantum that is manufactured there, but there was something about the mattresses from Jabalpur that you said, it was not audible enough.
R. Sen
Sure. Sir, my question was given the Jabalpur plant is about — it’s like a loom revenue — when I say numbers, right, it’s INR2,000, if I recall the numbers correctly. Do we see a lot of tents as a concept, be it tourists, be it spiritual, lot of concepts are coming up. Are we looking at this segment and maybe a B2B initiative where we are focusing on the tenth as a market and supplying to these tents? Sorry, there is in — I mean less affordability on this.
Nilesh Mazumdar
So, I will say that.? Yeah,, I’ll take — I’ll try and take that. I think what you are meaning is that along with a tenther if inside the tenth a mattress or something can go along with it. I think you are referring to that and therefore a market being that. So you see today, currently, if you see inside the tent, the maximum consumption is of a cotton mattress only. That is what is used inside the tent in many of these areas that you have referred to. So the entire initiative of Taran and RM is for that segment itself that inside the tent foldable mattress can definitely go inside. And while we have connected with — during the Kum congregation with some of the tent suppliers out there who have been there, but they already carry a certain inventory and there is a government-related acquisition that happens. But at an overall level, inside the tent, a cotton mattress is getting used and that’s what we are planning to replace with this entire Tarangaran initiative and that will help us address that opportunity.
Rahul Gautam
So Nilesh, let me just add to that, that even as far as the tents in Kumb are concerned from our CSR activity, we have donated over 5,000 mattresses for the tents which have — which have come up there.
R. Sen
Sure, sure. I appreciate that, sir. Sir, my second question is on Ferlenco. Yeah. One of the statements made by the CEO of Ferlenco earlier was millenniums subscribe because it gives them the freedom to unsubscribe, right? I think that was a statement which kind of stood out, it was made couple of years back. Now that in its new where for Elanco, like we have now 45% share in the company in — in QSR, we have this concept of same sales — sales growth, right, FSG. Is there a trend where you’re seeing that the same set of millennials are subscribing and eventually buying those products? Or is this too early to comment or any initial trends that you discovered after the acquisition of.
Rahul Gautam
So we see that in bits and parts of people who rent or subscribe and then eventually go on to buy. But it’s something which is very, very small. However, the direction is on the positive side. I have — I mean, I would do not hazard a guess as to say that would that become a substantial one. On the other side, our pure sale versus pure subscription, we definitely see that the sales side is an increasing number.
R. Sen
Sure. I appreciate that. Thank you so much.
Operator
Thank you. Ladies and gentlemen, in the interest of time, we take the last question from the line of Rahul Agarwal from Asset Management. Please go-ahead.
Rahul Agarwal
Hi, thank you for the follow-up. One clarification I was thinking about was in terms of marketing of Taranga and Aram. Are we selling this in the same markets in terms of Tier-1 metros? And how do we differentiate between the sales channel here in terms of general trade or modern trade versus sleepwell and on-brand mattress.
Nilesh Mazumdar
Okay, Rahul, I take that question? Yeah, I’ll take that question. You see today in the economic segment exists, first of all-in every market. It is just not by POP strata. For example, if I take a city like Bombay, Dharavi will be a huge market, which will be at the economy end. So therefore, we will need to obviously cater, have presence in all the POPS data in all geographies. We have designed the product and the margin structure in such a manner so that we are able to prevent cannibalization because I’m assuming that your question is that how will we prevent cannibalization, the channel also here will be different because the — our current exclusive showrooms or the high potent — the multi-brand outlets cater to a certain kind of consumers. Most of them would not have cotton mattresses being present, while it might be there, but it will be a very fraction of the number. So the channel will also be different as far as when we are going to operate in the same geographies.
Rahul Agarwal
And in any way when we brand the mattress or we print the name on the Karang or Aram, is there any mention of or Karlon like mention
Nilesh Mazumdar
Because today it has to have the umbrella presence of these two brands because that’s how the consumer will give me the premium for the brand saliency and it is therefore important that we have that presence on the packaging, but we are conscious of the cannibalization challenge and therefore, we are moving cautiously so that in every element as we move ahead, the positioning of the brand is very different. And for the consumer, there is no confusion and therefore that we will be hopefully be able to prevent as much as possible of the cannibalization.
Rahul Agarwal
Got that. And couple of data points. Could we have the revenue value share for and e-commerce, whether as percent to B2C sales or India sales or whatever we have right now?
Rahul Gautam
So I think we will — we can share that. That just get-in touch with our advisors, Valorem and offline, we can share that data.
Rahul Agarwal
Okay. And lastly, just on the average selling price, obviously, given the mix and given the focus and more volume growth on economy range as well as online. This number obviously has come off to about 4,000 right now if I add-up Sleepwell, everything put together on the mattress and accessory side. Would you like to put out a number in terms of where should it settle down, down, let’s say three years out?
Amit Kumar Gupta
So maybe Rahul we don’t give out details in the — into the details that you are asking for. If you have any clarification, we can talk separately, but those level of details is difficult to give out.
Rahul Agarwal
No problem. I understand that. Thank you so much and all the best for the upcoming times. Thank you.
Rahul Gautam
Thank you, Rahul.
Operator
Thank you. The next question comes from the line of Avinash Nahata from Parami Financial Services. Please go-ahead.
Avinash Nahata
Am I audible?
Rahul Gautam
Yes, please.
Avinash Nahata
Okay. Can you talk about a little bit about the TDI? You briefly made a remark on the disruption, which happened for 45 days as far as the GNFC plant is concerned. Just tell us about the pricing, how it has behaved in the quarter gone by and during the nine months and what kind of difficulty in price did you face buying on a spot basis from traders? And some color on that. Thanks a lot.
Rahul Gautam
Thanks. I think that’s a — it’s a very large question and we are looking at the last nine months. Let me just state the current situation, current position Rakesh, are you there.
Rakesh Chahar
Yes, I’m here can you answer that? Yeah, so the BNST went took a shutdown and it the shutdown extended by 90 days. So when, when the extension happened that there was city of TDI in the market and which led to the price increase by the traders. So to maintain the serviceability of the market other than GNFC, we were buying TDX outside at a premium. So this continued till end of November. From December onwards, the situation stabilize. Does that answer your question?
Avinash Nahata
So directionally, but what kind of disruption hello, yeah, what kind of, what kind of disruption in the prices it led to?
Rahul Gautam
So Avinash, let me let okay, okay.
Avinash Nahata
Sorry, Rakesh, sir, go ahead. Hello Yesh, Rakesh, sir, please go-ahead hello.
Rahul Gautam
Listen, I will take — I’ll take that question, Rakesh. I’ll just take that question. So number-one, the disruptions always happen a little abruptly because when you have local supplies and there is something that happens at the plant, the impact comes very quickly. There are the spot skies, there are the traders who are there existing. Generally, we do carry at least 15 to 20 days of inventory, but sometimes we have to buy from these — at that time, really there is no — there is no clear formula as to what would the spot price be or it — sometimes it can be high and sometimes it can be low, but it’s definitely a little higher than what we generally buy from.
Avinash Nahata
And is this the only capacity of GNFC or it was one of the plants of GNFC?
Rahul Gautam
Now so this was in one of the plants of GNFC. GNFC has two plants and it has total capacity of almost about 50,000 tonnes, which is a large number as far as India is concerned and it was in one of the plants that is there.
Avinash Nahata
Okay. Sir, is it — I have one more question. Is it possible to share — I don’t know, I could have missed the early part of the call. In terms of the quarter gone by and the nine months, how much mattresses we have sold-in terms of number of units in our B2C business? Business?
Amit Kumar Gupta
That is already there in the presentation that we have shared.
Avinash Nahata
Yeah. So there is a question related to that. So what is the maximum Kerlon would have sold-in a year in terms of number of units before we acquired this…
Amit Kumar Gupta
So I think what we are doing now is we are selling and in a manner that it becomes immaterial to us which one of them sells. So there is no brand-specific sales push. Intent is to maximize both the brands together. So I don’t think we should be sharing separate numbers. We don’t share as now the numbers of both the brands. Why we are giving growth rates is just to give confidence to the investor community that, yes, both the brands are growing and whatever we have acquired is making sense of it.
Avinash Nahata
Fair enough. Sir, price 3DI on an average.
Amit Kumar Gupta
Apco Usme investor presentation may taken, we have given a chart of price, so should be around INR200 plus.
Avinash Nahata
Thanks a lot yeah.
Operator
Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for their closing comments.
Rahul Gautam
Great. Thank you. Thank you to each one of you for joining in. I hope that all questions have been answered to your satisfaction. If there are any which are left over, please do get-in touch with our advisors Valoram and the questions will reach us and we can connect up directly. For us too, there like always has been a bit a learning exercise and we will continue to push our focus on India and the B2C brands that are there and completing the acquisition, integration and the margin realization as soon as we can. So we will see you in the next meeting after this current quarter. Thank you.
Operator
Thank you. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us and you may now disconnect your lines.