Time Technoplast Limited (NSE: TIMETECHNO) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Bharat Kumar Vageria — Managing Director
Naveen Jain — Whole-Time Director
Analysts:
Abhijit Mukesh Purohit — Analyst
Gaurav Sharma — Analyst
Saloni Jain — Analyst
Deepak Poddar — Analyst
Shivam Dave — Analyst
Abhijit Mitra — Analyst
Niraj Thacker — Analyst
Krupa Desai — Analyst
Devam — Analyst
Dhairya — Analyst
Jenish Zinzuvadiya — Analyst
Presentation:
Operator
Ladies and gentlemen, you have been connected for Time TechnoPlast Limited Conference Call. Please stay connected. We will begin shortly ladies and gentlemen, you have been connected for Time TechnoPlast Limited Conference Call. Please stay connected if we will begin shortly Good evening, ladies and gentlemen, and welcome to the Q3 and Nine Months FY ’25 Earnings Conference Call of Time TechnoPlast Limited, hosted by Kavirath Securities Private Limited. Please be advised that this conference call may contain forward-looking statements regarding the company’s performance. These statements are based on the company’s beliefs, opinions and expectations as on the date of this call. However, please note that these forward-looking statements are not the guarantees of future performance and are subject to inherent risks and uncertainties. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the conference over to Mr Abhiji Mukesh Purohit from Kavera Securities for his opening remarks. Thank you, and over to you, sir.
Abhijit Mukesh Purohit — Analyst
Thank you. Good evening, everyone. Kavirath Securities Private Limited welcomes you all for Q3 and nine months FY ’25 earnings conference call of Time TechnoPlast Limited. Today, we have with us the management team, which is represented by Mr Bharat Kumar Vagaria, Managing Director; Mr Jain, Whole-Time Director, Technical; Mr Sandeep Modi, Senior VP, Accounts and Corporate Planning and Mr Heman Soni, VP, Legal and Corporate Affairs. Now, without any further delay, I would hand over the call to Mr Bharat Kumar Vagaria for his opening comments, post which we could open the floor for Q&A session. Thank you, and over to you, Bharat sir.
Bharat Kumar Vageria — Managing Director
Yeah, thank you very much and very good afternoon to all my valued investors and esteemed colleagues, and thank you, Abhijit, for insightful introduction of all of the management people. It is both a privilege and a pleasure to convey today to present and discuss the result of our Q3 and the nine months of FY 2025 as well as to offer our outlook for the remainder of the fiscal year. We are delighted to report continued resilience in nine months FY ’25, marked by a commandable year-on-year growth of 14% in volume accompanied by a more moderate 11% increase in the revenue. This reflects a strong operational performance. However, due to reduction in the raw-material,
Operator
Ladies and gentlemen, please be patient and stay connected while we reconnect the management ladies and gentlemen, thank you for patiently waiting. We have the management back with us. Over to you, sir.
Bharat Kumar Vageria — Managing Director
Thank you yeah. So I am continuing that. It is both privilege and pleasure to convey today to present and discuss the results for Q3 and nine months of FY ’25 as well as to offer our outlook for the remainder of the fiscal year 2025, ’26,, sorry. We are delighted to report continued resilience in Nine-Month FY ’25, marked by a commandable year-on-year growth of 14% in volume accompanies made by a more moderated 11% increase in revenue. They reflect the strong operational performance, however, due to reduction in raw-material cost and the passing of the prices in the — which are reflecting the sale prices. Therefore, we have seen the difference of 3% to 4% is on account volume growth and the revenue growth. This is relatively lower compared to volume growth. This performance has been driven by the remarkable surge in our composite products, which includes CNG and other composite products.
Further, despite the slow our revenue growth, trajectory, our profit-after-tax of nine months has witnessed a 28% year-on-year increase, demonstrating the effectiveness of our strategic initiatives, including the optimized capacity utilization and reduction in finance and depreciation costs. The demand for Type IV composite cylinder for CNG cascades remains exceptionally strong with our current order book standing at approximately INR175 crores. These positive momentum is further complemented by significant growth in the sales of the value-date product such as composite cylinder for both LPG, CNG, while our core industrial packaging business continues to demonstrate stably and visible. Additionally, time has secured a confirmed order worth approximately INR435 crores for the supply of the packaging products both in India and overseas for the current calendar year means that would be serving the — this is order, I can say the book between the January and the February. So that will be served in the period ahead.
Considering the favorable trends and the strong foundation we have built across our key business segment, we remain confident in our outlook for the remainder of the fiscal year. With that, I would like to now run our focus to detailed financial and operational highlights, which have already been communicated in our results as well as earnings presentation, which is also submitted to the NSE and BSE and it is available on the site. Let us moment the key parameters and the ratio I’m sharing with you. During the nine months, on a consolidated basis, company has achieved net sale of INR3,992 crores as against INR3,601 crore, EBITDA INR75 crores as against INR508 crores. Profit-after-tax INR278 crores as against INR218 Crores. In terms of the percentage, you will find net sales increased by 11%, which reflect in India 10% overseas is performance very well. That is 12%. Volume-wise also I can say India volume growth 14% and overseas 16%, overall volume is also increased 14%, EBITDA increased by 13% and PET has increased by 28%. In nine months 2025, EBITDA margin is also increased by 30 basis-points, means it is achieved 14.4% as against 14.1%, which is increase of 30 basis-point. During the Q3, it also INR101,389 crores as against INR1,327 crores, which reflect 5% sale increase which includes India 3% overseas 9%. In terms of the EBITDA, it’s INR202 crores at against INR193 crores, which reflect increase by 5% in EBITDA. Profit-after-tax first time it is closed INR101 crores. I am pleased to announce that in the history of the company, the first time achieved a quarterly profit of INR101 crores as against INR92 crores for the previous year’s same quarter. The PAT is increased by 10%. So this reflect the strong operational performance. However, due to the reduction in raw-material prices, as I mentioned to you, reduction in selling prices, do you may find that the difference between the growth in the volume and growth in the revenue? Now share of the business-wise, I can share with you, established product and value-added product as value-added products quarter-on-quarter share is increasing. Now in this quarter also, value-added product grew by 17% in nine months as compared to previous year same nine months. While established products grew 9%, the share of the value-added products is 27% of the total sales in nine months as against 26% previous year. Now India and overseas business in the nine months, they remain at 65% India business, 35% overseas business. In terms of the EBITDA, I’m pleased to tell you that there is a good expansion in the overseas EBITDA margin and India margin, India EBITDA margin 14.5%, overseas EBITDA margin and 14.2%, combination of both is 14.4%, which we have reflecting in the results. And there is a net cash from the operating activity in nine months stood at INR285 crores. And further, I am pleased to tell you the total debt in the nine months reduced by INR92 crores and this focus will be continued for reduction in the debt. As far as capex is concerned, in the nine months, expenditure incurred INR150 crores, which includes INR60 crores towards the regulars and maintenance capex and INR90 crores towards the value-added product, mainly for IBC and composite cylinders. Now, but again as a whole of the year, company has projected capex below 200 crores. And further I’ll have some of the highlights, which I would like to share with you. That is the QYP. The necessary approval is already on place from the Board and shareholder approval and for raising up the — by way of equity INR1,000 crores and this is towards the expansion plus the repayment of the debt. But till now company is nothing. This validity is there till November 2025. Now the focus of the company has made a strategic decision to consolidate its products and the manufacturing units. This includes brownfield expansion and lending the new units, which will better align with the evolving market demands while optimizing the operational cost. And another main highlights important I can tell you share with you the green energy. Conversion of electricity unit consumed to solar power, the company is committed to transform 75% of electricity consumption to green energy within the next two years’ time. This process has already taken in the last 12 months and some of the tie-up is already made. The company will make a tie-up with the solar power generation company in each of the state where our government policies are coming. And this transition will not only result in the cost-saving, but also contribute significant reduction in the carbon emissions. As a part of the dedication to sustainability, the company is actively participating in the global efforts to reduce the carbon emission. Now sale of the non-core assets, which is ongoing since last 18 months as committed in December 2023. Now out of that INR125 crores, the amount is now reduced to INR51 crores, balance amount is realized already. The company had launched pleased to inform you that one of our subsidiary company Power Build has developed high-performance batteries which is the low-cost below INR10,000 per batteries and that the brand of the batteries each start with selenium with advanced lead-acid technology and enhance with the selenium that offer superior performance, safety and efficiency. The growing demand for is supported by eco-friendly policies, our battery solution meet the OEM standards and ensure reliable power output and quick recharge, contributing to expansion of the clean mobility in India. Further outlook, I would like to highlight as in the last quarter, October to December, the economic times in the first 500 company, your company is ranked 380 positions as against 4 run-rate in the year 2023. And further in the type 3, as I have already informed, but I am again as the quarter highlight I’m providing you, the Type 3 hydrogen composite cylinder for drone applications, we are pleased to announce that company has received an approval from the agency that is called PESO high-pressure type 3 fully repped fiber-reinforced composite cylinder 6.8 liter which will be used in drone applications, which is very, very huge potential in the period ahead. Further, I would like to share with you because in most of the — my investor conference call, you would have seen my colleague Director, Mr Jagrajan, but today he is in energy, what is this call, India Energy week-in Delhi, which is inaugurated. The exhibition is inaugurated by Honourable minister, Mister Armit Puri. So he’s there today, so he could he will. He’s not able to attend this call today. So it’s a very good week where we have — we have presented our hydrogen type 3 cylinder along with the drone and our internal trial for the drone application is on with tie-up with some of the local company so that we can give the — prove the results of the hydrogen type 3 cylinder for the application and use in the role. Further, we are continuing focus on improvement ROC, which have been seen in the last two years and we are not reducing any kind of our guidance for the period ahead as targeting to growth in the range of volume growth. I’m talking about the volume growth in the range of around 15%. Revenue growth, maybe 5%, 7% here depending on the prices of the polymer and composite products. But as we do 92% business with the industry and with the directly OEM. So when price increase we pass-on to them, the price decrease that also we pass-on to them, so we can maintain our — in absolute terms EBITDA margin. So I think that’s — I’m concluding my — this brief about the management presentation. Now I would like to open the floor to answer questions which I have not covered in my opening presentation.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. We have our first question from the line of Gaurav Sharma from KMC Corporation. Please go-ahead.
Gaurav Sharma
Good evening, sir. So as you have mentioned that we are into the composite cylinders. So is it only the Type 4 cylinders?
Bharat Kumar Vageria
No, you — in fact, I tell you the composite cylinder, we have a composite is we have a LPG, we have a CNG, we have the oxygen. Now we are talking the hydrogen cylinder for drone application, it’s a — it’s a Type 3, but as prior to that also, we have implemented type 4 Cylinder approval also we have okay for application. Yes, we have.
Gaurav Sharma
But what about the CNG and oxygens you have mentioned type 3 and in CNG, it is only type fours base is type-2.
Bharat Kumar Vageria
CLG is Type 4, yes, you are correct.
Gaurav Sharma
Okay. And it is mentioned that in value-added products, the EBITDA is 18.6 percentage as a margin, right? So can you say what is the margin in LNG, CNG and oxygen and how this EBITDA margin can be increased? Like is it going to increase or in the near-future if the competition is there, so there is a probability of decrease in price and subsequently decrease in margins.
Bharat Kumar Vageria
No, as I mentioned to you, we are quite comfortable as far as EBITDA margin in the range of, I say 18% to 22%. So I have taken the conservative by 18% and get is — that is going to be maintained because when my volume will increase, I will able to get my input cost also lower and if required to pass-on, I will be able to pass-on. And you know very well, the volume will justify the prices in-market. We are the first advantage. We are the first company in India. So we are the first-mover advantage. So when my volume will increase, I will definitely will afford new competitive prices and we’ll be able to maintain our EBITDA margin, which currently we are getting.
Gaurav Sharma
So can you specify the margin for LNG and CNG type.
Bharat Kumar Vageria
Some of the criss crossing of the assets are used are there. Therefore, it’s very difficult to identify separately because technical team, production team, some of the are the commons, which is used in the oxygen, LPG and hydrogen. But we are keeping internal policies really clear to keep the EBITDA margin in the range of 18% to 20% we are keeping. In the same way, it is it will range in the same. Because identification, the one says we are manufacturing CNG, so it is very difficult to allocate the allocation for each of the products separately.
Gaurav Sharma
Okay. And secondly, as you have mentioned that you are going to raise INR1,000 crores from QIPs. So as you have mentioned in your opening remarks that mostly it is going to use for the repayment of funds, right? So is it only the repayment of funds because then why QIBs will come on the table if it is only the repayment of funds and-or are you going to use just like increasing the share of our value-added products? Because just as of now, it is only 10 percentage revenue-share of composite products in the revenue, right?
Bharat Kumar Vageria
No, no. Yes, I’m clarifying you. In fact, you’re talking about the QIP, which is the not INR1,000 crores the fixed amount, the maximum only INR1,000 crores approval inflows. Now, as you know, the debt of the company is less than — net of the debt is less than INR700 crores and that is in any case, plan to repayment in the next 18 to 2 years time company on plan to go the debt pre. This QIP, especially because some of the newer products is under development, which very — which have a potential for the high business period. If you attended last call, we have said that currently in LPG cylinder, we are manufacturing 2 KGs, 6 KG, 10 kg, 40 — this 26 kg. Currently, we have been asked by the government authorities old gas marketing company to develop the cylinder of 14.2 kg, which is equivalent to the mattern cylinder, which is presently in population. And I am also pleased to provide that in currently in-market, the INR50 crores matter cylinders are populations for 14.2 kg size and current ongoing active collection is also INR32.6 crores active collection are there. The government do not want the differentiation between the metal cylinder and the composite cylinder. So that process is under development. And we are doing that development is also going to be complete in the next four to five months’ time. By that time we have — we’ll need the whose expansion looking to the requirement of the government company. I’m also pleased to tell you, you remember that in gas distribution company, government companies like Indian Oil, HPCL and BPCL,,, they are in the gas distribution line. So now we are developing cylinder B, I’m using the world we because in India, LPG cylinder manufacturer in composite products are the two. We as a time techno and second one is the Supreme Industries Limited. So we — I’m using what we because we both have been told current — current order, we both are supplying to the Indian oil corporations, our existing supply is continuing. And we are developing together, we are getting the design approval together with all government authorities — authorities and development of the tools will take place. So we are keeping ourselves ready and this is the enabling resolution. There is no any hurry to make the QIP at this because ongoing program of the company repairment plan will continue.
Gaurav Sharma
Okay. So as we have mentioned, there is a good development going to be, you know increase in the size of LPG cylinders and all. And so similarly, for CNG, you have mentioned that in a cascade as an application, it is going to increase, right? So what about the onboard applications like passenger vehicles and commercial vehicles.
Bharat Kumar Vageria
Yes, you are right. What happened, I’m coming back. This is the LPG asses, but I’m coming with the CNG. The current CNG, our capacity was around 30,000 cylinders, which is equivalent to 480 number continue — considering the 60 cylinder required for each gas cat. So our current order book, looking to the order book, we had booked a plant for the expansion. For our — around 36,000 cylinder new expansion is coming, which we’ve added to 600 gas cats. So that is — I have mentioned in my last call also that is delayed by three to four months. The expansion which was to come by now, it will be delayed by three, four months further and is the Q1 of ’25, ’26 will complete their plant. Already new plant setup is ongoing. So there, the company CNG cylinder capacity will increase from 30,000 to 66,000. If I want to — if we would like to decide to supply the cash, then the capacity will be 1,080, but there is a particular size of the cylinder, that is 156 liter. Now as far as automotive sector is concerned, we have already approval. But as in principally management currently decided to meet the demand of the casque market because if I sell the cylinder, then I’m getting my margin on the cylinder only. But if I sell cylinder along with the complete piping systems, as I said, I’m selling then we are getting margins on the entire set. When the capacity expansion will come, we have already started groundwork with the automotive companies, OEM directly, what types of the requirement they will have, various sizes for the — depending on their vehicle sizes they need. So that development is already ongoing, but it is the initial stage of drying level. We will develop the tool based on their individual vehicle requirement. But we are sure that currently, wherever they are using the metal cylinder, it is going to be replaced in the next, I can say, three two to three years’ time by way of a CNG composite cylinder plus hydrogen cylinder because hydrogen cylinder is also overseas countries, many countries are using hydrogen cylinder, which is India ahead of that, but we are the first-mover advantage. We already got the hydrogen cylinder developed in India. But yes, as the demand will kick up, the present expansion will take care of the CNG plus additional equipment for testing of the hydrogen cylinder. But major expansion for hydrogen cylinder will take-back in 2026 depending on the market conditions and feedback from the automotive industries and feedback from the other — this gas distribution company. Right. So as you rightly mentioned that there are all please request you to rejoin the queue. There are several participants waiting for the term.
Gaurav Sharma
Okay. Okay. Okay. Can I ask the last question, anything left? I can tell you have that number. You can call me. I will off the line. If you have any query left, we will provide you answer, right? Okay. Can I ask the last question? Yeah, tell me. Yeah. So as you have rightly mentioned that all people will shift from steel cylinders to the type 4 cylinders. And so we can also see Reliance and Jindal coming for the own carbon fiber setting up the — in India. So then will it help to increase more EBITDA margin for the time because there is opportunity to source the raw-material from India itself.
Bharat Kumar Vageria
It is too early to say because you know very well, currently also carbon fiber is available in India. If anything you want to manufacture in black, you need the carbon fiber. But now what type of the carbon fiber. World over with the efforts of the 15 years, 20 years, 25 years, the approved company world over, they had the three company carbon manufacturers are there. We have already taken the approval from two. I heard — also heard the reliance is coming with the carbon fiber manufacturing in-plant, which they had taken over. But it is too early to say about and comments on that product unless we take trial and testing and I’m pleased to tell you if any Input or anything I change, I need from zero to final again all the approval from the government authorities. I don’t change quite frequently because whose amount of the R&D and the cost involved in the testing of the — and take on the new inputs. When I’m satisfied with the quality, I’m satisfied with the suppliers who have been working with them and we are working with them and the prices are competitive and they avoid over their supply. So we — because this is a very, very product and we have to take very carefully and so immediately we do not would like to change about any suppliers as far as inputs are concerned, which we are using in LPG, CNG and in the upcoming project of the hydrogen. Later on, let them come out, we will see R&D will take because R&D itself will take minimum two years time. You got your answer?
Gaurav Sharma
Yeah, yeah, yeah. Sure. Thank you. Thanks a lot. Thank you.
Operator
We have our next question from the line of Saloni Jain from Ninmal Bank Securities. Please go-ahead.
Saloni Jain
Hi, Bharat, sir. I have a few questions. Yeah, the first one is that this is the first-quarter we have seen such a large gap between volume growth and revenue growth, which is approximately 6% to 7%, right? So earlier we have seen this gap around 2%, 3%. So can you comment on if this kind of a gap is first temporary? And if we can compensate for this gap going-forward in coming quarters, what is your outlook on that?
Bharat Kumar Vageria
No, I’m telling you. As you see my previous plan and previous guideline given, I’ve said very clearly, we — I am committed again now just before I said that I am expecting the growth — volume growth of around 15% that is going to be continue. Now the revenue growth is depending on the polymer and the composite product prices. You know that last, I can say the four, five months, oil prices is going down, going down. So that reflects because the polymer is made from the majorly 50% or 60% product comes from the oil and gas only. So the prices lower side. So when I am getting my prices lower side. So — and it is in the open-market available what are the prices, all the company declares their prices and I have a policy to increase or decrease prices to the customer. So I am — what I am telling you — again, I’m telling you, 15% volume growth will be there. So by absolute terms, margin will be there, EBITDA margins will not be affected in terms of the percentage may ups and down, sometime maybe 15%, maybe 16% if prices go down further. But in terms of the absolute figure, it will be on the higher side only as the volume is going to be sustained in this range. And as I have said very clearly, my packaging products we are estimating will grow in the range of 10% to 12%. Average we can take 11%. Composite products and pea pipe products, we’re looking to government policy for the infra development, we are estimating growth of over 30%, which especially this quarter was affected because of the uneven rains during that quarter, especially pea pipe business affected, which I had estimated growth of 30%, but I able to get only 10%. But I know now the government policy is also clear to make the easy-to-business, to do the infra developments, which is mainly because our pea pipe business mainly used for water,, and power duck line and development of the smart city. So you must-have seen if you are from Mumbay, you must-have seen in each of the village world everywhere, the construction and road construction ongoing. They are putting the pea pipes only. So that’s happening in everywhere.
Saloni Jain
Right, so I am —
Bharat Kumar Vageria
I am — revenue, yes, it is not in my hand, but yes, growth — volume growth I’m sure we are estimating target and we are not reducing our growth plan also of the 15%, which is for three years. Further, the value-added product, which is currently in the range of around 25% to 27% in the three years’ time, in-spite of company growth 15%, the value of product say will reach up to 35% considering the expansion plan undertaken and on the way.
Saloni Jain
Sure, sir, very clear. So my second question is on the order pipeline for first CNG and LPG cylinders and along with the drone application that we have got approval for, what is your outlook as to when can we see a significant contribution from that segment?
Bharat Kumar Vageria
But I consider composite product as a whole, whether it’s a drone application, whether it is the gas distribution, whether it is LPG or whether it is a automotive sector use because some of the composite product we manufacture for the automotive segment also like air receivable tank. It is used in the electrical vehicle, petrol vehicle everywhere. So we consider composite product as a one and considering growth of 30%.
Saloni Jain
All right. Thank you, sir. Those were my questions.
Operator
Yeah. Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the conference, please restrict yourself to two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. The next question is from the line of Deepak Podar from Sapphire Capital. Please go-ahead.
Deepak Poddar
Hello. Yeah. Deepak, audible, sir? Yeah, yeah, yeah. Okay, great. Sir, in terms of value-added product, you mentioned we want to reach 35%, right? So what’s the timeline you mentioned? I mean in how much three years? Three years in next three years? Yes. So what does it mean?
Bharat Kumar Vageria
The packaging product in the range of 10% to 12%, average you can take 11%, compose that product 30%. So three years’ time which is 25%, which is to 35%.
Deepak Poddar
Correct, correct. And what does it mean for EBITDA margin because ideally your EBITDA margin in value product is higher at 18% to 20%. So if your — if your percentage reached from 25% to 35%, how do you see EBITDA margin improving? I mean, if you have to see next two, three years,
Bharat Kumar Vageria
The last 3/4, four quarters, whenever the value-added product or percentage was increasing, you will see the 20 to 30 basis-point improvement. And I am estimating the three years’ time it should surpass the 15% EBITDA margin.
Deepak Poddar
Okay. Okay. So in three years, it should be 15% plus kind of EBITDA margin after considering you have —
Bharat Kumar Vageria
You must-have seen my another note also where I mentioned you green energy, which is we are working 75% of my laboratory consumption. I tell you currently my consumer in India itself by-18 crores units consumption of power. So how if I convert 75% which it means what INR15 crores units subject to government policies should allow to take the purchase power from solar manufacturing company. And I’m pleased to tell you, month-on-month, these government policies are coming very clear. As on today, I can tell you till now, the government is policy clear for Karnataka, Tamil Nadu, Maharash, Gujarat, Utra Khand. This pipe state has cleared, another state is also working out and they are allowing we can purchase the power from the solar generation company because we ourselves are not investing in generations of power. We are expertised. We are in the polymer composite manufacturing company. We’ll continue focus on that. But if INR15 crores units, we will be able to say for example, the conservative, I can say 2.50 per unit also, then also it will be give the substantial for INR30 crores INR35 crores in a year. And for that what? The is less than one year. I require to make an investment and the equity investment in the power purchase income — power manufacturing company who will return me without any interest, face value of the equity back after 15 years. And that benefit will continue by-15 years. If anything, I have a very clear guidelines from my committee and my Board if any investment will justify a payback period within less than three years, keeping the eye close, we should map the investment.
Deepak Poddar
Understood. Understood. And when we are talking about EBITDA margin, we are talking about 20 30 basis-points per annum improvement, right?
Bharat Kumar Vageria
I mean? Yes, yes, yes, yes. Because quarter-on-quarter I can’t say, but there may be the — you know there’s too much fluctuation. Now you will see this quarter itself after the joker from what is happening. Correct. And then what is happening? Too much fluctuation. But again, we have to maintain that. We have to cover that risk.
Deepak Poddar
Correct, correct. And what is our key raw-material? I mean, for the prices of which are depressed right now because of which your ASP were also down.
Bharat Kumar Vageria
The polymer is a different type of the polymer. There is a products, which may be covered LGPL, LDP, LGB, but major — you will point to my major products are the LGB products. Is 10% and the other is a composite product which includes again some of the polymers plus glass fiber plus carbon fiber, either than certain hardener chemicals.
Deepak Poddar
Understood. And any view we can set? I mean, any short-term or next six months-to one year view on the pricing can asserted to?
Bharat Kumar Vageria
I’m telling you. I have a very, very planned in way. I’m telling you, as far as 2025 is concerned, company has already signed contract for the fixed-price for supplies these days. So I have no contingency As far as supply is concerned, as far as price are concerned, because we have already signed the contract. Similarly, we have a pricing contract and signing the purchase price contract with some of the local manufacturers of polymer with a certain formula price. And I mentioned, you know that 92% business is OEM business directly, B2B business. So where price increase we pass-on, price decrease we pass-on, import price multiplied the exchange rate. So we have a customer understanding very clear.
Operator
Thank you, sir. Yeah. We have our next question from the line of Shivam Dave from Prodigy Investment. Please go-ahead..
Shivam Dave
Yes. Hi, sir. Congrats on the decent set this quarter. By the way, thank you. Yeah. So I wanted to understand there was a disclosure right now regarding a fire in one of your plants.
Bharat Kumar Vageria
Yeah, yeah, because you know that I am delayed by-10 minutes because of that only. And at the same time, I have shared the good news also, both the news are there. One, I will come with the bad news. Yes, part of the premises, which is in where we have a manufacturing, the fight took place early in the morning. So still my peoples are there and it is under control. All the actions have been taken is quite adequately ensured, know any casuality by way of a human casuality or injury and nothing is reported and company is in-process to take the submission of the claim and following the process, advice of the our consultant, the consultant. Another good news also I have shared that — because you — I believe in God, some bad news come at the same time good news also comes. So I was that immediately I received one order which was ongoing also and we got the order for INR65.85 crores packaging products only from a and I mentioned in my prior incident also, I have other manufacturing location. I’m pleased to tell you, I have a 20 manufacturing location in India so I can serve surrounding factory nearby factories that these packaging products. So there is no any business loss I’m expecting. Yes, for time-being, there is a disturbance of manufacturing, but I have a capacity available at those location and we’ll continue supply with that customers from the nearby locations.
Shivam Dave
Okay. So there is no casualty and at the same time, the
Bharat Kumar Vageria
Nothing. Therefore, I told you. I have a bad news as well as good news work together.
Shivam Dave
Right. And the order that you’ve received, I think it’s for around INR70 crores. That is executable over.
Bharat Kumar Vageria
It will be in the period of two years, but again, you know very well, government keeps certain thing in-hand. Once we the price, they have authority, they can increase the quantity. They give two years time, but I have seen in the past experience, they complete in one year depending on the requirement. They keep the initially period of two years.
Shivam Dave
Okay. Okay. That’s it from my side. This is the only question.
Bharat Kumar Vageria
I’m considering in fact, you see my earning presentation also I mentioned packaging India and overseas put together have a packaging product, INR400 crores, 4 crores something already orders in-hand because it’s January onwards booking, we do the booking and we get some kind of the tender awards India and overseas. So already some INR400 crores — INR435 crores order book already in the last two months’ time from the packaging product. And packaging product, you know it constituted around 76% of my total packaging business. If you take the previous year revenue, INR5 crores revenue, 76% is almost around. We target INR800 crores revenue. Almost more than 15%, 15% order book is there in the just beginning of the 1.5 months.
Shivam Dave
Right, right. Okay. Very clear, sir. Thank you. Thanks a lot. Thank you and all the best.
Operator
Yes. Thank you. We have our next question from the line of Abhijit Mitra from Alpha Investment Management. Please go-ahead.
Abhijit Mitra
Yeah, thanks for taking my question. I hope I’m audible. Yeah, yeah, Abhijit. Yes. Yeah. So just to understand the result a bit better. So if you look at your standalone, there has been a revenue and a PAT dip, whereas the other reported entities, essentially TPL plastic is showing a very strong revenue as well as a profit growth. And consequently if we derive the other segments, essentially Alan, net energy and other subs, they’re also showing 20% Y-o-Y top-line growth, 30% Y-o-Y PAT growth. So if you can highlight any dynamics across these three entities, you know what all you experienced and how are the trends you know shaping up for both standalone TPL plastic and other subsidiaries combined, which is essentially, which is your Middle-East entity and net energy and other subsidiaries. Thanks.
Bharat Kumar Vageria
No, in fact, I can tell you, I have in-hand my projections for that this three-year guidance given by my overseas directors also who is looking at the international business and their team, they have given me just presented in the beginning of the year. They are quite confident to achieve 15% growth across the globe, I can say overseas, overseas where we do the manufacturing products. So they are quite committed volume growth of 15% in the next period’s time. They will do some brownfield or new units and in each of the locations some — but especially a US business, they are expanding the two more locations. And one thing I’m clarifying you, whatever I’m talking, everything is covered in my capex of INR200 crores because I’m talking the new unit does not mean new capex will be required at all projected and taken. And in INR200 crores for the capex plan is INR175 crores to INR80 crores for maintenance capex, automation, reengineering that all covered and the balance I’m taking for the value-added product expansion plus brownfield expansion, India and overseas both put together. So you ask especially,, I’m telling you, as I have received, I think India and Middle-East relationship is increasing substantially between business between both the countries are improving. So yes, if you tell me, as overseas, I mentioned to you 15% growth, I can tell you, yes, 17% to 18% growth, simply we can take-in the — this Middle-East and MENA region. Then I’m considering around 14% 15% growth here in US and the Southeast Asia, I’m considering my 8% to 9% growth in the Taiwan. So combined both put together overseas business, which is in the range of 35% of my total revenue in the range of around INR2,000 crore, so 15%. Now overall, I’m taking 15% because India, you know there’s too much uncertainties who was there. Therefore, I mentioned to you composite product 30% packaging product, 10% I’m taking in India considering the export will be affected from India to the other countries till the entire policy clears by the — most of the countries where the India is exporting, because you know that last quarter also packaging businesses you have seen right standalone business has not grown much. And third, you asked me about TPL plastic. TPL plastic is growth of over 10% is there, margin has also increased because TPL is 75% owned by Time TechnoPlast Limited and which around 8% to 9% of my total revenue. Now the TPL plastic has took the entry in the value-added product, that is intermediate bulk containers that just last year completed this year, last year completed and further expansion has been done in the Dahej area. The plant is completed now, fully automatic plant. Now as you have seen the TPL plastic press release also, they have been allocated and took the position of land in the Maharashtra, which is in Raigal district place called Lotte, entire new chemical zone is coming up very big way. So company talking to surrounding area requirement and many requests received from the surrounding chemical manufacturers who has a requirement of the packaging products, which IBC drums and. So this project is position is received and company is estimating to complete this unit in 2025, end-of-the calendar year, so that Q4 of this year will make available for the sale of the product there. The TPL will grow separately and definitely continue because wherever the time is present, the TPL plastic is not there. And wherever the TPL plastic is there, time is not there. For example, Rapnam time techn has no plant. If the TPL plant is there, but which TPL is there, but TPL is there. So this is the company, except this TPL, if you know the history, it was taken over by Limited in 2006 prior to the IPO. And this company has — I am pleased to tell you that when we took over that company, the turnover was INR40 crores. Now it’s a 1,000% increase. It is in the range of INR350 crores is the revenue.
Abhijit Mitra
Right. And any update that you’d like to share on-net energy?
Bharat Kumar Vageria
Net energy, yes, you — I have mentioned the — in my previous call also, the merger process of energy and the power building process because at the time techno is the owner of NED Energy. Ned Energy is the owner of Power Build, which is Bangalore-based manufacturing company. So the process of merger is on. But yes, companies that net and power build is going to be one company subject to the permission from the authorities. We are estimating to get-in the Next two to three months’ time. We have all the approval in-hand. And pleased to tell you, Energy power build is completely debt-free company and it is — they have recently product which they have developed like with selenium, very-high potential. This entire R&D team has developed this battery, entire battery have been manufactured, internal trial testing have been taken, maybe whose market potential. But as a company, we are — what we are targeting, I’m pleased to share some kind of the information which I have publicly also available, today in the 15 lakhs are available in the market as of 2023. And every year 4 lakhs new are coming Eriksha and each Riksha need four batteries and the cost of the battery is less than INR10,000 rupees. So in terms of the revenue, I can tell the market size, which is 2024 is INR2,500 crores, which is growing every year-by INR600 crores because every year we will find 4 lakh and 16 lakhs batteries. So we have what we are projecting, we are now very much eager, but we are targeting to have in the three years down the line, we would like to have a INR100 crore business from Eriksha market that’s our team is targeting considering the quality of the batteries and the very good performance of the batteries. So therefore, I’ve intimited to you. Now we have submitted these batteries. Our R&D was submitted to the authority for the final approval. So product can be launched. We are estimated to launch this product at the end-of-the March. So next year 2025, ’26, with the existing capacity, we are estimating to take the business of INR50 crores from this battery itself. But at the same time, looking to this, you know the size of my company has become now — our company has become more than I can say, a INR6,000 crore company. So looking to the business of INR200 crores is very small. We are not keeping our eye close. We are still open for discussion. We will take it, let us first develop the two products. One another product also, you have seen the last-time that power that call the power segment, one batteries we are developing that also will be ready in the March. So after development of the two new batteries, now your company, this NAD and power build together have a number of the products more like what solar batteries we have, fairway signal batteries we have, power segment batteries, which is which call the OP ZS, that is the short name of the batteries than this batteries. So this company has a capacity of doing business of around INR250 crores to INR300 crores this — then it is a sizable business, I can say around 6% to 7% of the revenue. And then at time when the products are ready, we can see exit from this business demand. But as I said to you, they have now started giving the good ROC at one point of time. The company was giving me the ROCE of 6% to 7%, now increased increase to around 11%. Time target is that ROC from this company itself in the next two years time around 15%. So they give me the contribution in my the ROCE.
Abhijit Mitra
Great. Thanks for such a detailed answer and wish you all the best. Yeah, yeah. Thank you. Thank you.
Operator
We have our next question from the line of Niraj from — from Prophet Financial Services. Please go-ahead.
Niraj Thacker
Yeah. Thank you, sir for taking my question. Sir, my question was regarding that Eriksha battery only. Yeah. What will be the current margin, sir in this market?
Bharat Kumar Vageria
Oh, I think you missed my previous communication. The current market size is INR2,500 crores as per the data of 2024 and which is growing by-4 lakh unit means 16 lakhs batteries every year need. So what is the margin, sir in this product is too early to say can get. Yeah. But yes, any of the product in battery segment we do not less than 12% margin. I’m very clear with you. Because what do you mean to the margin?
Niraj Thacker
Okay. Yeah. Thank you, sir. Thank you for taking my question. And sir, it’s always pleasure to listen to you because you always answer in so detail to all our questions. Really I appreciate it. I’ve seen your company. Your company name is Profit up. Okay, thank you, sir. Thank you. All your questions you answered in so much detail, sir and with so much honesty. I’m at the pleasure of all my because they should know what we are doing it if any person should not leave the call without satisfaction. Yes. Yeah. Thank you, sir. Thank you very much.
Operator
Thank you. We have our next question from the line of Krupa Desai from Electrum PMS. Please go-ahead.
Krupa Desai
Hi, sir. My question was on the LPV cylinder update of 14.6 KV from BPCL and ROCL. What’s the update on that, sir? We have received the? Yeah 14.2 k cylinder, not 14.6.2 metal cylinder right? No, in some last meeting, you also talked about 14.6 KV cylinders which you went to making together.
Bharat Kumar Vageria
Yeah, yeah. Point is I hearing, 14.2 SR attacks capacity range of for plus or minus 2% metal tie. To metal cylinder appliance Garoma, to metal center car size 14.2 voltage also. This make 14.2 gag gas volt or 14.5 giga of that, approximately 29 KG car cylinder Manage. Abhi supply IOCO Karan or Kirka Hump or Donohi. Now the 14.2,, IOCL or is starting with the supply committee. IOCL for continued supply here. And I would — I’m pleased to share with you the government permission, the government come up, IOCL, BPCL,, they have been allowed to us and Supreme to educate the people about the cylinder, what are the advantage, how this to be used. So in the last one year, they are giving us two cities every month, I can say, till now till month of January, 16 cities we have did the distributors and dealers meet and quite successful resulting the IOCL and BPCL is getting 75% growth for use of the composite cylinder, that is report available with the IOCL reports, internal reports also. Now further, I’m pleased to tell you IOCL has branded the composite cylinder that is called Indane Light. They have launched the product in India and they have taken like the Sanjeev Kapoor who is the chap, he has taken the brand of Sanjeev Kapoor and they have the — now they are doing some media, they are using it. But we have been told to develop the 14.2 kg or 14.5 whatever you heard, that’s okay. That development together we are doing it. We have submitted the tryings. You know that when the three companies are involved like IOCL, BPGS, SBCL, it takes time. We both. We to take the similar so cream and we have submitted our design. Now lots of meeting have taken place in the month of January and still it is going on. We estimate to design approval before end of this month, that is our internal estimate subject to permission subject to means available time with the senior team of these all three companies because you know very well the senior management of three companies put together and have a meeting itself is a challenge. But anyway, various meetings have taken place. I am conservative, I can say by March, the approval of the design will be take place, then the four months will take the tool development we estimate in the first-half ready with the tool development and everything, the second-half will be available for the supply and commercial supply. Now we have been given the estimate that may be the requirement of I can say the 50 lakh cylinder or 60 lakh cylinder. I mentioned in my call that currently INR50 crore cylinders are in population metal cylinder. Now once 14 per approved, then they will replace. Again, I’m sharing one information with you. Every year government buying 6% of the total population cylinder, which is in the range of 2.5 crore to 3 crore cylinders they are buying every year. And again, present capacity of V and Supreme together is less than 2 million cylinder capacity, which is very, very-high, less than 10% of the total Requirement of the yearly requirement. So I’m thinking now as this product will approve, we have ourselves keep ready for QIP because then the major investment is required looking to the size of the tender of the — each oil marketing — this oil gas distribution company at PCL,. Apart from that, as you know, we have approval for 48 countries where I’m continuing export and good response is coming. Now when by talking on the LPG, we have like in India, we got the approval, we have taken four countries, another under approval that’s call one is in Kuwait, second is in Saudi, third one is Oman and Sudan. The four countries we have submitted our sample approval and we estimate to get the approval in the next three to four months’ time, then whose requirement will come. So we ourselves are keeping ready for the expansion and for linked with the QIP also. Otherwise in normal business circumstances, our plan is ongoing for the repayment and business expansion normal will go away as per the existing plan.
Krupa Desai
Okay, so thank you for the detailed explanation. Yeah, thank you.
Operator
Thank you. We have our next question from the line of Devan from Ardeco. Please go-ahead. Go-ahead.
Devam
Yeah. Hello, sir. Thanks for the opportunity. Yes, sir. So firstly, I know you elaborated and explained the difference between and I think next who are people are in queue. There are many of the question hello, can you continue? Hello. Yeah. Can you hear me? Yeah. Yeah, they. Yes, sir. So I know you’ve elaborated the difference between volume growth and revenue growth at length. Just wanted to understand that how would the difference — how should the difference between volume growth and EBITDA growth? Because I can understand that revenue growth would be lesser, but typically EBITDA growth should match volume growth, right? And this is 1/4 wherein EBITDA growth — absolute EBITDA growth has trailed volume growth. Just wanted to understand reasons for the same. As simple as I will expand to you, if the — my sales price is INR100, for example, okay?
Bharat Kumar Vageria
Yes. My sale price is INR100, then my EBITDA margin is 14%, INR14, then it comes in the percentage term 14, right? Okay. Now if my sale price and in this when the INR14 EBITDA, which comes in 14%, for example, raw-material cost is INR17 and another 16 is over 8 rupees terms. So percentage of INR70 is the raw-material cost, 16 is the overhead cost put together INR100. Now if, for example, raw-material cost is reduced by 5%, so since INR70 will reduce to the INR65. Yes, my sales will reduced to 95. Yes. So my INR14 will be there. So I am earning same INR14 or 95. So in terms of the percentage, this is going to be increased. Yes, got it. So if you are making the same INR14 or 95, then basically your EBITDA in-line with volume should — basically EBITDA should grow in-line with volume. Your pricing is based on EBITDA per kg or it is in percentage. What happens, either combination of the product, there may be 5, 10, 20 basis-points here and there because I have to do the certain correction on account of the benefit the inventories also when the price is down. But certain kind of the fixed orders we have, like for example, pipe business is a fixed order value down, but our order books are not required to that reduce the prices. So overall in terms of some — when the price is down, some percentage will increase. For example, today something my beta for INR100, I’m earning INR14. For example, tomorrow the INR10 price increase. So in terms of that my INR110 sale, I will get INR14 only. Then in terms of that my EBITDA percentage will go down.
Devam
No, that is fair, sir. So you are saying this current quarter, there must-have been some impact of certain inventory adjustment in some divisions, which I’m waiting on fixed-price and there could — would there also be some ForEx adjustments which would have affected the margin in this quarter?
Bharat Kumar Vageria
Or poor and very little, very little because I tell you, I mean natural hedge is also there. My foreign company is earning, I’m getting my into only the inventory portion, sir. It’s the ForEx adjustment has only affected the inventory portion. No, but when I don’t have any liability, I paid whatever inventory I have, I paid my liability, then I have nothing to do by far foreign is concerned, my cost is fixed. If I have a foreign currency open, then the foreign currency will affect to me.
Devam
Okay. Okay, sure, sir. I’ll probably take this part little bit offline. Mostly understood, but I’ll take it offline. Just last question, what is the reason for the delay in the 600 expansion and what is the opportunity from the fire extinguisher market for us?
Bharat Kumar Vageria
The one thing I’ll explain two-ways separately. The delaying reason I’ve explained to you too many things have happened in the last 12 months. Number-one, the plant and the building which I finalized with the company like Desai builders, they have — you know the last year the center direction was there, which is delayed four months. Okay. Yeah, because they did not run. And I’m linking — I’m linking because I have my very clear when my plant will come to India when the building will be ready, so I don’t want to wear out my plant and pay the unnecessary cost. Okay. Number-one, the delay in getting the approval by the developer because you know that the CNG expansion where it is coming, we are not building our own building. We have taken on the long-term lease rental. So my rent will start when the building will complete. Okay. So that took four-month delay. Now, you know another reason the delay in the Europe because most of the equipments are coming from the European country. You know the situation in European countries last half of the last year, power shortage was there. No people were staying there. There was a huge power shortage in European countries because of the Russia-Ukraine war, war power was disconnected another thing the equipment to manufacturer many people from the European manufacturers have left that country. Russia Ukraine war has I can say two to three months variety of the reasons are there no any other reasons. I’m ready with the. I’m ready, but now we have seen the progress. Even I can tell you my project team is reviewing every week. My team is already available nearby area because this plant which is coming is 140 kilowatt from. You know the area called Wapi, right? Yeah, it’s a Gujarat area, it is coming. So I have already-existing units in Daman and Gujarat this Silvasa area. So I’m sure now as for the current commitments is there. Now you know that in this year, so many active taken place, central, restate election, you tell me when our government is free. Correct. So every delay has taken place, resulting there is a delay of the, I can say the six-month delay. And now order booking product, there is no any issue at all. Response is good, margin is good, it’s a delay only. But at the same time, not costing us because we have not made the payment anything, the payment has done, advanced payment that is continue. So now what we have decided in instead of betting the entire plant, one-by-one equipment we are getting now. Okay. So remember, it will come. It will be available for the second-half of the year, full operational expansion plan will be ready.
Devam
Okay. Okay, sure. And sir, the opportunity from fire extingution markets.
Bharat Kumar Vageria
I tell you, fire extings a very good product and even railway has made compulsorative use of extension. Currently, it is not available in India. Some people are importing and selling that. But when it will make in India, one thing I’m telling you, there is no any approvals required from the Peso authority for manufacture the fire extension now because we are going to manufacture the fire than this product we are going to supply to the company who are filling the chemicals and selling their product in the market. So we have developed, we have done the prototype, we have submitted, we have given to the company with whom we have made a tie-up. They are going to get the BIS, which I am expecting by March 11, what — my Technical Director, Navin Jain, also first time we hear, otherwise, he always busy in developing of the products and most of the time he is this plant. So I think you will hear from him when we will be ready with this product. But again, I don’t have capacity. This is the product developed for that. I’m linking with — because it is similar to LPG product and these five extension we are developing in 2KG, 4KG, 6KG and 9KG. Initial, we have submitted and we are getting sample submitted for BIS for what —
Naveen Jain
But sir, we are manufacturing this composite lenders for fire and then this will go to the companies who are filling the chemicals in this and making a complete fire supplying in the market. So BIS is required for a complete fire extuition, not on the only for the fire exhibition. So those companies will take the BIS approval on the fire and supply in the market. We have already submitted the samples to these companies which they have tested and found these lenders were comfortable with their requirement and now they have submitted the application to BIS takes about three to four months time for the approval. So once they get the BIS approval, we will start the supplies of these lenders.
Devam
Okay, sure. That’s it from my side. Thank you.
Bharat Kumar Vageria
I’m absolute okay. Yes, at,. Use , we made heavy. Yeah, 50% her car the light sir, what would be the approximate size of this market? That’s very early to say, could we both do quite. It is huge market, sir. Maybe, like in a or car, a very lightweight. But the market use somewhat after getting the best part of this is like my conventional, this metal are exquisition they get very fast in the chemical environment.
Naveen Jain
Now fire are used in all the chemical industries as well as on the ships, et-cetera,
Bharat Kumar Vageria
We are at the mobile market estimate, yeah. Yeah, the mobile so those are fire exchanges are account of both over here. Our company made the
Devam
That is useful to know. Thank you. Thank you.
Operator
Thank you. We have our next question from the line of Dere from Champion Capital. Please go-ahead
Dhairya
Yeah good evening so my question is as it is mentioned that we are involved in Type 4 hydrogen cylinders, yeah. So do you think hydrogen vehicle will be adopted in India? And how much will it take to develop a proper market and infrastructure for hydrogen vehicles? And any orders for hydrogen cylinders have you received? And secondly, do we see any strong competition approaching us and what are the current expected margins and how much can it differ due to that competition
Bharat Kumar Vageria
I think Mr Dariya right hydrogen cylinder Nile batto company for hydrogen use but foreign hydrogen cylinder already use. Heavy may use, different, the body CNG cylinders at LTA, 8 10 LTA, this may think so pressure retire, those of kilometers are. Who see cylinder may hydrogen cylinder, capacity, sharps of kilometer, number two, hydrogen Adani relying is loop hydrogen cylinderque biogas plant like yes, yes, so here, plant so biogas plant 100 every year. Don’t go gasco to gasco use it’s a byproduct I guess to add Islam and, like a carbon fibers are margin at the to margin say yes LPG, Hamas of market create cylinder Ki to you every company may be Kuth policy company. We don’t do any product development where I have one supplier and we don’t produce any product where I have one customer. It’s a policy.
Dhairya
Yes, sir. I think you got your answer. Okay, okay, sir. Yes. Got it. Yeah. Thank you. Yes. Take second question so I went through the — I went through some government reports claiming that they plan to increase the pipeline infrastructure in India, which will eventually lead to decreasing daughter stations, which results into decrease in-demand of Type IV CNG cascade. So what are views — what are your views regarding this?
Bharat Kumar Vageria
Are bath. The Apo India Collector, Agas Doja data Punish the press release there. The crore cylinder population may have — or crore active connection, India may RB starts as 7% area rural backward area, one to be a CNG or LPG told the market which are the two decent litera, two days a Khana,,, Deka or. Pipeline all over India,, Bombai, pipeline,, building,, Skalina Mai,, Turkey, Bangalore, economical, Nayan, building, but actually my type 4 CNG Daughter station. People are very factory here my member was asked Bhara changing a pipeline, changing a pipeline and change the pipeline to presenter say 30 to gasco, go building will or I’ve been able to reduce my cost pipeline to supply of Bharam means overa there. So yes, government can go paper by implementation. 100 smart city CNG time import that compared to cost otherwise, working capital, a be a 40 meters time for value of the person time is important. Government there we start Jagai or policy be other station lot of develop same page around sorry to interrupt some may please request you to rejoin the queue. Yeah. MRU — MRUSA, now JJ SA India meant logistic Park,. Logistic Park, India, Parab. So Jab jab, foreign system, Oka my logistic partner Abdeco, key Army AI instation said gap. So Carrega, MRU, mobile unit, okay say, Gari 30 with the logistically to by, Garna Parking or Petrol, Patrol,,, Patrol, Mary man from all-India man. Again after consumption,, those are leader said digital car. So there are many peoples are there AK, who tank, whose made digital in the, diesel LEA from that government
Dhairya
Okay, okay, sir. Yes, that’s all from my side. Thank you so much. Thank you.
Operator
We’ll take last question from the line of Janesh from S&T. Please go-ahead.
Jenish Zinzuvadiya
Okay. Good evening, sir. Good evening, sir. Good evening. So in your investor presentation report, in the overall market potential slide, the total estimated business mentioned for for cylinders is INR2,200 crores . But why does the same does not for commercial vehicles and passenger vehicles and what is the estimated market and the targeted share of time techno plus in the same.
Bharat Kumar Vageria
Jaco point SI table order, government keep follow this makes CNG Joe recorded. Our Kuri, the market mayor, CNG metal keeping. Abhita,, a government Tata Motor, Samco Pucha, data is or market, at Karan with new cascade car. Our existing cascade to-market may have to metal casque hand or roughly data to BPC, IOCL, BPCL, gas distribution company own can public data available around 15,000 cascat market may have. Now a 15,000 cascat subi metal can composite to Abital tin Talo, those are at this and Launch Kia. So you have 15,000 cascades, the replacement, replacement cascade at, mobile or, which is Metal may have okay. Cost-saving after cost-saving 50% running cost-saving, eight truck with low cascade composite is against metal cascade one, the average is saving, one-time investment.
Jenish Zinzuvadiya
Yes, sir. But compared to the cost of composite cylinders is very-high compared to the metal caskets.
Bharat Kumar Vageria
Half cost-saving the deco, it is available in presentation also, we have provided like metals casket, outire, Amara casket picture see La you are welcome in-office that working is available.
Jenish Zinzuvadiya
Okay, got it, sir. And but what about the vehicles? Will they also adopt the composite cascade?
Bharat Kumar Vageria
It may metal. Make part of has called the, charge cascade,, cylinder plus actually build time. GT may have further capacity expansion of OEM for supply Karna Karnunga, processes Chesa process the OEM approval key. They can our capacity in approvalue, Jamal automotive sector may have 16 liters capacity approval there. Now attack, La Giga, it’s, Giga, truck Giga to second Linge. Developed by Deka keep Jabbiko media TV to product market available on our. Other TV made our market name is to product product in to automotive sector for product thumbnail approval approvals not in problem yes. So will auto OEMs adopt Ty 4 cylinders as cost is approximately three times? They go coordinate from make example they. Normally kilo sorry, 50% okia, vehicle,,,,, metal can actually ABS you yeah, Mr Plastic lightweight, everybody want to become a lighter vehicle to increase the efficiency.
Jenish Zinzuvadiya
Okay, sir. Okay. Got it. And sir, my last question is, so how do you determine the pricing in type four cylinders and what is the margin for cascades and automobile OEMs considering passenger vehicles and commercial vehicles?
Bharat Kumar Vageria
Again, they go passenger, chemical vola voga, cascade car pricing, all input cost, also Duni production, special polymer, UV stabilized lactai, Osma Carbon fiber, Oske chemicals bonding or of is still Jada lucktai. It’s a bullet proof, the cross,, long air. To Saval air, it’s depending on the volume. Example LPG cylinder,, the LP cylinder Mana to glass 5 kilo at the volume price over 65 kgai, the volume per to to will kilo, other, Mileka, Pinchan will be low. Of course, will take the Mila EBITDA margin 18%, market volume does power. You will able to get the more margin of more business.
Jenish Zinzuvadiya
Okay, sir. And sir, so is the margin higher in cascades or passenger vehicles and commercial vehicles?
Bharat Kumar Vageria
No, different physics. They go may not go. I can make example town are pass limited capacity or cylinder Bana Town to machine or start Bananga. Time capacity or litera is productivity man. How now price Cylinder, Gari,,, Merko, now Beijuma, Mera system but we know very well OEB are saving IGA, cost-efficiency IGA, vehicle, have receivable tank, they say Banake Dia receivable tank beta is what a receivable tanker. Duka, our cost-effective long-term life, no rush, no long-term life OTA. So Aveni Uska pricing that efficiency vehicle year. After example, they do they go ask by the travel or 10, are they Abdeco the Pani Pitte, upon, also. Pita,, Pan and because health is the important. So life separately, deco, cylinder Lagai or to Upai completely
Operator
Thank you. Thank you. Hello. Thank you, sir. As there are no further questions, I hand the — yes. Now I hand the conference over to Mr for closing remarks.
Bharat Kumar Vageria
Yeah, thank you very much for listening us and I hope the query and clarification of all the participants have been answered. If anything left, they are free-to call to our IR agencies and to our IR relationship Manager, Mr Himanshu, we will provide you the answer to them, right? Thank you very much. Thank you, Abhijit.
Operator
Thank you. On behalf of Kavira Securities Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.