IG Petrochemicals Limited (IGPL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to IJ Petrochemicals Ltd. Q2 and F527 on this conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involved risk and certainties that are difficult to predict. As a reminder, all participant minds will be in the listen-only mode, and it will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star-down zero on your touch-down form. Please note that this conference is being recorded. I now hand the conference over to Mr. Pramod Bhandari, Chief Financial Officer, IG Petrochemicals Ltd. Thank you, and over to Mr. Bhandari.

Good afternoon, ladies and gentlemen. Happy Dr. Therese. It's a special occasion I thought, please first wish you back. Thanks for joining this conference for Q2H1 API 27 ending call of IG Petrochemical. Joining me today is the SGA or Investor Relations Advisor. Our financial results and investor presentation has been uploaded to the store machine and also available on the company's website. I hope you had the chance to go through them. I will begin with a short overview on the industry and then take you through the ITPL operating and the financial performance for the quarter and a half year ending, September 2026. In terms of industry overview, the first half of FY27 was mixed period because in India, the infrastructure is trending, manufacturing, activity, and Healthy industrial demand continues to support several downstream industries, as it remains the Indian chemical industry remains very silent or gradually moving up from cyclical weakness towards a more stable.

Sorry to interrupt you, we lost your order in between. Can you repeat the last few sentences once again, please?

Global commodity, chemical market remain competitive, with oversupply continued to weigh on the prices and profitability. At the same time, ongoing tension in the Middle East created a near-term uncertainty, particularly about the energy prices, supply chain and logistics. This kept the size of key raw materials, including also gyne and several other key raw materials or intermediate products across the value chain volatile during the period. These developments are also influencing sourcing preference and with the customer placing greater value on the assured delivery, consistent quality and reliability of supply. When near-term volatility may continue, our long-term view on the new chemical industry remains positive. Rising demand, Rising domestic demand shift in the global supply chain, infrastructure growth, and favorable government policies continue to provide a strong foundation to the sector. In terms of competitiveness, The fundamentals of our business have continued to serve us well. IGP is the largest producer of phallic in India and among the world's largest producer of phallic. This position has been built over the several decades on the manufacturing excellence, operating efficiency, product quality, and customer reliability. Our customer network across key and user industry is concentrated primarily within 200 to 300 km radius of our manufacturing facility. This proximity improves supply chain efficiency, deepen the customer engagement, and contribute to the stable demand. Equally important is our low-cost manufacturing base, continuous operating improvement, and efficient plant management, and disciplined cost control has kept us among the lowest cost producers in the industry. In terms of business and operational update, turning to our performance, IGPL has delivered a very strong quarterly performance, achieving its highest ever quarterly revenue, along with a sharp improvement in the profitability compared to the corresponding quarter for previous year. This was fundamentally driven by the battery realization, while volume remains slightly lower as operations are carried out at a marginally below full capacity. For H1FI27, the company sustained this strong momentum and deliver significant growth in revenue with sharp improvement in the profitability. We achieve this performance despite the raw material price volatility, geopolitical uncertainty and an uncertain demand not ending the user industry. At the same time, we continue to invest in the equipment, upgrade and maintain our plant to the strength for our long-term competitiveness and improve operational efficiency and support the future growth. According to our growth initiatives, our greenfield plasticizer plan commenced production on September 2026 with an initial capacity of 75,000 tons. The plan we expect will start contributing meaningful in the next few quarters. The facility will manufacture a broad portfolio of plasticizers, which include DOP, DINP, DBP, GI, BP, getting to wide grades of plasticizers. Several of these parts exclaims the hazardous domestic demand. Our particular focus will be on DOP and DIA in which We will find the application in the wire and cable industry. We see this business as an important extension of our value chain, one that adds to our product portfolio and offers robust long-term growth potential. We also had expanded our capacity of the BEP from approximately 8,000 to 12,000 tons through B-bottle rating. Over the next 4-5 years, we expect this product line to contribute very well to our overall performance and the balanced revenue mix. Sustainable and Green Initiative is part of our lockdown strategy, guided by our commitment to environmental stewardship and structural economy. The CBG plant has been completely set up and is expected to commence the operation by end of December. It will support the renewable energy generation and create a sustainable, diversity and revenue stream. Together, this project will broaden our measures of opportunity and reinforce our commitment to sustainable industry practices. Along with this growth initiative, we remain focused on improving efficiency across our manufacturing network. We continue to integrate solar power and other renewable solutions to our society to reduce the overall carbon intensity and optimize our energy cost. We are also progressing with the phase replacement of conventional fuel cell like Alisa point diesel with battery gas. We expect it to transition to improve efficiency and lower operating costs and reduce Thank you for your permission. These efforts support our long-term growth objective of building a future-ready manufacturing platform that balance economic performance with environment friendly. Looking ahead, we remain cautiously optimistic while near-time environment A remains volatile. Ramp-up of our plasticizer plant, our expanded meaty capacity, and upcoming CBD plant position us for the next stage of growth. Backed by the net cash-positive balance is a strong market position. We continue to focus on operational efficiency, deeper customer relationships, a more diverse client business. We will also remain disciplined in allocating allocation of our capital as we pursue sustainable, profitable growth, recapitalize on the opportunity and the market also evolve. In the closing, I would like to thank Ceruda investors for their continued trust. Now coming to the financial performance for the quarter, Q2FI7 completely delivered the highest average quarterly performance with the revenue rising 63% to 770 crore. Revenue contribution from non-prest business stood at 68 crore during the quarter. Gross profit was 232 crore, doubling from 100 compared to the Q2FI26. Gross profit improved to 30% compared to 24%. EBITDA for the quarter rushed sharply to 144 crore compared to 27 crore in Q2 FI 26. EBITDA margin was around 18% compared to 5.8% last year for the same quarter. Profit half of the quarter compared to 1 crore in Q2 FI 26. For the half year, the company delivered a strong half year performance because the Q1 was equally efficient.

Sir, sorry to interrupt you once again, but there is some network issue. I will need to reconnect your line. Please bear with me, sir. Participants, please stay connected while we rejoin Mr. Bandhari back to the call. Ladies and gentlemen, thank you for your patience. We have line from Mr. Bandhari reconnected. So go ahead.

Sorry for that. There is disconnect. I am now taking the call from Landline. You will be able to hear it clearly. The company delivered a strong half-year performance, revenue rising 46% from 1395 crore, driven by the improved realization across all the product segments. Revenue contribution from the non-passed business stood at 117 crore for the first half-year. Gross profit increased to 440 crore, which is more than doubling of 216 crore in H126. EBITDA for the half-year last sharply to 264 crore compared to 40 crore for the 6 months for the previous year. EBITDA margin improved to 19% compared to 4.2% last year. Profit after tax stood at 161 crore compared to 7 crore loss for H126. For September, the net cash position was 150 crore. Net cash means the cash minus the debt. Compared to 77 crore, the board, in view of the excellent operating performance, has declared an interim dividend of 100%, which is the 10 rupee per share, on the face value of share of 10 rupee, for the financial year 26-27. With this, I would like to conclude the presentation and open the floor for question and answer.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask the question, may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and 1 to ask the question. First question is from the line of Manan Shah from Navneet Family Office. Please go ahead.

Yes, hi. Am I audible? Yes, please go ahead. Yes. Hi, sir. Thank you for the opportunity and congratulations for a great set of numbers.

Thank you.

Firstly, if you can just provide some data points in terms of what was our utilization of volume, and what were the spreads that we enjoyed in the quarter gone by, and what are the spreads going on currently?

So, I think in terms of the quantity, we generally don't provide direct quantity, but compared to the last quarter, it has improved by 15 to 18 percent. It was around 40, near by 40 for the last quarter. This quarter, it was more than 47. Okay.

And in terms of what?

In terms of spread, I think spread has been volatile between 300 to 400 to 450. So every time it was a different spread, but on an average, it was between 300 to 400 spreads in the market, and we make around $100 million over and above that.

Right, and are these spreads sustaining currently as well?

I think right now the spread... Is between, in the market, is $300 to $400. It was $100 to $200 around the first six months, or last to last six months. So basically, it keeps on changing between $150 to $300. So right now, it is on $300 to $350. So it's also a result of the geopolitical issues, concentrated in the supply of the raw material. There is very limited supply, and everybody is operating at 60% to 70% of the plant. So I would not like to comment specifically on the sustainability of this type of spread, having said that we are operating, we were operating actually three plant now, we started the fourth plant. So we expect that even if we spread moderate with the fourth plant and the DP increase our production and the plasticizer which has started just recently, we will be able to maintain the healthy margin. Spread is a function of demand supply in the market which may range between 200 to 400. Right.

So then, sir, in the second half, can we expect better utilization or better volume, sir?

Yeah, definitely.

Okay. And what we understand from the paint companies as well, that they have seen some 6-8% sort of volume growth in the industrial side. So, are you seeing better demand from that customer segment for us? And apart from that, are there any other customer segments or from where you are seeing better demand?

From our point of view, paint, pigments, plasticizer, and EPR, all four segments are doing well. And there are a lot of new segments which have come up like specialty chemical, agrochemical, UPR, PVC, that are doing well. Overall, I think we are very comfortable with the growth in demand in domestic market. There may be some plus and minus, but right now I think the supply is not in line with demand, because there is a constant in the availability of the raw material. Across the globe, everybody is focusing on the gas oil, gasoline and LPG. So while crude oil demand has gone down, crude oil production and demand has gone down for a short period of time, but it has been replaced by the other suppliers. However, the feedstock, which is specifically impacted because of geopolitical issues in the Strait of Hombra and the Red Sea, that you can't restore it because you can't set up a plant in one or two years or six months. Of course, crude can be flown from other places. So that restriction or restricted supply remains the key reason where the prices of all the feedstock across the globe has gone up, and similarly the final product has gone up.

Right. Sir, lastly, on the inventory side, now, given the volatility of the crude, I believe your RM prices would also be... Quite volatile. So in such a scenario, how are we managing the inventory and the passing of the volatility in the RMPI system?

Generally, we are keeping a very minimum inventory, both for the final product and the raw metal side. And generally, whenever we have a sourcing and we book it, whenever we have a proper sourcing of raw metal, we try to book 80 to 85% of sales in line with the procurement. So this way 80-85% of volatility we try to avoid. Okay.

And how do we see the ramp up of the plasticizer plant for the second half?

The plasticizer has just started. Some taking issues are there which is being sorted out. So I believe that it will give around 1500 to 2000 per month going forward. And say it's a 10-15,000 for a period up to maybe 20,000 up to the March. And next year we see it will cross 40-50,000 on annualized basis.

And would that give you the opportunity to start the PA-5 as well?

PA-4, four plants are right now operating. PA-5 will, in line with that, will be beginning the operation.

Sure, thank you. I'll get back in the queue.

Generally, PA-5 is the name of the plant. PA-5 is operating. Some other plants are shut down. So, it's not that PA5 is that. So, we keep actually three to four plant operating, and one of the plants are under maintenance, regular maintenance are down, changing catalyst, etc.

Okay, okay. Understood. Thank you. I'll get back in the queue, and happy Diwali.

Happy Diwali.

Thank you. Next question is from the line of Ria Mehta from Equitas Investments. Please go ahead.

Thank you so much for the opportunity and congratulations on this great presentation.

We are sorry to interrupt. Your voice is echoing. Can you speak through the handset, please?

Sure. Am I audible?

Yes, thank you.

So, congratulations on the set of numbers. So, my first question is, as in when our plasticizers will ramp up, we will have to start our CA5. And with CA5 coming in, do you see the incremental volume which we will have to spell out?

So, right now, I think the guidance which we have given for this year is around 2 lakh ton, plus minus 3 to 4 percent, which we are in track. But I think next year, 27-28, there will be an increased marginal 8 to 10 percent in the PA. Having said that, the overall increase may be higher, but I think I mean, uh... 30,000-40,000 ton of the PA will be consumed between the DEP and the plastic sizes. So net-net available to us to sell in the domestic market remains in the range of 2,000-2,000,000 to 2,000,000 to 2,000,000.

Got it, got it. So, 15,000 would be the incremental on a variable risk. And you were mentioning about some issues at the plasticizer area. So are there any approval issues on more on the technical side? And how are these contracts for plasticizers? Are there long-term, short-term? How do we see?

Right now, I think we've just started. There are two, three batches which have come up. There are some quality which need to be checked, and then we provide the sample. So really, we will start from mid-November, end of November, the supply to the customer. We will gauge about the quality and other issues. in by the end of this quarter so actually right now the supply being planned is thousand tons to fifteen hundred tons so we are not planning for the big big However, that will be the testing period and decisive period to decide which type of plasticizer we need to produce, what is the supply we need to do, and what are the customers we need to target. Next year, we are planning between 40,000 to 50,000 ton, depending upon which type of plasticizer, but our focus will remain only on the DP and DIMP, which is getting into the cable industry. The demand is growing at 50 to 20%.

Got it. So we are seeing that out of 75,000 of max, we will be doing this 40-50,000, right, next year? Yeah.

It will take two years. Probably next year, it will not be full. Probably next to next year, you will be able to have around between 60 to 75,000, or maybe higher. So it all depends upon the customer penetration and demand growth. So I will not like to comment today. Probably next quarter, I will be in a better position to tell you what will be the 27-28.

Of course, of course. Just in terms of direction, how are you seeing the demand supply for plasticizers, and especially the ones which you want to go into, and the second is the pricing of them?

I think plasticizers, today the margin is good in line with Thelic, and the demand is growing at 5 to 6 percent. Thank you. The new plant is started with the top three players in India. We will have some inherent advantage of supplying of Thalic. Belling is all products, 2EH, alcohol, IBA, we are buying from the market. We will have a good facility, which will have a 1 lakh ton, up course, 75 to start with, and then we can go up to 1 lakh ton of the capacity, which will eventually will add around 1,000 crore to 1,200 crore of the gross revenue. Net revenue will be, because it will be using the Thalic, will be around 500 to 600 crore. So with all 4 to 5 plants operating and plasticizer adding net 500 crores, we believe the revenue at peak should be between 3,000 to 3,500 crores.

Correct, correct. So this would be around FI28 or FI29, right? Where we would see these kind of numbers.

It may appear also, but I would not like to comment because today if you count the revenue, it can cross with even 4 plants and part plasticizer because the prices are very high. I expect prices will moderate, and then based on the historical prices, this is the revenue expectation.

Got it, got it. And in terms of our non-pandemic businesses, the APA, Malik, etc., how do we see the margins for them? I understand they are made from bi-products, but just wanted to understand that after considering the respective sacrifices and margins, what kind of margins do they make?

So, melek, we are producing the melek from wash water. L is a bit up. It is coming as a by-product with its own raw material which is being used. There are some processing which is required to extract from wash water the malik. Typically, it was 20-21 crore of the malik for the last quarter because the prices of malik was high, and typically 14-15 crore was the average for earlier quarter, this quarter 21. But we have increased the production of DEP, and we touched the revenue of around 39-14 crore for last quarter. Banjoic acid remains in the range of 1 to 2 crore. So basically, apart from the lake, DEEP is also contributing to our other revenue, apart from the banjoic acid. So this water, apart from the interest and the investment income, we have achieved around 75 crore of the other income from other products.

Right, right. And in terms of when I talk about Malik, we were all speaking that it was trading at a discount to Thalic prices. Is the situation the same, which was there earlier, and how do you make the money there?

It is actually, prices have gone up in line with Thalic, but still, it is available at a discount to Thalic. Malik is between 150 to 160, Thalic is between 180 to 190. However, from the base, when the price was 70-80 rupees, it is now 150-160. Thalic, which was 100 rupees, is 180-190. So, prices have gone up, but still, in terms of the overall competitive pricing of Thalic and Malik, Malik is still 10-15% lower than Thalic in the market.

Got it. And in terms of availability of OX, while you were mentioning there are a lot of lower capacities. I am functioning to prepare OX's. What are your take on, if we say for example, start our plant price with an incremental demand, do you think availability of raw material will be a challenge for us?

I think availability of raw material of OX is not a challenge for the entire industry because generally it is coming from China, Taiwan, Korea, which is not impacted because of a state of homage and all that. So, challenge is not of the availability of raw materials, challenge is the pricing. Whether you would like to buy the raw material at such a high price, will you be able to pass on that price to the final customer? And what if market changes? So, that was the reason everybody was cautious and operating at an optimum level to the extent they will be able to sell, they are buying the raw material and converting into the final product. So, availability of OS is not a challenge. But of course, the pricing is high because I mentioned earlier in my communication that all feedstocks of petrochemicals are at nearly 102a or 5a high. The prices have gone up quite significantly. And second, the logistic cost across the globe has also gone up by 2 to 3x. So that has impacted the overall petrochemical feedstock pricing. So typically, OH is freely available in the market if you wanted to buy, of course, but it is costly.

Got it. And going forward, consider a scenario where war ends, etc. How is the demand supply scenario during those days?

I think if the war ended, the demand will be more robust. More better because some of the final downstream industries, they are not able to supply to these areas like Middle East and all that side. And there is some impact on the U.S. also. So overall, when the wars end, the overall demand is expected to further improve. Of course, there will be a moderation in the pricing of both the raw material as well as final product.

Thank you so much. I'll join back and give up all the questions.

Thank you.

Thank you very much. Next question is from the land of Jitain Parmar from Aurum Edge. Please go ahead.

Yeah. Good afternoon and congratulations for an excellent set of numbers. Thank you. And wish you all a very happy festive season. Happy Dhanteros and Happy Diwali.

Thank you.

A couple of questions. I couldn't get because I think the line was sketchy. What was the capacity utilization you mentioned across our plants?

So basically, for the last quarter, we were operating three plants. So it was 45,000 to 47,000 tons and recently started the fourth plant. So when I talk about capacity utilization, we are talking about capacity utilization of the existing plant which we are operating. The plant which were operating capacity utilization is between 90 to 91 percent. The plant which was not operating, we don't count it in the capacity utilization.

Fair enough, fair enough. Okay. Now, in these numbers, we have shown excellent EBITDA margins. Are there any inventory gains in this? It is slightly. What is the percentage?

I think less than 2 percent. It is because what happened is, as such, we don't count separately inventory gain, but when the last quarter ended, then the inventory gain was already taken into account in the last quarter, because the prices have already reached to 150, 160 level, and then it has gone to 170 level, but in the auditing and accounting, we take cost or realizable value, which is less. So it is being valued at a lower side of the cost and realization value, and since it is already high, so there are chances of inventory gain captured in this very, very small. Last quarter when there was a good gain because the lower cost inventory was there and prices gone up. So last quarter prices were already high.

And that's what makes this performance also commendable. So now you did mention some share of renewables power also. Again, I think that time the line was sketchy. Again, we couldn't get that. So if you can. So I will repeat it.

So, typically, we are using LSFO and diesel. The government electricity. Now we got the connection of natural gas. So we will be replacing around 70 to 80% of the fossil fuels with the natural gas. Of course, there were some challenges for the last to last quarter because... The government has come down to the industry by 10%, 20%, 30%. Now, everything has been normalized, and we are using maximum amount of the natural gas, and going forward, it will be the case. It is not only the green in terms of, but overall, in terms of costing also, it's a 10% lower than the LSFO cost.

Perfect. And any thought on basically using renewables, basically, like solar and…

We are already using the solar at our plant of Thalic and Tritrite. Already using for last four years, where it is net off from our existing bill. However, in the plasticizer which has started recently, we are right now evaluating various options for using the solar.

We have got a. A fairly good balance sheet, and, you know, the perfect cycle is also gone through. I mean, and you did mention that, you know, at normalized prices, you can do 3,000 to 3,500 crore of revenue. So, when would we look at, you know, and I think that could happen, you know, maybe next year or something. Is there any thought on, you know, and your presentation also mentions, you know, exploring adjacent downstream chemistries. So, is there any thought on any future CapEx cycle?

Yeah, right now, I think the focus is on stabilizing our plasticizer. We continue to explore various opportunities, but it will not be right for me to discuss in this forum because it has not been discussed with the management and not approved by the board. So whenever we are finalizing, we are planning various downstrips and looking at other chemistry, but we are very cautious and we wanted to get. Into any chemistry when we are 100% sure about replacement of the import and creating a long-term value. And we are very particular about IRR. If IRR is less than 15%, we are not going. We are very clear on that. So we will be going, we are looking, evaluating various opportunities, but... It has to fit into all our criteria of minimum 15% IRR, this much is the capex, this is the revenue it should add. So we are evaluating. I think now the time has come for us to look forward for the other chemical and chemistries in the downstream as well as the new chemistries. We are evaluating it. Once it is finalized, approved by the most, we will discuss it.

Perfect, perfect. Yeah, I think that's all from my side. Thank you so much and wish you again a very happy Diwali. Thank you.

Thank you. Next question is from Land of Madhurati, from Counter-Cyclical Investments. Please, go ahead.

Sir, thank you for the opportunity, sir. Firstly, if you can help me understand where are we in the cycle, because our spreads are on the higher end, and it seems that they will be on the higher end for the time being. Sir, so can you just help us understand that with this refinery? Getting affected in the Middle East region and the global utilizations have improved to 65-70%. So can we maintain or how long do we expect to sustain the spread of $350-$400?

So I would not like to comment on the spread. I will just comment about the capacity utilization and how much production we can make. Spread depends upon the demand and supply and the geopolitical matter. Right now, it is between 300 to 400. Historically, it was between 150 to 200. Right now, it is around 300 plus. And we are trying to make maximum utilization of that. I expect spread over the next four to five years has to be there between $200 to $250 to $300. Because if it is not, most of the plants in Europe, America, and Southeast Asia, because the conversion cost itself is $150, so it will become unvivalent. If somebody set the plant of Thalic today and margin is less than $200 or $250, it will be making losses at EBITDA level. For me to comment whether what is the right margin, it is not right. Based on demand supply, if you set up the new plant, 200, 250 is the cutoff. So I believe in the long term, you will get that margin average for the last 5 to 10 years.

Got it. And sir, if we were to understand the industry capacity utilization and how much capacity might have gone out of the market that may not come for the next one or two years due to some kind of disruption, how would we, if you can help us understand on that?

So I think because right now what is the situation going on in the Gulf, Iran, US, then Russia and other things. Then Israel. So, capacity gone out of, I think, all the refineries in the global market are focusing to supply the basic fuel, which is gas oil, gasoline, and LPG. If there is extra capacity available, then they are getting into downstream and ensuring that to the extent of they require, they will be able to get that feed for petrochemicals. So, some capacity which is in the Middle East and supplying like natural gas and all that and supplying some feedstock, that has been impacted to the large extent. So, all the petrochemical feedstock prices, if you look at, it has up by 30% to 60% in last six months. So, when it will be resumed or normalized, I think some of the damage which is done in the Middle East side, it will take six months to one year to restore because if there is a... I'm not sure how much time it will take to recover. But anything which is going to get normalized, it will take 6 months to 12 months. It's not going to be in a hurry. To the extent, whatever is the capacity utilization based on the feedstock available, it will continue to remain safe.

Got it. And sir, so one question was, sir, we have an investment property of more than 200 crores on our books. That is in Middle East, sir. So, first question was, has that been affected or how do we expect?

The company in the Middle East is that property is in Europe and it is up for sale. It's already put up in the sale and probably next six to nine months we will be able to realize that our money.

So, any leads on that, or we are just expecting that that could get monetized?

What happened is the property with the commercial one, which has been completed, and we appointed an agency to sell that property. Because we have purchased this for the purpose of setting up of malignant-dried plant in Abu Dhabi, along with the JV, with the Ednock. After completion of detail and basic engineering, we realized that they are not able to match the pricing. I thought today it's a good time because if you set up in Abu Dhabi, today's environment is a bad fire. But when we set up that office and all that, now we have decided to sell off that office, and the agency has been appointed. I think in the next six to nine months, it will be sold off.

Got it. So, with so much cash on our books, is there a possibility for IGPL to go and acquire one of our competitors who is very debt-heavy in a distress scenario? Either they are Bhaeg or Rani K. plant. Is there a possibility of that?

So, I think there are two ways. I understand and I agree that there are good amount of cash. That is the reason we have declared the interim dividend of... 100% which is 10 rupees, which is 30 crore. Of course, that is very municipal amount compared to the overall cash in the balance sheet. We are looking for various opportunities for acquisition of the company in downstream chemistry. Competitor, I think it will not be possible because if you acquire the company, the CCI will not approve because combined will have a capacity of 80% in the Indian market. So, we may look at various opportunities, but I am not sure about the competitor. They are facing some challenges. I think let's wait for the right time.

Got it. So, just one final clarification. Sir, you mentioned that the 2 lakh volumes that we are expecting in Fi27, we will expect in Fi28 as well, even though the plasticizer volumes scale up.

Right now, the volume based on the sixth month, I expect between 180 to 2 lakh ton because Q1 was really lower. Now we just started the fourth plant also. So it will be, I expect between 185 to 195, the volume for the year. Next year, I am expecting, because the volume will be high for production of Thalic, but around 20 to 25,000 ton of Thalic will be consumed in the plasticizer and DP. So, net-net available for sale will be maybe $210, $215. That is what I mentioned. Production will be high, but what is available for sale is lower. That is what I mean.

Got it. And, sir, even to Ashishan, your prices have increased in line with thalic and hydride prices, or how is that?

The majority of plastic sizes today is very good.

Sir, that was from mine. Thank you so much and all the rest.

Thank you.

Thank you very much. Next question is from the line of Manan Shah from Namnit Family Office. Please go ahead.

Yeah, hi. Thanks for the follow-up. Sir, based on the numbers of our beer, it seems they are unable to ramp up or sell enough in the domestic market. So, are you seeing lower volumes from them and is that helping you in any way?

Why you wanted me to comment on competitor? No, I'm not asking you to compare.

I'm just asking you to ramp up your volume.

Volume, I think, their sales is also similar to what we have. We were operating at 3 plant and 14,000 to 15,000 ton, and they were operating at certain capacity. Volume is expected to be 10,000 to 11,000 ton. I don't know about what is their financial performance, how it has changed. But I think because of the U.S. facility and the interest burden and depreciation that may have impacted the performance. Otherwise, it's the same market, similar customer. There is no reason to have a different performance.

Understood. Sure.

Thank you.

Thank you very much. Ladies and gentlemen, we will take that as a last question. And now I am at the conference for Mr. Pramod Bhandari for closing comments.

Thank you very much for attending this conference, and since the festive season has started, we will appreciate your time and interest in the company. If you have any questions, please get in touch with us or contact our SGA. On behalf of all the team members, I wish you very happy Dipali and Dhanteres and compliments for the festive season. Thank you very much. Bye.

Thank you very much. On behalf of IG Petrochemicals Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.