Vishnu Chemicals Limited (NSE:VISHNU) Q4 FY23 Earnings Concall dated May. 03, 2023.
Corporate Participants:
Siddartha Cherukuri — Joint Managing Director
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Analysts:
Dhaval Shah — Girik Capital — Analyst
Ranvir Singh — Nuvama Wealth — Analyst
Ravi Naredi — Naredi Investments — Analyst
Rikin Shah — Omkara Capital — Analyst
Rohit Nagraj — Centrum Broking Limited — Analyst
Ankur Kumar — Alpha Capital — Analyst
Dhruv Shah — Ambika Fincap — Analyst
Guneet Singh — CCIPL — Analyst
Naitik Mohata — Sequel Investments — Analyst
Srihari Chintalapudy — PCS Securities — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and I welcome you to the Q4 FY ’23 Earnings Conference Call of Vishnu Chemicals Limited to discuss the quarterly and annual business performance.
We have from the management Mr. Siddartha Cherukuri, Joint Managing Director, and Mr Hanumant Bhansali, Vice-President of Finance. [Operator Instructions]
Some of the statements made in today’s call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor update, and other filings that can be found on the Company’s website.
Now, I would like to hand the conference call over to Mr. Siddhartha for his opening comments, and then we will open the floor for Q&A. Thank you and over to you, sir.
Siddartha Cherukuri — Joint Managing Director
Thank you, Mr. Neerav. Good evening, everyone. Thank you everyone for joining this call. Our Company has witnessed a remarkable performance in the financial year ’23, with a 31% increase in income and a 68% surge in profit on a consolidated basis.
The year gone by was an important year for us and we ticked most of the boxes, and including all areas fundamentally. Our consolidated EBITDA margins have increased by 550 basis points over the last two years. Our consolidated debt-to-equity ratio stands at 0.9 times, now, compared to 1.3 times a year ago. Our ROCE is over 35% compared to 28% on y-on-y basis, that’s a 14% increase over the last year.
The primary factors driving the company’s consistent performance includes size and scale of operation, manufacturing and building sustainable environment-friendly practices in our day-to-day operations, recreating cyclicality to a large extent through a flexible product mix and backward integration process. At Vishnu manufacturing is our core focus, and the chemistry we operate is an essential engine for performance, aesthetics and longevity in the applications across pharmaceutical, consumer and industrial sector.
Lastly, we express our sincere gratitude to our shareholders, stakeholders, lenders, customers and suppliers for their continued support, and we remain committed to the highest levels of corporate governance.
I will now hand over to Hanumant to share the financial highlights. Thank you.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Thank you, Mr. Siddartha, and good evening everyone. Manufacturing is our core focus. After giving you an update on the overall performance from a holistic point-of-view let me now speak about the financial performance.
Consolidated domestic and export sales continued its growth trend, growing by 36% and 26% respectively on a year-on-year basis. The consolidated total income for FY ’23 was INR1,406 crores as compared to INR1.75 crores in FY ’22 a growth of 31% on a Y-on-Y basis. Our consolidated EBITDA margin for FY ’23 was 17.4% compared to 15% in FY ’22, an increase of 200 basis points on a Y-on-Y basis. In FY ’23 we also achieved INR137 crores of PAT, compared to INR81 crores in FY ’22, an increase of 68% on a Y-on-Y basis. Our PAT margins have increased from 7.6% in FY ’22 to 9.7% in FY ’23.
Coming to Q4 FY ’23 performance, the consolidated revenues were INR339 crores, as compared to INR336 crores in Q4 FY ’23 — for FY ’22, up by 1% on a Y-on-Y basis and 2% on a Q-on-Q basis. The consolidated EBITDA for Q4 FY ’23 was INR64 crores, compared to INR53 crores for the corresponding quarter previous year, up by 20% on a Y-on-Y basis and 10% on Q-on-Q basis.
Our consolidated EBITDA margins were 18.9% in the quarter Q4 compared to 15.8% in the corresponding quarter previous year. The consolidated PAT for Q4 FY ’23 was INR36 crore, compared to INR29 crore for that are responding quarter previous year, up by 25% Y-on-Y basis and 12% on a Q-on-Q basis. The net profit margin of the company in Q4 FY ’23 was 10.5% compared to 8.5% in Q4 FY ’22.
The Board has recommended a dividend of INR0.4 per equity share of INR2 face value for the financial year ended 31st March 2023, and the same shall be paid subject to the approval of shareholders at the ensuing AGM.
The performance of Vishnu Chemicals is an outcome of its consistent focus on manufacturing, resulting its highest-ever EBITDA and PAT margins since inception, a reduction in leverage metrics and generation of free cash consistently for five years now. The release of pledge by our lenders is a milestone for the Company and we are thankful to a consortium of banks for their continued support.
With this, I would like to conclude my remarks. We can now commence the Q&A session. Thank you.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question is from the line of Dhaval Shah from Girik Capital. Please go ahead.
Dhaval Shah — Girik Capital — Analyst
Yeah, hello. Am I audible?
Operator
Yes, you are.
Dhaval Shah — Girik Capital — Analyst
Yeah, hellos, sir. Great set of numbers. I have a couple of questions from my side. So first to start with, we have around INR98 crores of CWIP on the balance sheet. So how will this convert into revenue for us over the next two year period?
Secondly, our margins have increased can I believe a lot of it is given with the — our logistic costs are coming down, and other operational expenses also reducing. While our top line has remained same so, is there a phenomena where the chemical timing has reduced? Even also there will be a volume growth, but there is a value degrowth and our per tonne EBITDA or per unit earnings what we have, we have maintained that, that’s why it’s reflecting in a higher percentage EBITDA margin. So these are my first two questions.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Good morning, Mr. Dhaval. Thank you so much for your question. I’ll answer your first question. Yes, the CWIP is INR98 crore as of 31st March, 2023. I’d like to explain the breakup of this. Out of this INR93 crores with CWIP towards our precipitated Barium sulfate project, which is currently going on in our Barium subsidiaries, Vishnu Barium Private Limited. It is expected to be completed in the first half of the current financial year.
Dhaval Shah — Girik Capital — Analyst
Okay.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
The remaining is our replacement capex in Chromium Chemicals, which is a CWIP of INR5 crore. So over here totally I’ll talk to you about our barium, precipitated barium sulfate products.
We will be the only producers of this chemical in India once it is operational, it will give us a first-mover advantage to tap the existing customers, who are currently relying on imports for their material needs. Overall, this will help us create a new market in India for our new products. And there is a very good demand of this in countries like — in continents, like North America, Europe and also India.
Upon commissioning overall, we will become the largest producers of barium chemicals in India, giving us an opportunity to meet Indian consumption needs, while tapping our overall existing network of international clientile. So from 40,000 tonnes of capacity in barium chemicals in January 2022, we will operate on an installed capacity of 90,000 tonnes upon the commissioning of this project.
Dhaval Shah — Girik Capital — Analyst
Which is by H1 ’24?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Yeah, in the next one — I mean, in next three to four months, it should be fully operational.
Dhaval Shah — Girik Capital — Analyst
Okay. So from the third quarter we should see the numbers. Okay.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
No, no within next three months. So from the — from the third quarter, correct, we would be able to see the numbers. Yes, so third quarter will have the full number.
Dhaval Shah — Girik Capital — Analyst
Okay. Now this is used in Congrats on the quarter quarters that we will be able to see the numbers, a 3/4 one of the full number. Yeah, because these. Okay, now this is used in paint industry, this precipitated barium sulfate?
Siddartha Cherukuri — Joint Managing Director
Precipitated barium sulfate finds its application in the paint industry, in the powder coating industry in the battery industry. It is also being researched by some of the most acclaimed scientists globally to create the whitest paint in the world, directly from precipitated barium sulfate. It is also entered the Guinness Book of World Records last year for its ability to reflect 98% of sunlight. So it has the ability to pull out those surfaces, let’s say our rooftops by more than 4.5 degree celsius, just by application of this paint.
Recently, even in Telangana, State of Telangana the government announced the roof cooling policy, wherein they will start making it mandatory for residential and commercial complexes, to apply certain cooling agents on the roof, and this can also be a propylene towards that.
Dhaval Shah — Girik Capital — Analyst
So we are adding — could you specify this product, what is the capacity that we are having?
Siddartha Cherukuri — Joint Managing Director
Mr. Dhaval, right now the plan is to add 30,000 tonnes.
Dhaval Shah — Girik Capital — Analyst
Okay. So the 40,000 we had in Jan ’22, there is various products like barium, 30,000 maybe barium sulfate, and so that will be 70,000, and another 20,000 is which product to take it 90,000?
Siddartha Cherukuri — Joint Managing Director
Yes, so the breakup of 90,000 is, we have 60,000 tonnes of barium carbonate and 30,000 tonnes of precipitated barium sulfate once it is operational.
Dhaval Shah — Girik Capital — Analyst
Understood. Okay. And this — the entire 30,000, we plan to sell the entire volume or like, the first year itself, are we having enough domestic and export demand. How do we plan to consume the volume?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
We have already spoken with some big end users and the response is good. But they would like to test it and see how the end product works. I’ll request Mr. Siddartha to give more insights on the marketing and sales prospect of this product.
Dhaval Shah — Girik Capital — Analyst
Okay, sure.
Siddartha Cherukuri — Joint Managing Director
Hello, Mr. Siddartha here. I mean as the project is progressing, we are already in discussion with some of these end users as well as distributors, in India, as well as we already have some good existing channels outside India as well in Europe and North America. So we are seeing a lot of interest, I mean, for them to work with us for this product, especially in India. So this is a complete improved replacement.
What’s more interesting is. there has been a consistent growth of 12% on Y-on-Y basis as — so because it’s directly related to the powder coating industry. If you go back four years ago the powder coating production in India was about 67,000 tonnes, today it stands at 140,000 tonnes. So, in this 140,000 tonne barium sulfate is used as a primary pillar to replace titanium dioxide.
Dhaval Shah — Girik Capital — Analyst
Okay.
Siddartha Cherukuri — Joint Managing Director
Because it is very close in terms of oil absorption in the painting strength and it’s more economical to use barium sulfate versus titanium dioxide. So people are increasing the volume of barium sulfate to bring down the overall cost and get the same effect of that final product.
Dhaval Shah — Girik Capital — Analyst
Okay, sir, okay. So this will also be used differently for powder coating, I mean the regular paints, where TIO2 is also used, there —
Siddartha Cherukuri — Joint Managing Director
It is used to give a gloss effect on the paint, let’s say your automobile car. Like if you go back 10, 15 years ago, I mean most — even your Maruti which must be a matt finish. Even a very long — a mid sized car has a very nice gloss effect, so that gloss effect that paint is coming from barium sulfate.
Dhaval Shah — Girik Capital — Analyst
Understood, okay.
Siddartha Cherukuri — Joint Managing Director
Just to add to it, aluminum profile your white goods, your air conditioner, your fan, all are powder coated, because for that gloss effect, and in powder coating has the unique advantage of corrosion resistant versus the normal.
Dhaval Shah — Girik Capital — Analyst
Got it. And sir, for my second question regarding, what would be our volume growth at the company level for FY ’23 and how do you see the volume growth for FY ’24 and ’25?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
In FY ’23 the growth came predominantly from value growth, in both our chromium chemicals as well as barium chemistry. In FY ’24 we are going to witness volume growth in both these chemistries, as we are seeing that barium chemicals are — is doing well now, and gradually it is expected to even pick up better pace from where it was in Q4. Q4 was the second best quarter in terms of volume offtake in the entire financial year FY ’23 in barium chemicals. So we are looking forward that, that momentum would continue in the quarters going forward. In the Chromium chemical side we had a very good year. But we also took a maintenance in the December quarter, which overall impacted our capacity utilization. Though it did not have any impact on our top line due to the value growth, we don’t expect to take any major maintenance in our chromium chemical plants this year.
So we will see the full — we will see that effect of the 10,000 tonnes that we have added capacity, in July to be realized in this current financial year.
Dhaval Shah — Girik Capital — Analyst
Correct, okay. Sir, when we talk to large chemical distributors, they — what they comment is that, since China has opened up, there is lot of supply of chemicals coming from China into India, as well as the market which is hurting Indian exporters as well as domestic demand. In your business, what is the trend you see?
Siddartha Cherukuri — Joint Managing Director
Well, in a standalone business, the chromium chemicals China is not a competitor for us or not an immediate peer because whatever chrom chem is produced in China are sold in China.
Dhaval Shah — Girik Capital — Analyst
Okay.
Siddartha Cherukuri — Joint Managing Director
And on — and — so we are competing with U.S., Turkey and South Africa, who are our main peers. In barium, yes, China is an important player. But I mean we are not witnessing, I mean a lot of price pressure at the moment and also we are not seeing any volume decrease as well. Also there was an impact on during quarter three, because of high gas prices, now that demand is coming back slowly.
Dhaval Shah — Girik Capital — Analyst
Okay. And so basically, you are not getting impacted by any sort of dumping from China at the moment.
Siddartha Cherukuri — Joint Managing Director
Yes, and also the product which are going to launch, barium sulfate is more of a technical product. So we already are seeing a better quality versus what Chinese are supplying in India. So I think it’s not just commercial, but also on the technical side, we’ll be able to prove that there are benefits of using our product in terms of consumption and quality to get a better gloss effect versus what Chinese are doing. Although it’ll take time but we are confident on that as well.
Operator
Thank you. Dhaval, sorry to interrupt you I’ll request you to rejoin the queue for a follow up question. The next question is from the line of Ranvir Singh from Nuvama Wealth. Please go ahead.
Ranvir Singh — Nuvama Wealth — Analyst
Thank you for taking question and congratulations for good set of numbers. Just on chromium side, 10,000 capacity we have added. So after this 10,000 capacity, after addition of this capacity, how has been the utilization for full year?
Siddartha Cherukuri — Joint Managing Director
The premium for Ranvir, so we have added 10,000 tonnes capacity. As we don’t share the volumes on annual basis or on a quarterly basis, I won’t be able to share that the actual numbers with you. But bearing Q3 which is a quarter where we took a maintenance on an overall basis our plants operated at more than 80% utilization. And we also crossed 90% utilization in second quarter.
Ranvir Singh — Nuvama Wealth — Analyst
That you said is about barium, right?
Siddartha Cherukuri — Joint Managing Director
About chromium chemicals [Speech Overlap] In barium chemicals, our capacity was at — in the range of 55% to 60% of 60,000 tonnes of installed capacity of barium carbonate. The reason being last year was a tough overall quarter that we saw in Q2 and Q3 where the natural gas prices had gone up in Europe, which we are not the consumers of, but our customers are. And now we are witnessing that the overall natural gas prices have come down significantly. So it’s a good sign for our customers.
Ranvir Singh — Nuvama Wealth — Analyst
So 40,000 metric tonne capacity we earlier had and then 20,000, we have already added there, that was utilized in this year.
Siddartha Cherukuri — Joint Managing Director
We have added it but we did not operate it at full utilization. So more or less we operated at the same utilization as we did in 40,000 tonnes.
Ranvir Singh — Nuvama Wealth — Analyst
So what remains Here is the 30,000 barium sulfate capacity it’s likely to the backup we added this year in first half. Right?
Siddartha Cherukuri — Joint Managing Director
Correct.
Ranvir Singh — Nuvama Wealth — Analyst
And sir INR91 crore — INR93 crore which was under that CWIP that was mainly related to barium sulfate and whatever we had to spent on barium carbonate 20,000 is already capitalized, is it?
Siddartha Cherukuri — Joint Managing Director
Absolutely. The entire project of barium carbonate is fully capitalized in our balance sheet as of 31st March, 2022. So that project is fully completed.
Ranvir Singh — Nuvama Wealth — Analyst
Although you’re not disclosing that you products on utilization, but just for indicative purpose, if you could highlight about the realization, how in chromium, what is the realization improving quarter-on-quarter or this is stable or how do you see even the short term outlook if you could comment on this, both for chromium and barium?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Thank you again for your question. I understand it’s a very important question. Let me start off with this way that on a year-on-year basis, there is more than 30% value growth in chromium chemicals. At the same time, what we have witnessed is from the Q2 of this financial year onwards, the prices started coming down, both from a freight point-of-view and that was passed on to our customers. Similarly, when the prices had gone up we had also charged our customers. So it is our duty to pass on the benefits back to our customers.
Despite the reduction in prices that started from mid of Q2 and it continued till Q4, what we have not seen is any volume degrowth. There is a very good demand for our chromium chemicals as we are seeing. And on a year-on-year basis, the value growth was more than 30% and going forward, we believe that there will be a good volume growth to support this revenue’s trajectory. But the focus of our business is not really to target a certain revenue, what we are forecasting is to target certain EBITDAs and meet those margins.
Ranvir Singh — Nuvama Wealth — Analyst
Understood, and barium how was this rate?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
On the barium chemicals, like I said last year there was not — there was no major volume growth. But overall what we’re seeing is, from January onwards the volume is picking up. And going forward, it will be — it will improve gradually as we see. Last year, the top line growth was predominantly driven by our improved blended realization, which increased by nearly 8% on a year-on-year basis.
Ranvir Singh — Nuvama Wealth — Analyst
Right, right. Okay, so. I think going forward in FY ’22 — FY ’24 growth would be mainly from that capacity volume side, and we can expect a marginal improvement in pricing, that is what we said take a year.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Like we said in both these chemistries the pricing is determined based on three factors. Factor number one is the raw material cost, factor number two is the freight cost and factor number three is the overall demand and supply of the market sentiments as we call it.
Number, factor number one is pretty strong, as of now, also, the raw material prices for some of the key materials that we procure has not really come off, but the freights had come down, and that is also relating to overall correction in realization. It’s not huge correction but it’s under 10 odd percent right now. So as we go, if there is overall correction in raw material prices, they will obviously pass it on to our customers. But the overall endeavor will be to work on a certain EBITDA and maintain that EBITDA going forward.
Ranvir Singh — Nuvama Wealth — Analyst
Okay, That’s excellent. That is very helpful. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Ravi Naredi from Naredi Investments. Please go ahead.
Ravi Naredi — Naredi Investments — Analyst
Thank you very much for giving me this opportunity. Sir, how much capex is still due in financial year ’24? How much capex due in March?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Hello Mr. Ravi. Near about INR10 crores is pending as a capex, which has to be spent during this financial year
Ravi Naredi — Naredi Investments — Analyst
INR10 crores. And if this all — when all the capex completed, can you give some guidance of what will be top line in financial year ’24 or you will skip that?
Siddartha Cherukuri — Joint Managing Director
So we won’t be able to give a guidance at this juncture, but our endeavor will be to grow at similar levels of what we have seen over the last two years. And now that this new product addition in barium is happening, so we are very confident that the growth trajectory will continue.
Ravi Naredi — Naredi Investments — Analyst
So any margin expansion are you seeing in this financial year ’24?
Siddartha Cherukuri — Joint Managing Director
Yes, we are expecting a margin improvement in chrom as well as barium, barium in lieu of a backward integration what we have done. Our raw material cost. will further improve. That can be leveraged for us to gain more market share globally, as well as again desired EBITDA margin, achieved desired EBITDA margin.
Ravi Naredi — Naredi Investments — Analyst
Okay. And any planning to reduce the debt in current year?
Siddartha Cherukuri — Joint Managing Director
Yeah, I mean nearly about INR40 crores debt will be reduced during this financial year.
Ravi Naredi — Naredi Investments — Analyst
Okay, thank you, sirs.
Siddartha Cherukuri — Joint Managing Director
Thank you very much.
Operator
Thank you. Next question is from the line of Rikin Shah from Omkara Capital. Please go ahead.
Rikin Shah — Omkara Capital — Analyst
Hello. Congrats on a good set of numbers. Just wanted to understand on the margin front, we have seen a contraction in gross margins but EBITDA margins have —
Operator
Rikin, your voice is coming muffled. Can I request you to speak through the handset?
Rikin Shah — Omkara Capital — Analyst
Yeah, it’s handset. Am I audible?
Operator
If I may request you to speak a little louder, please?
Rikin Shah — Omkara Capital — Analyst
Sure, so I’m asking that we have seen a contraction in gross margins in both barium and chromium, but EBITDA margins in chromium have improved. So can you help us understand this anyone?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Good evening, Mr. Rikin. The gross margins have been more or less the same on a year-on-year basis. Last year in chromium chemicals we had a gross margin of about 43%, and now it’s about 44% in FY ’23. Our EBITDA margin in FY ’22 was about 14.5% in FY ’22 which has now increased to 18%. Now, the raw material side overall the prices of, like we said, the prices of our key raw materials have remained high during the financial year FY ’23, compared to FY ’22, and that’s the reason why we have not seen any major reduction in the overall value, the blended realization for chromium chemicals.
Overall, the next important part is our conversion cost, which has reduced by 1% on a year-on-year basis. Our employee costs which was 3.5% of our revenues have come down to about 2.9%, but the major reduction is in our selling and administrative costs, which consists of our shipping and forwarding expenses, which has come down from 12.3% last year to 10.5% on a standalone basis.
Rikin Shah — Omkara Capital — Analyst
All right. So within barium if I evaluate Q-on-Q, in last quarter we did INR28 crores and we broke even on a PAT level, in this quarter we have done INR37 crores, INR38 crores and we are still breaking even on a PAT level so what has happened here.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Thank you for observing this. There is an increase in finance cost in the Q4. At EBITDA level at Vishnu Barium, we had a pretty good quarter, we did about 11% EBITDA margin compared to 9.5% in the same quarter last year. However, our finance cost was about INR2.8 crore in Q4 FY ’23 in the barium vertical out of the total INR6.6 crore that we expensed throughout the year, so that led to a decline in R&D and the PAT.
Rikin Shah — Omkara Capital — Analyst
So going forward some of this cost pressure we expect them to reduce a little bit?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Like we said, we are seeing that the markets are coming back. The Indian markets, as well as the global markets are showing resilience for barium carbonate. It is a non-substitutable product used in the ceramic tiles, in bricks industries. So as the demand comes back, as we produce more, overall, our operating levels will directly drives the profitability upwards.
Siddartha Cherukuri — Joint Managing Director
I would like to add to it as well. Our focus will continue to remain on improving the EBITDA margin. Following changes are going to be adopted like the backward integration in barium.
Rikin Shah — Omkara Capital — Analyst
All right, all right. So regarding soda ash, we’d like to hear the outlook. So we were not expecting much of global capacity addition, but with some capacity of 5 million tonnes coming in Mongolia we are seeing domestic price cuts as well. So how does this impact us and what do we expect is there a change in outlook for soda ash?
Siddartha Cherukuri — Joint Managing Director
On our side, there won’t be a lot of changes, big changes [indecipherable] because for this commodity like soda ash logistics will still remain an important price component. So the prices in India, although there will be some changes coming over the next few quarters, we have not witnessed them yet they have few drops, but nothing significant. But logistics will play a very important role moving forward, and a duty component also will be impacted.
In our backward integration, just to reiterate, it’s not just for saving on soda ash. We have also negated another important raw material with sulfuric acid, which is also helping us overall.
Rikin Shah — Omkara Capital — Analyst
All right. And so, basically we are I think approx making it for INR12 and right now there going rate is INR33, INR34 is that fair?
Siddartha Cherukuri — Joint Managing Director
I think well, the going rate is close, maybe you’re talking on a basic levels, yet. yeah, that’s about where we are, yeah.
Rikin Shah — Omkara Capital — Analyst
All right. Thanks.
Operator
Thank you. Next question is from the line of Rohit Nagraj from Centrum Broking Limited. Please go ahead.
Rohit Nagraj — Centrum Broking Limited — Analyst
Yeah, am I audible?
Siddartha Cherukuri — Joint Managing Director
Yes.
Rohit Nagraj — Centrum Broking Limited — Analyst
Yeah, thanks for the opportunity and congrats on good set of [Technical Issues] My first question is in terms of competition, so given that the costs have come down except for RMs, and we have also had a strong traction on our margin because of that. Are the other players who are probably sitting on the sidelines or who are operating at lower rate, they have again come back into the system, and that is impacting pricing and probably will have or even repercussions on the volumes. So any sense on this from your end? Thank you.
Siddartha Cherukuri — Joint Managing Director
Thank you, Mr. Nagraj. The way we look at the whole business is with respect to the product mix and how the industry is doing. So here is what we are witnessing. We have seen a very strong growth in the automobile industry, the key factor for us chromium chemicals, let’s say, whether it could be electroplating, it could be leather, it could be metal treatment. So we are seeing a very strong traction from that application side.
Also the super alloy industry, now that the aerospace, there is a good growth given that the Airbus and Boeing are receiving good orders, not just from India, but around the globe. So that will need more chromium metal in the application of super alloy. That’s going to keep the volumes up in the years to come, that’s how we see. We see a strong growth in the super alloy industry.
Rohit Nagraj — Centrum Broking Limited — Analyst
All right. I was primarily talking from the competition perspective. I mean, are we seeing any kind of short term or mid term impact from the competition coming in? I mean on a longer term basis as you explained probably things are quite favorable. But on a short term basis?
Siddartha Cherukuri — Joint Managing Director
We have already seen some price adjustments and we have not seen the prices correcting any further and whatever raw material price adjustment, and in the freight adjustments we have passed it on. And the way we look at it is that prices have adjusted and have already bottomed.
Rohit Nagraj — Centrum Broking Limited — Analyst
Right, got it, thanks. My second question is in terms of margins and growth, last year as you explained that it was primarily driven because of the value or pricing, favorable pricing. Incrementally, the volume growth would be a large driver for us, and that would primarily determine how much absolute EBITDA increase will happen in the flow to the bottom line. And primarily our margin trajectory will remain at say 18% plus minus odd levels incrementally given that the prices — considering the prices or stable prices for both barium and chromium chemicals. Thank you.
Siddartha Cherukuri — Joint Managing Director
Yeah, I think, our objective is to target an 18% EBITDA and could be even upwards. So for that we are — we have to carefully understand the demand and supply for other product mix what we are producing. And moving forward, what would — the question was what would drive the volume growth?
Rohit Nagraj — Centrum Broking Limited — Analyst
Right. I mean, last year it was primarily value driven growth. So incrementally — I mean, how much volume we produce, I think concurrently, a similar kind of growth we’ll be able to see in EBITDA. Is that assumption right?
Siddartha Cherukuri — Joint Managing Director
Yeah, yeah. So, like we — I mean like we have given a guidance that the 10,000 tonnes of additional capacity is going to come in during this financial year. Now, the idea is we will be focused more towards reducing chronic acid, where we are seeing a good traction from the wood preservative and plating, or it will go more into chrome oxide that you eventually need to chrome metal production, So I think — we will take a call on that. And also we will see a good volume growth in barium, because of this barium sulfate expansion, product launch it is going to happen in the next quarter.
So mostly the volume growth will be coming through barium chemistry, that’s what — that’s how we are seeing that.
Rohit Nagraj — Centrum Broking Limited — Analyst
Right. Thank you my last question is from a growth perspective or strategy perspective, from a three to five year horizon, so are we going to go in for any product line expansions or any other new ideas, maybe catering to different user segment or we will be primarily focused on the existing product lines and expand further our sales into penetrating the market. Thank you.
Siddartha Cherukuri — Joint Managing Director
Yeah, I mean there is quite a good opportunity within both the verticals chromium and barium. So we are working very closely with our R&D team to produce chromium metal which will help us to grow into super alloy industry as well as welding electrode and there is a good opportunity as the defense sector is growing in India. And you see a good growth coming over the years, and as there is no domestic producers, most of the chromium metal is imported. So it will be a good import substitute opportunity.
And on the barium, we are also working on other value added products of high purity barium carbonate which is used in the semiconductor industry, which has good growth prospects as well. Although there is no much consumption in India, it’s mostly in Korea, Japan and U.S., where this product fits. And we’re also working on some battery chemicals, which could fit into our portfolio.
Rohit Nagraj — Centrum Broking Limited — Analyst
Sure that was nice. Thanks a lot and best of luck sir.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Thank you so much.
Operator
Thank you. Next follow up question is from the line of Dhaval Shah from Girik Capital. Please go ahead.
Dhaval Shah — Girik Capital — Analyst
Yeah, hi. So I wanted to understand since we don’t share quarterly volumes, is that now — like if we did x in — x tonnage of barium and chromium in March. So do we see a growth in June quarter and kind of — because by July, our new capacity will come on stream so that will pick up the volumes. But for April, May, June, are we seeing a growth is that a seasonality just want to understand on that side.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Thank you Mr. Dhaval for the question. We only — we didn’t comment on the ongoing quarter. But what we can see is that the volumes in both the chemistries are quite resilient, and that is continuing to grow as I’m speaking to you. From our point of view, we are looking at driving lower volumes than trying to look at a particular realization per kg. Because that automatically takes care of my desired EBITDAs and desired gross profits.
Dhaval Shah — Girik Capital — Analyst
Okay, okay. So for barium chemistry, if I understand I believe you mentioned the utilization was around 55% to 60% for FY ’23, is that number right?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
That’s correct.
Dhaval Shah — Girik Capital — Analyst
Okay, okay, fine. And now that was 60,000 and now another 30,000 will come by next three, four months.So that 55% to 60% of barium carbonate utilization, how do you see that going forward in ’24 and ’25?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Yeah, we are targeting to utilize the capacities upwards of 70% through the year.
Dhaval Shah — Girik Capital — Analyst
Through the year, okay. And does barium carbonate act as a input material to make this precipitated barium sulfate?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
No, it is not a feed for precipitated barium sulfate. It’s a in fact synergies, I mean, both the products have synergies, because both of them have the same origins from barite, which is the mineral coming out from the planet, but production process —
Siddartha Cherukuri — Joint Managing Director
Not a starting raw material yes.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Yeah, it’s not starting raw material, barium carbonate is not the starting raw material for precipitated barium sulfate.
Dhaval Shah — Girik Capital — Analyst
Okay, So whatever we produce of barium carbonate sulfate is all sold out in the market, nothing is kept the transit.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
No, no.
Dhaval Shah — Girik Capital — Analyst
Got it, got it. And on the chromium side, how was the utilization?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Our overall utilization in chromium chemicals, like I said if I leave aside the December quarter, it has been more than 85%, but if I account for December quarter, which is a quarter in which we took a maintenance after two years. It was close to about 80%.
Dhaval Shah — Girik Capital — Analyst
Okay, fine. And this both the chemicals, again, just reconfirming we did not see volume growth in ’23, it was all value growth.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
That is right.
Dhaval Shah — Girik Capital — Analyst
Okay, So after a gap of one entire year we are going to see volume growth coming back for us?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
See, there was always a good demand for chromium chemicals, and we don’t — we did not have any major inventory at all. And just like to highlight first, number one in chromium chemicals, our entire inventory is more or less put for orders to be delivered over a period of time. Secondly, in barium chemicals also, our sales-to-production ratio was 99% as of — for the entire year. We sold whatever we produced, we did not carry inventory that can become a deterrent. But we did not have any inventory as of 31st March. So we are looking forward to overall good year in terms of volumes in both the chemistries.
Dhaval Shah — Girik Capital — Analyst
Got it, got it. And you mentioned about your target EBITDA of around 18% and while you’ve already touched that in the fourth quarter on a consolidated basis. And plus we are assuming 70% plus utilization and getting value added products so then technically the EBITDA margins should have an impact of operating leverage plus the value added products. Is my understanding correct?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
That is a good analysis. When you said 18% on an annualized basis if you see FY ’23 consolidated we touched about 17%.
Dhaval Shah — Girik Capital — Analyst
Correct, correct.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Going by the momentum we are at 18.5%, 18.9%, but that is what we would like to achieve throughout the year.
Dhaval Shah — Girik Capital — Analyst
Got it. Okay. Thank you very much.
Operator
Thank you. [Operator Instructions] The next question is from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Ankur Kumar — Alpha Capital — Analyst
Hello, sir. Congrats for a decent set of numbers and thank you for taking my questions. Sir my question is on barium sulfate. So what is our peak revenue potential, can — that we are expecting from this business?
Siddartha Cherukuri — Joint Managing Director
Hello, Mr. Ankur. With the install capacity at 30,000 tonnes, we are expecting revenue of upwards of INR250 crores from this product mix because we are going to get barium sulfate and sodium sulfide in this chemistry.
Ankur Kumar — Alpha Capital — Analyst
Got it. Sir and we’re seeing 75% — 70% utilization in the first year?
Siddartha Cherukuri — Joint Managing Director
I’m not sure if we’ve given that guidance. We are expecting upwards of 50% utilization in the first year and we are hoping we’ll get product approvals from the end users, sooner than later.
Ankur Kumar — Alpha Capital — Analyst
Got it, sir. And sir on the chromium side, I mean this year, we haven’t had any volume growth is what you’re saying but we’re expecting better numbers for the coming year. So what are the key reasons that we are expecting better numbers on the volume side for the chromium for the coming year?
Siddartha Cherukuri — Joint Managing Director
Mainly on account of the product mix what we want to focus on and now that we have received more traction from North America for our chromic acid chrom oxide, where we are seeing better gross margins and also overall better realization will follow. So we’d like to focus on that. So the idea is we will have to kind of leverage at flexible modern product mix and see which products are giving us improved EBITDA margins on overall volume.
Ankur Kumar — Alpha Capital — Analyst
Sure, sir. And sir, you are saying that Q3 we saw some capacity I think maintenance related break. so — but and this quarter we haven’t seen any such. But if I look at Q4 versus the Q3, there hasn’t been much jump in the sales. So is it like prices have fallen, that is why we are not seeing much jump in the revenue or how should we look at that front?
Siddartha Cherukuri — Joint Managing Director
Well you must have witnessed across the chemical industry, there has been a price correction on account of raw material and on account of price reduction. So I would look at it as price correction than price drop.
Ankur Kumar — Alpha Capital — Analyst
Got it, sir. And sir, for the coming year, do we expect like prices have bottomed out or how should we look at, because our revenue is Kind of dependent on that number. But you’re saying margins — also margin you are saying as in only percentage term you’re not giving same on an absolute number any EBITDA like guidance we would like to give?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
It’s very hard to access the market pricing and then because it’s purely demand supply. As of now I would say we feel that the prices have bottomed out and at the plant level, we are working very closely with the production team to improve on the EVs [Phonetic] and further improvise, the costing model, so our efforts are of course on that side. But with respect to this correction on the pricing, the way we look at it is the prices have bottomed. But again, it’s purely a demand supply scenario. But we — as of now we are seeing a very steady demand for both the chromium and in barium chemical. So we don’t expect a big price correction to happen in the next few quarters.
Operator
Thank you. We’ll take the next question from the line of Nishid Shah from Ambika Fincap. Please go ahead.
Dhruv Shah — Ambika Fincap — Analyst
Yeah, hi, this is Dhruv Shah here. Congratulations on a really strong set of numbers, and especially on your balance sheet. Hanumant, first question, how sustainable is this working capital? And is there any room to further improve it from the current levels?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Good evening, Mr. Dhruv. Thank you for your question. I guess, overall on the working capital side, we are looking to improve our inventory days further. As e have seen, we have reduced the inventory days over the last two years quite significantly, coming down from 122 days in FY ’22 on a consolidated basis it’s about 91 days. We will see further drop in this through the year.
Dhruv Shah — Ambika Fincap — Analyst
Correct. We have seen reduction in our payable days as well, right, in the current year?
Operator
Sir, sorry, you’re sounding little distant from the phone.
Dhruv Shah — Ambika Fincap — Analyst
Sorry. Can you hear me now?
Operator
Yeah.
Dhruv Shah — Ambika Fincap — Analyst
Yeah, but we have seen reasonable reduction in payable days as well, right? So do you see reducing it further, impacting on working capital?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
On the payable days, I think it’s in the range of 84 to 94 days, 95, so I think it would be around this range, for the next couple of quarters. But we would like to close this year in and around 70, 75 day sales.
Dhruv Shah — Ambika Fincap — Analyst
Right. My next question is on the realization in barium sulfate, Siddartha. How do we see this realization because if I’m not wrong there are — so on IndiaMART barium sulfate is even available at INR40 and some sales it at INR200, so where do we start and how do you see it progressing over next couple of years?
Siddartha Cherukuri — Joint Managing Director
So listen — hi, Dhruv, this is Siddartha here. Yes, like — I mean this is a very specialty products so there — within barium sulfate, there is four to five different grades, I mean, based on the particle size and different applications as well as the gloss effect. So I mean there is a commodity end of a barium sulfate and the specialty end of the barium sulfate.
So we’ll be more focused towards the specialty again. Because we are confident of achieving those sales.
Dhruv Shah — Ambika Fincap — Analyst
So — and are we getting approvals from the customers for our specialized grades?
Siddartha Cherukuri — Joint Managing Director
Sorry?
Dhruv Shah — Ambika Fincap — Analyst
Are we taking approval from our customers currently for the specialized grade or the commodity grade?
Siddartha Cherukuri — Joint Managing Director
Well we will be — we are currently at the sampling phase on the specialty grades. So we are waiting for the customers probably it will take one or two months. And on the commodity grade, yes, I mean it’s more of a B2C business to start off even that will be a way to go but our ultimate focus will be towards the specialty grade.
Dhruv Shah — Ambika Fincap — Analyst
And can you just quantify the realization, what — [Speech Overlap] currently at what prices it sales at? Sorry.
Siddartha Cherukuri — Joint Managing Director
Just to add sulfate chemistry, we will be getting barium sulfide as well, not just barium sulfate Na2H.
Dhruv Shah — Ambika Fincap — Analyst
Right. I just wanted to know as the specialty grade at what rate is currently being sold in India or imported in India right now?
Siddartha Cherukuri — Joint Managing Director
It’s at the range of — like you mentioned it starts from INR50 going up to INR100 range. The specialty grade is at INR100 per kilo level and the commodity side of it is at INR50 per kilo level.
Dhruv Shah — Ambika Fincap — Analyst
Understood. Right. And my last question is on the chrome metal side. So you said that you guys are working on the R&D, where would have we reached on this part? And when do you see us putting up a plant for chrome metal, Siddartha?
Siddartha Cherukuri — Joint Managing Director
Dhruv, currently we are more focused towards completing our barium sulfate project because we are expecting the commercial production to commence in the month of July. Hello?
Dhruv Shah — Ambika Fincap — Analyst
Yeah, I’m — it’s audible.
Siddartha Cherukuri — Joint Managing Director
And chromium metal like we mentioned the R&D activities going on and at a very advanced stage. And we are hoping to start — looking at a pilot plant somewhere towards end of this year.
Dhruv Shah — Ambika Fincap — Analyst
Understood. Right, right. That’s it from my end. And once again congratulations on a really strong set of numbers. Thank you so much.
Operator
Thank you. The next question is from the line of Guneet Singh from CCIPL. Please go ahead.
Guneet Singh — CCIPL — Analyst
All right. Thank you for this opportunity. So pardon me if I’m repeating any of my questions because I joined a bit late. So on a consolidated basis, what kind of a revenue growth are we — what kind of volume growth are we looking at in FY ’24 as compared to FY ’23?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Good evening, Mr. Guneet. Thank you for your questions. So, overall, we do our flexible product mix. We have been able to penetrate in the markets where we were not there earlier. So, from a volume perspective, the overall order book is looking quite robust. We have a coherent portfolio of more than seven products in our chromium chemicals and now with the new product going to start in barium, it will add more strength to our overall organization. But right now, we won’t be able to give you any guidance, we don’t give a guidance on a volume or a value basis, in either of our chemistry. But what we are looking at is. since all our plants are operating, and we have a steady flow of inquiries for our products, not just in existing applications but in applications which are developing more over a period of time like in super alloys industry and battery industry.
So we will — we are quite excited to be developing our grades to meet these requirements. And for this we will obviously go ahead and produce more of sodium dichromate which is sold directly in the market or — and also acts as a feed for the derivative products that we manufacture in chromium chem.
Guneet Singh — CCIPL — Analyst
All right. So, can we say that we can maintain the level of growth that we saw say in FY ’23 on a conservative level?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
That would be a guidance, we apologize we don’t — as a company, we have never been now giving the guidance.
Guneet Singh — CCIPL — Analyst
All right. So my last question be regarding the QIP or the money that was being raised, so do we have any updates on that? And regarding the utilization of those funds and maybe that the deadline of when — the timelines of when the money would be raised and the means.
Siddartha Cherukuri — Joint Managing Director
Hello, hi. This is Siddartha. We have received the Board approval for QIP enabling approval. So this enabling approval is for the period of nine months — nine to about 12 months. So as of now, we don’t have an update, but as things progresses, we’re happy to keep you informed.
Guneet Singh — CCIPL — Analyst
All right. Thank you.
Operator
Thank you. The next question is from the line of Naitik Mohata from Sequel Investments. Please go ahead.
Naitik Mohata — Sequel Investments — Analyst
Good evening, sir, and congratulation on good set of numbers. Just a couple of questions from my side.
Operator
Sorry to interrupt, your audio is not very clear. May I request you to speak through the handset?
Naitik Mohata — Sequel Investments — Analyst
Yeah. Am I audible now?
Operator
Yes, slightly better.
Naitik Mohata — Sequel Investments — Analyst
Yes, so what I was asking is, for this capex of barium sulfate that we are undertaking, so what was the total outlay that we had planned for this plant?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Total capex is INR290 crores.
Naitik Mohata — Sequel Investments — Analyst
INR290 crores for the plant?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Excuse me, it’s 90 crores.
Naitik Mohata — Sequel Investments — Analyst
Okay. So we are looking at — so you — as we mentioned through some previous partners in that —
Siddartha Cherukuri — Joint Managing Director
Sir, your voice is not audible.
Operator
Sir, the line for the participant dropped. We’ll move onto the next participant. The next question is from the line of Rikin Shah from Omkara Capital. Please go ahead.
Rikin Shah — Omkara Capital — Analyst
Hi, thanks for taking my question again. Just wanted to ask, on the barium front, how has the product being picked up in Europe, because I understand it’s being used in the building material sector.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Yes, it is used in the building material sector. I mean during quarter three on account of natural gas prices increased in Europe, there has been an impact. Now that the prices of gas have come back to the pre-COVID levels. We’re seeing steady demand coming back and I would say that we are back to the regular volumes what we anticipated.
Rikin Shah — Omkara Capital — Analyst
All right. And just the — so this question is roaming out a little, we are planning to add further 20,000 tonnes in chromium. But we have backward integration of soda ash of 30,000 to 35,000 tonnes. In a world where there is normalized energy and labor prices, I mean 25% of chromium capacity is no longer [indecipherable] how do we fair then? Is this little bit of a long-term perspective this question is?
Siddartha Cherukuri — Joint Managing Director
I think there is a mix up in between from your side, mix-up in between barium and chromium, because there is no soda ash utilization in barium.
Rikin Shah — Omkara Capital — Analyst
I am sorry, chromium.
Siddartha Cherukuri — Joint Managing Director
So your question is, will be we able to move these additional volumes what we are going to produce. Is that your question?
Rikin Shah — Omkara Capital — Analyst
Right, because we have backward integration in chromium of only 30,000 tonnes of soda ash, right?
Operator
Sir, can you hear us?
Siddartha Cherukuri — Joint Managing Director
So, RIkin, Mr. Rikin, I’ll request you to repeat the question.
Rikin Shah — Omkara Capital — Analyst
So I’m assuming that earlier we had 80,000 tonnes of chromium chemical capacity, and we have backward integration of soda ash facility of 30,000 tonnes. Now, we are expanding to 1 lakh tonnes, right? But our backward integration remains the same. So we are not backward integrated for a larger part of the chromium chemical facility, right? So did that impact us when things are normalized globally?
Siddartha Cherukuri — Joint Managing Director
Well, yeah, there will be a proportionate increase in our soda ash production just to say there is a different way to look at it. So we are recovering soda ash from the process, by pumping in carbon dioxide instead of sulfuric acid. So it’s more of a recovery process. As we produce more the recovery also will be proportionately increased. And for that at our end we do have enough room, I would say spare capacity in terms of CO2 gas, as well as on the process side — I mean the equipment is able to handle this additional CO2 injection as well as soda ash generation.
So as this SGC production increased proportionately on the 50% basis even the soda ash production also will increase.
Rikin Shah — Omkara Capital — Analyst
All right. Got it. Thanks a lot sir, and that’s it from my end.
Operator
Thank you. The next question is from the line of C Srihari from PCS Securities. Please go ahead.
Srihari Chintalapudy — PCS Securities — Analyst
Yeah, thanks for the opportunity. Am I audible?
Operator
Yes, you’re audible.
Srihari Chintalapudy — PCS Securities — Analyst
Yes, thank you. Sir on the chromium side, I’d like to know the supply side scenario, I mean I heard that some production is going to get attained globally.
Siddartha Cherukuri — Joint Managing Director
Excuse me, again, your voice is not audible. Excuse me, sir.
Srihari Chintalapudy — PCS Securities — Analyst
Hello, is it better now?
Siddartha Cherukuri — Joint Managing Director
Yeah, yeah.
Operator
Sir, there is a slight airy sound coming from your background.
Srihari Chintalapudy — PCS Securities — Analyst
Yes, sorry. So firstly on the chromium side, I”d like to know the supply side scenario only. I’ve heard that there is some constraint [Technical Issues} it’s part one. And number two barium sulfate side I would like to know whether it’s being pitched, as a competitor to packaging industry. And we can see across the spectrum.
Siddartha Cherukuri — Joint Managing Director
Well, if I would — I mean I’ll start with your second question I mean is barium sulfate a replacement of titanium dioxide. To some extent, it is because it’s most economical alternative to TiO2. Whereas they can blend it with TiO2 any powder coating industry as well as being messy, they’re going to blend it, to bring down the overall cost and at the same time get the same effect on the paint. So that’s we are seeing a slowly an increase in demand for barium sulfate because it is acting as an alternative for titanium dioxide, precisely in the coating industry, powder coating industry. And what was your other question?
Operator
May I request sir you to unmute your line from your side and go into the follow up question please? Srihari, can you hear us?
Srihari Chintalapudy — PCS Securities — Analyst
Yeah. I mean I actually missed a major part of it. I’m sorry. I believe, is it possible to revisit totally.
Siddartha Cherukuri — Joint Managing Director
I’m saying, so you asked me if barium sulfate a replacement of TiO2.
Srihari Chintalapudy — PCS Securities — Analyst
That’s great.
Siddartha Cherukuri — Joint Managing Director
Yeah, to some extent, it is in certain applications like powder coating industry where the objective was that powder coating industry to achieve a certain level of oil absorption. So it’s able to give that effect. And this will be a most economical alternative for the powder coating, powder coating producers, whereby the amount of volume on a year-on-year there is an increase — I mean they’re mainly kind of balancing in between the boat as I feel that.
Srihari Chintalapudy — PCS Securities — Analyst
So in terms of volume, what will be the share of our powder coating industry to the overall demand?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Overall demand for powder coating industry, I mean. I can put it this way. Three years ago powder coating pre-mix production in India was about 76,000 tonnes, and in three years it’s gone up to 140,000 tonne. So that’s the kind of growth. As this powder coating industry grows parallelly the demand for barium sulfate will continue to increase.
Srihari Chintalapudy — PCS Securities — Analyst
Whatever capital revenues and as a part of the overall demand for chromium dioxide, how much of that would come from in this particular sector powder coating?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
I would say about 15%, 20%.
Srihari Chintalapudy — PCS Securities — Analyst
Okay, okay, Yeah. And as regards the supply scenario for chromium?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Supply scenario for chromium remains steady. We have not seen any much price adjustments I’ve had what we are seeing the prices have already adjusted. And we are not seeing anymore price adjustment. I mean downward adjustments moving forward.
Srihari Chintalapudy — PCS Securities — Analyst
No, I mean to say it from the supply point of view, are there any major cutting down on production?
Hanumant Bhansali — Vice President, Finance & Strategic Planning
No, we are not — we are not witnessing and we’re not hearing any production such globally for the chrom.
Srihari Chintalapudy — PCS Securities — Analyst
Okay, okay. FIne, fine. Thank you. That’s all from me.
Operator
Thank you. I now hand the conference over to the management for closing comments.
Hanumant Bhansali — Vice President, Finance & Strategic Planning
Thank you. Thank you, everyone, for your time today. It has been a pleasure. And if there is any further question or queries that we would have not been able to answer due to lack of time, please feel free to reach out to me on investors@vishnuchemicals.com Thank you, and have a good day. Thanks, Mr. Neerav.
Operator
[Operator Closing Remarks]