Time Technoplast Limited (NSE: TIMETECHNO) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Unidentified Speaker
Bharat Kumar Vageria — Managing Director
Ragupathy Thyagarajan — Whole Time Director
Analysts:
Unidentified Participant
Abhijit Mukesh Purohit — Analyst
Jatin Damania — Analyst
Manish Ostwal — Analyst
Vikas Kasturi — Analyst
Prakash Kapadia — Analyst
Shivam Dave — Analyst
Presentation:
operator
Jam it. It. Sam it Sam it it Sa Sam. Ladies and gentlemen, the conference for Time Technoplast Limited will be starting in few minutes. Please stay connected. Ladies and gentlemen, the conference for Time Technopla Limited will be starting in few minutes. Please stay connected. Ladies and gentlemen, welcome to the time Technoplast Limited Q4 and FY25 earning call hosted by Kabiraj Securities Private Limited. Please be advised that this conference call may contain certain forward looking statements regarding the company’s performance. These statements are based on company’s beliefs, opinion and expectations as on date of this call. However, please note that such forward looking statements are not guarantees of future performance and are subject to inherent risks and uncertainties.
As a reminder, all participant line will be in listen only mode. And there will be an opportunity for you to ask questions at the end of today’s presentation. Should you need assistance during the conference please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now like to hand the conference over to Mr. Abhijit Mukesh Pruhit from Kavirath securities Private Limited. Thank you. And over to you sir.
Abhijit Mukesh Purohit — Analyst
Thank you Rhea. Good evening everyone. Kavirath securities Private Limited welcomes you all for Q4 and FY25 earnings conference call of Time Technoplast Limited. Today on the call we have with us the management team which is represented by Mr. Bharat Kumar Wageria. Managing Director Mr. Raghupati Tyagarajan Whole Time Director, Mr. Sandeep Modi, Senior VP Accounts and Corporate Planning. And Mr. Heman Soni, VP, Legal and Corporate Affairs. Now without any further delays I hand over the call to Mr. Bharat Kumar Wageria for his opening remarks post which we open the floor for Q and A session. Thank you.
And over to you sir.
Bharat Kumar Vageria — Managing Director
Yeah. Thank you Abhijit. Now good afternoon to all our valued existing in the prospective investor and along with my colleague. And once again thank you to Abhijit for organizing this call. Now I have realized with you all today as we present our financial and operational performance of whole year FY25 along with our just prospective for the current financial year which already begin for 2026. Now I am pleased to report that our momentum has remained strong through FY25 as we had achieved a 13% year on year growth in volumes and a 9% increase in revenue volume growth outpaced revenue growth due to lower raw material prices which is available in the market.
As we all know that oil prices are down which is around 5%. However we demonstrated strong Operational resilience, effectively sustaining volume while maximizing revenue potential under evolving market conditions. The CNG composite CATCAL segment which has a boost growth of around 28% has been a standout performer and a major contributor to our overall success. This along with the strong performance across the other composite product led by 17% increase in composite volume. Importantly, our profit after tax grew by 25% year on year reflecting the effectiveness of our diligent emphasis on capacity optimization, financial discipline, particularly managing the financing costs and always taking the efforts on reduction in the cost.
We remain encouraged by the continued strong demand for type 4 composite cylinders reflected in the robust order book for approximately 185 crore. This momentum is further reinforced by notable growth in value added offerings such as LPG CNG Composite cylinder. Meanwhile, our residual packaging division is continue to perform with the consistent speed and in addition that we are pleased to announce approximately order book for the current financing will stand in the account. The packaging is around 435 crores in domestic and international market for the current calendar year. The result reaffirmed the strength of our foundation and the remarkable progress of our diversified portfolio.
As we chart our course ahead, we are inspired by the opportunity before us, confident in our capacity to accelerate sustainable cleaner growth and create lasting value in both the current and the future financial years. With that, we now proceed to much anticipated detailed discussion of our financial highlights as presented in our results. I invite you to join me in reviewing the key categories especially year on year basis. During the FY25 on a consolidation basis, company has achieved across the business of revenue 5462 crores as again 5700 crores previous year 5007 crores EBITDA 790 crores as against 705 crores profit after tax 388 crores as against 311 crores.
Last year in terms of the percentage sales increased by 9% which is inclusive of India 8%, overseas 11% volume increased 13%, India 12% and overseas 15% EBITDA increased by 12% and the paid increased by 25%. In FY 2025 our EBITDA margin improved to 14.5% up from 14.1% reflecting a 40 basis point increase year on year. If you recall last time in call also I said when sale percentage of the composite product will increase, EBITDA margin will improve by 20 to 30 basis points. So that is because the growth in the composite product is higher than the other products.
Growth now in Q4 sale is increased 1,471 crore as against 1405 crore last year EBITDA 216 crore as against 197 crores packed 110 crores is again 92 crores nat sell increased by 5% India 3% overseas 9% volume increase 11% India 9% overseas 15% EBITDA increased 9% and paid increased by 19%. But as I mentioned just in earlier annual the paid is increased by 25% year on year. That is including the quarter four of this FY25 now EBITDA margin which is rose in 25 that is 14.7% this quarter compared to 14% in the previous year 70 basis point increase EBITDA in the Q4 I’m also pleased to share that our overseas subsidiary has delivered a robust performance both in Q4 and throughout the full fiscal year despite ongoing global uncertainties.
This strong operational performance is reflected in volume growth outpacing revenue growth primarily due to the reduction in raw material prices. Now share of the business the share of the business in established products versus value added products in FY25 value added products recorded a strong growth of 15% compared to previous year while our stabilized product line grew 7%. Notably contribution of value added contribution for total sales increased to 27% up from 26% by 24. Reflecting our continued focus on the innovation and high margin offering. I again when I’m talking about the valued product I mentioned in my last call also that this validated products is going to be 35% in the next further two years time because growth is the higher now share of the Indian overseas business is almost 2 3rd 1 sir in terms of the percentage I can say India business 66%.
Overseas business is 34% as against last year 6733 almost same but EBITDA margin in Indian business is around 40.6% overseas 13.2%. But because of the taxation effect where the overseas taxation rates overall rate is less. Therefore the paid margin India is 6.8%. Overseas is 7.7% net cash from operating activity stood around 344 crores in all of the year as committed efforts of the company for reduction of dust will continue. So this year debt is reduced by 98 crores and net is the cash reduced by 122 crores total capex always I mentioned it will be less than 200 crores now in 2025 is 195 crores which includes 81 crores towards the regular maintenance.
Capex re engineering automation for Stabilisement of the product for established product and 115 crores towards the value added products mainly for IPC and composite products and IBC products and overseas in India Both suitable composite products in India only. Now certain highlights that I will share with you because already given in the presentation But I thought I should repeat again some of the like dividends. The board of directors recommended dividend 2 rupees 50 paisa per share which is 250% as against 2 rupees last year. Now focus on the ROC. I recall my call when we had said last previous ROCE targeted for this year was 25 was 18% which company has achieved 18.1%.
Because three years back we have said 14, 16, 1824 years back we have said year on year we are fulfilling our commitment and achieving the ROC targeted ROC. So now ROC which is for 26 targeting to 20% then sell on the non call Assets upwards are continuing at two years back it was 125 crores which is now reduced to 51 crores. We will do our best efforts basis to dispose of these assets in the current financial year which is known for assets and company in present future not estimating any use of these assets. This is include some of the non small projects which R and D have been done by the company Some kind of the land method which is not required for the expansion.
Now I am giving my brief about the PYP which in the last year it was there the board and the shareholders are given approval appointed merchant bankers also for raising of the QIP thousand crores and this is valid till November 2025. But till date nothing has been raised. It is approvals are in hand as per the need based. It will be done in the preference period ahead. Now I am pleased to share with you Sometimes the cost measure effective which is done by the company for the cost reduction and administrative benefit. Like one of the subsidiary company we had an end Energy limited and power bill batteries private limited step down subsidiary which is now merged because both the companies were in same sector energy storage devices.
So there is a time consultations of the team administrative team market Indian that will give the saving and the business is going to be growth faster there because the expansion plan which I will cover in my other further year Two major product which was taken undertaken for the development which is now almost 90% work has been completed and about to launch in the one battery is already launched and one battery about to launch in the current financial year only another development looking to the next expansion of the company and the future Greenwood industry the type 3 hydrogen cylinder for drone applications already company got approval and company has some quantity medic and given to some drone manufacturers for the internal drive.
Then another recognition type 4 composite tender for hydrogen cylinder Already we have approval which we will launch in the next year after completion of the greenfield expansion of the CNG which is undergoing and which we are expecting to start in this financial year. In the second half commercial will take place because we recall that the project was to be started now Q1 but it is little delay because of the approvals and some international disturbance. So finally trial has been taken. We are expecting to do the shipment of the consignment and the production should be start in the Q3 of this year.
So next six months is available of the expansion of a composite product and this incoming expansion will take care of the hydrogen cylinder development and the commercial applications also next year in addition to that the expansion will take care of the onboard application to the automotive sector for the CNG cylinders because company in process of developing currently we have a 60 liters and 156 liters CNG cylinder but another 250 and 350 size is also on the way for getting the approval which will further cost effectively and the large volume can carry while transporting the gas.
Then consideration of the products and manufacturing unit that process is continue for the cost reduction and increase in the margins and we offer product at a competitive price in the market. Green energy conversation of electricity unit consumed to the solar farmer that is also going to continue as we mentioned Almost around yearly 18 crores units we do consumption in India and our focus is government policy allowed at all the states. Then we will able to save around 25 to 30 crores on account of the using the solar connected power buying from the outside parties instead of using the government power.
But currently now I can say that Till now almost 404.5 crore units we have signed the agreement for which benefit we are expected in the second half of this year because every company to whom we sign the contract may take six months in the moratorium time to commercialization and supply of the power from the solar projects. Now as I mentioned about the benefit of the merging of the company net energy power base now launch of the E rig shop at least which is developed by power bid budget Private Limited is already done. Commercial sales is starting from the Q2 of this year.
Now another things which we have already updated to site on the NSE and BSE because company has new sustainability due to the government regulation the Company has formed a Time Ecotech Private Limited which is 100% subsidiary of Time Technoblast Limited. Because we consume almost around 2 lakh tons of the polymer Indian overseas put together which includes around 150,000 tons Martin in India. So we will be required to use some material with a reprocess reproduce material to control on the quality. And we should get over the required quality material. So company management has decided to go on captive consumption plant which has taken the initiative and phase one it is decided to put up the plant in the western region of India where the large consumption is there.
And slowly in the next three few years time this plant will be set up across the east, west, north, south. With the investment of 120 crores. In the next three to four years time then another as in India also we do manufacturing of the steel drum in one of our joint venture companies. And the Time Technoplast similarly because the steel drum requirement in the middle is there. So we thought we should do the capture the business to market. Because when customer need steel drum, plastic drum one stop shop for them. The company management has decided to put up the steel drum plant in the Middle east region to cater the Middle east customer to whom already companies carrying the polymer drums.
And just when I am on the steel drum and plastic drum. I am glad to tell you in the last 35 years you go back to 40 years back everything was under a steel drum. But in more than 60% market have been converted from steel to plastic. But it took 35 years. Some of the products there still they still don’t require because plastic they cannot use. So that is going to be Continue. Almost a 15% of the total requirement continues still done. Now I would like to open the floor to answer the exclusive question. If anything I have left in my.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the touchstone telephone. If you wish to remove yourself from the queue, you may press star and two participants are requested to use handset while asking a question. First question is from the line of Chathan Damania from Suwan Investments. Please go ahead.
Jatin Damania
Good evening, sir. Thank you for the opportunity. First of all, congratulations on the great set of numbers and putting your words into action by achieving the guidance. So wanted to understand that in FY25 the majority of our growth was driven by the CNG casket business. Now with the type 3 hydrogen approval is in place. Type 4 which will come into commercial operation in second half of FY26 what type of growth one can assume in the cascade business. And the value added products for 26 and 27.
Bharat Kumar Vageria
The time tell you this way. As far as I think this year composite product is with LPG CNG Buck would together is around 500 crores. Right?
Jatin Damania
Yes. Yes.
Bharat Kumar Vageria
Yeah. Now especially I have mentioned more discussion that we are estimating composite to the growth of 30% as against my other the other products business 10 to 12% because the base is very small for composite product is concerned. And in my call also I mentioned current which is 27% of my total revenue with composite product which I am expecting 35% in the next three years time. Because even the company is growing at the CAGR 15%. So if you ask me in terms of the value. If you ask me three years down the line, composite business three years down the line can be 1500 crores which include LPG, CNG and hydrogen put together hydrogel.
We are ahead in all the terms. We have the approvals for drone applications. We have approvals for the normal application in automotive sectors. But this product will what we have done. I will tell you in clarify when my CNG expansion is coming up where we are investing 125 crores which almost 80. 85 crores have been done. Equipments are going to arrive in this current financial year. And the separate plant will be ready in the second half. We will launch the commercial production of the CNG from expansion capacity. I just recall our talk and I am clarifying that my existing capacity of CNG is 480casket.
In terms of the cylinder, it’s a 30,000 cylinder which is increased is going to be increased by 36,000 cylinders. In terms of the casket, 600 casket. So total will be 1080 cascades where the revenue up can be generated around 800 crores. As against current revenue of 350 crores. There is enough potential. And on the same equipment we are importing certain additional equipment for the small way commercialization of the hydrogen cylinder. So that we will start our marketing in the year 2627. Because it is too early to say. We have a very high level discussion with some of the hydrogen gas distribution company who are in existing also and some big company like Adani Reliance.
They’re all coming in the hydrogen plant. You just have seen one month back. I think one or 45 days back. Reliance has announced they are putting up investing 65,000 crore rupees. And they are putting up 500 plants in Telangana. So they are also working out because they Are also carrying very big investment. So I think hydrogen cylinder. Yes, it is again because of the capacity is higher they can achieve. They can pressure this compressing pressure is very around 170 bar pressure they can take more running kilometers can use when the hydrogen cylinder is there. But yes, we as a first member advanced.
We are keeping ourselves ready. But for that another expansion will be required that we will see after 12 year or 3 years. But currently as far as CNG itself is concerned, as per the current policy of the government which is announced in 2020 8,100 stations they have allotted again compressed biogas requirement is there. Then refilling unit, mobile refilling unit market almost 28,000 crore composite products market is already there. So we will first try to achieve and we are ourselves keeping targeting in the five years down the line. I think we are estimating business of 2,500 crore for the composite product because 30% growth we are achieving.
Jatin Damania
Excellent. Thank you for the detailed answer. Secondly, in terms of the costing now we have already achieved the expected ROCE and probably we are targeting for 20% for FY26. One thing you alluded in the opening remark that near about 74 million units or 7.4 crores of the unit you will be tying up for the solar. So this savings of 2530 crores is after the transformation of 75% of the electric consumption. Or it is pertaining to the 7.4 crores unit.
Bharat Kumar Vageria
I cannot take this in account of RoC which is not yet materialized. My requirement is 18 crore units. Currently government policy only has come in the five states where I can buy the solar power. That is for example Karnataka, Tamil Nadu, Maharashtra, Gujarat and Uttarakhand. Other states that our team is studying. I have considered benefit in second half of the year only on 4 and half crore units. Maybe 8 to 10 crores. But that is very small thing. When the you are talking paid of 350 crores or 400 crores. That can be the bonus for that.
I. I can’t account for that which is not in my hand. But yes it is. We have heard all the government. Most of the governments are coming out with a similar policy and. And therefore. Therefore I am considering what benefit occur if the solar policy applicable. All the states and every statement will provide this opportunity for reduction in the power cost. So that may come in the one or two years time. But as far as DC is concerned, on account of the power I have taken benefit of only I can say 8 to 10 crores.
Jatin Damania
And what are the other cost? Benefits available for us in this year.
Bharat Kumar Vageria
Other benefits means additional benefit. For example, you have seen my EBITDA margin all over the year is 14.5%. Okay, I mentioned already that 20 to 30 basis point improvement will be there on account of the composition of the changes in the product. Composite product where the margins are high growth is 30% like that. And this going to be continued till we achieve our target of 15.5% in the three years time. Another thing I mentioned but I when actual picture will come next year because we are focusing automation and consolidation process which will give the saving in the labor.
I need some capital investment but we are doing based on the trial and experience basis we are doing investment in automation. If one item succeed, then we take the second item. Second item succeed, we get the third item. But that is the process and that is going to be continued to make our product competitive and offer additional advantage with the customer to get the more business.
Jatin Damania
And in terms of the time Ecotech you indicated that you will be spending about 120 crores over a period of next to three years and yeah, three to four years. And probably you are setting up one more subsidiary in Middle east you already for the steel drum manufacturing. So can you help us understanding the Middle east market how big the Middle east market in terms of steel term and what sorts of capacity will be putting it on the capex that we’ll be doing there?
Bharat Kumar Vageria
I tell you this everything is accounted considering my growth of 15 year on year right now you you asked me as far as India is concerned number one that time Ecotech private limited now that is the statutory requirement I have to do it that will give me the benefit also by the way of I will able to. I will have to made some connection centers and at the different region I will buy the drums, polymer drums. Because this guidelines of the government is applicable to the packaging company and packaging company Again there is certain exemption given by to the manufacturer if I am supplying my product for the food packaging if I am doing the export and I am supplying my pharmacy these are exempted.
The packaging product where I am supplying to the other uses I required to use 30% the reprocessed material means I have to make an arrangement for buying from the EPR registered company which I have certain contact already I have done I am doing it. But I thought to get the better quality because I did not able to get the required quantity from the market. And we would like to go our own captive consumption and would like to put our automatic line where lack manpower I will Definitely whatever investment we are doing in this equipment in terms of the saving, I will save my raw material cost.
So I will not have any additional cost on account of this putting this investment. And at the same time we will able to maintain our margin. We were able to comply the regulations with the government. And it is our moral duties also because we are the largest polysoral polymer dumped in India. So we have to do it and most of the customer also pressurizing us. Sir, how you are definitely benefit by way of getting more business from the reported multinational customer. Because many multinational customers ask sir, are you complying government guidelines for the reusability of your materials? We told them yes, we are doing it.
And we are going to put our own plant. Because small manufacturers not able to match this requirement which is international and multinational customers need that. Now. Second you asked me about the steel dump. So. And another there is no problem as far as investment part is concerned. We have adequate internal approvals available which will take care of the small investment of 25 or 30 crores in a year. Or as far as India is good. You know that we have kept the non disposable assets of 51 crores. If I sell that this year, that will itself I will do the invaluable usable assets of that.
In addition to that, you asked me about the plant in the Middle East. Yes. There we are doing investment in the range of around 30 crores rupees. But one thing I am telling you, the steel drum and polymer drum is a different. In steel drum business if I invest one rupees we get the five times revenue. In polymer drums and polymer business we invest 1 rupees, we get the 2.5 times revenue. Yes, EBITDA margin is less in the steel drum business. But the gaining is high. As far as ROCE is concerned. We will not compromise in the ROCE because currently in Middle east one government company, you know, the largest, I will not name it largest company in government steel drum manufacturing is there.
The same company is having plants in the Middle east and the Middle East. Many of our existing customers who need the steel drum. So we don’t want to allow our customers to go in the other shop for the other requirement. Therefore we thought we are there and we current our business. Middle east is concerned in overseas revenue which I mentioned to you. 36% revenue from overseas. Now in terms of the overall revenue of the company in 5500 crores we get almost 30% revenue from my Middle east region.
Jatin Damania
Right?
Bharat Kumar Vageria
Almost around 450 to 500 we get from the overseas Middle east market.
Jatin Damania
And the last question now since we are doing this there are we have a couple of approvals CNG part capex is left. So in FY25 we did a capex of 195 crores and our gross debt stood at near about 646 crores. So what will the capex that we’ll be spending in FY26 and any guidance on the reduction of the debt further in FY26.
Bharat Kumar Vageria
In fact internally target that all project consider there will be the maintenance capex for the automation regioning will continue and that’s covered at around 80 to 85 crores. That is already covered 122 crore is inclusive. Brownfield expansion, new products, CNG, LPG development all covered. In that I’m not revising my guidelines of up to 200 crores of the capex that is continue at least still I am achieving the growth of 15% and I have to achieve the composite product growth of 30% for at least next three years.
Jatin Damania
And on the debt.
Bharat Kumar Vageria
On the debt as it continue as I mentioned to you two years time the line I have kept to become a company debt free. I mentioned my last poll also and that effort is still continue and that will not compromise the growth of the company. And. And the payout ratio. Considering the payout ratio to maintain the 15% which this year also we have maintained and increase the dividend. Last year rate was 1010 crores dividend was 2 rupees. This year dividend increased to 50 paisa. 2 rupees 50 paisa. So to maintain the dividend payout will continue even in the period as we will increase the paid will increase further on account of the any wind pulse profit.
Then we will increase the dividend part also.
Jatin Damania
Sure sir. Thank you sir. That’s all from my side and all the best.
Bharat Kumar Vageria
Yeah. Thank you.
operator
Thank you. Next question is from the line of Manish usual from Nirmal Bank Securities Private limited. Please go ahead.
Manish Ostwal
Yes sir. Thank you for the opportunity Sir. First question on the IOC order update. Sir, we we were anticipating the fourth quarter. This order is about to come. So can you update what is the reason of delay and when we can anticipate the order to come.
Bharat Kumar Vageria
Or order expected because her PSU may mark apparent the new chairman has taken over. He is studying the overall market. Our meetings are going to be continued because development that is 14.2-kg cylinder which is equivalent to a steel cylinder it will come back but at the same time another government company you Know the India three gas distribution companies are there IOC or bpcl, fpcl that may be discussed in Chalura already.
Manish Ostwal
Okay sir. Second sir, last year also we had a board resolution for capital raise. And this time also we are so any as many having capital equity capitalized plan. Can you update us in terms of timeline for that.
Bharat Kumar Vageria
Year? We are waiting volume capital expansion then we can raise immediately. As on today till now nothing is there. But that is not a management decision. Prudent decision. Because when you are getting the cost of the fund at 9% of the borrow c these percentage.
Manish Ostwal
Yes. And secondly your comments and you said debt free over 2 years your 200 year 200 crores of capex annual. So yearly we are generating operating cash flow of 400 crores. So basically in.
Bharat Kumar Vageria
Incremental 15% working capital maybe.
Manish Ostwal
Okay. And lastly sir, this value added mix of 35% that will be achieved by F27. Right sir.
Bharat Kumar Vageria
35%.
Manish Ostwal
Okay sir. Thank you sir. Thank you.
operator
Thank you. Next question is from the line of Vikas Kasturi from Focus Capital. Please go ahead.
Vikas Kasturi
Good evening sir. First of all a very big congratulations to the entire management of Kinetic no. Plus you’ve really done wonders in the last few years. And heartfelt congratulations to you sir. I had three questions. The first question is could you please elaborate the receivables days for value added products versus established. Because we see a trend of the receivable base going down and the share of value added products going up. So could you please elaborate on that? The second thing is sir, what is this non core asset which is up for sale? And the third thing is sir, any plans of setting up a division or a strategic business unit within time technoplast to focus on the composite and fast growing products like Hydrogen, cng, oxygen methods.
So these are my questions.
Bharat Kumar Vageria
Okay. I think your first question receivers remarks Overall consolidated receivers in the range of around 69 days. Okay. Hello.
Vikas Kasturi
Yes sir. Yes sir.
Bharat Kumar Vageria
69 days is a composition of both. But specifically you asked me around the CNG composite products. Normally because these products what kind of the period needed. Because when these products leave our place it takes 15 days time arrival of the customer place when they accept it. Normally we give 45 to 60 days time. As far as composite product credit PD are concerned. Because most of all deposit companies, government companies who pay our time. So we take in our credit terms around 60 days time. As far as composite product is concerned. As far as packaging product is concerned we have to follow the industry norms which is the government company so many other companies are there 75 days.
So combinedly I can say the 70 days period we take in our receivable time. And when we are talking about 69 days. You know very well our business own in the second and third quarter. We used to get 55% revenue. Familiarly this average comes at the whole of the year. But if I will take separately for December and January to March sales revenue then it will come down to 65 days. But when we take the average, because it is a normal trend always we do in the first half 45% business and 55% business second half.
Again if I divide in the quarterly, then I do 22% business in the first quarter around the 24% business in second quarter standard trend. This particular year has changed little because the prices have gone down the second half in the value terms otherwise normal. 44% in the first half, 22% 24% another in Q3, Q4 it’s a total we get around 56% which is 26% and 30%. So that is our normal trend. But again, yes, you are right if you ask me. In other words, I can say we give less receivables period in terms of the composite products.
And there is some little period is higher in the other products which inclusive of the PE pipe business where I have to give credit more credit more where the supplier takes time because it’s a bigger pipe takes time in the transit period also. And it is from the this debtor working out from the date of the invoice when customer comes from the receipt of the acceptance of the material. So and this. These are the industries within the industry norms only as far as the receivables are concerned. Second point you have asked about non core assets.
I mentioned two years back. I recall in I think end of 20th October number 23. I have decided we have met the assessment list. 125 crore. What are the items?
Vikas Kasturi
Yes. Yes sir.
Bharat Kumar Vageria
We bought some land parcel which we have bought for my expansion plan. But looking to the current scenario, we got the new allotment from other areas change in the management plan. So there will be identified for sale. So in currently, which is in terms of the 52 crore which is lying in. I can tell you around 20 crores value on account of the land and building which is identified for sale. And another plant and small small project because we have an RN team who do the development of product. But when final call comes, we do not want to go ahead with the small project because as a policy we took the decision any single product where my revenue is less than 40 crores company management is not going to continue that.
We will give to the other people who would like to grow for the smaller businesses and smaller roads. Another assets Also we have policy reason. One factory we should have a minimum revenue of 40 crores. If any factory revenue is less than 40 crores we will dispose that and we will consolidate with our nearby locations. So these are the small assets which are small projects which for example another DWC9 we have a. We are in PE5B which is called plain pipe DWC double wall curvature pipes. So as a management policy because of the price relation people are not managing the quality in the standard.
Because we are the quality cautious as far as product is concerned. In each of the products we maintain our quality standard. So we observe we have taken the NT in DWC pipe business and put up the line for 9,000 tons capacity all over India. The three lines were there already. I have exited one line 12 months back another two lines available. We don’t want to go in business and we have put up on this wall. So our discussion is on which we are going to materialize in the current finance year. We ourselves keeping the target to maximize and sell of the non core assets.
Vikas Kasturi
And third question is about sir setting up a strategic business unit for the fast growing products like cng, lpt, Hydrogen, Oxygen.
Bharat Kumar Vageria
Yeah, you are right. I mentioned to you in the last year as my expansion is coming out one separate unit nearby Wapi area which is ongoing construction. I’m going to get possession of land and building by July in hand because already construction is ongoing. If you anytime you would like to visit my dominant cigars area you will able to be that unit and that expansion is constant. So this unit, the specific unit nearby Wapi will have an entire composite CLG and Hydrogen product. LPG will not merge there because of the space limitation. I have adequate space available for my LPG which is currently ongoing.
If I change that location then I need so many approvals and it’s time taking process and we can’t afford that. So for CNG and hydrogen and oxygen will continue with the new premises which is going to be ready in the next 45 months time. If you ask me the separate company not now. We can talk about three years down the line when the sizable business of more than 2500 crore business we will have held against current business of 500. We can think the separate company otherwise to one way we are consolidating our companies in operation.
Another opening of the 500 crores for the separate company. It is not advisable on the.
Vikas Kasturi
Show the business. Thank you very much.
operator
Thank you. Next question is from the line of Prakash Kapadia from Spark pms. Please go ahead.
Prakash Kapadia
Yeah, A couple of questions to my end on the e battery business for the rickshaws. You said you should start at I think second quarter onwards. So this year what kind of sales are we expecting? And is this a OEM driven business or a government tendering business which we participate in?
Bharat Kumar Vageria
As far as unixi is concerned, we have developed it. We are going to give in the secondary market not an existing OEM Because OEM requirement is very big. The small way is a trial product have been taken. As far as current E is concerned we are estimating business of only 30 crores with my existing and the minimum investment, minimum R and D development which we have investing around. Already invested. Not investing, it’s a small investment of 4,5 crores. We have developed this e rickshaw batteries and it’s a low maintenance batteries. It is not a lithium ion battery.
I am clarifying you because batteries no it takes 7 lakhs 8 lakhs. I am talking Ericsha batteries. But the prices are in the range of nine to ten thousand rupees per battery. And I recall my discussion. I mentioned in my last call also the total currently e diksha in the market is 15 lakhs the e riksha. If I consider that four batteries, one rickshaw. The battery market itself is a 6,000 crore and every year 4 lakhs e rickshaws are new selling in the market. So another of around 1,000 crore business is there. So total market is very big.
But yes, there are some existing players. But we have very clear. We have done some internal trial and testing by having our own rickshaw. Our batteries super quality batteries where we can command the premium. But we are offering to at the same price and in the first year. Yes, if expansion required it will be next year. Because life of the battery is considered one and half to two years only. And another thing I am glad to tell you four batteries in a day can run 150 kilometers. That trial internally we have taken as against other manufacturers.
Battery can take 120km in a day so they are getting 20 better performance.
Prakash Kapadia
Understood? Understood. And from the composite cylinder you mentioned. You know discussions are still on. So I think last call you had alluded the design was approved and once the design approves we’ll get some sense on order book execution and accordingly we plan our capex. So Any sense of this coming through because you know that clearly I think is linked to the fundraise event also. So how do we get a sense of you know the composite cylinder approval or you know CAPEX or. Because you know everything seems unsure as. Of now
Bharat Kumar Vageria
my colleague Mr. Raghu Pat is here I think he’s day tuned he is regularly having touch with the gas distribution company team and why there is a change little delay there. He will explain to you overall you where we stand on that?
Ragupathy Thyagarajan
Sure. The initial introduction of the LPG composite. Cylinders with the OMCs has been with regard to a specific size called as a 10kg size and that exercise has been done by introducing close to about two and a half to three billion cylinders and that’s a process which is still continuing in smaller quantities etc. Those supplies we continue to make There is an additional order that is expected on the same size which is currently stuck up as the higher levels as Paras was mentioning to you there has been some change of head etc. As traditional approach are also taking some time but at the same time before he also the new management took office there has been discussions right from the ministry level and including all the CMS with regard to the introduction of 14.2kg.
So that also needs definitely a nod from the senior levels also. So that’s the additional contribution which is going to go and that numbers will definitely fall out to the current supply level of 10kg. So these are all a part of the composite cylinder market for LPG cylinders per se which is definitely going to go up in the coming years.
Prakash Kapadia
And is it fair to say by second half we should get visibility and CAPEX should start for that particular project.
Bharat Kumar Vageria
Yeah, yeah surely another thing I mentioned we are under development with the nearby countries also we are not depending only in India business We are submitted our sample in Saudi, Oman, Kuwait. Our our process is on with the getting the approval from that countries also for the different sizes as per the requirement of that country and. And we have already started our continued supplying the Taiwan country where there’s already we got the approval business is continuing
Prakash Kapadia
okay and. And assuming this approval comes it should be about a six month process to get the CAPEX and everything.
Bharat Kumar Vageria
Also once we get the approval 10kg will continue which is present cylinder 41 2kg will take 4 to 6 months time in development. We are ready design approval is there that is not important at all what was my point? The design which we are developing that should be acceptable to all the government get three gas distribution company because we don’t want to develop the design for each and every company FPCF differently that the internal, internal discussion. They will take it because it’s all. All the three of the government owned companies. Right. We will inform you when the big capacity required.
You know very well when the QIP will come. You can understand very well. And then the time of the QIP only will be done.
Prakash Kapadia
Right? Right. And lastly sir, you know the approval from Peso. When can you know, monetization be expected from the defense side? I know it’s a long process. It’s a good product we have developed. So where are we in that stage typically? What sense are you getting? Is it one year from now? Is it earlier?
Bharat Kumar Vageria
For which oxygen or what
Prakash Kapadia
the hydrogen. For the drone applications. The Peso which is approved the product.
Bharat Kumar Vageria
Okay. I think. Aspect is that right? That you’re relating to?
Prakash Kapadia
Yes, yes.
Ragupathy Thyagarajan
Yeah. The initial small test modules have already been supplied. They. They are currently being supplied to drdo. They are under testing right now for some aerospace requirements etc. They will take their time, about four to five months I think for validating the whole concept. And then subsequently we should be in a position to really take over. There are some preliminary trials have also been taken with regard to the use of these cylinders for hydrogen for drone applications as well. And that requires parallel arrangement of you know, the cells that are required, the fuel cells also that currently is not available here in India. We’ve imported some of them to take the proof of concept.
So that excise is also going on. I think by the. By this the second of this year we will have some ideas to where do we where is this development headed for. But there are definitely good potential for some of these emerging technologies that are there.
Prakash Kapadia
Understood, Understood. Thank you.
Bharat Kumar Vageria
Thank you.
operator
Thank you. We’re taking the last question from the line of Shivam Dawe from Prodigy Investment. Please go ahead.
Shivam Dave
Yeah, sure. I wanted some color on water volume growth in CNG and LPG caskets this quarter. This current quarter. Yeah. For Q4. Q4. Q4 as far as concerned you have given. Q4 is there when it’s composite product. CMG, you did the business of 150 by 4.
Bharat Kumar Vageria
Yeah. The total business is 165 crores composite products.
Shivam Dave
Okay. And I had another question. What is the pricing differential for a normal LPG casket? That is. No, no, no. I’m telling you Cascade for LPG we are not manufacturing. We are manufacturing cascading with the CNG cylinder only. And if you want comparison that we have given in our presentation part also it is available. We have mentioned.
Ragupathy Thyagarajan
Now I will give you a rough. Idea as such a typical type 1 or a steel cylinder casket for the CNG would be in the region of about 20 lakhs or so which is about 4,500 watt liter capacity.
Bharat Kumar Vageria
Yeah.
Ragupathy Thyagarajan
And it actually sits on a typical, let’s say 18 to 20ft truck. On the same truck we are able to accommodate a cascade of about 9,500 liter quarter liter capacity which will cost them close to about. So because of the fact that they. Are double in terms of the volume that they can carry, there’s a very quick payback.
Bharat Kumar Vageria
And that payback period is less than 12 months.
Shivam Dave
Okay, so the payback is somewhere around.
Bharat Kumar Vageria
Yeah, yeah. Less than 10 minutes. Yes.
Shivam Dave
Okay. That’s it for myself. Thank you.
Bharat Kumar Vageria
Thank you.
operator
Thank you ladies and gentlemen. That was the last question of the day. I now hand the conference over to management for closing remarks.
Bharat Kumar Vageria
Yeah. Thank you very much to listening us very carefully. And thank you very much for your all having a patience and attending our conference school. Thank you once again, Abhijit.
operator
Thank you on behalf of Kaviraj Securities Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.