Kundan Edifice Ltd

Ladies and gentlemen, good day, and welcome to the Content Edifies Limited's first update call.

These statements are not guarantees of future performance, and involve risks and uncertainties that are difficult to predict.

Also, 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.

Participants will have to put their questions in the chat. We'll be taking, one at a time.

And just because of the time constraints.

Moving on, today, from the management side, we have with us Mr. Devyansh Gupta, Chairman and Management… Managing Director of this team, of the company, and his team.

I now hand over the conference over to Mr. Devyansh Gupta.

And request him to please, take on to the stage. Hand over to you, sir. Also, please, turn on your mic and video. 03:19 Hi, hello everyone. I'm Devyan Gupta, Managing Director of Kundana Device Limited. I'm somehow unable to put on the video, so, if somebody can help me with that, that'll be great. Oh… 03:36 So, please drive in. 03:38 Yeah, okay, now, yeah, it's better now, yeah. Okay. So, yes.

To begin with, yes, hi, I'm Devyanj, I'm the managing director of the company.

And, I'd like to begin to tell you more about our company. We are Kundan Enterprise Limited. We are into manufacturing of lighting and electronic products.

We have been in this space since more than 10 years now, and we are… Doing well as compared to, our, you know, I mean, what I can say is that we are the leaders in this particular space that we are doing. We are doing LED flexible strips and linear flexible lights and power supplies, so we are one of the leading companies in this space in the country.

And, we have been working with… we have been working in the OEM and OTM business, and we are working with the top brands in the country, like the likes of Havels and Panasonics and WebPros and Orients and all of that. This has been what… this has been the company history, and we continue to do so.

At the moment, we are doing, some new things as well. Earlier, we were doing lights, which had generic application, but now the company has moved on to products which have got, which are more specific to application. To give you an idea, we have gotten into, we have diversified into. specific application lights, which are more towards furniture and fixture. One of the applications is those. So, like, now you would see that the lighting has become more from a generic lighting to application-based lighting.

And we have, you know, moved towards that. So, now all furnitures, fixtures, drawers, wardrobes, you see, they come with integrated lights. So, there are companies like Halfley, and Stanley, and Hetage, and, you know, all of these people who are working in this space.

So we have started working with one of those companies as well. We have started working with Hetich, which is into furniture lighting, and we have been onboarded as a vendor, by Hetich.

For furniture lighting. So this is just the stepping stone for us to get into furniture lighting. The furniture lighting space itself is a quite, quite bigger market, and we are exploring many avenues in the furniture lighting space as well.

We are in touch with many other clients also.

So that's one application that we have gotten into. We weren't doing very big in power supply, that was a very limited scope that we were doing in power supplies, but we have also started working in power supplies over the last one year.

We have heavily invested in the development of power supplies, and not only the regular power supplies, because there are many companies who do that.

But we have done something in the GAN technology. GAN is basically something, the technical, the full form of… That is gallium nitrate, so it's a new technology, which makes the products much more compact, much more powerful, and much more impactful with the innovation in technology, that the power consumption required for products has increased, and the space people want it to be sleeker, and the market demand is for the products to be much more sleeker and much more compact. GAN technology gives us that, advantage or that edge to make the products More compact and sleeker, and that's what we have done.

with GAN technology. I think there are very limited companies in the country who are working on GAN, and so we are one of them, and we've successfully developed all models, and we are at the current phase where we have… we're in talks with our clients to launch all these products in the market, so that's another space that we are working into.

The third space that we are specifically working into is facade lighting. with the growth in the economy, we see that there's… the spending power of the country has increased, and now, even with the current government and with the way the things are working in the economy, we see that there's a lot of potential in facade lighting, like government is spending for something, like you see in Mumbai, you would see the Holy ceiling being lit up in Kolkata, the Howda Bridge being lit up. say the Ram Mandir, which came up, that being done beautifully with the lights. So there are a lot… a lot of work had happened in the Kum Mila, which happened in Prayagaraj last year. So there's a lot of work that is happening in the facade lighting space, and there's a lot of… What do you say, potential over there, and not a lot of people are aware of that space, because till now, the companies that even we work with, they kind of work on… The… what do you say? the generic lighting, the household lighting, and there are very few companies working in that space.

And the products that we are developing, or have developed, have got a huge potential in that space, so we are also started… we have also started… we have developed products, and we are now working with clients for the facade lighting space. So, these are the 3 new spaces that we are working in terms of the… in the lighting business.

And other than the lightning business, there's something more that we are doing, which is in the BESS industry. BES is battery energy storage system, so this is a new thing that we are, Kind of working on.

And it's just a very small beginning, but we are doing… we have set up a team for… Back to your energy storage system, and we have started engaging with clients, and we have started… Quoting… And submitting our expression of interest for a lot of government and CNI projects, so that's something that we are doing new. This is at the business end. Other than that, at the back end, in the operations of the company, we're working on implementation of softwares like SAP, We are doing HRMS softwares, PMS softwares, we are trying to integrate, we're trying to work on the Industry 4.0. an integration of all automation possible in manufacturing, because as we see, as we're going ahead, the manufacturing space is going to get even more competitive, and automation and reducing your dependency on labor is the only best way possible.

So we have been working on Industry 4.0, and hopefully we'll be able to do a lot more work in that space as well.

So, all this is what we are doing in terms of the company. In terms of the growth of the company, yes, we have grown as compared to the previous year. Our performance is have been better, I can say. In the second half of the year, even though with a lot of contingencies, with the global scenarios, with everything, still, I think we have done decently well in the second half of the year also. First, the… for the first half of the year, our numbers are already… have already been published.

This I can say for the second half of the year, it's been fairly decent.

So, yeah, this is all… this is what we're doing. We're also exploring the opportunities of export.

Currently, we're exporting, but not directly. Our clients are buying from us, and they are exporting to other countries. They're exporting to the Middle East, they've been exporting to Africa, they've been exporting to the Safda region.

South Asia Free Trade Association, and they've been doing You know, they've been exporting the products.

Over there. So yeah, this is what we're doing as we have grown our manufacturing capabilities, we have increased, we have done a lot of capexes in the… for these new products that we've been working on.

We have made some waterproof lights for underwater application. We have recruited better people in our team. We have got senior people in our team, from development to operations to sales, so all this is the work that we have done.

So yeah, this is more or less what I have to say about the work that the company has been doing. and the way forward. For the next year also, we have got quite a good outlook for the next financial year, because of all these new developments and new products that we have made, and this has become, like, a… soft launching space for us, and because of the products being developed, and already our engagements with the customer. So, we see that these are all at the stage of fruit, you know, at to… To get closed, and and maybe the business will start moving in all these spaces in a much better manner in the coming financial year.

So, Tushar, I think this is all I had to say, so if there is anything… That we would like to… 12:36 Thank you very much, sir. 12:36

that I need. Yeah. 12:39 Yeah. So, thank you very much, sir. We will now begin the Q&A. Ladies and gentlemen, you may put up the questions in the chat. We'll be taking the questions one by one in order to allow everyone the opportunity to ask with their questions.

And request your kind cooperation for the same.

So, the first question is from Mr. Rajsha. He is asking, what are our future growth plans for the next 3 years, and is company also planning mainboard migration? 13:20 Yes, absolutely, the company is planning mainboard migration. We would be eligible… in September, because I think there's a 3-year clause, so by September, we will be eligible, and we are much in preparation of how and when we can… how soon can we migrate to the main board.

That, to answer one part of the question. And as far as the growth strategy of the company is concerned, we are looking at good potential.

So we, like I said, the 3 new verticals, or the 4 new verticals that we are working on.

14:36 Or rather, I would say our growth percentage has been a little on the… on the lesser side in… in the previous two years. We would rather look at a better… growth opportunity. We are looking at a better growth in the coming years. 14:54 Okay, so the next question in line is from Ms. Naktia Goinka.

She's asking, what is the client acquisition process, and how long does it take to onboard a new client? 15:05 The client acquisition process is, basically, we define that which are the areas that you want to get into.

So, like, so it all starts from our R&D, firstly, that what the company is wanting to do.

So, we have always… there's a constant process of R&D going on in our company. So, in the last two years, we identified the space of the furniture to give you an example, so I'll try to explain it with an example. We kind of identified that the furniture and wardrobe space or something, which is upcoming market. So, firstly, we begin with doing our survey of what is there in the industry, how much potential is there. We kind of developed the products.

And once we develop the products, then we start engaging with the customer. So… So, firstly, what we do is we engage with one customer so that we can acquire one customer and have a proof of concept as a proven, you know, like, we can prove that, okay, that this… what the products that we have made are as per the customer requirement, we engage with the customer, make some customizations as per the customer. And once you have started business with one customer, then we go and approach people in the similar space, and we then give our introduction, go for meetings.

Showcase them the products, tell them the advantages of working with us.

And then that becomes a process. So, general time to acquire a client is generally 6-8 months. like I said in the furniture and wardrobe business, we have just started working with Hetch. So it took us… we have been engaging with them since, I would say. June or July, so…

June, July, we started engaging with them, and in February is when we… in February, or I think in early March this year, is when we got our vendor approvals from them.

So you can consider a span of 6 to 8 months. So that… acquiring the first client in any particular space is more challenging. Then after that, it becomes a little easier. So in the… Standard. business that we are doing, because now we work with most of the brands in the country. There are two more or three more brands, which are big names, big corporates who are entering into the lighting business. So, it becomes very easy, because they come searching for us, because they know that everybody is buying from Kundar Netifies.

So they kind of come searching, okay, we also want to work with Kundana Device. In those cases, it becomes relatively very easy, because when the customer approaches you, it becomes very easy.

Otherwise, to develop newer markets, then the process of Firstly, the product development happens, then making a presentation for that particular industry.

Then maybe having… onboarding one client, and then you have the process of meeting and acquiring new clients. 18:02 Hope this answers your query, Ms. Nitya.

If you have any other information that you'd like, please ask in the chat now. It means… Thank you, Ms. Nita. So, next in our queue is Mr. Pranaval.

He was asking about what is the current utilization, considering that you increased your capacity last year.

And what are the capacity expansion plans moving forward? 18:40 See, currently, I would say we are utilizing around 75% of our capacity. There is potential to utilize around 20-25% more capacity. But, what happens is our line of business, there are… there are things where, like, you know, it's… Currently, because we're predominantly catering to the Indian market, So, it becomes a little of a cyclic business also at times, because the lighting requirement kind of shoots up from June, July.

And goes on till… till March. So, the first quarter, Q1, I would say the demand is a little lesser, and maybe towards the end of the year, demand is a little lesser, because financial year-end closings and all of that. So… We are trying to, use that… those capacities by either getting into newer territories, like geographically newer territories, exploring export opportunities where these concerns are not there, or in different, applications of the product, like, you know, furniture application, or the facade application. So, because our current set of clients that… that… or the current set of business that we're doing, in that business, there are some few moments of the year where the business is a little lesser, so that's why a capacity utilization is a little lesser as compared to that. But yeah, and in the coming financial year, we see that we will be able to utilize those.

And we still… we see that, okay, at least we would do around a 30-35% growth from… compared to this year. is what we are looking to do for the next financial year. And that may require a smaller CAPEX, which we are… very well we can do from our internal accruals. Maybe a CAPEX of another 2-3 crores would be required, but that we can… we can… Manage that. 20:37 Mr. Pranov also has a follow-up question in this, that… ARCA… Okay, so Mr. Pranav is asking, 30-35% growth on top line. 20:47 Yeah. 20:55 So, I think we should take his follow-up question then.

Okay, so he's also asking, you can ask, okay. So, he's asking, your core materials, or raw materials, the LED chips, flexible PCBs, copper foils, specialized components, are still largely sourced from China and Taiwan.

21:13 Soon. 21:14 When India-China trade frictions were at their peak, domestic LED manufacturers benefited from surprise Chinese Finished goods competition.

While still accessing cheap Chinese inputs. Like, between 20 to 22. 2020 to 22. The Chinese imports were tightened due to border escalation.

Considering the loosening of these import restrictions, how can it impact your business and the margins?

As you saw, competitor companies took a hit on their business due to the loose import policies from China. 21:48 So, if… I'll try to answer this. So, the thing is, I think the government is very smart. They have… they tightened the restrictions earlier, they have loosened it up now, but they have… they have put in mechanisms in place, which is… which looks like they have loosened it, but they have technically not.

Current earlier, so there's a… there's a, this is a… certification that is required, which is the BIS certification for the lighting industry.

So, earlier, even though the Chinese could export it to India, so first, what the government did is first they increased the custom duty on finished goods, but they did not increase custom duty on the raw materials, which helped the manufacturers to import the raw materials, and it promoted the Indian manufacturing.

But even with higher import duties, the Chinese people could sell their products in India.

Now, what the government has done is that they have the BIS certification, which was being given to the Chinese manufacturers earlier. Now, no new Chinese manufacturers are being given the BIS certification.

So, if there are any newer developments in the light… so, see, lighting is a technology… as per technology, it's a very evolving… it's an ever-evolving business.

So, with the new evolutions and new products being developed and new models coming into the market, the government is not giving BIS to the Chinese manufacturers, which

Also, Someone else also, okay.

Saptaram Kumar has sent me a question, but… I'll answer this after this question, please.

As far as the, thing with China, the border issues are concerned, and even for that matter, the current, concern with this Iran and Middle Eastern thing going on, you see that the dollar prices… the dollar has gone up. It affects our imports, the crude has gone up, so it affects the materials that we buy. Which are byproducts coming from crude.

So, whenever such things happen, the prices increase, we pass on those price increases to our customers, and it's there in the entire chain. So, working with the kind of people that we're working in, we're servicing the industry. So, we… You know, we always try to make sure that if there is a price benefit, we pass on to the customer. If there's a price escalation, that also we price on… pass on to the customer. Definitely, that happens only after a certain threshold limit. We know that the price escalation has gone up beyond a certain percentage. that is when we can, you know, increase the prices for our customers, or when the prices have dropped beyond a certain percentage, that is when we drop the price. In between that, we take, we take, you know, the advantage of those escalation or reduction, we kind of enjoy those benefits, if it is within that threshold limit. 24:57 Hope this answers your question, sir. If you have any follow-on question in this, yeah. Okay, so… So, Mr. Pranupal is asking over here, just one follow-up, how is the 30-35% growth coming from the next Capex, the ramp-up of utilization? And when can the capex commence? 25:20 So, we intend to do the CAPEX in April, to initiate the Capex in April mid, and have the… have the Capex done in the first quarter of the coming year.

That's our intent. And the increase is the increase in revenue

is not only subject to that capex, definitely we need that capex.

That's what we are evaluating. This is the right time to do the Capex, because we just don't want to go for the CPEX.

We… as we also have some spare capacity, so that's what we are trying to evaluate. I think… I think I can answer that question better later, but yeah, that's… that's already in works.

And the 30-35% growth that we are looking at is because of the newer things that we are doing, like I said, the facade lighting, the GAN technology, the furniture market. So we have been working on these spaces for the entire… for this entire year. like, you know, our R&Ds and getting the products made perfectly as per our customer requirement, getting the costings right, understanding the market, whether it's the right time for market to accept these products or no.

No, thanks. So, let's move on to the next question, that is… 27:09 has sent me a few questions. I don't know if it's come on your screen or no, but I have… can I read those out and… Answer those firstly. 27:18 Sure, sir, sure, please. 27:20

He is asked, can you throw light on GAN technology? You have developed or acquired it? potential for market, sales, expansion. With respect to evolving technology, are we having R&D depth compared to Chinese manufacturers? Okay.

So, these are two different questions. So, who answered the question on GAN technology, firstly?

So, we haven't acquired any technology, it's all indigenous technology. We have set up a R&D team, we invest in our R&D. So to give you… so… so GAN is basically a type of a power supply, okay?

Most of the companies in the country, they do what? They make some association with a company from China, predominantly, because electronics is predominantly controlled by China.

We, onboarded people in our electronics development team.

And slowly, steadily, we developed the technology after understanding from various suppliers of how each component works, and all the designs are indigenous, so it's not like whatever we supply is readily available somewhere with some manufacturer out there in China or Taiwan.

Or any other place for that matter. So that's what we do with GAN.

That always, you know, gives us the edge, because it's an indigenous design, that we are not dependent on anybody that tomorrow the supplier may change the design, or may… may control whether we can get the materials, so we don't… we don't want to… be in that loop, so it's all completely an indigeneous design. Now, GAN has got many applications. To begin with, we are focusing on the lighting industry.

Lighting industry means the products that we are supplying, the power supplies for that, to convert it to GAN technology. Now, GAN also uses power chargers, chargers to charge your… charger to use your phone, charger, I mean, again, chargers to charge your phones, your laptops, your everything.

So, that has got a wide, wider application. Even GAN technology power supplies are got industrial applications in machines and things. So, we are far from there. Our primary focus is on applications which are consumer-based applications, so when it comes majorly the lighting.

And then maybe we'll get into GAN chargers, and then other things. For the market potential, it's quite a big potential. I…

I cannot put a number to it right now, but it's… so basically, I can tell you all the power supplies that are being used currently are eventually going to get converted to GAN.

Because… like, lighting moved from CFL to LED. That's how the regular power supplies are gonna move from the regular supply is to GAN. Now, the faster the adaptability, the faster the… The faster the adaptability of any company, the better it is for them. That's what it is about GAN.

Second question is asked is, with respect to evolving technology, are we having R&D depth compared to Chinese manufacturers?

So, I can tell you, Ki, the Chinese… so we… we have to rely on, some of our supply partners from China for the technology, because China has developed a complete ecosystem. They have complete cities based for. a particular industry. That's not the case in India. So… If you say the depth in terms of skill of individuals, yes, we do have the skills in India, and in our team as well, for the kind of R&D that is required to match the Chinese manufacturers, but the ecosystem that is required to convert it at a faster pace.

I don't think we have it in India, and that is not something that is really in our hands. That's something that the government really needs to work to create an ecosystem for different industries. maybe that… Right.

Happened with time, but we try our best to, be… If not. lesser, I mean, if not better, then at least at par with the Chinese suppliers.

And he has RF and wireless 5G base stations, are we focusing on that? No, we are not working on, RF and wireless 5G base stations. Are we focusing… no, we are not working on those.

We're working on RF and wireless technologies for lights only, in smart lighting, where you can have app… you can control the lights with a remote, or maybe from your phone. We're working on that. But for 5G base stations, not really. 33:07 Okay, due to time constraints, we'll be taking up the next question.

So, next question is from Mr. Rubresh Mishra. He's asking, can you tell us about the current order book, and how much growth visibility it provides for the next 1-2 years?

33:22 So, we don't have a current order book, we cannot say that… what… the current order book for the full year. So, how it works is, because the companies that we work with, they, are a brand which has presence in the market. So, we have a quarterly forecast, quarterly rolling plan that we get.

So that's how it is. So, it's this… it's currently what we are seeing and the discussions that we are having with our clients. we see, on basis of that, only we have said that we are estimating a 30-35% growth. 35, 32 are considered curries, 30% growth on our top line. It's based on… is on the basis of all this.

So there's nothing documented, but with the verbal discussions, because we work… we are not, like, we don't work like suppliers.

We work, like, more, like, extended arm with our customers, where they don't… they don't invest in this… the R&D of these products. They don't invest… we are, like, an extended arm, which does the R&D, which does the manufacturing, which does the supply.

And complete market survey for this category. They, they being brands, they have got a wider reach in the market, so they can distribute the product better. That's what it is.

They rely on us for telling them what to sell in the market. 34:43 Mr. Rudra, do you have any follow-up question on this?

Okay, so let's take up the next question. I think Mr. Subramaniam wants to talk to you directly. Could we arrange for that? Devincial? 35:05 Yeah, yeah, please, please, please. 35:19 You know, greeting, sir. This is Subramanian.

And my questions are, like, first of all, whether status of CapEx, or whether it is commercialized and fully started functioning, how it is, like, CapEx?

35:31 Some of the machines are yet to be fully operational. Most of it has been done, some of it is yet to happen, which is… which are the… some of the capexes which have happened in recent times are yet to be fully operational.

These are products with specific applications, and you're solving a specific problem, so there are margins which are better in this particular space. So that's what we are eyeing. 36:42 Got it, sir. What about the maximum sales we can do from this capex, after this capex owns? We are utilizing fully. Oh. 36:53

After another 2-3 crores of capex that we are looking to do, I think we should be able to go up to around 140, 150, within the range of 140, 150 as a top line. 37:07 Oaks with it. whether we can expect the same kind of exponential growth which we saw from between 2021 to 24. In next 3 years, whether we can see anything like that. 37:18 That's the… Because, you see that we grew, we started very organically, and from the growth period that you're talking about, that time we saw tremendous growth.

But it was, as a company, it was very much important for us, because for us to my… you know, there has to be a mind shift… mindset shift also in an organization when you are moving to bigger numbers, and you have to organize the teams better, you have to consolidate your manufacturing processes, optimize your costs, so a lot of things had to happen, which I've… that's why we took a step back. kind of… You know, try to organize those things better, and that's what we have done in this year, and a little bit of that in the previous year, and now that's what we are eyeing for, to go aggressively and look at the growth numbers that we have done previously in the past. So, our Target.

For the coming years is aggressive, as we are looking to do much, much better numbers, but I think I wouldn't want to comment specifically on the number. I would rather wait for the right time and deliver on the work that we are doing. 38:31 Okay, sir. Since we are solving these specific issues and specific problems, how competitive is the industry over? Whether we have lesser competition, or it is highly competitive? 38:40

See, we have chosen spaces which is, which are not very competitive. we kind of tried to focus… so when we started doing the work that we are doing currently back in 2016, nobody in India was doing this work. That's how we could see… that's why we, I think probably in 2018, 2019, we got stabilized, and 2020 onwards, we could see the growth that we saw. We saw experiential growth, year-on-year 100% growth for 2-3 years.

So we've always tried… our strategy has always been to work in the blue ocean, and not in the red ocean. Blue ocean being where there's not much competition. and red ocean, where there is a lot of competition. So that's what we try to focus on.

That's been our strategy. Having said that, that's the reason we could do the kind of growth we have done in the past, then we had to take one or two years to consolidate everything and, you know, get that mindset shift and re-strategize, looking at bigger numbers and bigger vision.

So we are wanting to kind of capitalize on that in the coming financial years. 39:47 Thank you, sir. All my queries resolved, and all the best for your future. 39:51 Thank you so very much, Bruno. 39:54 Thank you so very much, sir. I'll now put you on mute, and take up the next question.

So, the next question is from Mr. Sakshat Gruel. He's asking, can you talk about the existing segments, the current client mix that we have, and how is the current business growth in both volume and price breakup? 40:13 So, currently, what we are working on is, we work… we do ODM business majorly for all the brands, so the products that they buy from us, is…

is branded, packaged, everything is done at our factory, which from our factory goes to their warehouses across India, and from where it goes directly to their dealers and distributors. So, it's a product which sells in trade.

Where people, retail buyers like you, me, when we have for… we require for our house, or our office, or any festivities, we buy those products and use those.

So these are generic products, you know, you see, you would see strip lights being used, you put it in your cove, you put it behind your bed, you put it around your door, now you see those Tirangawala lights being put on, the streetlight poles, you know, the Indian tricolor. So these are the kind of applications, these are very generic applications.

Where you can… where to… to… whatever the consumer can think of, they can use.

Now… so… so this is what… what we have been focusing on. So, this product is such, inherently, this is the only product which has the flexibility where you can customize the size of the… the length of the product, the light of the product.

It's flexible, it's bendable, so this is not the kind of flexibility that you get in any other product.

You cannot do that with a tube light, you cannot do that with the street light, you cannot do it with a focus light, you cannot do it with a bulb, this is… so this light has… the strip lights and the flexible linear lights that we're doing have become a very integral part of lighting. It was not an integral part of lighting earlier. when I say earlier, around 7 years back. Now it has become an integral part of lighting. Any house being done up, any office being done up, you would see that these lights are being used. You would also see on the building facades, you know, on the borders and everything, they use these lights. On the streetlight poles, they are doing it, everything. So, ye abhi hoge ab.

Most of it is, like, in the furniture space, in automobile space, in building facades, in architecture, in outdoor architecture, it is being used. city beautification, it is being… so there are a lot of places that are being… being… getting opened up. And all these other applications that I'm telling you, because the product has to be customized for these kind of applications, the… the costs are higher, the margins are higher, and it's a better selling proposition, but… and the volume is… is… substantial. It's, it's, it's quite big. So… Yeah, that is what it is, because with this striplight as a product, people have understood there is a lot more that can be done with the product. 42:58 Okay, I think we should take up his next question. He's asking about, how big can HE Tech or HeyTech customer become, for us?

How should we think about the opportunity size?

43:09 See, they have given us a number, I wouldn't want to disclose the number here. We see that they… it's… it's quite substantial, that's why we have our energies focused on that particular client, and we have been putting in our 6-8 months. So, to give you an idea, the kind of vendor approval that we have got is not only for Indian supplies, it is for global supplies.

Now, it's on us on how we can… how much percentage of the business share can we take. understanding from them, and having met them, we have understood that they are… they have got a very aggressive vision for the upcoming 2-3 years, where they say that they see a big, big, big potential. Miller, to give you an idea, if we are able to do that the way we are estimating, or the way that the client is has been giving us indications. We might have to have a smaller, separate factory or business unit for them. That is the kind of potential is possible, with headache.

And we can, you know, keep on adding more clients in the furniture, and… Pictures, please. 44:16 Okay, I think, we should take up his, next question as well, then. He's asking about, Mr. Sakshat Gul continued, is asking about, why is our inventory days so high? Is it possible to reduce that, and any plans to reduce our borrowings? 44:29 We are already working on all these things, where we are trying to reduce our inventory days.

Earlier, we had two separate factories, so our… the process has had become such that the… we used to keep higher inventories in order to manage the supply chains better. Now, we have gotten everything under one roof, and we have got all our processes together, so we are already working on reducing our inventory days. So generally what happens, the two times that we have to publish our numbers, one is in the March and one is September, those are the times specifically where our inventories are higher.

Because in September, Diwalika time, Arahot, so we have to keep excess inventories, because the clients buy more, so that time the inventories are higher. Secondly, in March, because Feb… the entire February, China is shorter because of Chinese New Year.

So we have to keep invent… and they open up in March, then the dispatches happen from there in March, and material comes sometime in April. So, that time, we have to keep around two and a half months worth of inventory with us. So, those are the specifically two times that it happens. It is with

our industry that we have to keep higher inventory. But we are also working to, you know, optimize those.

And probably in this year, we will see the… we will see the difference in that. 45:51 Mr. Sakshat, do you have any follow-up questions on this?

Mr. Sharshot Nu wants to… Mr. Sakshat, I'm sorry, wants to know about the borrowings. 46:09 The borrowings. See, we increase our borrowings because you're doing capexes also, and the idea would be to reduce those as well. We are already working on that. we had to do capexes, some we did from our internal accruals, and as we liquidate more of our… some of our inventory, we'll obviously… the idea would be to reduce the borrowings. 46:33 Oh, this answers your question, Mr. Suchhel.

Okay, so the next question is from Mr. Alesh Shah.

He wants to know what is the client retention rate and the customer acquisition cost?

And how are we planning to improve these metrics? 46:51 So, retention rate is quite good, I would say. the genuine customers. So, we have got customers… Who have been working with us since 2018, 19.

So, you can see that… and the business has always been increasing. So, the customer retention, it is good. The product… the product that we are doing, is… the thing is that once this… because it's not a very easy product to manufacture, so once the manufacturing starts. facility, it is very difficult to… for the customer also to migrate this particular product from us to anywhere else.

Yeah, having said that, it's not like we… some… we have not lost customers in the past, we have, but it has been because that there are some customers who expect, in lighting, they expect, like, a really over on a cheap quality product, which we refrain from doing, and that's how we have to let some customers go also, or I've had to let some customers go in the past.

So, you know, that's that. The customer acquisition cost, I mean, we… so how we work is we have got key account managers for each client. So we… we increase our sales team, and then it takes around 6-8 months to onboard a client, like I said.

So… so the account managers, their cost, the traveling, the sampling, all of that is there, but I don't think that is… that it's too much of a cost. our R&D… takes more of the cost, I would say. And the development takes more cost. 48:41 Hope this answers your question.

Okay, so, Mr. Rudra has a question in this regard.

With our increasing focus on waterproof lighting, do you see this segment structurally improving your margins and positioning you as a premium player, and how scalable is this opportunity over the next 2 to 3 years? 49:02 So, we have got, like I said, one of the capexes that we have done is specifically been for this purpose.

We see that this is a very niche space, because when you say facade lighting, or outdoor application, or architectural lighting, all of those kind of lights need to be waterproof. there, it needs a better warranty. Now, the product that sells in trade is generally a 2-year warranty product, but when you get into facade lighting application and architectural lighting, it is something… these are expensive projects that happen. So the pricing of the product is also higher, there is… the margins are also better.

And the technical specifications of the product are also much higher than what is being sold in the trade application. So, definitely, yes, the margins would… the top lines would also get better, and the margins would also get better. With these… within these products.

50:02 Okay, I think Mr. Totra is done with his question. So, let's take up the last, Question because of the time constraints. Okay, so last question is from Mr. Ranesh Kwande.

He wants to understand the strategic point of view since the inception of the company, and where the company is trying to shift its focus now, or manage its focus. 50:25 So, I'll tell you, we have… so, when we got into the lighting business, we saw that Though… Lighting would… like, you know, all of us here on the call would relate to this, that we always, in lighting, we always knew only two products. One was the bulb, and one was the tube light, which would go in household applications.

And at that time, we chose to do these lights, because we could see that with the shift in technology from CFL to LEDs, what these lights could do.

And after 10 years, we are seeing that, you know, with our determination and the vision that we had that this is a product with the changing technologies, this product It can change the whole concept of lighting, and that's what has happened today. I'm sure that everyone over here by now knows what are strip lights, which 7 years back would not know, and now strip lights are being used in everybody's offices and houses and, you know, everywhere. So, we… the… I think we have got that… that I… and we can see that where the industry is heading. So, and what was the… can you please repeat the question? Maybe I try to answer that, and we missed half of it. 51:46 Sure, sure, sure. Mr. Ranch wanted to understand the strategic point of view of the company, means how the company is moving in that direction, or… 51:54 So, so that's… that's having said that, so we have… so since the beginning, that's been our focus.

Now, going ahead also, we are working on things which are upcoming. We always try to be one step ahead of the curve, and… We are working on now application-based lightings, which very few companies are even thinking of.

So, that's a strategic… that's… that's what I can… predominantly, say, is our strategy, is we are working towards that. And we also intend to get into electronics.

And our power supplies, GAN-based power supplies, is going to be a stepping stone to that. And we are keen to do something in the power sector as well, and so just… this is not a related space, but like I also mentioned in my introduction earlier, that we have started working on the best technology.

I'm not sure how many people here are aware about BEST, but BEST is Battery Energy Storage Systems. It's basically for… it's like, it's storage systems for electricity to decentralize the electricity distribution system.

So it's a very new thing, and it's a very big industry, and that is one of the diversifications that we are keen to explore, and we have started some little work in that, and hopefully we will have some… good results in them. So, the LED business, I will say the lighting business, we see. So, we are… We are trying to incorporate everything that… that we see as the future in the lighting. That's facade lighting, we see furniture lighting, we will get into application-based… so I'll name a few other application-based lighting as automobile.

You see ambient lighting, which comes in the automobile. Not the headlights and the indicator lights and all those, but you see ambient lighting that comes in the interiors of the car. That is something that we are keen to do.

We are keen to do, tunnel and mining lights. Those are also special lights where, you know, you… you… because we make products which are 50 meters in length, 100 meters in length, so that can be used in applications like tunnel and mining and all those things.

We are keen to do emergency lights, you know, because these are, again, linear lights. We see that with situations like COVID happening in the past and other situations, there can be power cuts, and all of these things, so those… those lights which are radium-based, which can still continue to glow in case of power outs and all of those things. So we are… we are trying to work on… in spaces which are very, very new, and I'm sure that there'll be hardly anybody who will who will have… Approach towards these things, because we have always tried to be industry thought leaders in the industry, and try to, you know, do what we think is going to be the future in this space. 54:53 Okay, so Mr. Karun Kumar has a question regarding this. Okay, so this will be the last question, due to the time constraints. Okay, so he wants to understand, regarding this. Could you please give more clarity on what it is under development, and likely the turnover expansion?

55:10 See, right now, it's too early to talk about numbers, okay? Currently, what we are trying to do with BESS is, we intend to get into assembly or manufacturing in future.

That could be 2 years down the line, that could be 3 years down the line. Till then, we would like to… substantiate our place in the industry by providing solutions to the customers. And since it's a very… it's a very technical job, and we… we built a team for that, technical people and people who have who can… who we can reach out, where we can reach out to the clients. So, we are trying to… kind of, you know, create a space in the industry first, and then the idea would be to get into manufacturing of this. To give you an estimate of the numbers.

Bes is a very, very big industry. I think the government requires some… $50 billion or so, that's why there's some article which I read. Or if you see the Reliance AGM, Reliance AGM, which happened in the past, there, Mr. Anand Tambani, in the statement, when he talked… when he spoke about his kutch. solar project, he mentioned about BES installation over there, battery energy, storage systems, installation over there. He mentioned that at peak capacity, they would be installing around… installing around 150 megawatt of BES on a daily basis in their catch plant.

So, you can see that 150 megawatt on a daily basis is… is huge. The rough… estimation of… Best per megawatt the selling prices would be around… around 75 lakhs to 1 crore a megawatt. For easier calculation, if you call… if you calculate around 1 crore a megawatt. is… 150 crores per day installation is what they were talking about at one plant on a daily basis.

We are intending to do… At, if nothing much, at least some 30 to 50 megawatt. What item?

So that would roughly convert to around 30 to 50 crores per annum, and… but this is just a, a new space that we are getting into, so this is not something that I would firmly say that, okay, that we will do this, and this is what we're surely going to deliver on, but we are evaluating a new industry. 57:57 Okay, so… this was the last question, okay? Thank you for joining us, everyone, and now I hand over the conference over to the management for closing comments. Over to you, sir.

58:12 I hope I was able to answer all the questions that everybody had, and to the best of my knowledge, I tried to do that. And I can only say that at Kundan Edifice, we are trying to do good work, and we have shown that in the past, and we have delivered on whatever we had We had committed, and we continue to… we continue to work on those directions. And we are aiming at, we have a much bigger appetite, so we intend to do much, much bigger work.

That will… I think the story of our company has not gone out as much as what we are trying to do. I mean, with this kind of interaction, we intend to put out a story, and… so that people are aware that what the company is intending to do.

And I can say that you can always, you know, count on us, and you can always think of Kondana DeFais, who you would see in the bigger league in the coming years. 59:14 Thank you, everyone. On behalf of Kundana Device Limited, that concludes the conference. Thank you for joining us. You may disconnect your lines. Thank you. 59:23 Thank you, thank you.