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7/Govt/SE/2024-25/0073
19th November, 2024

National Stock Exchange of India BSE Limited

Limited Exchange Plaza, 5th Floor, Department of Corporate Service
Plot No. C/1, G Block, Bandra-Kurla Phiroze Jeejeebhoy Towers
Complex, Bandra (East), 25th Floor, Dalal Street
Mumbai 400 051 Mumbai - 400 001
Trading Symbol: PAKKA Scrip Code: 516030

Sub: Transcript of Investors Conference Call of 2nd quarter and half year ended on
30th September, 2024, held on Wednesday, 13th November, 2024 at 10:30 am (IST)
under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015, we hereby submit the Transcript of Investors Conference Call
conducted on Wednesday, 13th November, 2024 at 10:30 am (IST) to discuss the
Company’s performance for the 2nd quarter and half year ended on 30th September, 2024.

Kindly take the above information on record. The transcript attached is also available on
the website of the Company [Link]

Kindly bring it to the notice of all concerned.

Thanking you,

Yours faithfully,
for Pakka Limited
Sachin Digitally signed by
Sachin Kumar
Kumar Srivastava
Date: 2024.11.19
Srivastava [Link] +05'30'
Sachin Kumar Srivastava
Company Secretary & Legal Head

Encl: As above
 Page 2 of 22

Transcribed Investor Call - Pakka Limited - Q2 FY25 Earnings

November 13, 2024, 10:30 AM
Duration: 1h 16m 12s
0:05 Ved Krishna: Sachin, can you mute everyone?
0:06 Sachin Srivastava: Yes, yes.
0:07 mukesh sehgal: (Audio unclear)
0:20 Pranay Pasricha: Good morning, everyone. Welcome to the investor meet for
the Q2 of financial year 25 earnings call.
0:29 Sonia Keswani: (Audio unclear)
0:33 Pranay Pasricha: I request everyone to please keep your mic on mute so that
we do not have disturbance in between. I'd like to introduce the team, the leadership
team from Pakka Limited. We have Mr. Ved Krishna, who is leading the group and
he's the Vice Chairman of the company.
0:49 Sanyam Jain: (Audio unclear)
0:56 Pranay Pasricha: We have Mr. Jagdeep Hira, who is the India business head
and he's the Managing Director of the company. We have Satish ChamyVelumani.
He's leading the innovations, the innovations part of the company and also working
in the US for US sales. We have Mrs. Neetika Suryawanshi. She is the finance lead
and India CFO. And we have Sachin, Sachin Srivastava, who's the Company
Secretary. I would also like to introduce Mr. Gautam Ghosh, who is the Executive
Director and also leading the HR in India. And Mr. Rolando Yon, who has joined us in
Pakka Guatemala as the Group CFO. So welcome everyone to the call.
1:52 Sonia Keswani: (Audio unclear)
1:55 Pranay Pasricha: I would like to hand over, I'd like to start the presentation
now.
2:03 Sachin Srivastava: Before starting the presentation, I request Rolando Yon to
give a brief introduction of himself.
2:12 Rolando Yon: Thank you Sachin. Hi, good morning. My name is Rolando Yon.
As mentioned, I am based out of Guatemala. Over 25 years of experience in
multinational, national companies, and over 15...
2:33 Sanyam Jain: (Audio unclear)
2:42 Satish ChamyVelumani: Rolando, you're on mute.
2:46 Ved Krishna: I think Sachin managed to mute everyone.
2:51 Rolando Yon: (Chuckles) Thank you. I don't know until so I'll start again.
2:57 Akash Jain: (Audio unclear)
 Page 3 of 22

3:01 Rolando Yon: I'll start again. So good morning. My name is Rolando Yon. As
mentioned, I'm based out of Guatemala. I have a degree in Finance and Economics
from Suffolk University and just finished a Master's degree in Management from
Harvard University. I have worked in investment banking out of the US. And after
that, I went into corporate finance, what I've been doing for the last 20 years and last
15 years as CFO of multinational companies. And I just recently joined Pakka around
three months ago, and it's a pleasure to be here and looking forward to this
interaction. Thank you.
3:59 Pranay Pasricha: Ved, you want to open the call and then we can start the
presentation.
4:06 Ved Krishna: Yes, thank you so much. Thank you all, as always, for joining in.
It's a pleasure to get your questions and your guidance. We'll keep ours as short as
we can so that we can jump into your ideas. Yeah, back to you, Pranay. Let's get
going.
4:11 Seven Islands: (Audio unclear)
4:28 Pranay Pasricha: So is my screen visible?
4:34 Ved Krishna: Yes.
4:36 Pranay Pasricha: Okay. So just for the benefit of the new investors who have
joined us, we'll just start with a short company video which outlines our vision.
(Company Video Plays - 4:40 - 7:02)
7:03 Pranay Pasricha: So I'd like to hand it over to Jagdeep for India business
performance. So over to you.
7:13 Jagdeep Hira: Thank you Pranay. Nice video. Namaste all. I would like to take
you through the India business performance for Q2. Yes Pranay. Pranay, can we
move the slide? Happy to share. This is fourth year in a line we have been awarded
Great Place to Work by Great Place to Work systems. This is the third certification in
four years we have received. And this is we stand within top 20 in the mid-segment
manufacturing industries. Next Pranay, keep moving. Again, as all values define the
diversity as well, one of the core values is diversity, and we also have been certified
as a place for most preferred workplace for the women who are working with us. And
we also take a leap in hiring and inducting new energies, new set of skills, especially
for the women and disabled persons. On the key highlights for the quarter, the
productivity. So there's a 9% growth, quarter-on-quarter basis, from 13,600 tons to
15, from 12,500 tons to 13.6 K tons. And new products in the molded have been
launched: beverage cups, 4-inch Dona, and 3CP. So this happened during the
quarter. On the ecological front, footprints, we have surpassed highest recovery ever,
which is operating at 95.5. So we were at around 95%. And this is sort of, in similar
industries, we are sort of setting a benchmark for ourselves to cross those
benchmarks in the coming days. On the financials, export volumes, as the market is
pretty low over two quarters, so we are more inclined towards moving to exports. In
Q2, we have done around 35% of exports over Q1, which was 28% of the total
volume. Yeah, Pranay. So these are the three products. I think you might have
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encountered with these three products while using the compostable delivery, sorry,
the QSRs or at some launches. So beverage cup, 4-inch Dona, and 3CP trays have
been launched, natural trays particularly. On the business financial update, top line is
16% higher than quarter-on-quarter basis and 8% higher from similar same quarter
last year. On the bottom line, it's 36% higher from Q1 and 80% higher from Q2 of last
year. So on segment wise results, on the pulp and paper side, which is wrap and
carry, we are 20%, 20% higher than last quarter and around 28% higher on the PBT.
So this has been key focus for us over years, and the team is working to build up the
market, the customer base. Though the revenue was lesser by 5% just because we
had some planned shut-in in the molded segment and support functions, but the PBT
has been higher by 1.5x over Q1 of this financial year, which is 7.5 lakhs. So taking
you through for what we are trying to do. We have been trying to expand our market
on the global landscape. The Middle East partners have been onboarding, Australia
is underway, so we are moving more on the molded side more and more on global
landscape, which is Southeast Asia and Australia. Both the partners are key
resource, would be key resource for us, for taking the much bigger jump on the
revenue generation and bottom line. Again, the products, we are, we have launched
three products in Q2, but we are really focused on launching new designs of product,
which the innovation team will let you through. And then on the domestics side also,
we were operating in tier-one cities, metros majorly. Now we are expanding our
territories to tier-two cities as well. We have appointed resellers over there. So the
volume seems to be going good in the coming times. On the wrap and carry, as we
have taken it from 28% to 35%, six new customers have been onboarded in exports,
and we continue to increase volumes for exports. Good news on the Jagriti project.
So though it happened in October, this is the main crux of taking any project, any
greenfield or brownfield project forward. So there's open hearing, taking account of
all the nearing surrounding, surrounding people, villages. So we have done that open
hearing, which is public hearing by the Pollution Board and by the administration,
which has been okayed by both of the communities and the papers have been
moved to MOEF for the final letter movement. Again on the Jagriti project which we
are investing heavily, so the backend which is water treatment section has already
been installed to handle the upgraded production coming up with Jagriti. These are
the glimpses of what we are trying to do. I'll hand over to Satish for what we are
trying to do on the innovation side. Thank you.
14:18 Satish ChamyVelumani: Thank you Jagdeep. So last month, the focus has
been predominantly on the delivery container range. We have had a significant
breakthrough with the lid development. We are in very advanced stages of
completing that product range for the bowls. And in addition to what you see on the
screen, we also have meal trays that are coming up, and that will also be planned at
the same time as the delivery container launch. Sachin, there is the second half.
Okay, great. And the most anticipated development, which is our flexible films, we
have hit a really good trial opportunity for tea bag, the outer wrap of the tea bag use
case with our existing M1 and M3. And this is in addition to our existing supplies that
are going to our customers, the chocolate customers that we have already been
supplying. There's a bright spot with M1 and M3, and we are also moving with a lot
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more focus on non-metallized development. So we expect good results over the next
few months on this one. Sachin, we can move.
15:54 Pranay Pasricha: So over to you, Ved, for the international update.
15:59 Ved Krishna: Please go ahead. Yep. So just quickly, the international side,
we're seeing Rolando here. We also have Ramesh who's joined in as our digitization
lead, and we also have Nyla McBain who's joined us as global marketing lead, and
she'll be leading. Marketing comes in with a lot of experience on the consumer side
as well as on the B2B side. Go ahead. As Satish talked about, there is a delivery
takeaway range and that is under finalization, and that will not just be for the Indian
market. We're also looking at the US market, and the range will be finalized in the
next month. So by the time we meet in the next quarter, we will have a very strong,
patented delivery solution for the market, which has been something we've been on
the drawing board for a while. Satish, of course, as you're seeing, you guys know
Satish by now, and he's been leading Chuck in India and has, so those of you who
don't know, Satish actually has a very rich background. He worked for about 12
years with 3M in the US, and he's just come back to the US to support US growth
now and is leading the molded fiber business and also leading the R&D side right
now. As we transition, there are some big transitions we are doing on the R&D side.
As far as the fundraising goes, the investor presentations have been underway.
We've reached the second stage with some investors, and there have been some
kind of question marks raised on the risk side, which the mitigation has been
initialized, and we feel that in the next three months we will be in very good shape for
the fundraise in North America. The US roadmap has been created again for the
launch of molded fiber, and we are doing it in two broad categories: launching the
current substrates that we already have as Chuck, and then building a US-centric
takeaway delivery container range, which will be launched in the subsequent quarter,
which is the last quarter of this year, January onwards. We've also thought about
OEM manufacturing for the North American expansion. Earlier it was all about our
own products, but what we've initiated right now is to also have partial OEM
manufacturing in the Guatemala plant so that the capacity is fully utilized.
18:39 Pranay Pasricha: So Rolando, over to you to take us through the project
Kawok updates.
18:50 Rolando Yon: Thank you. Next slide, please.
18:58 Pranay Pasricha: Is my slide visible?
19:02 Sachin Srivastava: No.
19:03 Ved Krishna: We're still on my slide, Pranay.
19:10 Pranay Pasricha: Is it not?
19:12 Ved Krishna: You may have to unshare and share again.
19:15 Pranay Pasricha: Sorry, just a second. Is it visible now?
19:33 Ved Krishna: My screen is dark.
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19:35 Satish ChamyVelumani: No.

19:35 Sachin Srivastava: Yes, it should be visible.
19:37 Ved Krishna: Now it's visible. Okay.
19:37 Sachin Srivastava: Okay.
19:37 Ved Krishna: Go ahead, Rolando, if you can see. Yeah, we can see it now.
19:43 Rolando Yon: No, I can't see. My screen is black as well, but I have the slides
here. I can...
19:49 Ved Krishna: We can see it now, so it should be coming on yours as well.
19:53 Rolando Yon: Okay, perfect. So the Project Kawok is a project that we are
building in Guatemala. This is a timeline of the project and where we are on. The
latest progress, we already have secured the raw materials, that is the bagasse. We
already have MOUs in place, signed with three sugar mills in Guatemala. The land
where we are planning to set up the factory has already been chosen, and all the
necessary studies have been done. We have engaged Nomura as our financial
advisor in order to help us raise the equity necessary for the build of this project. In
terms of people, we have already started the staffing in Guatemala, where we
already have a business head, PMO, HR head, and an engineering team as well.
The purchase of the land is almost done. We should be signing that within the next
10-14 days, maximum. And we're almost done as well with the basic engineering
studies. So in terms of equity raise, we plan to finish that late 2024, early 2025. And
once we do that, the commissioning of the project is going to last two years, and we
should be going live Q1 2027. Next slide, please. Okay. This is just a rendering of the
entrance of the project. What we are aiming for is to have a best-in-class facility in
Guatemala. It's important to mention that this facility will be under a tax-free regime
in Guatemala. The Guatemalan government, in order to push foreign investment,
has these types of incentives for foreign companies, so that will be an advantage for
this project as it will be free of income tax as well as VAT tax. Next slide, please. And
this is just a render of the overall facility. As you can see there, we have the raw
material on the far end of the slide, as well as on the right-hand side of the slide.
That's our pith. You can see there the towers; that's the power generation plants. And
on the left-hand side, those are the paper production machinery houses. And that will
be the update for the Kawok project. Thank you.
23:35 Pranay Pasricha: Over to you, Neetika, for key ratios and financial updates.
23:44 Neetika Suryawanshi: Thank you, Pranay. This is a summary of our
performance. I would request that we take the numbers for FY 24-25 as indicated
because these are annualizing the returns from the first two quarters. The industry
averages also would be slightly, not exact, because some of the corporations have
not yet declared their results, but this has been picked up from Screener, hence I
made that disclaimer here. I would request you, Pranay, to move to the next slide.
We warmly welcome our new institutional investors. We thank you for your support
and your trust in us, and we look forward to growing with you together. Over to you,
Ved.
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24:28 Pranay Pasricha: Over to you, Ved.

24:31 Ved Krishna: We can move to the, just click once more so that I also get the...
Yeah. So basically, just a quick update on what we had committed to in quarter two
and where are we on that, and what do we plan to do in quarter three. The sales in
America have been initiated, and we are now building the distributor network. I think
we've signed on about five distributors. The target is to do about 10 in this quarter
and then start at least getting a few container loads over. And I think you will see a
significant shift in the actual cash flows that come in from North America in the next
quarter. As I said before, we've also initiated some OEM partnerships to build
products for others as well. The flexible sales, again, was something that we were
targeting, and we are now moving toward metallized solutions earlier, and this is, as
Satish said, it will be more initially for the tea bag segment, which is the tea pouch.
Those are the orders we are getting now, and the trials are underway already. And in
terms of the delivery solutions, it's almost complete, and it's taken a little longer than
what we had anticipated, but this is going to be something that hopefully will be a
game changer again for the planet, because there's a lot of plastic being used in the
delivery space and the takeaway space. In terms of, again, building the clear
business plan, the roadmap has been built. Satish again has moved to the US, and
the initiation of sales has started. We've also started becoming much more robust
and global in our organization structure. As you see here, Rolando joins in, although
he's part of the Guatemala team, but internally, he leads group finance. Nyla leads
the marketing globally, and we have others, like a digitization lead, who are more
global people. And then we, of course, have country-specific teams now, and these
structures are being put in place, as well as alignment of incentivization is happening
right now. As one commitment was for the lead investor in Kawok, that is a little bit
behind, for sure. But the risk mitigation that the investors have pointed out is being
done right now, and they basically wanted more detailed engineering, some clear
offtake contracts, the final cost in terms of the RFQs being done. So we feel that in
the next three months, three to four months, we should be able to complete that. So
as told by Rolando, I think by March we should be in a good place for investment for
Kawok. In terms of Jagriti, very good shape again. The ordering has been
completed. I think some things were going beyond our targeted date, and I think
Jagdeep and the team have really sped that up. So that is going to be, we are
getting to be on track for Jagriti completion by the end of 2025, which is going to give
us a lot of push also on the flexible side. So that's the update and Q3 plans. I think
that's it from our side, and we're open to questions. So back to Pranay, and he will
guide that part of it. Thank you all.
27:56 Pranay Pasricha: Thank you, Ved. I will request, if you have questions, you
can just press your hand-raise button, and we'll come to you. Please limit your
questions to two only, and if we have more time, we'll circle back to you later on in
the call. Thank you so much. Manadi, you have a question. You can go ahead with
your question, please.
28:21 Manali Gala: Hi, thank you. First of all, congratulations on a good set of
numbers. So one question, you know, is more around Ramji here. You know, so we
have a lot of, you know, he has, I don't know if he stepped down or how is it, but he's
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been involved in a lot of delivery containers, formulation of delivery containers, and,

you know, in your flexi. So, and many other development products which are in
advanced stages. Now, with investor funds coming in, how do you shape up the R&D
function and avoid too many churns and find out a stable and strong team? How is it
going?
29:05 Ved Krishna: That's a very important question, and it's something we've really
been dealing with in the last month especially. Ramji and us have decided to part
ways, and partly it was mainly because of some lack that we were finding constantly
in the commercialization side. The science was still okay, but the commercialization
was weak. And finally, we decided it's better to kind of bite the bullet and make the
changes. But the rest of the team remains, and Satish, who was very much a part of
that development, has been part of that journey alongside Ramji for a while. He
stepped in in the interim. This is a big step for us, Manali. So in terms of, we know
that Pakka's growth in the future is going to be based on R&D. So part of our debate
constantly right now is where should our R&D be, where is the right talent, etc., etc.
So in the last couple of months, that's been very strongly debated internally. We are
still not in a place where we can say this is exactly where it's going to be. What we
have done is we've identified the key areas where we want to work. There are eight
directions that we want to take, both in product and process. And we feel that
ultimately what we are debating is what works best for Pakka as a global entity and
where the talent is, and where we can do maximum justice to it. So there are going
to be some pivots, there is going to be some tough decision-making for us, but it'll all
be in the interest of making sure that we deliver on the promises that we're making to
ourselves and to our customers.
30:45 Manali Gala: Right. Okay. Second question. So, I was also there on the
Balrampur call, and we came to know about the bio-policy that the UP government
has given, which has led to, say, a product like PLA, which was more expensive than
a compostable product. But having said this, with this scheme coming in, it will
obviously make it competitive because there are a lot of benefits. So is Pakka also
eligible for these benefits, and are we taking anything for Jagriti, or how are we
shaping it?
31:20 Ved Krishna: It's a good question. Balrampur is much better at it than us, but
Gautam is here, so Gautam and Sachin are the people for that domain. I think
Sachin looks at the legal side; Gautam looks at more of the liaison side. So I think,
together, maybe we take a target, Sachin and Gautam. I think that's a good point.
Balrampur has definitely done a lot of good work with the government. And that said,
Manali, I presume you know this, but we are very much part of the Balrampur
journey, and we have strong collaboration with them, not just on the raw material
side, but also on the PLA side. We continue to dabble with PLA; part of their sales is
going to be to us. So that is an absolute direction that, you know, Vivek, Avantika,
and us are taking. And Stefan, who's come in as their CEO, has been an old friend of
ours as well. So, you know, so that's, those are very collaborative ventures. But that
said, yeah, they've been much better at finding the government backing than we
have been. So we will look into it. That's a great idea. There could be more support.
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Sachin and Gautam, maybe we should take this up as we go along. So good point,
and then we'll take it up.
32:32 Manali Gala: So just understanding currently, there are no benefits that come
to Pakka for Jagriti, right?
32:38 Sachin Srivastava: Any... they are...
32:38 Ved Krishna: No, there are significant benefits. But Sachin, you can...
32:41 Sachin Srivastava: Just want to add that we are in the process of contacting
the UP government, and we're in the process to apply for the letter of comfort from
the UP government. So about 100 crores...
32:43 Pranay Pasricha: Okay.
32:53 Sachin Srivastava: ...capital incentive we are going to get in this Jagriti
project. So it's over the period of 12 years, but lump sum, according to the current
policy, it is about a 100 crore benefit.
33:05 Manali Gala: Okay.
33:06 Ved Krishna: Right now, Manali, it's just as per the government policy, nothing
above and beyond that. Balrampur has gone ahead and has significantly above and
beyond that based on their biopolymer. They've created a whole biopolymer park, et
cetera, et cetera.
33:15 Manali Gala: Right, right.
33:20 Ved Krishna: So Sachin, it would be good to study that. And clearly, they are
better at it than we are. So it's a good point; it's a good learning for us. I think,
Sachin, good to study that, and let's not think that it is only going to be the policy,
which has been our thinking internally. So let's go beyond that. There is more that
can be, for sure.
33:38 Manali Gala: Right. And I...
33:40 Pranay Pasricha: Thank you, Manali.
33:40 Manali Gala: And I just have one more question.
33:41 Pranay Pasricha: Sorry. Yeah, we'll circle back to you so that everyone gets a
chance. Thank you.
33:44 Manali Gala: Okay, perfect.
33:48 Pranay Pasricha: Siddhant, you can have your question. Mr. Siddhant, you
can go ahead and unmute yourself and ask the question.
34:03 Pranay Pasricha: If you're speaking, you are on mute.
34:20 Satish ChamyVelumani: He says he’s unable to…
34:21 Ved Krishna: …and then you can keep moving.
 Page 10 of 22

34:23 Pranay Pasricha: Okay. Yeah, Sachin, maybe you can check if you are able
to unmute him.
34:30 Sachin Srivastava: No, I’m not able to do it.
34:32 Pranay Pasricha: Okay. So Mr. Siddhant, you can put your question in the
chat, and then we can respond to you. I'll move on. Mr. Sanyam, you can unmute
yourself and go ahead with your question.
34:47 Sanyam Jain: Yeah. Am I audible?
34:52 Pranay Pasricha: Yeah, you are audible.
34:52 Sanyam Jain: Yeah. So my first question is regarding the wrap-and-carry
sale. Like we see there is a portion in India around the quick commerce section, the
Zeptos and Blinkit and Swiggy Instamart of the world, you know, are like growing
crazily, and they are only using the paper bags. So what's our strategy on that area?
How are we targeting that growth and that demand? Are we there in the market? And
if yes, what's the scale and, you know, the future prospects of that thing? And
secondly, since we have cracked the hot delivery model with the pulp-based
Packaging, you know, we can now have these hot containers also, as we have just
said. So what is the expected demand in the Indian food delivery segment, what
would be the market size, and how much share, you know, we could target? And just
an idea of the demand and the market size of the delivery segment. Thank you.
35:55 Jagdeep Hira: I’ll take up this. So quick commerce is expanding heavily,
rightly said. That’s a different segment of wrap-and-carry what they are using. Our
operating field is totally different from quick commerce. So they are more on to carry
heavy weight, but we are onto a lightweight wrap-and-carry. Having said that, that’s
not our focused market as of now. On the delivery, we are developing a 100%
leakproof solution, which should get done by a month’s time. The market is huge. We
are banking heavily on the delivery segment.
36:45 Ved Krishna: Satish, do you want to add more?
36:45 Sanyam Jain: Any expected timeline where we could start seeing sales from
that segment, from the delivery segment?
36:55 Satish ChamyVelumani: Yeah, let me take this up. We are on track for a late
January, early February launch with the complete range. And the market, again, as
we look at it, it's anywhere between 500 million dollars to about a billion dollars.
That’s the size of the market. I’m not saying we’re going to capture it, or we will be
able to capture everything of it, but we are putting our best foot forward. And again,
we would try to maximize our capacity of production there. We are definitely taking
the time to get it right. So the first attempt with the existing delivery container, we got
it up to, like, say, 90% in terms of performance, and the last 10% has been pretty
difficult. We are getting there.
37:48 Sanyam Jain: Thank you. Thank you, and all the best.
37:49 Pranay Pasricha: Thank you. Thank you, Sanyam. Mr. Vignesh, you can go
ahead and ask your question.
 Page 11 of 22

37:59 Vignesh Iyer: Am I audible?

38:02 Pranay Pasricha: Yes, you are audible.
38:03 Vignesh Iyer: Yeah, yeah. Hi. Thank you for the opportunity. So, yeah, so my
question is on the Jagriti side again. So if I understand, our timeline is similar to what
it was as per the quarter one call, right? I mean, I joined a bit late. So we might
commission by the end of quarter four or start of quarter one, right?
38:26 Jagdeep Hira: It’s end of quarter four, quarter three of next year.
38:32 Vignesh Iyer: Okay. I mean, the reason is I went through the balance sheet,
the CWIP is quite small. So, I mean, our procurement has already started and would
happen, everything would get happened in, like, three, four months. That is what I
understand. Because 40 crore CWIP, 700 crore project, if I’m not wrong.
38:55 Jagdeep Hira: As Ved mentioned in the presentation, all orders have been
done post technical and commercial negotiations. So all orders are placed.
39:11 Vignesh Iyer: Okay. And again, relating to this project, do we have any soft
commitments that have come to us from our existing clients? Or do we have any,
you know, tie-up already in place with the new clients, I mean, to just get an
understanding of, you know, what would be the usual timeline to, in the process of
negotiation, to get a client, or just to understand the ramp-up side of it.
39:43 Jagdeep Hira: Good question, Mr. Siddhant. Our existing customer bank is
too strong, and similar products are being used by them also, and they are
demanding, right away they are demanding, for similar product to what we are going
to produce. So forward-looking, it meant is we already have the customer base, and
we don’t see any glitches coming out of the sales part of it.
40:09 Vignesh Iyer: Okay. Right, sir, right, sir. Got it. And all the best, sir. Thank you.
40:13 Jagdeep Hira: Thank you, Siddhant.
40:16 Pranay Pasricha: Thank you. Mr. Rishi, you can go ahead and ask a
question.
40:22 rishi -greencurve securities: Hello. Am I audible?
40:28 Pranay Pasricha: Yeah.
40:30 rishi -greencurve securities: Okay. My question is direct and simple. I would
like the revenue guidance, profit guidance, and margin guidance for the next quarter.
40:38 Jagdeep Hira: I received… probably… we are doing, doing to best… best of
our efforts to raise our own set bar.
40:39 Ved Krishna: Go ahead, Jagdeep.
40:48 Jagdeep Hira: Having said that, we look forward for a good, I would say, good
effort from the team across India and globe, both. You might have listened to Satish,
Ved, and me, that how we are proceeding for the next quarters as well. So
committing any figures won't be good at this platform.
 Page 12 of 22

41:14 rishi -greencurve securities: Not a commitment, but a figure that you look up
to.
41:18 Jagdeep Hira: It’s promising. Hope I answered.
41:29 rishi -greencurve securities: Yes.
41:31 Pranay Pasricha: Thank you. Mr. Siddhant, your question… you are… you
can ask your question now if your error is resolved now.
41:33 Jagdeep Hira: Thank you.
41:39 Siddhant Chhabra: Yeah. Hi, everyone. Sorry for the technical error. Hope
everyone is doing well. I just had a couple of questions. Firstly, before I get started, I
just wanted to reconfirm what was said during the presentation. The Jagriti timeline,
the completion is expected by 2025 end, correct? That's the correct number I heard.
42:02 Jagdeep Hira: Yeah.
42:03 Siddhant Chhabra: Oh, okay. So now I’ll move on with my question. Now,
regarding Jagriti only, could you give us a breakdown? Basically, first, a projection of
the revenue from the project, and then a breakdown within the different segments in
the project only, and then the margins also, if you can, with, for each segment in
Project Jagriti.
42:25 Jagdeep Hira: So that will be too elaborated a report. I think you can connect
offline, and then Neetika can appraise you on the, looking forward. But the growth is
going to be multifold, both achieving at least 90% of efficiency of the plant.
42:43 Siddhant Chhabra: Oh, I didn’t get that, what you said in the end.
42:47 Jagdeep Hira: I said post-commissioning and achieving 90% of efficiency of
the plant, the growth is going to be multifold.
42:55 Siddhant Chhabra: Okay, right. And you said regarding the breakdown within
segments, I can connect offline, right? And then I’ll be able to get that number. Okay,
that's fine.
43:02 Jagdeep Hira: Yeah, yeah, it’s a long, long process, yeah.
43:05 Siddhant Chhabra: Okay, that's fine.
43:06 Ved Krishna: Siddhant, adding from my side, there’s not that many segments
in terms of the expansion. Jagriti is fundamentally focused on flexible Packaging,
and the base product for that is a greaseproof paper. So what we plan to do is start
with a greaseproof paper. That’s what Jagdeep said before, that the buyers are
already there. They are waiting for the product, so that we don’t have an issue with
sales. And then we continue to enhance our capability in flexible Packaging and
raising the bar. And as Jagdeep said, there’s going to be a significant change in
terms of the revenue numbers, and hopefully, the bottom line will follow suit as well.
So those are the two segments primarily: focused on flexible Packaging but starting
with greaseproof.
 Page 13 of 22

43:49 Siddhant Chhabra: Okay, got that, got that. Thank you for that. Now, my
second question would be related to the compostable metalized Packaging. Now, I
want to understand from your point of view, what do you think the viability of—I’m
sorry for the disturbance—but what the viability of this kind of Packaging would be?
Because we know that for compostable Packaging, you need a circular economy,
and in India, we don’t have a circular economy. So could you comment on what you
think the viability could be?
44:22 Ved Krishna: Yeah. So first things first, let’s talk about the circularity part of it.
So any product that Pakka creates has to follow four broad principles. The first is that
it has to be home compostable. So that comes from the idea that we cannot control
people’s behavior. People might throw it here and there, and it has to be beneficial to
the soil wherever it is thrown. So that’s the first rule that we have. The second one is
it has to be able to be recycled in the paper stream because paper is collected 70 to
80%. Polymers, the petroleum-based, are collected seven to eight percent. Paper
can be converted back to paper. Petroleum polymers are typically, they become
fiber, and they become your polyester shirts. So, and then, you know, and that’s also
seven to eight percent. So that's the second rule. The third is marine safe, and the
fourth is terrestrial safe. So we want to make sure the toxicity level is such that it
doesn’t harm either marine life or terrestrial life. A cow consumes it, a fish consumes
it, it should not be harmful for life. We feel, as humans, that is our responsibility. So
those are absolutes for us. We don’t compromise on it when we launch any product.
So any product that Pakka has will adhere to these four ideas, and they are not easy
to achieve. The second part, in terms of competence, it all depends on what the
customer is willing to accept. So of course, in an ideal world, the customer wants the
product to be better and cheaper. That’s obvious. But there is a lot of other value that
a sustainable product creates in terms of brand value and in terms of customer, the
benefits for the consumer, in terms of their acceptability of the product. What we are
finding is there are always people who are ready to take the jump and come into this
segment for their own kind of desire. And we’ve had that with the first customer that
we’ve had, and now significant tea players are coming in who are very, very clear
that they want to go for this. The first product that we are selling in the US is almost
5x of our paper sales, the cost, and the customer is happily taking that. So as we
grow forward, we know that the price and the cost is going to change, but we do find
enough acceptability from the first customers who want to take the step. I hope that
helps.
46:57 Siddhant Chhabra: Okay. Thank you for that. I’ll rejoin the queue for more
questions.
47:02 Pranay Pasricha: Thank you. Mr. Hiren, you can ask your question.
47:07 Hiren Patel: Hi. Thank you for the opportunity. Pakka is always a great
company to track because every month there are some exciting developments. So
my question is, the first question is on the flexible Packaging. I was listening to your
Good Garbage podcast, and the J&J Green Paper owner, he said that they have
also developed the rice bran-based product, and they are also going to be with the
23 manufacturing locations across the US, China, India. And I think they have also
 Page 14 of 22

planned to come with the product in 2025, which, what they are boasting, that can
replace the polyethylene Packaging. And also, the scale is also very good, I think 0.3
million, something they are saying. So my question is that, because we are also
going, all the growth strategies also, on the flexible Packaging, and specifically in the
US market, so now coming up with these competitive products also, and based on
the other raw materials also, are our manufacturing, supply chain, and business
model going to be such that, based on the recent development in R&D, we would be
able to, if required, switch our Packaging or our product solution? And how are we
going to position our product? And what is that first feedback from the US market?
How our product has been? That feedback we have received.
48:44 Ved Krishna: So the first range of products that we have launched
commercially has got a little layer of 2 nanometers of metallization. But we knew that
that’s an interim product; it's not the final product because when we are producing at
scale in Guatemala, we are going to be producing over 330 tons a day of flexible
Packaging. In Ayodhya, we're going to be producing over 125 tons a day. So
metallizing at that scale creates a lot of challenges. Apart from that, the consumer
may not see it, but we see it, that all transfer metallization happens through a
polyethylene sheet. So there’s a lot of waste that gets created. And we, again, we
are a little utopian in our thinking. We also feel bauxite mining for that metal is not a
great idea. So we kind of go back to the whole life cycle of the product. So that was
the first range, and there is enough acceptability that is coming there. So we are
slowly, we are doing a lot of trials. We have a leader for the flexible Packaging side
who is kind of putting that out there. Numerous trials in India, numerous trials in the
US that are lined up now, and those trials are going to start happening in the next
quarter for the metallized product. You’re right, there’s a lot of development that is
happening, not just J&J, but there’s a lot of other companies that we are directly
working with today on the non-metallized side. So in fact, the next three days, Satish,
me, our Guatemala team, we are all in Portland with our technology guides, where
eight of us are just putting ourselves in a singular place and just brainstorming for the
next three days on how the product, as well as the technology, will be kind of
developed in the next phase. So there’s a lot of development that is happening.
Fundamentally, if you look at Packaging and its dharma, ultimately our dharma is to
protect what is inside. That’s the first part. We cannot compromise on that because
of the ecological damage that it creates if you falter on that. You can imagine if
there’s potato chips packed, and the potato chips get spoiled. So there’s a huge
ecological damage from that. So first and foremost, we don’t compromise on that.
And the second part is that of the cost. The third part is that of making sure that it
runs at the converters’ part because, again, if you don’t, you cannot disrupt
everything. You cannot disrupt the product and the supply chain. So then you use the
same supply chain and make sure that it—for example, we just did, Satish and the
team just did, some trials for tea bags. And they were running petroleum polymers at
4,000 bags a minute. They ran ours in the first shot at 3,600 bags a minute. This is a
great thing for us. If they can run it at the first shot at 3,600, that means they can
meet 4,000. So we can run parallel to the petroleum polymers. So it’s a step-by-step
kind of development. We have put ourselves out there, and we are, of course, part
 Page 15 of 22

of—good garbage is also—to build these relationships. And we are working with lots
of suppliers like J&J to develop numerous products today. Hope that helps.
51:57 Hiren Patel: Yeah, thank you. And the second question is on the molded
products. So for the last two, three years, the sales have been stagnant, like
between 13 to 15 crore. And as already there is a lot of market potential, but I just
wanted to understand because at present, I think we are utilizing 55% of the
capacity, and 20 TPD, which is the production capacity. And I think after Jagriti also,
because it would be mainly on the flexible Packaging, so that molded product
capacity would even still remain 20 TPD. So because, considering the huge market,
the main concern is whether there is a particular demand issue, that consumers are
not willing to switch from the plastic disposable or these tableware products. Or is it
that, because of the other means, people are not able to get the price benefit from
those types of Packaging? So what would be the trigger point where we can see a
significant impact on the bottom line through molded products?
53:08 Jagdeep Hira: Mr. Hiren, I think the market is growing, and the market has
grown to a greater extent. Having said that, there is slow movement as per demand
and the productivity. So if we have to see, over the last four years, there were hardly
20 players in the market for the molded products. Right now there are 69 players in
the market who are producing similar stuff, on a lower, unorganized sector, and lower
stuff. The market is going slow, for sure. That's why, as we presented earlier, that we
are going global now. The Middle East is one where we have seen a much quantum
jump. We have started exporting also to the Middle East, and we are looking at
Australia also as a second area of operation. Thirdly, we were confined to majorly
tier-one metro cities as of now. Now, as a strategy, we are expanding our horizons to
tier-two cities for growth.
54:21 Hiren Patel: Okay, but we are not planning to expand capacity beyond 20
TPD, I think, after…
54:26 Jagdeep Hira: As of now, no, but we are looking at outsourced facilities.
Infrastructure-wise, we won’t be expanding much here, so it will remain the same as
of now. But the outsourcing model, which we started last year, we would be
expanding on that.
54:43 Hiren Patel: Okay, okay. Thank you.

54:47 Pranay Pasricha: Thank you. Mr. Jeet, your question please.

54:52 Jeet Gala: Thank you for the opportunity, Sir. On the similar line on the
molded segment, I wanted to ask a couple of questions. One is, if at all, we were to
crack, say, a delivery container, kind of a product, and if you were able to get
someone like us on board, wouldn't that lead to increasing utilization at Aydhya plant
or, I mean, as a matter of fact or as a matter? Of principle for the moulded segment
to really do well where we are have to be near to the market. Which is why the
concept of you know asset light model comes into picture.I'm asking this because
 Page 16 of 22

Zomato is spread across India, you'll have demand coming from Hyderabad,
Chennai, Mumbai, etc.. So is it viable to produce at Ayodhya and move the products
across the country? Or the only answer is going to asset light and be near to the
market?

55:44 Ved Krishna: Can I step in?

55:44 Jagdeep Hira: Let's see this week? Yeah, sure. Please what?

55:49 Ved Krishna: Yes, a couple of conceptual ideas. One is in terms of Zomato.
So Zomato has been extremely keen to build this with us. The the challenge has
been the efficacy of products. So even 2-3 years back we had deep discussions with
Zomato, but the products did not perform. So ultimately the fault lied with [Link]
you know, there is a challenge that we could not fulfill. So Zomato went to the extent
where they even said that they're going to offer. Because ultimately they don't govern
what the restaurants are going to use, but they influence what the restaurants are
going to use. So they were even thinking about, you know, give becoming
sustainability partners. They sort of make us becoming sustainability partners and
then giving certain green points to. People who used our products, so there were
various explorations that happened, but we have cut a sorry figure in that case
where we have not lived up to their expectations. So we only want to go back to
them and we are very clear about our performance of the products that took us back
to the drawing board. We spent the last year, year and a half trying to rebuild the
whole thinking around the delivery space, again experimenting in Various directions.
Now we feel that we can come in with another kind of range, which kind of is. Close
closer to the goal. Ultimately your second part of the question and I think Jagdeep
will address it a little better than me, but I'll take the first shot at it. Ultimately, we
have to look at it. It is not the same as a, say, a polystyrene product. Here, you know,
you have to be near the raw material anytime that we produce any product for Agri
residue, the raw material has 50% moisture. I need 5 tons of bagasse to produce
one ton of material, right? So it's simple as that. So you have to be near the raw
material. You cannot transport 5X to produce 1X, nor can you transport pulp. That
also becomes a challenge. So the outsourcing model is, yes, partially based on the
market, but more based upon you know where the capacity is available and the
quality. You know we've we've probably gone through 10 different outsourcing
partnerships. Where most have failed in terms of quality, so that's a challenge that
we face today. Yeah, but over to Jagdeep.
Jagdeep if you want to add anything to that.

58:21 Jagdeep Hira: It was right. Now that development is as as RIT mentioned, a
development. Is it over and innovation is happening at our end for the delivery, so
the experimentation is somewhere near the Innovation Center. So once this product
is.
There for a commercialization that will be brought down to Ayodhya for distribution
 Page 17 of 22

along with other because we are also looking for associated product along with
delivery for Zomato, swiggy. So translate that.

58:58 Jeet Gala: So this will lead to sweating of the old large automatic machine,
right?
But we had ordered in 2008, which probably are not sweating as much today.

59:05 Jagdeep Hira: Oh, no, no, no, no. So but it will be both combination of both
where we get a higher productivity on the bigger machines. We we go there on the
bigger machine automating machine and the rest so that that configuration is already
on to which machine will produce what product.

59:27 Jeet Gala: So my second question is what are the?

59:27 Ved Krishna: A lot of the product right now, the lot of the products of the
delivery side are on our outsource side right now. We are not shifting any yet any
production of Chuck on delivery side.

59:35 Jagdeep Hira: Hey.

59:41 Jeet Gala: And So what would the NSR or something like a grease proof
paper be right now today market rate as compared to your normal paper segment
NSR?

59:52 Jagdeep Hira: This is almost double.

59:56 Jeet Gala: OK, so base case is going to be double, if at all coding happens or
does not happen. I mean at least in the base case model.

[Link] Jagdeep Hira: Biscuit biscuits won't go double because you also incur
some infection costs, but delta is higher.

[Link] Jeet Gala: Understood. [Link] you so much.

54:47 Pranay Pasricha: Thank you. Mr. Shreyash, your question please.

[Link] Shreyas Dhanuka: Mr. Shreyash… Am I audible?

[Link] Pranay Pasricha: Yeah, you are audible.

[Link] Ved Krishna: Yes, you are audible.

[Link] Shreyas Dhanuka: Yeah.

[Link] Shreyas Dhanuka: Yeah. First of all, congratulations for the great results.
So I would like to know in this year, we have, till now, we have done 215 crore, and
 Page 18 of 22

last year, we closed on 414 crore. So can we see that this year we... (Audio cuts out,
then returns) ...Your voice is not clear. Yes.
[Link] Jagdeep Hira: Your voice is not clear.
[Link] Shreyas Dhanuka: Hello. Is it clear? Is it better?
[Link] Jagdeep Hira: Yeah, yeah, much better.
[Link] Shreyas Dhanuka: Yeah. So this year, till now, we have done 215 crore.
And last year, we closed around 414 crore. So can we see a growth of 25% roughly?
Can we see closing this year around 515 or 520 crore?
[Link] Jagdeep Hira: The target is to be there, but it seems a bit difficult to go onto
those percentage levels.
[Link] Shreyas Dhanuka: Okay, as well as…
[Link] Ved Krishna: Just adding to Jagdeep, the big jumps will happen when the
projects come into play. And just now, the team is totally focused and stretched on
making sure that the projects go well. So, of course, we want to keep the ship afloat
and keep working towards growth, but the big growth numbers really get into play
once the project gets commissioned.
[Link] Shreyas Dhanuka: Correct, correct. And this year, right now, for this
quarter, we have seen a 74 lakh profit for Chuck, again, the molded products. So last
year, we closed somewhere around 1 crore 70 lakhs. So can we see this year
closing at the same figure, at least?
[Link] Jagdeep Hira: Hopefully, yes, but we have to see the third quarter and then
go forward.
[Link] Shreyas Dhanuka: So right now, also, the Chuck product is not going…
[Link] Pranay Pasricha: Hello.
[Link] Pranay Pasricha: Yeah, go ahead.
[Link] Shreyas Dhanuka: So right now, we see the Chuck product not going very
well compared to last year.
[Link] Jagdeep Hira: Shreyash, the market is not supporting that high, that’s why
we are looking for Middle East territories and Australia territories to expand the
business there and make good top line and bottom line.
[Link] Shreyas Dhanuka: Thank you, thank you so much.
[Link] Pranay Pasricha: Thank you. Mr. Shrot, your question please.
[Link] Shrot: Yeah, hi. Am I audible?
[Link] Pranay Pasricha: Yeah, you’re audible.
[Link] Shrot: Yeah. First of all, thank you so much for the opportunity to ask this
question, and also to hear the minds of the management team here. My question is, I
 Page 19 of 22

first want to verify, on the plant that is coming live, you mentioned the Ayodhya plant.
That is for flexible Packaging, or is it for molding? If you can just confirm that, and
also, you mentioned it’s coming in Q4 FY25. Is that correct?
[Link] Jagdeep Hira: So it will be more on the flexible, 100% on flexible.
[Link] Shrot: Okay, got it. And if you could just shed some light on what has been
the CAPEX that we’ve put into the plant and the kind of asset turns that we’re
expecting at optimum capacity, and by when could we have some sort of timeline for
that?
[Link] Jagdeep Hira: So the total CAPEX cost is 675 crore. And 2027, we are
looking for substantial growth on the figures.
[Link] Shrot: Got it. And any indication on the kind of asset turns that we’re
expecting for the plant?
[Link] Jagdeep Hira: So I think we indicated earlier also. Probably you might have
missed that. So it will be a multiple growth on the top and the bottom line, both. In
2027.
[Link] Shreyas Dhanuka: Okay, great. Thank you so much. All the best.
[Link] Jagdeep Hira: Thank you.
[Link] Pranay Pasricha: Thank you. So we have repeat questions now. Maybe
you would want to question, continue?
[Link] Ved Krishna: Let’s do another 10 minutes and then close.
[Link] Pranay Pasricha: Okay. Yeah, Miss Manali, your question, please.
[Link] Manali Gala: Hi. So my question is, now we have the Middle East, where
we’re looking at a business partnership, or sorry, not a business partnership, but for
business. So how are we going to cater over here? Is it through an asset-light model,
or the products are going to be made over here and then exported? How is this
entire thing going around?
[Link] Ved Krishna: It’s all production in India; this is exports.
[Link] Manali Gala: Okay, so while we transfer these products over there, doesn’t
that lead to an increase in your cost? Or how does the economics sit over there?
[Link] Ved Krishna: Or it’s like… Okay. So that ultimately, if a buyer buys and pays
us good money, we sell. If they don’t pay us good money, we don’t sell. But Jagdeep,
maybe you can answer it better.
[Link] Jagdeep Hira: So Manali, it's a balance of the equation. So where you get
more value for your products, you operate there.
[Link] Manali Gala: Okay. And the second is, I just want to understand, so this…
right now, we’ve achieved around 13,606 MT. So your end units can be what at
similar rates? And is this the effect of PM3 expansion from 70 to 80 TPD?
 Page 20 of 22

[Link] Jagdeep Hira: No, that has not happened yet. The ramp-up is again in two
phases. One will get commissioned in May, or something, May end, or something
like that, which will generate more tonnage and value. So this is from the efficiencies.
[Link] Manali Gala: Okay, okay. Thank you.
[Link] Pranay Pasricha: Thank you. Mr. Paras, your question, please.
(Pause, no response from Mr. Paras)
[Link] Pranay Pasricha: Mr. Paras, if you can hear us, you can unmute and ask.
Okay, I’ll move on. Mr. Prabhakar, your question.
[Link] Prabhakar: Yeah, hi. My question regarding molded products. So in
previous quarters, we were seeing negative numbers; now we are seeing positive
numbers. So what change made us to positive? I want to understand: will it sustain
further quarters or not?
[Link] Jagdeep Hira: Two changes always come through, Mr. Prabhakar. One is
efficiency of the plant, which is continuously getting increased. We had some forced
shutdown for maintenance purposes in the plant in Q2 over Q1. Again, the second is
cost of manufacturing.
[Link] Prabhakar: Okay, thank you.
[Link] Pranay Pasricha: Thank you. Mr. Sanyam, your question.
[Link] Sanyam Jain: Yeah. Thank you for the opportunity again. My question is to
Ved; just two basic questions. First is regarding Pakka Inc. How much we are looking
to dilute, at what valuation, and how much debt will we take? Basically, I want to
understand how will the balance sheet of Pakka Inc. look like? And second is around
the carbon credits. Since we are working towards the environment, and there are
rules and regulations in India and America also regarding the carbon trade policy, are
we looking for that? How much carbon credits we can get out of these plants and the
sales we are doing to protect the environment, and what would be the monetary
effect of that in the coming future regarding carbon credits? Thank you.
[Link] Ved Krishna: Yes. The total cost of the project for Kawok, that is what we
call the project there, is about $340 million. Out of which $140 million is coming as
debt—sorry, as equity—and the remainder $200 million as debt. The debt is more or
less spoken for. Rolando is, of course, trying to bring in DFCs instead of banks right
now to lower the cost of capital. And the idea is to be able to wrap it up that much.
Sorry, I missed out on the second part; maybe Rolando can add to that. As far as
carbon credits go, we are not actively looking for that. It will be a cherry on the cake,
but yes, we will look into it in the future. But right now, the focus is to secure the
equity and then the debt. And then, after that, we can look at what the possibilities
are for additional benefits. Rolando, do you want to answer the second part of it? I’ve
kind of missed out on that one.
[Link] Rolando Yon: Sure. I think the question was in terms of dilution. And for
Kawok, we are aiming for no more than 33% dilution on the project.
 Page 21 of 22

[Link] Sanyam Jain: And what is the valuation we are targeting for the fundraising,
post-money valuation?
[Link] Rolando Yon: The valuation… Give me one second… The valuation of the
total project should be around… a present value of around $400 million.
[Link] Sanyam Jain: Sorry, can you come again? How much?
[Link] Rolando Yon: A present value of the cash flows of around $400 million.
[Link] Pranay Pasricha: Thank you. Mr. Siddhant, your question. I think we’ll take
this as the last question.
[Link] Siddhant Chhabra: Yeah, hi. Ved, just a follow-up as to a question I had
last time. So you had mentioned the home compostable, marine safe, terrestrial safe
values for the metalized compostable Packaging. So I just wanted to confirm, so this
Packaging of yours, the metalized compostable one that you’ve developed, that is
actually compostable in the pit, right? That the metal can be demineralized. And
however, I don’t know much about the science, but it is actually the use case is
there, right? In the compostable, in the pit, it can actually be composted. Right?
[Link] Ved Krishna: Absolutely. You’ve used the exact term “demineralized.” It
actually, the metal becomes demineralized, and it breaks down into the, these softer
components again and becomes environmentally benign, not beneficial. And the
metal itself is less than 5% anyway, of the product.
[Link] Siddhant Chhabra: Okay, less than 5%. And then, on that Packaging only,
could you give us a cost differential between that Packaging and right now, the
alternatives in the market for flexi-pack, like normal metalized, which is not
compostable, and maybe plastic film? So can you give us a cost differential?
[Link] Ved Krishna: Yeah, so right now on the M3, so we have two products in the
market. M1 is a little bit of a glossy substance with a different structure. That’s almost
double of the current substrates in terms of pricing. In terms of M3 that we are now
kind of pushing, it's a little less glossy, more organic-looking product and a different
chemistry on the barrier side. That's about 30 to 40% higher than the current
petroleum-based substrates.
[Link] Siddhant Chhabra: Okay, got that. And just my final question would be on
Guatemala. It was being discussed right now, but if you could give me an update
regarding the fundraising, as to what’s happening, what the update on that is, the
equity versus the debt; like where we are in the process? And secondly, could you
reconfirm the amount paid for the land acquisition in Guatemala? That’s all.
[Link] Ved Krishna: So the land itself is about $1.7 million. We haven’t paid
anything yet, but next week is when we expect to pay ideally the entire amount to
transfer the land to our name. The equity raise, as I said in the beginning, is ongoing.
The investors have raised some concerns on the risk side of the project. So we are
securing that, and it's mainly around more detailed engineering, ordering of
equipment, or finalizing of the actual costs, and on offtakes. Those are the big ones,
and also something, some on the IP side they wanted. Our IPs that are currently
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resting in the Indian holding company, they wanted to rest in the US company where
they would invest. So that’s something we are also exploring. In terms of the debt,
banks have already committed to the debt, Guatemalan banks and the local
Colombian banks there. But that said, with Rolando coming in, we are looking to
lower the cost of debt itself as well. And we’ve started talking to a lot of DFCs to
come in, and they are being very positive, too. So we are looking at about a March
timeline for the equity, and then subsequently the debt will come very quickly
because that's already committed.
[Link] Siddhant Chhabra: Okay, thank you. I just want to confirm, Rolando had
given the figure for $400 million; that was for the Guatemala valuation only, right?
[Link] Ved Krishna: Yeah, that’s…
[Link] Rolando Yon: That’s the net present…
[Link] Siddhant Chhabra: …net present… yeah, net present value basis.
[Link] Rolando Yon: Net present value, and it doesn’t include the terminal value. If
we include the terminal value, then it will come up to around $600 million present
value, something like that.
[Link] Siddhant Chhabra: Okay, okay. Thank you, thank you so much.
[Link] Pranay Pasricha: Thank you.
[Link] Ved Krishna: Back to you, Pranay, please.
[Link] Pranay Pasricha: Yeah, thank you. Thank you, everyone. I know we have
some more questions. You can send those to us, and we'll get back to you
individually. And just a closing note from you, Ved.
[Link] Ved Krishna: Yeah, thank you all so much. It’s always a joy to connect with
you. Thank you again for all your support that is coming our way, and we will, as we
say each time, leave no stone unturned from our side to make sure that the trust that
you’ve bestowed on us is worked on, and we make sure that we live up to your
expectations. So thank you all. Namaste, good night.
[Link] Pranay Pasricha: Thank you.
[Link] Rolando Yon: Thank you.