Creative Newtech Limited (CNL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Creative Peripherals and Distribution Limited Q1 FY '21 Earnings Conference Call. This conference call may contain forward-looking statements about the company which are based on the beliefs and opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ketan Patel, Chairman and MD of Creative Peripherals and Distribution Limited. Thank you, and over to you, sir.

Good afternoon, everyone. Welcome to Creative Peripherals and Distributions Limited earnings call for the quarter of the financial year 2021. I would like to begin by expressing my gratitude to all of you for taking the time to join us. On the call with me today is Mr. Abhijit Kanvinde, our CFO; Mr. Vijay Advani, Whole Time Director of our company And Bridge IR, our Investor Relations team. Before we get into this business and financial performance of the last quarter, I would like to share a brief insight into our company. We have come a long way and crossed several milestones over the recent past. Today, we are a market entry specialist for niche experimental brand across India and international markets. Our company specializes in market entry for global brands and work closely with its clients to achieve optimal market penetration and growth. Our network comprises of all 3 channels: online, retail and general trade, thereby giving us a strong leverage to read out to a wider marketplace. Furthermore, our value-added business model covers end-to-end solutions from market research and competitive analysis to formulating and executing region-specific marketing and presale strategy for the brands. We are using a multi-pronged strategy to grow our business based on 3-pillar strategy. The first key aspect of our business is brand licensing and contract manufacturing. With Honeywell, we have a long-standing agreement for contract manufacturing and distribution across 29 countries in APAC and the Middle East. We aim to expand this licensing line of business by adding more international brands. Contract manufacturing is an attractive model of business for various global brands, where they can leverage local players' market reach to increase and grow their products market share. We plan to utilize our experience gained with Honeywell for other international brands, wishing to follow a similar model. The second pillar is our expertise and stronghold in market entry and penetration for niche brands. Currently, we have a strong long-term association with 20 global renowned brands which are leaders in their fields. These are categorized into 3 broad divisions: IT, Imaging & Lifestyle and Security Products. Our value-added services like executing a brand's marketing strategy and post-sale service along with this wide spectrum of products has helped our company achieve economies of scale and become a single sourcing point to our customers. We continuously enhance this bouquet of brands with new and high-margin products. The third pillar of our growth strategy is our latest offering Ckart, our very own digital B2B e-commerce platform. Ckart is a game changer in our industry and will play a crucial role in expanding our business with new and existing customers with minimal additional cost. I shall elaborate more on this shortly. Overall, our focus on these 3 main growth triggers offering experiential product and enabling niche global brands to enter and establish in new markets, expand our licensing business and become an online one-stop shop for all customers through Ckart. We continue to aim for higher operational efficiencies and adding high-margin, value-added products to our portfolio. Association with Honeywell, BaByliss, GoPro and Cooler Master, et cetera, are our steps towards that direction. I would now like to take you through some recent developments. As you all are aware, in the last few months, we have witnessed an unprecedented and unforeseen adversity in the form of COVID-19 virus. The outbreak of this pandemic had brought entire economies to a halt. It has impacted every aspect of our life, including personal lives and industries across the globe. Like every other business, we also faced the impacts of the lockdown. And these effects are likely to be seen over the coming months as well. However, we took this opportunity to further refine our internal practices and improve our operational efficiencies and skill sets through various online training, et cetera. In fact, we stepped up during this hour of need and launched a range of personal medical products under our brand B-Safe. The products range include thermal scanners, thermometers, pulse oximeters and face masks. Moreover, it gives me immense pleasure to share that in August, we launched our much awaited digital platform Ckart. As I briefly mentioned earlier, Ckart is our online digital B2B e-commerce platform, built in-house by a dedicated team. Ckart hosts all our customers in the supply chain and enables them to transact, discover and share products and brands to their buyers in their own company's name. Thus, platform also assists them to showcase their inventory and trade among each other, facilitating higher volumes and expanding the product portfolio being offered through Creative Peripherals. We will also be able to host their white label micro site on our platform. We even showcased the speed and ease of use of Ckart when we demonstrated the first order online during the launch event. This platform will fortify our presence as one-stop shop for customers as well as improve our working capital cycle and profitability. One of the key purposes of this platform is to help our customers expand their reach and make it easier for them to do business. On the other aspect, we recently renewed our manufacturing agreement with Honeywell for another 5 years as well as expanded our distribution scope with them to 29 countries across the world now. This gives us access to Middle East and APAC region. Our deep association with Fortune 100 company like Honeywell would serve us as a guiding example for other brands, wishing to leverage the license manufacturing model. We continually update and expand our bright brand portfolio to keep it fresh and relevant. Before COVID-19, we entered into distribution agreements with several international brands across subsectors. One of the latest brands where bought on board is Panasonic, which is a global market leader in consumer electronics. We are distributing their premium range of audio products in India. Other premium and niche brands that we partnered with recently, including Cooler Master, PNY Technology and BaByliss are our premier personal grooming brand with a global presence. As industries reopen and business regain momentum, we look forward to continue expanding our brand portfolio. In fact, in August 2020, we won distribution rights for Honeywell's wireless audio products also for 20 countries. This association not only diversifies and expands our portfolio, but also enhances and testifies the company's recognition among global brands. As the consumer sentiments improve, we are expecting strong demand for such products in the Indian market, both online and off-line. And as Ckart gains momentum, we foresee a strong growth in customer base without much additional cost, which would translate into higher top line and profitability. So from an overall business perspective, this is all from my side. I will now hand it over to Mr. Abhijit Kanvinde, our CFO, who will take you through the financial performance of the company in quarter 1 FY '21. Thank you.

Thank you, sir, and a very good morning to you all. I will share the highlights of our consolidated financial performance, after which we will be glad to respond to your queries. Our financials are reported as per IndAS guidelines, Q1 FY '21 financial results. In the quarter ended 30th June 2020, our company achieved a net revenue of INR 64.53 crores, down 38.42% year-on-year. This is mainly due to the nationwide lockdown during most of this quarter, which affected our entire supply chain. This represents sales of less than 2 months since we gradually reopened operations at the end of April and have been operating at around 20% to 30% of our workforce capacity since then. The EBITDA stood at INR 1.9 crores as against INR 4.3 crores in the previous corresponding period. We continue to incur employee and other fixed expenses during the lockdown, which offset the impact of high-margin brands like Puma, Cooler Master and GoPro, thereby resulting in margin contractions. The net profit for the quarter is at INR 0.58 crores as compared to INR 1.99 crores in Q1 of FY '20. Our EPS for the quarter was INR 0.45. This is all from our side, and we can now open the floor for questions.

[Operator Instructions] The first question is from the line of [ Chirag Gupta ], individual investor.

Congratulations for the resilient performance. I have a couple of questions. So one question is with respect to the current issues that are going on with China and the increasing difference for Make in India products. Is that something that can consider will impact us and is there any plans or anything in mind to look at our performing channels in the medium and near terms to be ready to face this situation?

So you want me to answer one by one? Or you want me to answer all the questions? Or should I answer the China part now?

Yes. I mean, so you can answer the China part.

Yes, okay. So most of our companies whom we distribute the products are usually American companies and some of them are Taiwanese companies. But unfortunately, most of them produce their products in China. So because of the China problem, if it aggregates further, these companies will have to look at alternate manufacturing bases. So most of the Taiwanese companies have started moving their production back to Taiwan. And for brands like GoPro they have started moving their production to Mexico because similarly, they have a problem in U.S. about the China thing. Okay? So we don't foresee that our supply chains would get affected because most of the companies which we deal are multinationals, and they have been looking at this problem from last 14 to 15 months because of the U.S. embargo on China. And they had started moving their production to Vietnam to Thailand and to Taiwan. So our supply chains will not get affected. Over a period of time, it may happen that the Make in India campaign and government ops may make it lucrative for companies to manufacture products in India, and some of the brands may opt to partner with us to get this manufacturing. As of now, we intend to be a very asset-light company, and we don't intend to get into manufacturing. But yes, the contract manufacturing for Honeywell and other brands, what we get it done, that companies we could help them to come to India. And that's the time we may take the consensus of the Board whether we participate in equity with them or we just assist them. So that's our view for the China problem per me.

So right now, our contract manufacturing, majorly the companies are outside India, which we are working with. Is that correct?

Yes, except Sterlite for Honeywell fiber cables. Every -- all the companies are in Taiwan and China.

Got it. Got it. My next question is based on a recent CRISIL report that came in March. And given the current situation where a lot of people are having a liquidity problem, are we seeing any liquidity concerns among our distributors also? And do we have any plans to support them or have we done anything to support them? I believe some of the businesses would be running on credit. So if you could share some color on that.

Yes. I will take this question, Ketan. Firstly, right now, our working capital at the end of March was INR 74.33 crores, which have slightly moved from that to end of June, INR 74.93 crores. All right. That is one part. The second part is that from the perspective of our business, the first month was completely locked down for us. However, we opened in the second month and our first aim was to collect our debtors and our second aim was to conserve cash and do cost reduction. So from that perspective, we worked relentlessly and that we worked very hard on collection of debtors. And I am happy to say that from all my March -- rather all our March debtors were collected by June end, first week of July. So from that angle, the connection was on -- has become on track. The second point is that, yes, the connection was slow in this period. So we were -- we had to talk to our suppliers and pay them gradually. But that position of creditors' payment is also clear now, and we are on track. Okay. And the third thing what we did was we wanted to conserve cash and reduce our overhead. So we did lot of cost reduction exercises. We renegotiated the rent of our godowns and we also took some reduction in our salaries for this quarter and hopefully for the next quarter. So that there is less burden on P&L as well as less burden on cash flow. So to answer -- with these measures, we are -- we haven't taken any more loans and haven't taken any moratoriums. And we are on track, we feel, as far as our future growth and everything is concerned.

And just one related question. Are we seeing any liquidity concerns in the -- amongst the distributors or the resources are kind of exaggerating versus there on the ground?

So as of this quarter, there is not a problem of liquidity. The liquidity is not on the distributor part. The liquidity problem is for the reseller and the channel below. And luckily for India, the funding to the NBFCs from the government and the liquidity to the NBFCs. So the NBFCs are now funding the distributor, the reseller and the retailer. And that's really helping larger companies like us to get our payables on time. And because the interest rate has reduced overall, it becomes lucrative for a partner to actually use an NBFC to pay us off. So currently, barring some fewer smaller shops or smaller retailers, we don't see any liquidity issues into the IT and consumer durable space, there we don't have any.

Also a related answer to this is, we are happy to say that our wages are not stuck. All the old debtors have been collected. So from that, there is no bad debt and everything -- anything which is there.

[Operator Instructions] The next question is from the line of [ Shivani Vaishnav ], individual investor.

Sir, in line with COVID, I would just like to know, till when do we see that our business will be back like before? And till when do we see it will impact the business?

So [ Shivani ], a very good question. And I hope I could answer. This is my version. I think till December, we will have still the effects of COVID on the business overall. And by the first quarter of the next year, that's JFM, we would start seeing some recoveries. But a couple of good things are happening. Number one is, COVID has given us 2, 3 very, very -- I can say things, which otherwise would have costed a lot of things. First it gave us a lot of time, which nobody had it. And second, it really digitized India completely. So for somebody at age of 55 to do a web call or do a Zoom call, it's a different problem. So they could not -- so for example, if Indian government wanted somebody to do online shopping or do online banking or do other stuff, they would have to spend crores of rupees on that. And that's how all businesses also are now looking at products and -- which can be also showcased to virtually kind of. And that has really built a lot of efficiency in businesses. Businesses looked at their expenses for a lot. They also looked at which people they require in the office, which people are required outside the office. So that also really helped. The travel, which, for example, if I had to ask one of my key vendors that I don't want to travel to Delhi and can we do a conference call, and he would have normally not agreed. But after COVID also, I think that will be the norm. So to give you a one line answer to you, COVID problem will be there. The business will become efficient in a way that they will be able to mitigate that problem effectively. And once COVID goes away, these businesses then can really ramp up very fast because they have the right processes.

Okay. Also, as far as talking about going online, we have launched Ckart. So could you please brief how is it different from other channels?

Correct. So Ckart, number one, is a B2B platform. And it's for our partners who are actually trading products with us and buying products from us. So for example, Ckart is a discovery platform, where you come and transact products, you can discover new products and share new products to your buyers in your name. So for example, if you were a Creative customer, you could come on Ckart and then transact, say, a Samsung monitor. And while you are transacting, you will come to know, okay, Honeywell has launched a new range of speaker. And then you are interested in that. You can download all marketing materials in your name and send that marketing material via WhatsApp or via e-mail to your customers. Now, for example, a few of your customers like that product and they give you an order, you can place an order on us. And we can also opt for -- you can also opt for drop shipment where we will directly ship the product to your customer with your invoice and with your challan. So you don't have to worry about the shipping part also there. And if you don't have to worry on the shipping part, in future, you may not have to worry about the warehousing and other stuff. Also, Ckart provides you the usual credit, which it was providing plus the GST input, plus also, it helps you to schedule training for your people there. So it's kind of a complete integrated model. And then anybody who wants to start a new business also could see -- use Ckart very well. Somebody who is already transacting with us will have this automated feature. It has also one more feature where you can have your customized price list. So you can download a price list of product, you would decide you want to mark up it, say, by 7%. The prices which you will download will be marked up by 7%, which you can directly send to the customers. So India, right now, there are not many online platforms like us. Most of the platforms are B2C. This platform is a B2B where it helps our customers to efficiently cater to their customers in a very, very cost-effective way.

Okay, sir. Sir, how -- what is the cost incurred like financial terms, in terms of development and maintaining it further?

Okay. So we had 2 options about when we wanted to start coding of the Ckart, either we could have used somebody else's platform or we could have gone on Magento or something or there's another platform called eComchain, we could go on something or we could have developed it in this platform in-house and it could sit on our ERP. So we chose the second option. And the in-house team made this product. We got some consultants from IIT and another consultant who had done a similar kind of product but for a financial institution. So net-net, the product was developed in-house. So we own all the rights and the source code for this platform. We spent close to INR 1 crores for this product. If we would have used somebody else's platform also, we would have spent almost double the money for that plus usage charge every year close to -- depending upon the transaction. But here, only the hosting charges on Amazon Web Services would be borne by us. Because we own the platform, we don't have to give anybody the transaction cost.

Okay. Okay. And sir, one more question. So could you please give us the contribution for BaByliss, Panasonic and Honeywell in terms of revenue?

Yes. Abhijit, you want to take that?

Yes. Yes. Firstly, BaByliss and Panasonic are the products, which are, for example, BaByliss is our personal grooming product. And the Panasonic is again a luxury product in the range. Honeywell, we did a total quarterly turnover of around INR 2.5 crores. Yes. And BaByliss was almost INR 20 lakhs and Panasonic was in the range of INR 15 lakhs, okay? Reason being, no -- mostly -- most of our channels and everything, and we were closed. The real response of the customers has not come. It will hopefully slowly come from this quarter.

[Operator Instructions] The next question is from the line of Nayan Gala from Etica Wealth.

And I would like to congratulate on the launch of the Ckart platform. Sir, I have a couple of questions. One is relating to the Ckart. So sir, how do we plan to earn revenue on that? Is it like we will charge a percentage of the sales -- percentage to the sales amount or this is on a renewal basis?

So Nayan bhai, we are not going to charge any percentage on sales because Ckart helps us in building efficiency in our sales team. So for example, right now, we have a manpower of 200 people who cater to roughly 5,000 customers. We think that with the similar 200 people, we'll be able to cater to 10,000 customers. That's the first one. Second advantage of Ckart is that, for example, any customer of us, for example, we have 4,000 SKUs, but a customer of us will not be buying more than, say, 50 or 80 SKUs per customer, right? Once he comes at the Ckart, he will be able to see all the 4,000 SKUs. Second is, he will be able to offer all these 4,000 SKUs to his customers on a white label website on his name, which will be powered by us. So that also helps a customer. And the unique point of Ckart is because we have the pipeline of all the 4,000 products what we sell, the products are exclusive with us. So we make our margin on the products, which we sell to the customer. This is the Phase 1. Phase 2 is, for example, consider a platform like a JioMart or consider Croma online or consider Tata CLiQ or for that example, consider Flipkart for a while. So after a period of time, we can just tell them that why don't you enable our complete catalog of 4,000 products on a Tata CLiQ or JioMart. And then JioMart's customers can directly buy on Ckart. And that's how our sales will increase without adding manpower, without adding other stuff. So that's the business model. And we are not looking at -- we are looking at enabling our partners that they become efficient and they reduce their costs, and they buy more from us and where we make our margin. That's the whole...

Okay. So that margins of the products will be increased from our end?

I...

Maybe organically?

So margins of the products...

So Ketan bhai, I would add something to this. Mr. Nayan, this is Vijay Advani here.

Yes, sir.

What we are seeing right now since last year we've done this, see, the organization, those who are buying from us, all India, the 3,000, 3,500 partners, maybe 1,000 partners in a month are not very large organizations. They are a slim and trim organization with 5 people to 17 people. And some of them maybe 10% of them with about 40, 50 people working. So this slim and trim organization, they only get time in the evening after an office hours or maybe after they are closed with their sales and what we need for tomorrow. So probably instead of taking the time of our sales executives, sales master, there is everything available in the Ckart. And what we require is a purchase order in writing. So what they will do, they will just log in and fill up whatever they want. And immediately, up after one minute, we'll be able to see what is the requirement and next day, we can execute that. So it will help them also to do leisurely this and to see all the products and also save the time of our representatives. So what Ketan bhai is trying to say that it would be optimum use for the partners, for the distributors, for the resellers, those who are regularly buying from us as a B2B channel. This is what I wanted to add, Mr. Nayan.

Understood. Understood. Sir, in the comments also you had mentioned that you have renewed a contract manufacturing agreement with Honeywell, and we have -- now we will distribute to 29 countries. So before this -- in the previous agreement, how many countries we had -- we were distributing? Is there any addition to that? Or it is the same?

Yes, definitely, Nayan. So when our agreement got renewed, before that, we had Middle East. And so in Middle East, we had 8 countries there, and India was there. So we had totally 9 countries. Now in this current agreement, they gave us completely Southeast Asia. And in Middle East, they have also given us Egypt. So now Taiwan -- Thailand, Singapore, Myanmar, Malaysia, all becomes a part of us. As you already know, we have a subsidiary in Hong Kong. So we can cater to all these countries from Hong Kong. So -- and this agreement is for another 5 years. So imagine with the same manpower, if we can -- and the same kind of products. So besides India, when you sell to Middle East or you sell to other countries, almost the specification everywhere is the same. So it will give us a lot of operational leverage, plus it will give us a lot of advantage when we design a product that we will be able to spend some good amount of money on the diet because the -- with 30 countries, the whole volume of that product would be higher. Plus, with Honeywell also told us to complete the portfolio, they gave us wireless audio. And in that, we can have headphones to sound bars to other stuff. So that's really going to help us now. And we think that this year, Honeywell business should be close to upwards of INR 40 crores roughly. Last year, we had done INR 13 crores for Honeywell. So -- and Honeywell is a high margin product for us. The GIM on Honeywell is close to 42%, 43%. So that will really help the balance sheet very well.

Okay. And sir, the funding requirement for that will be through internal accruals? Or do we need to borrow some additional funds for working capital?

Mainly, it will be internal accrual because we are poised to do a turnover of around INR 600 crores. We can take care of that kind of turnover with our existing funding management. Maybe which will -- working capital and channel financing would be needed, but that will be in the range of INR 8 crores to INR 9 crores additionally, possibly if we...

Okay. Okay. And sir, targets for this year, like as per full year revenue and PAT targets, if any, if you can guide us through that?

Okay. Abhijit, you want me to take that?

Yes, yes, please.

Okay. So last year, we did close to INR 457 crores. And this year, we think that if the COVID situation is as aggregated as it is now, still we will be able to surpass that target. And with the measures, what we have taken we think that the PAT from the second quarter would start improving. And we would also be able to achieve a better PAT than the last year. That is what it looks like now. If COVID starts tapering from, say, post-December, then we would have a better PAT and better turnover. That's what I can say currently.

Yes. And also if Ckart will help us to grow?

Yes, definitely Ckart too help us to grow. So we have not still started promoting Ckart very heavily.

Yes, I guess...

But we have still seen 10 or 14 customers whom we never knew came and bought material worth INR 15 lakhs without any intervention with us. So that's kind of a huge -- that our belief in this concept that a lot of new guys will come in to buy products. I think that's the testimony of people, this 10, 12 people who have come in a time of 3 weeks to buy without knowing us. That's a good thing.

[Operator Instructions] The next question is from the line of [ Chirag Gupta ], individual investor.

Ketan bhai, so few more questions. So one question is -- the first question is around the brand that we have launched our brand B-Safe. So if you could throw any color on the strategy around B-Safe? Right now, it's probably COVID-related products, but are we also looking to expand into other categories? And any sort of target which you can share that you want to do with B-Safe probably in a year or 2?

[ Chirag ], a very good question. And first, I would like to answer you why we went into our own brand because all these years, we have never went into our own brand. When it was a question of whether taking Honeywell licensing or probably getting our own brand post, we said, let's take, Honeywell because it's a much more recognized category. When the COVID thing happened and the only thing which we were selling were thermometers and oximeters, we found that there is no brand which is very famous at least in a wall-mounted thermometer or in an IR thermometer. And that's when we discussed that it's a good place for us to have our own brand. And so we started with B-Safe. And B-Safe, we had never -- before this also, we had a couple of opportunities in personal health care products, licensing, but we have not taken because we didn't have the pharma channel. But because for the first couple of months of COVID, only pharma products were selling, we were able to rope in around 40 pharma distributors for the B-Safe brand. And that's how B-Safe was started. And then we also found out that there are -- like you have a Croma and Reliance. Similarly, you have around 3 to 4 prominent chains of pharmaceutical companies, like Netmed, like Nobel and all, and where there is buying happening at one place. So that also helps us in taking this. And we are not just going to have it as a COVID-related product. And slowly, we will get into personal health care products like glucometers and then blood pressure monitors and then self-testing first-aid kits and all. That is the case. And currently, as of last quarter, monthly, we are doing close to INR 50 lakhs, INR 55 lakhs of this brand in B-Safe. And we think that over a period of time, we should easily be able to do close to INR 15 crores to INR 20 crores in the -- if we have the right product range.

Right. And would it be a right assumption that the margins in B-Safe products would be higher -- much higher than what...

Yes, yes. So there are a couple of advantages. Pharma distribution is a much, much, much older profession than IT distribution. So the partners there are much mature. The terms of trade are almost fixed. The credit is also not very high. And the biggest advantage is there are not larger, so there are city-based, taluka-based distributors, but there are not across the India, how we have in IT one distributor across India or one company taking the products across India. That kind of the distributor is not there. So there's a lot of leverage there. And of course, pharmaceutical products have higher margin than consumer durables and IT. So -- and it's plus our own brand. So the margins could be much higher there.

Got it. Got it. Then the next question, Ketan bhai, I have is around the -- so we have a target of INR 1,000 crores turnover by 2023. Any targets around the margins also because our margins are the current business that we have, which is understandable, the kind of margins that we have. But say, any targets that we have around margins by 2023, how much can we roughly plan?

[ Chirag ], a very good question. A couple of things. The top line of INR 1,000 crores if you take mobile distribution can happen this year also, kind of. You know how much Samsung or Apple sell. But our whole idea is to be into the niche product segments and also to push Honeywell. So we think that when we are at the INR 1,000 crores benchmark. And if we have to PAT ourselves very well, current, our margin is close to 2% on the total, say, it is the PAT, we want at least it to be more than double at INR 1,000 crores. And 3 things are going to really help us into that. One is Honeywell sales currently is just 2% to 3% of our sales. By the time we reach INR 1,000 crores, we are sure that Honeywell should be 25% to 30% of our sales. So that will add that. Second is with the advantage of Ckart, our -- we'll get a lot of operational leverage and Ckart will itself add close to 1%, 1.5% to the PAT. So safely, you can say that at INR 1,000 crores, we should be at double the PAT what we have right now.

Got it. Got it. Ketan bhai. And the last question I have is around Ckart, Ketan bhai. So Ckart is very exciting, and we hear a lot about Udaan, IndiaMART and these -- they have become really big. So what are our plannings on Ckart and maybe, let's say, on 4 to 5 years horizon? Will you still invest a lot on Ckart, probably build a brief team or again do a lot of investment there? Or this is something that probably we'll evaluate for some time and then we will we go slowly after this?

Yes. So I think to actually make a great business. If you get a lot of funding, you can't really -- you'll spend a lot of money to do that. And that might be case at a couple of B2B platforms. That's the case. Abhijit, our CFO, is very conservative, and he wants proof of everything, proof of the concept before investing. So Ckart will become the biggest pillar of our business, but our investment needed on that would not be much. That's what we feel because the platform is completely owned by us. The tech team is sitting in-house, which is doing that. And we are going to organically grow this business. And I think once we get a certain number of customers, our customers also will be our brand ambassadors because for anybody wanting to open up a new business, where does he get a catalog of 4,000, 5,000 CDIP products on that space. So we will not be spending a lot of insane amount of money on the tech part. Tech part, we are now completely sure that we will be able to make the tech very well with a lower cost. Marketing with what Abhijit's view are there that we will spend certain amount of money from the amount of money what we earn. So net-net, we will not be spending an insane amount, but Ckart will surely become successful. From the early fillers, what we see, I think we have a good product in place.

And also marketing channels would be mostly digital and social media so that, that would help conserving cost and not above the line.

Got it. As far as fact, like what obviously matters, and we -- I think only that matters that is driven by -- is really inspiring the kind of revenue we've seen so far. Looking for a much, much better term.

Thank you. Thank you, [ Chirag ]. Thank you so much.

Thank you. Thank you.

[Operator Instructions] The next question is from the line of Nayan Gala from Etica Wealth.

Sir, just wanted to ask one more question. Sir, we have 2 online platforms, right? One is Ckart and one is B-Safe. So are there any plans to merge both the platforms going forward?

Okay. Nayan bhai, Ckart is an online platform, and B-Safe is our own private label brand for thermometers, oximeters and other stuff. We don't have a B-Safe -- we have a website for that, but we don't have an online platform for that. So B-Safe also would be sold on Ckart.

[Foreign Language] it will also be sold on Ckart.

Sold on Ckart. Yes. Yes. B-Safe is not a separate platform.

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to Mr. Ketan Patel for closing comments.

I thank the entire team of Creative for their untiring efforts, hard work, sincerity and dedication. Also, I appreciate all of you for participating in our conference call. Please do get in touch with our Investor Relations team for any further questions. Thank you so much.

Thank you so much.

Thank you.

Thank you. On behalf of Creative Peripherals and Distribution Limited, that concludes this conference. Thanks for joining us, and you may now disconnect your lines.

Thank you.

Thank you.