Kanpur Plastipack Limited (KANPRPLA) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Kanpur PlastiPak Ltd. Q2 and H1FI26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an option for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star than zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Pandit from Captify Consulting IR. Thank you, and over to Mr. Pandit.

Thank you, Nirav. Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the Q2 and H1FI27 earnings call of Kanpur Plastipat. Today on the call from the management, we have Mr. Manoj Agarwal, Chairman and Managing Director, and Mr. Shashank Agarwal, Deputy Managing Director. I would now request the management to brief us about the business and performance highlights for the period until September, 2026, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.

I welcome you to Kanpur Plastic Pack's earnings calls for the second quarter, financial year 26-27. Thank you all for joining us today and for your continued trust and confidence in the company. On behalf of Cantu Plastic Act, I extend a warm welcome to all our investors, analysts, and stakeholders to our earnings call for the quarter and half year ended 30th September 26th. Building on the strong start we made in the first quarter, Q2 financial year 27 has been another quarter of healthy growth for the company. Revenue for the quarter stood at Rs. 235 rose, the highest quarterly revenue in the company's history. And profit after tax more than doubled year-on-year to Rs.15.1 crores. Compared with the first quarter, EBITDA grew by about 14.5% and the profit after tax by about 24%. This performance reflects the resilience of our business model, the confidence of our customers, and disciplined execution by our team. The global business environment remains challenging during the quarter. However, polypropylene prices moved back close to the high levels seen in March 26, going to the continued geopolitical situation in the Middle East. High energy costs in Europe continue to weigh on the chemical industry, one of the key users of FIBCs, particularly in Germany. Although ocean threats east during the quarter, they remain elevated, and constrained container availability continue to disrupt supply chains. Despite these headwinds, our diversified export presence, long-standing customer relationships, and agile approach to procurement enabled us to deliver a robust growth in profits. Our focus remains unchanged. We continue to execute a long-term strategy of strengthening the quality of our business while creating new avenues of growth. Rather than pursuing growth purely through higher volumes, We remain committed to improving our product portfolio, expanding into value-added applications, and building capabilities that support sustainable profitability over the long term. FIPC remains the cornerstone of our business, contributing approximately 66% of our manufacturing revenue for the quarter. Over the years, we have built lasting relationships with customers in international markets, which has helped us maintain a stable business through changing market conditions. Our customer base across Europe, North America, South America, and other markets gives us resilience and a broad base for growth. Our continued participation in international trade phase has strengthened our inquiry pipeline and helped us expand our reach into new markets. As informed earlier, the capacity expansion of the FIBC to add about 6,000 metric tons per annum in phases over five years and take the total capacity to about 24,000 metric tons per annum remains on track. Production has already started on the ground floor of the new building at Unit 3. The first and second floors are now expected to be completed shortly. A joint venture with SC Goma Italy through AC Khan Private Limited continued to build its presence in premium taskline yarn segment. The internationally recognized certification, Global Recycle Standard, also for GRS, and OECO TEX, This strengthens our positioning in markets, enhance customer confidence, and support value creation. These certifications are marking a significant milestone in our journey towards sustainable innovation, superior quality, and global competitiveness. The response received from the customers has been encouraging, and we are confident of scaling up sales in the next half of the financial year. Our entry into the non-woven textile technology. The technical textile segment remains one of the company's key strategic initiatives. We see significant long-term opportunities in this business across automotive interiors, geotextiles, artificial leather, carpets, footwear, and other industrial applications. Despite slight delays due to heavy rains, we remain on track to commission the non-woven fabric facility in this current quarter, with the first line expected to be commissioned by the 15th of November 26th. Once operational, this business is expected to gradually become an important contributor to our growth while complementing our existing packaging portfolio. Together with our investments in premium polypropylene yarns and specialized applications, it reflects our vision of transforming Thangpur Plastic Pack into a well-diversified industrial packaging and technical textiles company, expanding our addressable market while also improving product differentiation and value addition. Our entry into these spaces will also open up opportunities in select B2C-linked applications and further diversifying our business model. Sustainability remains central to the way we operate. During the quarter, about 52% of our power requirement was met from renewable sources. We continue to strengthen our ESG practices to responsible manufacturing, energy efficiency, recyclable product designs, and internationally recognized certifications. Overall, while near-term market conditions may continue to see volatility, we remain confident in the strength of our business model, our customer relationships, and the strategic investments we have already made. Our objective remains clear to build a stronger, more diversified, and future-ready organization capable of delivering sustainable growth and long-term value for all stakeholders. With that, I would like to invite our Deputy Magin Director, Mr. Shashanka Garuhal, to take you through the operational and financial performance in more detail. Thank you, everybody.

Thank you and good afternoon to everyone joining us today. As the Chairman highlighted, we have continued the momentum of the first quarter into Q2. Let me briefly take you through the financial performance for the quarter. For the second quarter of FY27, on a standalone basis, despite a very challenging global environment, the company reported a total income of 238 crores, reflecting a growth of about 43% year-on-year. EBITDA for the quarter stood at 25.4 crores, registering a 55% growth year-on-year. The margin improved from 10.67% to 9.83% in the corresponding quarter of the previous year, broadly in line with 10.69% in Q1. PACT stood at 15.10, almost doubled on a year-to-year basis, while basic earning per share increased 6.16 compared to 3.25. For the half-year ended 30th September, the total income stood at 445.64, up by 28%, EBITDA at 47.59 crores, and PAT at 27.25 crores, more than double of 13.07 crores of H1F526. Basic EPS of the year stood at 11.11 compared to 6.26 in the corresponding period. On a console basis, total income for the quarter was 240.22 crores and PAT at 16.06, up by 100% year-on-year. Export realizations remain strong. Export sales were 119.81 crores, marginally higher than 119.16 crores. Even though the export volumes were lower at 4,757 tons against 6,591 tons. During the quarter, realizations continued to remain strong with an average selling price increasing by 14% compared with the previous quarter. PP prices rose again during the quarter which was seen towards the end of March 26, but our pricing discipline enabled us to largely pass on the increase in the input costs. As a result, manufacturing segment margin improved to 11.65% from 8.95% in Q1 FY27 and 6.34% in Q2 FY26. This, coupled with our disciplined procurement strategy and improved product mix, contributed to stronger margins during the quarter. On trading, segment revenue was 78.96 crores compared to 16.87 crores in Q2 F526. The company reported a trading profit of 1.16 crores compared to 2.59 crores in the corresponding quarter of the previous year. As I mentioned earlier as well, primary focus continues to remain on our core manufacturing business. Given our understanding of the polymer market and established procurement capabilities, selectively capitalize on opportunities arising from market-dose locations globally, price-volatility, wherever they align with our risk management framework. Look on the other operating incomes and other incomes. Other operating incomes for this quarter was 13.11 crores, of which 12.4 crores was export incentive under the DFIA scheme, against 2.64 crores in Q2 F526. Since DFIA income is recognized on realizations of the licenses, it varies significantly from quarter to quarter. Also, this was suspended in quarter 1 FY27 by the Government of India. Other income for quarter was 3.52 crores, which includes foreign exchange gain of 2.24 crores. Other income for half-year was 7.85 crores, of which 5.57 crores was a net gain on foreign exchange. As an export-oriented company, a large part of our receivables are in foreign currency, and the gain reflects the exchange rate movement during this period. We treat this as linked to our export business, but it depends on currency movements and should not seen as a recurring trend. Higher employee cost. Employee benefit expenses for the quarter stood at 21.41 crores, an increase of about 4 crores or 23%. As I explained in the last quarter, this primarily reflects the annual salary revision and increase in minimum wages in line with the state government's revised wage policy. This also includes the Director's Commission increase due to higher profits as compared to the corresponding period. Compared with Q1FI27, employee costs were broadly stable. While this has increased our operating costs, the company continues to implement focus initiatives around cost optimization, Borrowings. On the debt side, total borrowings as on 30th September stood at 162.61 crores, out of which 39.76 crores was long-term borrowing, and the balance 132 short-term. Sorry, 132 crores was the total borrowing on 30th June 26, and the long term stood at 22.83 at that time. This increase is due to new term loan for a non-woven project. A net worth stood at 290.56 crores, and debt equity remained at 0.56 times. The increase in borrowings during the half year was driven by capital expenditure. The capital work-in-progress rose by about 37 crores during the half-year to 45.67 crores as an ongoing project's move towards completion. JetBank has sanctioned a term loan of 40 crores for these projects, out of which 27.38 crores has been availed as on 30th September. Higher receivables. Trade receivables increased by 26.32 crores to 120.6 crores in line with the higher selling price. GST refunds and other current assets increased by 11.19 crores. IGST refunds of 12.64 crores were receivable as on 30th September 26. Exports and product mix. Exports continue to be the backbone of our business. During the quarter, Europe contributed 65% of our geographical mix, followed by North America at 17% and South America at 14%. The balance coming from Australia, Asia, and Africa. The diversified geographical presence helps us mitigate regional demand fluctuations. Based on product-based revenue mix, FIBC grew to 66% from 54%, fabrics shrunk to 18% from 20%, Multi-filament remained stable at 9% from 8%. UV master batches, small bags, and geofabrics all remained under 3% in this quarter. From an end-user perspective, our revenues remain well-diversified across food and agriculture, industrial packaging, construction, automotive, and mining, reducing the concentration risk across demand vehicles. Coming to the project's update. Against a total project cost of 106.9 crores, we had incurred 78.86 crores or about 74% up to 20th, October 2026. Some activities have taken longer than planned, mainly because of exceptional heavy rainfall in Kanpur during the monsoons and also machine commissioning issues related to overseas visa regulations. FIBC capacity expansion was updated, the update was given by the Chairman. Non-woven technical textiles, needle-punching machine was received in August 26th, and commissioning of the first line is expected to complete by 15th of November, within our Q3-FI27 target. Civil work was held up initially due to the heavy rainfall and then the late arrival of the suppliers' engineers. The project is slightly delayed, but within our targeted schedule. Role management system and warehousing, the building for this shall be completed between 15th and 30th November. The warehousing for trading division for IOCL has already been completed. On the manufacturing front, we continue to invest in automation, process optimization, infrastructure debottlenecking across our facilities to improve productivity, quality consistency, operation efficiency, and agility in the lead time. Valix Ventures, as we had indicated last quarter, a UK subsidiary regained its profitability regime in Q2-FI27 after a small loss in Q1, supported by customer supplies scheduled after the implementation of the free trade agreement and structural changes that have been undertaken there. Order book and outlook. During Q2-27, the order book and demand was affected by a couple of factors. First, the polymer prices historically remained at the highest levels. At these prices, customers are reducing their inventory levels. Second, the energy crisis in Europe caused by a shortage of oil and gas has driven up power costs and hit industrial activity, particularly the chemical sector in Germany. Europe is the largest market accounting for almost 65% of the geographical mix, and the weakness in the European demand remains our area of concern going forward. The third factor was the early no-weather conditions that affected agriculture output and also fertilizer demand in agriculture-based economies such as Brazil, reducing the demand for bulk packaging in these segments. Fourth, the ocean freight cost remains high and container availability at Kanpur ICD was also affected during this period. This raised the landed cost of our products for overseas buyers and had led some customers to defer purchases. We continue to issue regular market advisories to our customers to enable timely commercial discussions and fair pass-through of cost increases. We do see some easing out on this front. Our diversified customer base across Europe, North America, South America, and markets with long relationships give us resilience during these tough times. Despite lower volumes, our focus on realizations and improved product mix helped us to continue with the profitability. Customers are buying closer to their immediate requirements. Most of our order book continues to be for dispatch within a month, consistent with the demand visibility of 3 to 4 weeks as mentioned earlier. We have seen a slight dip in the average order quantity during this period. Looking ahead, we expect these conditions to persist in the near term and volumes in the quarter may also remain affected. We are monitoring demand extremely closely, particularly in Europe, and remain focused on protecting realizations, managing working capital carefully, and widening our customer base. At the same time, FIBC capacity expansion nears completion, the completion of non-woven facility, and our continued focus on value-added products and new markets. We remain confident about our medium-to-long-come prospects of the business. We are also exploring inorganic growth opportunities, both in India and overseas, to strengthen our market presence, customer base, and product portfolio. While we are actively scouting suitable opportunities, nothing material is visibly present today. We will remain selective and financially disciplined, focusing on acquisitions that create long-term value for our shareholders and fit well into the culture of the organization. With that, we conclude our opening remarks. Thank you once again for joining us today. We would now be happy to take questions.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, you may press star and 1 on the Tashkin 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 questions are assembled.

Participants, you may press star and 1 to ask a question.

First question is from Lanof Agastya Rave from CAO Capital. Please go ahead.

Hello. Am I audible? Yes. Thank you very much for the opportunity. Congratulations on very good numbers. So, especially, I was very positively surprised with the inventory and the receivable numbers. They did not spike disproportionate to the revenue, given what all has happened on the raw materials side. So, the three months during the quarter were all very different, right? The raw material costs were all over the place. So, can you provide some commentary what happened when the prices corrected and then the prices again went up? Uh, I'm, I'm looking at the crude prices here. So I'm assuming that the product prices were also all over the place. Uh, so did you see any particular challenges? Uh, is supply, uh, is there any supply bottleneck in terms of performance? And second, a broader question. So over the next few years, uh, can you get the effective increase in your capacities, uh, across all product lines now in terms of actual numbers, volume numbers?

Yeah, so I'll take the easier one first, which is the capacity expansion. So FIBCs are currently, the capacity is about 18,000 tons, and we plan to move to 24,000 tons over the next five years. Non-woven, the capacity will be around 12,000 tons a year. This capacity will be visible only in the next financial year because half of this capacity is going to come up in this quarter and half of this capacity will come up by the end of the next quarter. On the multifilament side, the yarn business, the capacity is 10,000 tons a year as well. This used to be about 7,000 tons and due to this expansion, this is around 10,000 tons. On the geotextile front, the capacity is around 2,500 to 3,000 tons. On the polymer side, yes, we did see a dip in July when there was surplus of polymer, mainly due to the softening of the war situation at Hormuz and the government regulation on LPG production going away. But then by the time September came, this all started coming back again, as it was the case in end of March. So, yes, you are absolutely right. We have seen extreme volatility during this quarter. And, yes, despite the troubles in the freight and despite the inventory buildup that is there, we have tried to remain extremely disciplined with our inventory. And our long-term relationships with our customers have helped us to keep the receivables in line.

Sir, this volume D-strucking that you talked about in your opening remarks, Uh, to what extent it has already happened to channel inventory, how much of it has gone down by, and if let's say the word resumes, can you please repeat again? Sir, you said that your customers are de-stocking, uh, because of the high prices and anticipate in anticipation of lower prices. So how much of that de-stocking has already happened?

So let's say the peak, I think I have a question, so I'll try to answer it, and then if something is left, then you can please ask. So, I mean, if the capability to destock is, let's say, 100, our understanding is that they've been able to destock by about 40 in the previous quarter, and we are expecting that they would destock by another 30 this quarter.

Okay, okay, okay, okay, understood. So, even after such a large amount of destocking, you have seen reasonably good volume growth, right?

No, volume growth is not visible. Our manufacturing volume has actually gone down.

Okay, okay, okay, okay. I understand that. Okay, okay. So, probably this continues for one more quarter. After that, sir, do you think there will be further? Will they, like, de-stock further? There would be a bare minimum that the channel generally keeps, right, for normal operations.

We are in extreme volatile situations. We do not know what will happen in the beginning of next week. We do not know how the water will escalate. We do not know how long the energy crisis will go. We are unaware of how the winters will go. What is in our control, we are very confident of that. That is consistency and discipline. And we will continue to remain extremely disciplined and consistent.

All right, sir. Thank you very much, sir.

Thank you very much. Obviously, the relationship really comes out during this period. So, our customer relationships have been very strong. We are receiving a record number of customer visits during this period. We have made a record number of customer visits during this period. So, relationship is getting stronger.

Understood, sir. Thank you very much, sir. And thank you for explaining everything, sir. I was missing a couple of points. You clarified everything. Thank you very much, sir. Thank you. All the way, sir.

Thank you.

Participants, you may press star and want to ask the question. Next question is from Lionel Vishwinder Singh from Prudent Equity. Please go ahead. Vishwinder, can you please unmute your line and proceed with your question?

Hi, sir. I'm out.

Yes.

Some debt has gone significantly higher. So, what sort of peak debt are you looking at to end with this year and next year for the CapEx commission?

So, I have not understood the question. Could you be a little louder and clearer, please?

Is it better now? My voice is better now? Sir, our debt is still increased. So, what sort of peak debt are you looking to, you know, have a debt to equity on our books for FI 27 full year and FI 28 for the commission of the CapEx?

I'll just hand it over to CFO to answer the long-term debt, how much it will be, but the short-term debt is basically based on the raw material price increase. And if this remains the pricing at what it is today, we should be increasing our debt on the same number of days worth of revenue and inventory. But on the long-term, CFO is going to answer that.

So, uh, as already, uh, announced in the last quarter that we are going to, uh, introduce a new project in which we are taking the 40 crore rupees of loan, out of which we have already taken near about 27 crore rupees of loan. So, so the peak date will be 40, uh, near about, uh,

40 to 45 crore rupees in the, uh, by the end of this year.

Got it. And, uh, on the expansion part, you mentioned that you had some delays due to monsoon and other construction activities. So, for the commissioning, what sort of top-line growth are we looking at in FI 27 and FI 28, sir?

FI 27 and FI 28 for non-woven are targeted revenues of FI 27.

Can you please repeat, sir?

Your voice over the letter from birth. Non-woven revenue expected in FI 27 and FI 28 is between 100 and 120 crores.

And on the margin side, you mentioned about 14% to 15%. Are we staying on that or are we seeing pressure? No, that's the expectation. And on FIBC, what sort of additional revenue would you be seeing from that segment?

Sorry, I can't understand. Sorry.

So FIBC, the segment, we have capex. How much revenue are we expecting in this year and next year?

So this year, if we talk about manufacturing volume, the expectation is only a minor 5% to 10% increase because the demand continues to be a problem. Next financial year, the expectation is about 20% growth in FIBC manufacturing volume. Revenue growth will definitely be there this year because of the increased prices. But manufacturing volume-wise, we are talking about a 20% growth next year.

Got it. And lastly, on the region-wise, the revenue has been concentrated in the European segment, and we are hearing some pressure in the industrial demand from the continent. So, are you also seeing similar sort of slowdown from your customers, or is it similar as usual? We are seeing a slowdown from our customers in Europe. So, are we sort of diversifying into more regions going ahead, and in majorly winch areas?

Yes, we are continuously exhibiting, and we are meeting people across other regions, and our focus continues to continue to expand the market.

So that remains there. Okay, that will be great. Thank you.

Participants, Gmbhra, Star, and One to ask a question. Next question is from Lionel Sakit Kapoor from Kapoor and Company. Please go ahead.

Thank you for a very exhaustive opening remark. You have captured all the possible points, and also for the press release, that this was also, there was a good change, a very positive change there also, and we hope that for the continuity. Firstly, about the What is the other operating income part? If you could just give me the number that was probably the incentive that we have received out of the 13 crore, which will be a non-recring one.

So, yeah, so 13.11 crores was the other operating part, out of which IOCL is about 0.34 and DFI is about 12.4 and foreign exchange is about 2.24.

Yes, so 12 crore would be the non-recreant number going there.

A portion of it would continue to remain recurring because in Q1 this was completely absent. So this may be considered as a Q1, Q2 average. Going forward, we would believe that 3 to 4 crores of export incentives would remain there.

Three to four crores per quarter will be there?

Yes, yes, yes, yes, yes.

So, sir, easily we can eliminate that 7 to 8 crores from the operating profit number. That is that the PVT number of 21 crores has an exceptional item of 8 to 9 crores that is not non-lickering.

The way I would see it is Q1 plus Q2 is 12.4 crores.

So, yes, six quarters can be eliminated if you are only looking at a quarter result.

That's good. Sir, secondly, when you mentioned about the ad money, the order bookings depleting, especially from the European customers, and now we are coming up with our CapEx for the FIBC. So, if you could just give an outline, how are we then going to sell the expanded capacity and for H2, what kind of incremental volume of FIBC would be there for selling other than what we manufacture today?

Yeah. So, thank you for this important question. I would like to answer this in two ways. One is that, yes, we will be absolutely ready whenever the demand comes back. So we will absolutely be ready when the demand comes back. And the second part of it is that we have to differentiate the factors that we can control and the factors that we cannot control. So global demand today is not in our control, but what is in our control is where we are selling to, and that is why we are expanding our geographies. The moment the polymer prices stabilize and customers start rebuilding inventory, we expect the volumes to recover. Because of our long-standing customer relationships, we are also positioned very well for that. So, in the near term, as I said, the coming quarter, half a quarter, one quarter, two quarter might be affected, but it is also good for the business to build muscle during this period.

That's correct, sir. And sir, as you mentioned to the earlier participant also, that it is very difficult to visualize how things will pan out going ahead because of so many variations. As per your planning or as per your experience, what should be then the reasonable EBITDA margin that we may expect for H2 going forward? But cutting all these degrees of market, R&M, customer demand, what ball pass numbers are we going to do with which there is a little deviation?

See, we are trying to manage our risks to our best abilities. So we would not like to give specific numbers at this stage. Initial months after commissioning of the non-woven also, there will be trials, there will be customer approvals. So, the contribution would come up in the following quarters, and to give a guidance in this volatile environment, I do not think is quite appropriate or judicious at this moment.

Right, sir. But can you give the additional volume for H2 for FIGC that will be forced to commissioning? And it was mentioned that both the machines were retrieved. So, if you could just explain to us the significance of the thing, does it prepone the CAPEX or the commissioning, or what is the significance?

Sorry, could you repeat the second part of it?

Sir, you have mentioned that we have received both the machines for the CAPEX for FIBC.

No, no, no. Non-woven has two major machines. One of them will be commissioned by 15th of November, And the other will be commissioned by middle of February. Okay. FIBC ground floor is already commissioned. First and second floor will be commissioned by end of this month, that is November. But on how much capacity is being able to be utilized is dependent not on our capacity, but on the basis of the demand that is there in the market. So, the moment we see revival in the demand, we shall be able to utilize our capacities better.

Right, sir. I was just referring to the release where you have mentioned under the FIBC that machinery for both phase 1 and phase 2 has been revealed, marking an important milestone in the project.

I will just have a look at that. I will answer this question in the meantime, if there is anything else, then we can answer it.

Correct, sir. I will also then join the team, sir, and once again, sir, thank you for the elaborate discussion that is continuing right now.

Thank you. Participants, you may press star and want to answer questions. Next question is from Lion of Lakshmi and Division Investor. Please go ahead. Lakshmi, sorry, your voice is breaking. Can you please come in a better reception area? Yes.

Your voice is still breaking.

Yes, ma'am.

Yeah. So, my fourth question is, the SAGOMA JV has commenced commercial production and sales. So, what revenue has it generated in Q2? And what is the current capacity utilization? And also, when do you expect it to reach operating JQV?

So, in Q2, it has done 38 lakhs.

In Q1, it did 22 lakhs. And in the next financial year, our target is to do between 10 to 12 crores. Capacity utilization is still very low. We continue to get extremely good feedback from the market, and approvals are going on. Um, it's a high gestation project. It takes time, uh, but directionally it is moving absolutely in the right direction and we are happy with the direction and the speed both.

And so what level of annual revenue and EBITDA levels can it potentially contribute that for utilization?

10 to 12 crore rupees next year is what we plan to do with the current capital, uh, investment. It can go up to 25 to 30 crores, but I explained in the previous quarter call as well that the capex required for this is extremely low. So, that will not be bottleneck. It is market acceptance and market demand that will drive this product forward.

Okay, so my next question is that the company has indicated a fixed FIBC capacity addition of up to 6,000 tons over the next 5 years. So, how much additional capacity is now operational and the current utilization of the expanded capacity? And also, what incremental revenue can it generate without further major capex?

I think I answered this in the last couple of questions.

Okay, sir. And one more question. Could you throw some light on how we are working on increasing the share of higher value-added products and EBITDA per ton? Since I see that the EBITDA per 10 has increased wire-wise over the last few years.

Yeah, so our percentage share of manufactured products went up from 54% to 66% in FIBCs in this quarter. So FIBCs is our target. We will continue to increase FIBC volume and that is positionally our aim and also with the non-moven addition, it is all higher value added.

So the entire capital allocation and management allocation is on higher value added products.

Okay, sir. Thank you for the opportunity. That's it for myself. All of us. Thank you.

Thank you. Participants, you may press star and one to answer questions. As there are no further questions, I would like to hand the conference or to the management for closing comments.

Thank you, everyone, for joining the call and being patient with us. We invite you to our plant. Anybody can get in touch with Captify to organize a plant visit. Thank you.

Thank you very much. On behalf of Akanpur Plastic Accumetant, that concludes this conference. Thank you for joining us and you may now disconnect your eyes. Thank you.