Earnings Call Transcript - XNSE:ONIDA 2026-11-04

Operator

Ladies and gentlemen, good day and welcome to the conference call of Onida Electronics Limited, arranged by Concept Investor Relations to discuss its Q2 and H1 F527 results. Before we begin, let me mention a short costary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties. which would cause actual results to differ from those anticipated. Such statements are made on management's beliefs as well as assumptions made by the information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and the financial quarter under review. Let me now introduce you to the management. We have with us today, Mr. Kunjan Srivastava, Managing Director and CEO, Mr. Manish Desai, Chief Financial Officer. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kunjan Sivaswa, Managing Director and CEO. Thank you, and over to you, Mr. Sivas.

Kunjan Srivastava, CEO

Welcome to Oneida Electronics Q2 and H1 financial year 27 earnings call. We are at an exciting stage in Oneida's journey, building on the legacy of a brand that Indian households have trusted for over four decades. Earlier this year, we began the next phase of our transformation through Oneida Rewired. This strategic initiative aims to reshape the brand and make it more More relevant to today's consumers. It is guided by four key pillars, affordable premiumization, innovation-led product development, superior customer experience, and sustainable, profitable growth. For our customers, this means being closer to them and serving them better. We are in the process of expanding our distribution network, and we have taken several initiatives towards this. We held Oneida rewired dealer meets across regions, engaging both existing and new channel partners. To take the brand beyond urban markets, we have entered also in an exclusive tie-up with a rural distribution partner. During this period, we also launched our Oneida Smart Hub exclusive brand outlets. Four of these outlets are now operational, and we are working to expand this network further. These outlets strengthen our own retail presence and improve our market penetration in tier 2 and 3 markets. Through these efforts, we aim to deepen our presence in markets where the Oneida brand has historically enjoyed strong recall. On the product front, we are building a more aspirational product portfolio focused on larger, smarter, and feature-rich offerings, and we are shortening our development cycles. to bring new products to market faster. In televisions, we launched our flagship 100-inch QD mini-LED television which strengthens our premium large screen range. In air conditioners, we have just finalized our range for the upcoming season. And in washing machines, we are revamping our portfolio to meet evolving consumer needs. I am pleased to share that these initiatives are already showing results. In Q2 this financial year, Our air conditioner business grew 239% year-on-year. Our LED TV business grew 52% year-on-year. And according to sell-out data, Oneida Air Conditioners gained market share in the e-commerce channel for the month of September 2026. Across channels, our e-commerce business grew 169% year-on-year, led by air conditioners and washing machines. On the product cost front, Input cost rose sharply during the first six months of the financial year. Copper, aluminum, steel, plastics, and memory chips all became more expensive. Brands across the industry took multiple rounds of price increases. However, competitive intensity limited offset of the input cost, so margins remained under pressure across the sector. In television, higher panel and other components led to steep price increases in the entry segment, which weighed on optics. The premium and large screen segment continued to see demand. Premiumization remains a key structural driver for the industry. Consumers are moving towards higher capacity washing machines, larger televisions, and energy efficient air conditioners, supported by consumer financing. The transition to the new... The energy efficiency norms in air conditioners is largely complete. Channel partners have built up inventory ahead of the festive season, which shows confidence in the demand outlook. Over the long term, the penetration of air conditioners and washing machines in India remains low, giving the industry a strong runway for growth in the years ahead. Moving on to the financial highlights for Q2 and H1, financial year 26-27. In Q2, the Brand business revenue grew 65% year-on-year to Rs. 150.4 crores, and business margin was 17.7%, an increase of 470 basis points over previous year, keeping aside one off. Total revenue from operations stood at Rs. 198.6 crores, a growth of 22% year-on-year. For the first half, H1 financial year 27, brand business revenue grew 48% year-on-year to Rs. 325.7 crores, and business margin was 17.8%, compared with 15% in the same period last year, setting aside one off in Q2. Total revenue from operations stood at Rs. 381.1 crores, a growth of 25% year-on-year. As we enter the second half of the year, we are optimistic. Our consumer sentiment has been encouraging, and our refreshed product range, wider distribution reach, and growing presence on e-commerce leave us well-placed to make the most of the season. At the same time, we remain cautious on input costs. The situation in West Asia is still unresolved and continues to push up commodity and component prices across the industry. We are watching these developments closely. To protect our margins, we will rely Try on calibrated pricing, cost optimization, and a better product mix. With that, we would now be very happy to take your question.

Operator

Thank you. We will now begin the question. If you wish us to ask a question, you may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we...

Aditya, Analyst — Investments

Thanks for the opportunity. Congratulations, Gunjan, on delivering strong growth numbers year on year. Question related to one is on service center expansion, you alluded that. Service Center. Transformation journey, and how many are operating? Before and by end of next year, can you quantify with numbers as well?

Kunjan Srivastava, CEO

Thank you for the question. So, first of all, from a leadership perspective for customer service, which as you rightly pointed out, is a very key driver of our transformation journey, we have a new leader in customer service by the name of Mr. Ganesh. He joined us about a couple of months ago, and he is essentially leading this improvement and transformation process. As regards your question about how many service centers we have, I think it's 425. That's the number which we have currently. And in the next three to four months leading up to this financial year, we would be essentially consolidating because, as we already highlighted, we've more or less reached where we wanted to be from a distribution and service expansion as far as this financial year is concerned, and we now want to consolidate our productivity from this reach.

Aditya, Analyst — Investments

And, okay, for this year, we are good. And on the distribution also, you alluded that we have to expand from 4,000 outlets to 8,000 outlets. So, all these things are also done for Till Q4, and what are the targets for next year?

Kunjan Srivastava, CEO

So, it is in the process. We have largely achieved what we wanted to for the year, but still, there is a little bit to go. I have already indicated, I think, in the presentation slides, the number of expansion we have had in terms of new distributors and new dealers. We will definitely have new targets when we enter into the next financial year, because our overall reach expansion number is much more than what we wanted to achieve this year.

Aditya, Analyst — Investments

So for this year, at what point did we reach, 4,000 or 6,000? What is the number for distribution Thank you.

Kunjan Srivastava, CEO

327 direct dealers. Each distributor would have added a number of sub-dealers, which is what ultimately end up towards our expanded reach. Don't have an exact number to share with you at this point in time, but we are fairly, so we wanted to add 4,000 outlets. You would have added more than 50% of that in the first six months.

Aditya, Analyst — Investments

Okay, sounds good. And lastly, I have this question. Since in this consumer space, each Every time we see a new... So, given your experience at Philips & Bosch, what gives you the confidence that whatever the playbook we are trying...

Kunjan Srivastava, CEO

I have a very positive recollection and you will very soon also see our approach towards how we want to strengthen the brand going further. So I think that for us is an absolute strength which no one else can match. Any brand entering new or fresh in this market or this industry will struggle to make itself known or familiar or trusted by the consumers. And we also have the benefit of the fact that being in India for so many years, and being an Indian brand, we understand the needs and requirements and the problems of consumers in India, and we are, therefore, in a better position to make propositions which meet those.

Aditya, Analyst — Investments

Understood. Lastly, on numbers, I have only one question. For FY26, if I see right, we are currently trying to make it a bit... I mean, we are not yet there. But it looks like FI26, we are trying to put in all the places where we want to go. Is it safe to assume that FI27, we will block much stronger growth and with all EBITDA profitability? Because as investors, we also care about profitability. So can you also share that for FI27, how investors should modulate or how we should think about Oneida?

Kunjan Srivastava, CEO

We are absolutely thinking in the same lines as you said.

Manish Desai, CFO

And Aditya, you have to just keep in mind that the first click on the button to have a double digit revenue growth. So that's what we achieved or we are on a right path to do that. In terms of the profitability, yes, the lot of initiatives have been taken internally. And what you are seeing in the results consists of some of the old issues also which have been taken care of. And going forward, we are hopeful that we will be able to sustain or be able to improve upon it on the profitability where we are.

Aditya, Analyst — Investments

So, FY27 as a whole, we should be a bit of positive. That is the safe to assume.

Manish Desai, CFO

So, Aditya, if I would have been astrologer, I would have given you the firm answer. But as I said, we are definitely pushing for it. And that's what our internal objective and in line with our internal projection as well.

Aditya, Analyst — Investments

Okay, sir. I'll join back. Thank you. All the best. Great afternoon.

Operator

A reminder to all the participants that you have a star and one to ask a question. Next question comes from the line of Varun Tandwani with Eternal Capital. Please go.

Varun Tandwani, Analyst — Eternal Capital

Hi, thank you for the opportunity. So, I have a couple of questions. So, after the VRS at the WADA plant, what is the plan for in-house manufacturing compared with the contract manufacturing, and how much will the change actually save each year?

Manish Desai, CFO

If I put the category-wise, currently the AC and LED are largely on a contract basis, but having said that, the designs, the innovations, any technical improvements are being planned along with the contract assets. So we also have equal say in terms of the quality, in terms of the needs of the consumers to drive any new product launches. As far as washing machine is concerned, we have a mix, we have outsource as well as on the manufacturing front as well in our rookie plant. We will look from the going forward, our rookie plant will go into some kind of strengthening in terms of the manufacturing business, but largely till time we achieve on a scale, probably we will continue to go on a contract basis. However, with the complete control in terms of the products, components and closely working with the OEM to meet the end objectives at both the end.

Varun Tandwani, Analyst — Eternal Capital

Okay. So, and my next question is on volumes. So, how did the volumes actually perform on e-commerce compared to the offline retail in H1? And which channel do you expect to drive volume growth in the second half?

Kunjan Srivastava, CEO

Basically, in e-commerce, we had a volume growth as far as air-conditioners are concerned, a very handsome volume growth, which was higher than what we could achieve in the offline channel. We are also trying to make sure that our offering, our entire complete offering in television and washing machine also goes complete as far as e-commerce channels are concerned, and that's something we should be able to see in coming months.

Varun Tandwani, Analyst — Eternal Capital

Okay, sir. Yeah, thank you. I'll get back in the queue.

Operator

Thank you. The next question comes from the line of Heather Kachwala with Yes Securities. Please go ahead.

Heather Kachwala, Analyst — Yes Securities

Hello. Am I audible? Hello. Happy Diwali, sir, and happy Diwali to the Oneida team. I would like to ask about the price hikes. So what magnitude of price hikes have you taken? Could you just quantify that?

Manish Desai, CFO

Chief, it is difficult to quantify because the price increased two places over a period of time. And it varies across the product categories. But the thing is that the input cost escalation was much on a higher side. Fortunately, we did carry out some kind of technical sourcing in the beginning of the year. Delft helped us to protect our margin. And similar kind of approach we are following it when the opportunity arises was to protect our margin in this regard. So quantification will be difficult either given that the categories and the increase which you have taken over a period of time. And a very happy revalu to you, too, Haidar.

Heather Kachwala, Analyst — Yes Securities

Yes, sir. Thank you. So, you have taken price eggs, but you mentioned that you have not passed on the entire magnitude of price eggs. So, how much more would be remaining to offset the RM inflation?

Manish Desai, CFO

See, Haidar, the RM inflation itself is not getting fixed or not getting... So, we are taking those kind of calibrated call. And furthermore, you have to understand that we cannot increase price on a monthly basis because our channel partner also requires some kind of visibility in terms of how they like to push their product to the end consumers. And accordingly, it has been balanced out, but you will still find, at least in some of the categories, it will have impact of around 200 to 400 business points, leaving a side of passing out this benefit or the entire cost escalation to the channel partners So, to the end consumers.

Heather Kachwala, Analyst — Yes Securities

Okay, understood. And last two questions from my side. How do you see yourself managing margins? Because RM inflation, maybe the war might end and oil might normalize, but copper has structurally trended higher and it is here to stay. It is a structural story. So how are you planning on managing margins, especially with copper being such an important raw material for us? And second is, how do you see the Diwali outlook, the demand outlook in the coming festive season?

Kunjan Srivastava, CEO

I hope we remain very positive. The large sort of kick in terms of sellout has not happened yet, but we have seen over the last two or three weeks that there has been sustained better buying compared to the weeks before. So still Santeras is a couple of days away, and as we know mostly the Diwali peak sellout has now kind of constrained itself to those weeks or so. So we still remain confident. As far as your other question was about Further price hike?

Manish Desai, CFO

No. In terms of the input costs, we work closely with our OEM partners, get periodical insight into it, and when we find an opportunity to, as I said, tactical sourcing or locking for ourselves on a committed volume, we take that opportunity to ensure that we remain, although with the limited resources, we're limited within the tight cost kind of compliance and cost kind of visibility.

Kunjan Srivastava, CEO

We also work on our volume mix and our model mix, et cetera, either.

Operator

Okay, understood. Thank you, sir. Thank you. Next question comes from the line of Kaushik with HIR Association. Please go ahead.

Kaushik, Analyst — HIA Association

Yeah, good evening, good evening. So, my question is regarding your performance-based ESOPs. So, regarding the 2.5 lakh ESOPs pool, could you clarify the vesting structure? So, like, for, uh, for French one, like, uh, uh, A cumulative EBITDA of 100 crores over three years. A resource allocated after three years or as soon as the target is achieved. Like where EBITDA target is of 400 crores over the five years. What is the allocation between these two?

Manish Desai, CFO

Kaushik, in fact, the ESOPs have been given to a few selected employees. In terms of the target, yes, along with the targets, the equal focus to be given in terms of the efforts being done by the team as well, from where we were and from where we are. And rest assured, most of the ESOPs are on a performance based and it has been fixed and it will be, or it will be the wasting also will be depending upon the NRC approvals, but largely being on the performance. We cannot quantify as such, Kaushik, more of internal compliance documents. But as I said, it will be a performance driven. We don't want to spell out the target as well. More focus upon how are we improving upon from where we have, whether new management has stepped in, both in terms of revenue, in terms of the profitability, in terms of the other parameters as well, which have been given appropriate weightage when the performance criteria have been defined for wasting rights to the EU. Thank you.

Kaushik, Analyst — HIA Association

Okay. So, my second question is, like, at what revenue scale do you expect Oneida to first achieve EBITDA positive? Given the investments in project build-outs and other operating expenses, would you help quantify the key cost components and indicate from which quarter we can expect or from which financial year we can expect positive EBITDA? And more importantly, like... Once we are a bit positive, like, Thank you very much.

Manish Desai, CFO

One thing is about a level at which we do EBITDA break-even. You appreciate that the gross margin drives the numbers below it. Second thing is we have to, as a management, would like to go more of variable kind of expenditure linked to the volume so that we can minimize those kind of outflow. Considering our raw metal cost and volatility kind of market today, we are hopeful that if the margin, what we are earning currently, if that continues, probably at the level of 250 to 260, broad numbers I am giving it, we should be able to EBITDA break-even. Having said that, as a part of the management process, we have initiated on various cost optimization projects. They have been driven individually by the persons with the complete ownership and responsibility that should further give a leeway to us to play on, to mitigate against any volatility in the gross margin or any disruption in the gross margin, as well as to mitigate some of the expenditure which may come as a one-time outlay. On your other part, that's it. So that's where we stand in terms of the cost optimization as well as the cost margin, the procurement level. As far as the sustainability is concerned, yes, once we click on this turnover, our objective for the next two years is to outright the market growth because we are moving on, I would say, reasonably a lower base, and that's where we're expecting to register a growth higher than the market growth that should enable us to go on a sustainable front, and the initiatives what we are referring to will be on a continuous basis and will not leave it once we – We will not become complacent on achieving some of the thresholds.

Kaushik, Analyst — HIA Association

Yeah, so, like, my last question is, like, how are the sale numbers for last month, like, October, the Shara month, and how is the feedback, like, since we are rebuilding the whole company, our sales kind of thing, so how is the customer feedback, or did you get any feedback, like?

Kunjan Srivastava, CEO

Yeah, we're getting continuous feedback, and, you know, the feedback has been very positive across. And that gives us the optimism and that you can also see translated in the first six months of the growth which we are achieving, which is much higher than the market growth. So the feedback is positive. The month of October was also good. We were able to grow in line with how we have been in the past and that's what we are expecting in the subsequent months as well.

Kaushik, Analyst — HIA Association

Yeah, okay. Thank you, all of us.

Operator

Thank you. Next question comes from the line of Yeshwant Nandan with Sample Investing. Please go ahead.

Yeshwant Nandan, Analyst — Sample Investing

I'm out of it. These are good set of numbers from the revenue perspective. So I just want to understand from the management perspective, right? See, when it is a good brand, I remember this from my childhood, even from my father remembers it, right? So this brand, I think the previous management or the promoters have tried to revive this brand a few times in past decade. So I just want to understand from the mindset perspective. What are we trying different this time so that we are on a full throttle, or at least we are thinking that we are on a full throttle and we won't back down?

Kunjan Srivastava, CEO

There are several aspects of, you know, the execution. The brand is one aspect of it. And clearly, we are wanting to contemporize the brand without losing the essence of the brand. So, as you know, Oneida brand and the devil have been inseparable and they will continue to be so. We are also working on the sort of contemporary positioning of the brand Oneida, which you will see being revealed in the coming months. That's from a brand aspect. But what is equally important is how we deliver that brand promise to the consumer, and that comes through our product innovation, that comes through our service to the consumer, and that comes through our channel partners as well. All of these things we are trying to improve as we move along, so that whatever we understand from the consumer and our brand promise, we are able to bring it alive.

Yeshwant Nandan, Analyst — Sample Investing

Sure. I think my second question has a continuation for your answer, right? So, as we all know, these consumer brands, we need to be ahead of marketing, we need to be in forefront of a lot of things. Whereas, in these kind of consumer segments, right, from my memory, what I can recollect is, whichever brands try to change, Or try to include that dopamine rush to consumers, right? Those are the kind of brands that sustain for... for decades of a year. We are trying to have or place something to our consumer table or to the distributor table that only Oneida can do. Otherwise, it will always be a volume game. So, we need to have some kind of this thing. As you said in your answer itself, One thing to the consumer table also, right? What are we thinking in those lines?

Kunjan Srivastava, CEO

Now, very important question, Yashwant, and let me give you a couple of sentences about that. You are absolutely right. You know, we need to be very sharp in understanding what consumers' pain points are. Because even though you might think that every brand of television or air conditioner is in the market, there are still consumers who are not very happy with what they are getting. And it's important to understand that. And because we are an Indian brand, because we have a 45-year legacy and heritage of India, We understand Indian consumers and we are spending a lot of time, energy and effort in being very close to our consumers. Therefore, it becomes possible for us to understand that and convert that into offerings, propositions, benefits, features which will address that. So that is something which is very much part of our innovation pipeline and journey going forward. I would say that maybe in the last few years we have lost that edge and we are trying to bring that back in a strong manner. So that is point number one. And obviously, all that has to be translated through the channel partners to the consumer. And as far as channel partners are concerned, there it is more about how easy it is for them to do business with us. And from the earnings perspective, do they think that Unida is a profitable partner for them? That is something which we have to always keep in mind.

Yeshwant Nandan, Analyst — Sample Investing

Yes, thank you, thank you. So, just one request, please. The thing is, so you said, you just mentioned that we are continuously, actively engaged with consumer to know the pain points as well. I know this is very early to say, but maybe in the future conference call, like, can we come up with a few use cases which has been tried, which was a pain point to consumer, which we solved because of this? Use case, our sales have improved, or something like that which can be disclosed, if possible, in the call.

Operator

A reminder to all the participants that you may have a star and want to ask a question. Next question comes from the line of Hardik Cheda with Lark. Please go ahead.

Hardik Cheda, Analyst — Lark

Sir, I just wanted to know with regards to the extended summer, how are you seeing the AC demand? Traditionally, October to December, it's a low demand, but this year, because of the intense heat wave, are you seeing what is the outlook on the AC demand? And secondly, sir, Like, how we started a year ago, we were expecting exponential growth. That's not coming. Growth is coming, but at a very slow pace. So, when could we see exponential growth, like a sharp uptick, or maybe, you know, something which really kicks in?

Kunjan Srivastava, CEO

So, your first question regarding AC demand. AC demand in North and East is still not there to the same sort of extent, because it's still winter. The summer effect you see mostly in the west and the south. So yes, we do see a pickup in demand as far as these two regions are concerned, but not in the north and the east. So we are also trying to maximize whatever we can from our side. As regarding your comment on the growth, we believe that, you know, a 65% growth in Q2 is pretty much, especially given the fact that the market has not at all grown in such a manner, that we are outpacing the market by a lot, and we would like to continue to do so. Okay, and that is exactly what our efforts are through the brand, through the products, and through our distribution and service expansion.

Hardik Cheda, Analyst — Lark

Okay, and another thing, any other JV plans or anything with the Chinese company or any other new product launches that we are planning or any other big tie-ups or something like that? Because earlier we had hinted at plans to consider maybe compressor manufacturing or a few other things or going for PLI.

Kunjan Srivastava, CEO

I'm not aware of some of maybe what has been communicated in the very sort of past, but as far as the last six to seven months are concerned, we have never outlined or communicated any of that topic at all. Neither do we have any plans of any tie-up with any other brand or Chinese partner, etc. We have no such plan. We are definitely exploring new spaces, but that's from our side.

Operator

Thank you. Mr. Cheda, please rejoin the Q for more questions. Next question comes on the line of Aditya with Java Investments. Please go ahead.

Aditya, Analyst — Investments

Thanks for the follow-up. I have just one question. In the quarterly numbers, you see there is a branded and OEM revenue also. So, is this a past order book because we alluded that we don't want to do OEM business? And it is again dragging the gross muscles. Can you quantify if it is the past orders or how long this will keep running?

Manish Desai, CFO

Because of the bus. We have decided collectively that we will be slowing down this OEM business and management will focus more upon the brand business because it is giving the promising kind of turnover as well as requires more focus on it. Having said that, the margin trajectories are altogether different. In the OEM business, the margin remains at our low single digit and brand margin, we anyway put our investor presentation as well running into a high double digit.

Aditya, Analyst — Investments

But how long this OEM business will keep on running? Because that is also the focus we have to keep, right? I mean, when we are totally focused on brand. Basically, one year, we'll try to service them and we'll just close that business. Just the previous participant asked related to ESOPs. So these ESOPs were allocated to only Gunjan, right, not all the employees. Is my understanding, right, firstly?

Manish Desai, CFO

Along with Mr. Gunchan, as a part of the simulator shifting.

Aditya, Analyst — Investments

But that specific, whatever the attribute numbers were, those 2.05... Just on the percentage-wise, what is the tranche 1, because tranche 1 target is very easy to achieve, and tranche 2 is very difficult to achieve.

Manish Desai, CFO

What is the percentage-wise? the targets are easily achievable. Otherwise, it would not have been linked to such a stringent norms. We would not like to quantify as such. It's more of a compliance matter. But that's where we want to clarify answers.

Operator

Okay, sir. All of it. Thanks.

Manish Desai, CFO

Thank you.

Operator

Thank you. Next question comes from the line of Piyush Khotadi, an individual investor. Please go ahead.

Piyush Khotadi, Analyst — Individual Investor

Hello. Hi, sir. Can you hear me?

Operator

Yeah.

Kunjan Srivastava, CEO

Yeah. Hi, Piyush.

Piyush Khotadi, Analyst — Individual Investor

Good evening, Jay. So, my first question is regarding institutional cooling. So, is there any development on that front during the quarter, and if you can quantify the same? And second question is regarding WADA land parcel. So, that one-time labor settlement has been done, so will this pay way to the redevelopment or development of the WADA land? I want to understand that. And was this a hurdle for, you know, monetizing or developing the property at WADA?

Manish Desai, CFO

So, as far as the institutional sale is concerned, are you referring to a commercial kind of AC?

Piyush Khotadi, Analyst — Individual Investor

Yes, sir. So, in the last call, you, you know, you threw some light on this segment being the one of the pillars for the growth.

Manish Desai, CFO

Oh, no, this is a B2B we were referring to and not the asset or commercial AC. So, yeah, institution, we have initiated the, I would say, we made a good progress in this last quarter. The leads are coming into it and now the leads will be successfully converted into the demand and you will find that this vertical started contributing maybe initially in this year in a low single digit but has a good potential as you move forward. As far as the WADA is concerned, Piyush, we still, we just completed our VRS program, that too on a partial manner. As far as the development is concerned, there are many options available to the company. We will certainly evaluate in the best interest of the company to ensure it results into benefit to all stakeholders.

Piyush Khotadi, Analyst — Individual Investor

How much saving will that one-time settlement generate annually?

Manish Desai, CFO

So, as you know, we have started discontinuing or reducing our operations in WADA. It will not generate a significant saving as such, but the focus will be more in terms of how we look into it as a property as well as an asset for the future purpose of use.

Piyush Khotadi, Analyst — Individual Investor

Okay, sir. Thank you.

Operator

A reminder to all the participants that you may pass star and want to ask a question. Next question comes from the line of Nishi Vyas with Fin Optical. Please go ahead.

Nishi Vyas, Analyst — Fin Optical

Hello. Thank you for the opportunity. So, I just wanted to understand how many new distributors and dealers have we added in H1?

Kunjan Srivastava, CEO

So, we've added 57 distributors and about 120 odd dealers. These are direct dealers. Each distributor would have also added many sub-dealers under them.

Nishi Vyas, Analyst — Fin Optical

Okay. I also just wanted to understand how do we plan to expand, you know, our reach into the Tier 2 and Tier 3 markets?

Kunjan Srivastava, CEO

So, we have multiple approaches, Nishi. One of them is through distributors. So, as I said, when we appoint new distributors, we are largely looking at Tier 2, Tier 3 markets. Then we also have entered into, as I mentioned already in the opening remarks, into a tie-up with a rural distribution partner who is going to help us penetrate into even further down. So that's the second route. And we are also looking at some exclusive brand outlets as well through a franchisee model where we can have Onida Smart Hub stores opening up. These are three or four ways in which we are trying to penetrate into the Tier 2, Tier 3 markets.

Nishi Vyas, Analyst — Fin Optical

So, I just wanted to understand, so how is the revenue split across the general and modern trade and e-commerce?

Kunjan Srivastava, CEO

So, e-commerce for us is in the region of about close to 8 to 10 percent of our revenue so far. Market contribution of e-commerce is slightly higher, and we are working towards improving our share as well.

Nishi Vyas, Analyst — Fin Optical

All right. That's it from my side. Thank you, and happy Diwali.

Kunjan Srivastava, CEO

Thank you, and happy Diwali to you too.

Operator

Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question and answer session. I now hand the conference over to the management for closing comments.

Kunjan Srivastava, CEO

Thank you all for joining us today. With Diwali around the corner and the wedding season to follow, we are optimistic about demand, our refreshed portfolio and wider reach. They put us in a good position for the season. At the same time, we remain cautious on input costs, given that the situation in West Asia is far from resolved, and we keep protecting our margins through calibrated pricing and cost discipline. Thank you once again and wish you and your family very happy Diwali. Happy delivery to all of you. Thank you.

Operator

Thank you. On behalf of Onida Electronics Limited, that concludes this conference. Thank you for joining us. You may now listen to your lines.