Jubilant Ingrevia Limited (JUBLINGREA) Earnings Call Transcript & Summary

I hope everyone has settled, especially people at the back. Good day, everyone. I am Pavleen Taneja, heading Investor Relations at Jubilant Ingrevia Limited. On behalf of our company, I warmly welcome you all to our Investor and Analyst Meet 2025. Before we begin today, I would like to brief you on the safety and security arrangements here. Please take a moment to familiarize yourselves with the venue and the nearest exits, which are located on your left and on your right. In case you have any emergency, these exits will serve you as a safe evacuation point. Additionally, we have assembly area outside for emergencies. If you or anyone around you requires medical attention, please contact the nearest event staff, and they will promptly coordinate medical assistance. Secondly, I would request you all to please keep your mobile phones on silent mode. Moving forward, please note that today's discussion will include forward-looking statements which could be considered in relation to risk associated with our businesses. We have 3 main objectives for today: first, to provide you with deeper understanding of all our business units; second, to share our vision and outlook for the next 5 years concerning the Pinnacle 345 strategy; third and the most importantly, to offer you the opportunity to meet and interact with the business leadership team present here. With that, I would like to introduce our management team. Today, we have with us Mr. Hari S. Bhartia, Co-Chairman of our company; Mr. Deepak Jain, Chief Executive Officer and Managing Director; Mr. Varun Gupta, Chief Financial Officer; Mr. Vijay Kumar Srivastava, Head of Operations and Whole Time Director; Mr. Arvind Chokhany, Group CFO; Jubilant Bhartia Group; Mr. Ambrish Dixit, Head of Specialty Chemicals business, and rest of the management team. The agenda for today is as follows: First, Mr. Hari S. Bhartia will provide an overview of Jubilant Bhartia Group and our company. Following that, Mr. Deepak Jain, along with the management team, will introduce the company and share our vision for Pinnacle 345. Towards the end, we have an interactive Q&A session to address your queries. To register your queries, I would request you to please scan the bar code placed on your table, and we will address maximum possible questions in the last 30 minutes. Following the Q&A session, please join us for cocktails and dinner, an engaging network session. At this point, we would like to present a brief video showcasing Jubilant Bhartia Group and the company. [Presentation]

Without further delay, I would like to invite Mr. Hari S. Bhartia to share the group and company overview. May we have you on the stage, sir?

Good evening to all of you. We really appreciate -- I know all of you have many things to do. And I can fully understand, but we really appreciate that you have come here this evening to spend time with us and listen to the story of Jubilant Ingrevia. I must tell you my story of my connection with this company. It was 1979. I just passed out as a chemical engineer from IIT Delhi. By the way, our CEO is also from IIT Delhi. So -- and my brother at that time was trying to set up a new company, which was known as VAM Organic at that time. It was just -- I think the business plan that was a license raj. And we got the approval to build -- the end product assumed was vinyl acetate monomer and with all the intermediates like acetic anhydride, acetaldehyde, acetic acid, ethanol starting from molasses. So it was a unique concept in late '70s put together. Technology was brought in from different places to really create the first total biovinyl acetate monomer. Every product, the starting raw material was molasses. It was quite unique from that point of view. Today, the value of bioproducts are much more than what it used to be in 70s. At that time, the feedstock was cheapest for us to make these products. And so when I joined, my first job was to go and buy -- we have almost -- in Gajraula, we have almost 460 acres. So my first job was to go and buy land from farmers. So I used to be sitting in Hasanpur Tehsil and negotiating with farmers to buy -- so we bought 100 acres that time, then it expanded to almost 5x. So I'm deeply attached to what Jubilant Ingrevia is today because I've seen my own career growth and the growth of Jubilant Ingrevia. And really, this was the starting point for us to build the pharmaceutical company which is now known as Pharmova. And even Jubilant Industries was really part of 1 large VAM Organic chemicals, which became life sciences. So -- and -- only in '19 -- I think it's 2021, we decided that we will kind of break life sciences into 2 divisions. Because I think the idea was to really transform what we were trying to do in the chemicals. And that's where the journey of transformation started to really bring more focus in the group to what we are doing in the chemicals. We also changed management. In terms of leadership, Deepak joined. We have new leaders like Varun. Many of our team members joined when this transformation started to move it from a chemical intermediates company into more of building a specialty portfolio. And in the specialty chemicals also, our effort is to even look at higher-end products. Our products go into cosmetics, which is applied on skin for nutrition and different other applications. It goes into hair care, in personal care products. So you can imagine that for us, this is a major transformation now focusing the company more and more towards specialty. And if you want to be a specialty company, and I believe 60% of our profits today comes from specialty portfolio. You have to be very customer-centric. And I think in the last few years, that's the major change. Not to be inward looking because if you are an intermediates company or a commodity-based company, then the customer centricity is not taken that seriously. But I think in the specialty, we need to work very closely with our customers. Sometimes they come with their problems to us, and we need to solve them. If you want to be a CDMO, you want to do contract development and manufacturing, then it requires strong partnership because -- and also strong trust because they are handing over some of their most important molecules for you to manufacture. So I must tell you, there has been a sea change in the way we partner with our chemicals, and I'm sure Deepak will share a lot in his presentation, the transformation that has happened in different parts of our specialty business. And of course, with specialty, we were always strong in some of the chemistry platforms, but I think we are adding more capacity on research. We added research in Greater Noida. We already -- we have pilot facilities plus research facilities in our manufacturing locations. And the other part was -- if you look at our infrastructure, the 4 main facilities, which total amounts to almost 1,000 acres, Gajraula is 460 acres, Bharuch is 310. And a lot of them are still -- that infrastructure that we have built has a lot more capacity to be added there. It has the potential to almost double if you look at the kind of infrastructure that has been built. And with that infrastructure, we have recently worked on almost -- I'm told, almost 200 digital interventions. And Jubilant Ingrevia won the prestigious World Economic Forum Lighthouse Network award, being the only chemical company globally in the 2024 cohort. This is a solid achievement. Using data and analytics for improving productivity is really outstanding. And not only our Bharuch facility, we are now working across all our facilities to improve productivity. Any -- if you are a chemical manufacturer and if you are not safety first, you're not sustainable. Outstanding job has been done by our team across all facilities. Deepak can share with you the outcome of that. But I'm so pleased that we -- our care for environment, people and safety all across is one of the highest level that I have seen in the last many years. Sustainability remains at the core of our operations. We were ranked the top 5% of global chemical companies with EcoVadis Gold rating and among the 2 top Indian chemical companies in the ESG score. Also under the Dow Jones Sustainability Index of Corporate Sustainability Assessment of 2023, we achieved a ranking of the 93 percentile. This really requires a lot of work. And also, it builds trust with our customers. They see that we are a really a long-term sustainable operations. As Deepak has shared before, his Pinnacle 345 journey, which aims for 3x revenue growth and 4x EBITDA growth in the next 5 years. At the end, I must just tell you that personally at the Board level, we are superbly excited about the transformation that is going on. And some of the stories that you will hear now in the presentations later on. Thank you again for coming tonight and listening to our story, and I look forward to interacting with you later in the evening. Thank you.

Can you hear me? All right. Good afternoon, everyone. Thank you very much for coming over, and welcome once again to our Investor Day. It's a privilege to have all of you in the room and share our story not just from last 1.5 years, but also talking about what we are aspiring to do in the coming years and how step by step, we are building out that story. Before I introduce the agenda, I just wanted to quickly introduce myself because I have met many of you individually and smaller groups, but -- just very quickly in 2 lines, I joined Jubilant Ingrevia as CEO and MD about 1.5 years back. And before that, I was with Bain and Company, Senior Partner, leading the chemicals and industrials practice of Bain in Asia Pacific and had the privilege of working with several of chemical companies and leaders in India and in the region, including, of course, Jubilant Ingrevia and -- and when I took over this role about 1.5 years back and met Mr. Bhartia first time, his first few words to me were that Deepak, this is a true transformation, as we just explained here. And the #1 thing I want you to work on is to bring customer centricity to the organization. So I'm very happy that with whatever Mr. Bhartia said and the hard work that all of us have done, we can already see moving in the right direction, we'll talk about how it is impacting our business and what we expect to get out of it in the coming years. But we have started to take the first step towards it, and I'm quite confident that in coming years, you will see many more achievements and accolades coming our way on the back of all the hard work the team is doing. What we are going to do today is we'll talk about -- I'll take the first 20 minutes or so to talk about the company, to talk about our Pinnacle 345 journey, what we aspire to do, but also share the progress from the last 3 or 4 quarters in which we have started to take those baby steps towards the Pinnacle 345 journey. And the outcomes of those baby steps have given us the confidence that we are taking the right journey. We, of course, have a lot more work to do in coming years, which the whole team is committed. The leadership team sitting in this room, whom you will interact with today is fully committed behind that vision. So we'll talk about that. Some of the leaders from the leadership team will come and present the specific BU-wise plans as well as progress on 345. We'll also talk about our operations, how we are transforming them, the safety aspect, the sustainability aspect and many more things we are doing in the company to ensure that the right enablers and the foundation which is needed to deliver on this Pinnacle 345 aspirations are in place in a very foundational and robust manner. Varun will touch upon the financial plan and discipline. While a lot of focus is on putting in the right inputs and hard work into the business, of course, the outcomes matter. And one of the things which is needed is to have the right financial ecosystem, the team, the tools to ensure that we measure what we are doing with the right metrics and at the right side and take course correction as and when it is needed. So Varun will talk about all of that, and then I will round up by sharing the overall investment thesis. Before I get into the details, perhaps we'll play one more video on Jubilant Ingrevia, for a couple of minutes, and then we can just dig in into the details. Gaurav, can we have the video, please? [Presentation]

Thank you. So let's jump in. I think Mr. Bhartia already covered a little bit about the story of how Ingrevia was created in 2021, came out of -- we were together with Pharmova, known as Jubilant Lifesciences until -- late 2020, early 2021. And that's when the split happened between Ingrevia and Pharmova. Ingrevia literally means ingredients for life. It's a combination of 2 words. And we are truly and fundamentally an ingredients company which supply different kind of ingredients into life sciences sectors such as pharma, agrochemicals, cosmetics, now even semiconductors and many others, and we'll talk about that more. And the fundamental objectives behind this split was, number one, to unlock shareholder value, of course, and we have seen the magic of that happening over the last 4 years when both the companies have done extremely well and have grown more value for their respective shareholders. We created the separate companies. We were very clear that Pharmova had a lot more businesses on the pharma and healthcare side, while Ingrevia was focused on chemical intermediates, which was fueling different sectors, as I said. So it was critical to bring a lot more focus, a lot more investments into those businesses, and that's exactly what has been happening over the last 4 years or so when we invested in the business, almost INR 2,000 crores, created new R&D centers and hired and grown the team over the last few years. And of course, as I think most of you know, chemical sector has provided so many new opportunities, especially in the last 4 or 5 years since the macroeconomic factors turned in favor of India with China plus 1 and trade wars playing out. And just capitalizing on those opportunities was very critical. And hence, it was required to have a very different kind of focus on those opportunities, which is what Ingrevia has been doing over the last 4 or 5 years. The whole story, I think you saw the glimpses of it in the video as well, can be divided into 4 major chapters. Of course, we got created as VAM Organics in 1978, and that's when we focused on the VAM chemistry, the acetic anhydride and the whole acetyls portfolio. In the second chapter which played out over the next 2 decades, we added pyridine and we are very proud of the pyridine chemistry. We are globally #1, and we'll talk about it more in our specialty portfolio, how it is helping us identify and capitalize on the new opportunities. But in the next 2 decades, we expanded our acetyls portfolio, but also added pyridine as our core chemistry. Starting 2011, we started moving forward into the pyridine value chain particularly and added almost 3 dozen pyridine derivatives. And we are #1 in almost -- actually, 35 of them out of the 50-odd pyridine derivatives that we do today. We also forward integrated in picoline value chain to add vitamin B3. So Chapter 3 was more about forward integration, both in the pyridine and picoline value chains. And what we call now, which probably, in my view, is the most exciting chapter of Ingrevia's history is the transformation into the specialty leader, which is what Mr. Bhartia alluded to in the beginning. We are doing several changes. The whole journey started after the split in '21. But in the last couple of years, we have given a new momentum and acceleration to that journey in multiple ways. Of course, we continue to focus on our core businesses of acetyl and pyridine, particularly pyridine, adding more and more products in the forward part of the value chain. We have added diketene as a new platform, and we already have almost half a dozen products in our portfolio, and we are hoping to add another half a dozen in the next 12 months. We have gotten our CDMO business off the ground in the last 4 years. And you will see later on in the presentation, that is going to be the biggest driver of our growth and profitability in coming years. We already announced some big contracts in last 2 quarters, and there's more -- many more such achievements and announcements to come in next few quarters. Our Specialty business in the nutrition side beyond vitamin B3 has started to pick up pace and will drive the future growth. So this is just a start of that transformation that we were talking about and getting big and scale in specialty, which I will talk about in the subsequent slides with the rest of our team. How we look at our business today? There are 3 parts, which is what we share with all of you every quarter. We have the Specialty business, which is the biggest part of our business now, almost 42% of the portfolio. We are globally #1 in bio pyridine, in beta picoline and many other derivatives of pyridine, almost 3 dozens of them, as I said. Within specialty, we have 3 business units. We have CDMO business, we have fine chemicals, and we have pyridine and picoline. We'll talk about each 1 of them in far more detail, even more detail than what we have talked about in our IR presentations over the years. The second pillar of our business is the Nutrition business, which is where we have vitamin B3, where we are globally #2. And we just commissioned our cosmetic grade and food-grade B3 plant a couple of weeks back. And once it fills up its capacity, we are hoping we'll catch up on #1 position very soon. We are a domestic leader in choline, vitamin B4 and we are expanding that portfolio and adding more specialty products to it as well. Chemical Intermediates, which is our acetyl business, we have some world-leading products there. Acetic anhydride, we are world #1 or #2 in merchant market capacity, depending on which year you talk about, and we are continuously gaining share in international markets like Europe, and we have maintained our 75% plus market share in the domestic market. And likewise, in ethyl acetate, we are very scaled, one of the biggest players in ethyl acetate in the country. Acetaldehyde, bio-acetic acid and many more products that we have in our acetyls portfolio. So this is how we look at our portfolio today. I think the 1 underlying theme which you see in our core products, whichever chemistries or products we have picked up, we have invariably made a leadership position for ourselves. And that's defined our aspiration on anything new we are doing, some of the new aspects of our business, the growth vectors will talk about in the next half an hour, you will see the starting aspiration, diketene being a prime example, our aspiration is to become top 3 not just in India, but globally. And that's what all the investments are about, all the portfolio we are developing and the products which are in R&D phase will help us get there in coming years. This is the current profile of the business. Business-wise, I already talked about Specialty Chemicals, almost 43%, the biggest business. Acetyls still remain big and is fundamental to our business. It's a core business. It gives us the threshold level of scale which helps all other businesses. It also feeds into other businesses and nutrition, almost 20%. By application, fairly diversified and application, which helps us even in tough times like what we saw in last 2 years. Pharma is almost 1/3 of our business. Nutrition is catching up very fast, growing fast, almost 22%. Agro varies between 20% to 25%. Agro has not been very good market-wise over the last couple of years, so the relative share has come down to 20%. But in stable times, it touches almost 25%. And then industrial and consumer. Consumer also is picking up on the back of some of the investments we are making in cosmetic-related products and hair care and some other areas where our core products as well as some of the CDMO opportunities we are getting. Geographic-wise, India is almost half our business, but what is driving our growth going forward is the international business. I'll talk about it. Our businesses in both U.S. and Europe have grown substantially even in the last 1 year. And despite the fact that growth has been slow in the Western world, I'll show that data. But going forward, we expect exports to be almost 70% of our business in coming years. Facilities, we already talked about. You saw it in the picture, so I won't repeat, but there are 2,000-plus people who work in our organization. We are making some changes in the organization. I'll talk about the team as well, hiring the best of the talent in areas where we need to strengthen our capability to deliver on the growth vision that we have painted, which we'll discuss in a few pages. I think R&D is 1 area which, in all honesty, I think historically, we have under-invested. And only in the last few years, with the advent of the new R&D centers, we have created -- the 1 picture you see on the left-hand side of this page is our newly built R&D center in Greater Noida. It houses almost 1,000 engineers across our group and almost 150 of them are dedicated to Ingrevia. Some of the cutting-edge work, especially in our fine chemicals, CDMO and nutrition portfolio is happening in that R&D center. We also have R&D in our big plants, and we are investing. Somebody was asking me outside what is our R&D spend as a percentage of revenue, I said it's still very low. The good companies in India have caught up to almost 2.5% in chemicals R&D spend. At a company level, we are probably less than 1%. But even if I take acetyl out, which skews it, still we are on the lower side, and we aspire to at least double it up in coming years because that is the kind of innovation which is needed to fuel our growth aspirations. This is the leadership team. As you can see with the green dots on the page, most of them are in the room today. Some of you have interacted at the booth. So please find them, interact with them. You will know what their aspirations are. And as a leadership team, one of the things you will see almost 50% of the leaders on this page have taken up these roles in the last 1.5, 2 years. So we have gone through a real change in the organization as well, starting right from the top. On 1 side, we have several members in this team like Yuvraj, Anurag, Amit Saini, Sumit, and many more who have been in the Jubilant system for several years, who understand our core capabilities, chemistries and understand what we bring to the table and are able to explain it to the customer, but also use it to deliver on the expectations of the customer. But at the same time, we have brought in people from outside, be it Ambrish, now Vishal has just joined us last week for our human nutrition portfolio, Himanshu came in a couple of years back, Vijay came from outside, Varun just joined 6 months back, Birajeev joined about 4 months back. So wherever we felt that the organization needs a different way of working to deliver on the expectations of the customer, a specialty customer has a very different kind of expectations. We have tried to bridge those gaps. We are still going through some changes in the lower layers in the organization. We have moved to a culture where we are doing a lot of changes from the perspective of what is not going to work from a future growth perspective and accordingly, building in new teams, bringing in new members to bridge those gaps. Of course, the quality systems and world-class accreditations are just, I would say, table stakes. It's good to see some of the effort and work we have done over the last 1.5 years, getting even externally acknowledged. And I think, again, Mr. Bhartia talked about it. This is one of the unique things which exists with Jubilant as a group, not just Ingrevia. For last almost 20 years, we have been ESG-focused. We started focusing on ESG in early 2000. We have been part of EcoVadis, Dow Jones and several other ratings for almost a decade, and we have maintained our top position, top 2 or top 3 positions in those rankings for several years now. And every year, we keep looking for new initiatives which help us just move ahead in that journey. This year, you saw it in the video. We have signed contracts, 2 contracts with O2 Renewable Power just as an example, which will take us our power composition to almost 35% renewables. And we're not going to stop there. We'll keep looking for more areas which can help us become more and more green in coming years. So that was a quick snapshot of what we are as an Ingrevia, what changes we have made in recent past and how we are structured. Let me also talk about Pinnacle 345. I think the video explained the what I call the hardware part of it, which is the numbers, 3x growth, 4x EBITDA in next 5 years. But I think the heart of Pinnacle 345 is what I call the compass. This is the vision we have as a leadership team, as Board, we aligned on it about 1.5 years back. What do we want to become? We want to be the leader provider of innovative solutions in our core chemistries. I think the key words here to focus on our innovation and core chemistries. As a company with almost 45 years of history, there's probably no chemistry which we have not worked in. So we have a lot, but we also have some of the core chemistries you would have seen on 1 of the booths outside, almost 12 to 15 of them, which is where we get our bulk of our business. And those chemistries and their potential is tremendous. We have not tapped it fully. So the idea is to continue to focus on those chemistries and obviously come up with more and more innovative solutions on the back of it. The second thing on this is the middle part, which is -- which we call the core pillars. I think, again, Mr. Bhartia covered many of them in his opening remarks, customer centricity being the very first one. The world-class operations, you should meet -- visit the booth, Vijay it can explain you the kind of initiatives we are taking there, including the completely revamped safety program that we launched 1 year back, and it is already showing very good progress. Innovation and technology, I talked about R&D. ESG, again, I talked about, and people focus. So we are going through a transformation culturally also in the organization. And that starts from the way each one of us from the leadership team, how we engage with our team, how quickly we respond to our customers, how quickly we respond to our internal requirements and what message we send down the organization. So almost every aspect we are working on and the hardware part I already talked about. And what it means in terms of numbers is if you take 2024, the trailing 12 months, we are about INR 4,200 crores in top line. We hope to get to INR 12,000 crore. In all honesty, we have a bottom-up plan, which takes us to about INR 10,000 crores. We have a gap of INR 2,000 crores versus that vision. We feel we will be able to figure out how to bridge that gap through inorganic opportunities or by finding new platforms along the way. But based on the current products, platforms as well as visibility we have, we feel that we are confident of delivering organically at least INR 10,000 crores through that bottom-up plan. The bulk of the growth, and I will show it on the next page, will come from specialty and nutrition part of the portfolio, which essentially means our margin profile will improve significantly. You have already seen it in the last 4, 5 quarters. It has moved by almost 1 percentage point every quarter from 9.5% to 14% in the last quarter. And then a lot of it has come from new high-margin growth areas, but a lot of it has also come from some of the lean and cost initiatives we have taken, which again, we will explain down the line. But on the back of all these efforts, the portfolio shift towards high-margin segments and the cost improvement efforts. We have a path to get to INR 2,000 crores of EBITDA. And ROCE, again, it has improved in the last 4 quarters from 9%, 10% to almost 12%. We have a path to take it to 17% to 20%. Obviously, we'll keep investing in the business. So sometimes the number ROCE number gets skewed by what is what we call the [ WIP ] CapEx. But adjusted for that, every investment we are taking in the company has a business case, which is banking on a 20% plus ROCE. And hence, majority of the future portfolio or most of it, in fact, all of it will be 20% plus ROCE. This will require some fundamental shifts. Again, a lot has already been talked about it, so I won't deliver the points on this page. But this is a true transformation in making. And we have taken the first few steps. As I said in the beginning, has given us the confidence that we are on the right track. We are on the right journey. But the specialty will increase. The customer centricity, of course, I think some of you speak to our customers also, and it's very heartening when we hear the feedback from the customers through some of you. Whenever I meet any of you, I think some of you know that my first question is what are you hearing about us? Please tell me, right? Or transparently. So that's always a very good filter to relook at or look back and look into the mirror and see whether we are doing the right things with our customers and external stakeholders or not. Innovation technology, ESG, world-class operations, digital and, of course, the [indiscernible] systems and culture are all changing significantly. And I won't -- somebody asked me outside, are you done with all the changes? I said I wouldn't be done until the time I am running this company because change is the only constant. And the world is moving very fast. We need that change, and we'll make -- keep making those changes. And wherever we hit the wall, we'll, of course, bring something new to debottleneck that problem. I think this is Pinnacle 345 summarized in 1 page, and apologies for the small font. I will just touch upon some of the key points. But my team members will dig deeper into some of them one by one, vertical by vertical. If I have to just highlight a few areas, which you will -- and then hopefully, some of it, you have started to notice in our quarterly results. If I start with specialty, I think pyridine and picoline, we are #1. We are -- and we are very proud of that. We have almost 25% plus share globally. We are the only scale non-Chinese player left in the world in pyridine chemistry, and it's still a big and growing chemistry. There are many more new products coming up in our own portfolio, but also we supply the building blocks to many of our customers, and we will maintain our leadership position, be it the scale but also cost. And we have a cost leadership here despite the fact that the Chinese competitors have been very competitive. But 1 metric, which I often quote is the world has excess capacity with only 50% capacity utilized today in pyridine. We run our plants at 80%. We are debottlenecking the plant this year to increase the capacity of pyridine because we are running our plants at 80%. And that just shows that despite all the competition, price drop from the Chinese competitor, we are still competitive versus them. And to an extent that they run their plants at 30%, 40% utilization and we are running at almost 70%, 80% consistently. So that will remain a focus. We have to protect our leadership position and we will protect our leadership position in pyridine. The new opportunity coming in pyridine portfolio is oilfield chemicals. This is a segment which started to grow. It's a byproduct of pyridine value chain. We have built a reasonably scaled business over the last couple of years in oilfield chemicals, and we'll continue to push there and it will scale up significantly. In fine chemicals, there are 3 parts to our fine chemicals business. We have the pyridine derivatives. These are all downstream derivatives of pyridine. We, as I said, we do almost 50 of them, and almost 3 dozens of them, we are globally #1. And we will maintain that position. We are pushing hard. We are growing them, that portfolio, as Ambrish will show in a few minutes, is still growing at 15% plus every year. Diketene derivatives, this is a platform we created 2 years back. It's not a new chemistry for us, by the way. It comes from [ ketene ] chemistry, which is linking back to our acetic acid and acetic anhydride roots. So we are very familiar with this chemistry. We have created the portfolio on this chemistry organically over the last few years. The traction we have gotten in the first 2 years is just amazing. We have created a reasonably scaled business within the last 2 years, which is growing at almost 50% every year, and again, Ambrish will show some of the data. And the third part, which again, Mr. Bhartia alluded to, the cosmetics part. We have almost half a dozen products in our portfolio which go into skin care and hair care industry. We have very strong relationships with some of the leading and marquee names, our customers in the cosmetic space. We feel it's the right time for us to leverage all those trends, be it on the product side or customer side or chemistry side to scale up this portfolio. And this is something which we have recently only decided. And obviously, we have a set of products which have been existing for several years, but we are going to capitalize on them and grow that portfolio. The third part is the CDMO business, which I know a lot of you are very excited about. And it is the most exciting part of the portfolio for us also because of the growth we expect to get in it. Again, these has 3 parts. The agro part of it, we have been providing several chemical intermediates to agrochemical innovators for now, almost 3 decades. Now it's time to capitalize on those trends and convert many of those relationships into CDMO-oriented relationship. In fact, we announced 2 orders 2 quarters back, 1 of which runs into hundreds of millions of dollars. I think you have the details of some of them, that contract we signed in October and announced to all of you. The construction is in full swing and will be ready hopefully by October, November this year so that we can start getting benefit of revenues coming from that project starting Q4 of FY '26. The second one also, we have to modify 1 of our multipurpose plants. So that is also ongoing, and that will start kicking in and giving revenues, as I announced, I think, a couple of quarters back in the investor call by middle of this calendar year. So both of those are on track, and there are many more which, again, Ambrish will explain how we are speaking to our customers. So on agro, there are more discussions we are doing with the innovators. And hopefully, in coming quarters, we'll be having more good news to share with all of you. On the pharma side, we have been doing pharma CDMO for almost 5, 6 years. We have a handful of customers and reasonably scaled business there. Recently, last 6 months or so, we accelerated and doubled down on that pipeline. I think I had mentioned that on the investor call again. Within the last 6, 9 months, we have doubled our funnel size, and then there are almost 12 molecules which are confirmed by the customers. Of course, pharma pipeline moves at a relatively slow pace. So we have to be patient and let that funnel grow up naturally as our customers' volumes grow up. Semiconductor is, again, we announced about a year back, we started focusing on it. And within a year, we have been able to build a pipeline of almost 8 to 10 molecules where customers have already confirmed at least [ KG ] volumes, and we have already started supplying samples to almost 3, 4 of them. So we are quite -- quite is a bad word, reasonably happy with the progress we have made in the first year of semiconductor. We can do a lot more and the traction we are getting from our customers will help us hopefully open up that funnel. As I mentioned in one of the investor calls, semiconductor for us is going to be a multiyear journey because the customers are still just gradually opening up to outsourcing idea, unlike what has happened in pharma or agro over the last one decade. Semiconductor chemicals, customers will take a few more years before they can start outsourcing in a big way, but we feel we are one of the early movers here. And on the back of all the traction partnerships we are getting with our customers, we feel that portfolio will continue to grow in the coming, let's say, 3, 5, 7 years. So that's on specialty. On the nutrition, similarly, we have 2 parts, Animal Nutrition, vitamin B3 is our core product. We will consolidate our leadership position there with the new plant -- sorry, the new plant will be focusing more on human nutrition. But even in the animal nutrition side, we'll continue to consolidate and gain share. Some of the markets are still lesser penetrated for us like U.S., we are doubling down on them. B4 colin chloride, that's a core product for us and also rider products for some of the specialty portfolio we have created for Indian markets and the neighboring markets in Southeast Asia. So we are doubling down on them, and we see huge growth potential in those businesses. On the Human Nutrition side, we are relatively small today, but we are now putting a lot of thrust. We recently hired Vishal, who is here in this room, and you should meet him at the booth outside. He comes with a very rich experience of developing human nutrition products. So we will be doubling down on it on the back of 2 products which we already have in our portfolio, which is vitamin B3 food grade for which we just commissioned new plant and choline chloride, which we announced to the markets and getting good traction. So these will be the rider products for human nutrition portfolio. But on the back of it, we have plans to get into the premixes and some of the formulations, which we are just starting the journey on and that will hopefully grow in coming years. Chemical Intermediates, if I have to summarize the strategy, it's about sweating the assets with a lean cost structure. So we have huge capacity. We are running most of that capacity at 70% utilization even in tough times like this. We believe that with the leadership position and the cost structures we have and the global presence we have in these products, we should be able to push more volumes in the coming years and take those utilization levels up to at least 85%, 90% in coming years. So most of the incremental growth in this portfolio will come on the back of existing capacities. We don't have any plans to invest more to create new capacity in the Chemical Intermediates portfolio. We'll just sweat our assets. And obviously, we are working continuously on the cost structure. And we have already done at least 10 different initiatives to optimize the cost structure of our acetic anhydride, ethyl acetate, acetaldehyde and other products portfolio, and we'll continue to work on that. So that hopefully gives a bird's eye view. We'll talk about some of the details in subsequent pages. Obviously, there are a bunch of enablers at the bottom, which I already discussed, so I will not repeat what I said on them. How it will look in terms of the portfolio shifts is summarized on this page. If I talk in terms of the business units. Today, as I said, specialty is almost 40%, Nutrition is almost 15% to 18%. These 2 businesses will become almost 75% to 80% of our portfolio in the next 4 or 5 years with Specialty taking almost 60% share and largely growing on the back of all the investments we are making in CDMO and Fine Chemicals portfolio. Like I said, exports will become almost 60%, 65% of our portfolio. And you can see how fast America is already growing. We expect America to become almost 20%, 25% of our portfolio in coming years. And in terms of end application mix, the mix is not going to change significantly because these are core sectors, particularly pharma, agro and nutrition have been our top 3 sectors for a while. The agro share is increasing on the back of some of the big contracts we are signing in agro. And as I said in the beginning, it's anyway even stable times, almost 25% of our portfolio. So it will remain 25% to 30%. So pharma, agro and nutrition will drive and consumers will become relatively bigger on the back of what I said on the cosmetics and hair care space. So that's we are doubling down on. We believe we will be able to deliver. We will deliver on this strategy because of a few reasons. Number one, if you look at the markets we are in, the end application, and this is just market data for global markets growth from some of our core segments. Irrespective of short-term challenges, all those markets are growing quite well. In the global context, those of you who follow the global chemical industries, a 5% to 6% growth is a very healthy growth. And all these segments are high-growth segments. Of course, there are some short-term volatilities, but take that out, the secular growth in all these sectors is very robust and strong. And when you translate it into what gets outsourced to a country like India, the growth becomes almost 3 to 4x. So while these sectors will grow at, let's say, 5% on an average over the next 5, 10, 15 years, when it gets translated to what comes to India for manufacturing will be at least 15%, if not more. So that is our addressable market. The TAM or SAM, serviceable market for us will be growing at least 15% in any of the domains or all the domains where we are present. So that was reason number one for our confidence or belief in this Pinnacle 3,4, 5 strategy. The reason number two is if you take the last one year and with all the changes we have made, the baby steps that I explained in the beginning, we have taken, that has led to some meaningful outcomes for all of us, which actually has been on one side, heartening and second time morale booster for all of us as the leadership team that what we are doing is right and hopefully will help us build out the kind of portfolio we want to build over the next 5 years. So I will not again talk everything out of this page. You have seen it in our quarterly presentations. But be it our U.S. FDA, that was our first U.S. FDA for a chemical company to go through U.S. FDA process is -- if you have not done it, the simplest one will be a nightmare. The kind of preparation and changes you have to do, and I know Vijay, myself and many other members of the team were -- spent several sleepless nights to just ensure that we deliver on the expectations. It was for a food-grade product. It was not pharma in all honesty, but still, it was a big test for us. And we were very happy when we cleared it with zero 483 observations in the month of April, and it gave a different kind of confidence to our teams that, yes, we are ready for some of the challenges which are coming ahead in this journey. WEV Lighthouse has been talked about multiple times, so I'll not repeat it. I think this is a constant endeavor from all of us to bring digital and new interventions. Vijay will talk about it, almost 200-plus interventions we have made across our plants, supply chain, even front end and has started to yield results. The big CDMO contracts, it took a lot of hard work, almost 1.5 years of continuous hard work with several of us just doing calls and meetings with the customers almost on a weekly basis and giving them the comfort that we just -- of course, we have the capabilities and chemistry strengths which they're looking for, but we will be responsive and we will deliver on what they expect us to deliver. So like that, there are several other achievements from the past one year, which has given us the confidence. And that has overall improved the quality of our portfolio in several ways. Now again, I will not -- some of these points we have already talked about. But -- you look at whichever way, whether the business mix today, the percentage share of profits coming from Specialty and Nutrition, you look at the customer mix, you look at how fast our CDMO and some of the new businesses are growing, you look at the composition of the leadership team, you look at the product mix, the kind of incremental growth. One thing I did not mention is in pyridine, when one of our international competitors closed down in the U.S. Within 6 months, we grabbed 70% of their volumes. So that's the speed at which we had to move to capture that market because otherwise, Chinese would have taken it from us. Ambrish and Amit, I know they spoke to all the customers. We mapped out the customers. We reached out to each of the customers, and Ambrish will again share the stories. But almost 70% of those volumes we captured within 6 to probably 9 months. And then we have those customers now, hopefully, for future as well. So likewise, there are several such examples which gives us the confidence that the overall mix, overall quality of the portfolio is moving in the right direction along the lines of what we envisage it to be in a few years as part of Pinnacle 3,4, 5 journey. And obviously, financial results are just one outcome. The last 4 quarters have again given us the confidence that we are on the right track. Obviously, it has taken a lot of hard work in terms of both growth, particularly volumes growth. Of course, some of the volume growth got wiped off because of price decline in the market, but that is something which we can't control. But at least if I look at our growth journey over the last 4 years, we have seen volume growth. Profitability has improved, as I said in the beginning, based on 2 key drivers or driven by 2 main drivers. Number one is the portfolio shift we are doing. And second is the cost imperatives, which has helped us take out almost INR 100 crore plus from our cost structure. This data, again, we have shared in the quarterly presentations. The specialty portfolio has grown at 20% in the first 9 months. The profitability has improved significantly. Nutrition similarly has grown almost at 8%. Part of it got eaten up because of price. In terms of volume, we have grown probably 15%. EBITDA, of course, has improved. The one area where markets are still troubling us, and we are not out of the woods completely is the acetyl business. That business, particularly our anhydride business is driven by what happens in paracetamol and acetate, which is an agrochemical, big agrochemical molecule. Both these markets have gone through tough times in the last, I would say, 6 or 8 quarters to an extent that volumes -- most of our customers are either not running their plants or even if they are running, they're running them at 40% to 50% utilization only. From the analysis we have done where we've mapped out the inventory in the system for each of our customers and based on the discussions with the customer, we feel things have bottomed out. The destocking is done there. And hopefully, in the next couple of quarters, the volumes will start to come back there as well. And gradually, with a couple of more quarters, we'll start to see a price movement upwards as well. So we are hopeful that chemical intermediates will start to come back, but that's a relatively commodity product, and we'll have to live with those commodity cycles, but we are well prepared by focusing on cost and by pushing on some of the products where we still see room to gain market share, which Himanshu will explain in a few minutes. So all of that has helped us in just, again, ensuring the overall quality of the portfolio moves in the right direction. As I said in the beginning, U.S. and Europe have grown very significantly for us. Just to give you a sense, U.S. used to be 5% -- 4% to 5% of our portfolio. Today, it's last quarter results, almost 9%. And we are on track to hopefully, by FY '27 itself, it should become 15% plus. And obviously, in the next 5 years, we want to make it 20%, 25%. Europe also grew almost by 30% in the first 9 months of this year, and we are hoping with the confidence that the European and American customers have shown us, we'll continue to grow this. And the only other point I would say on this slide is Japan is a market where we are investing now. We have hired somebody recently. And Japanese customers take time. But when they open up, they open up in a big way. So we have just started our journey in Japan in the last few months. I have personally traveled there. We are traveling. Senior members are traveling almost every 3 months. So we are hoping in -- if not in a few quarters, definitely in a couple of years, from rest of the world, we'll be able to carve out Japan separately with all the push and hard work we are doing in that market to open it up. So that was, I think, at an overall level, what Pinnacle 345 is and what the journey has been in the last couple of quarters since we defined and announced the Pinnacle journey. Let me now invite a few of my leadership team members one by one to talk about some of the details. I think the key points I have already covered, but it will be good for you to hear from them also directly. So let me start by inviting Ambrish. Ambrish will introduce himself. He joined us a couple of years back, brings a very rich experience in CDMO and Specialty Chemicals and will take us through the Specialty Chemicals presentation.

Thank you, everyone. Thank you, Deepak. It is my privilege to be here, and let me introduce myself. I'm Ambrish Dixit. I'm heading the Specialty Chemical business as a President, Specialty Chemical, around 24 years of experience out of that, almost 18 years with specialty chemical, 3 years in API sales earlier. Out of 18 years, 2 years with Jubilant now. I've taken this role in May '23 and then 10 years with SRF in the specialty chemical business. 6 years, I was running a small company called Paushak [indiscernible] Specialty Chemical. So pleasure to be here. And really thank you, Deepak, for introducing a lot of stuff about our company, our businesses. I will try to give you some more glimpse how we have been operating, what we have been doing and what our future plans. And here, we operate 3 businesses in Specialty Chemicals business, starting with Pyridine, Picolines, which we started way back in 1991. We have been one of the largest player globally. For last couple of years, this marketplace has been invaded by Chinese. Despite of that invasion, we have been firm and today, we are the largest producer of this material in the world. Followed by, we have fine chemical, where it has primarily started as a downstream for Pyridine, Picoline, where we forward integrated, started supplying. And this story is also linked with our growth in the pharma market where early 2003, demand started coming up from the pharma, especially on the API side for Pyridine derivative and then we further diversified. We have more than 50 products. Out of that 36 products, we are globally #1. There are a couple of products we -- which are coming from China. There are a couple of products which are small, manufactured by a few very small companies within India. So we have a very global position on these products. Then Deepak has talked about, we have also identified opportunity in diketene. We entered a couple of years back. We have aspiration to become top 3 in the globe. We're not looking to dominate only in India. What we are looking for to dominate the world. And based on today's relationship, the kind of connects we are making, we are pretty confident that we would be able to achieve one of the top 3 positions within the globe in very near future, not too far. Coming to another piece, CDMO, which is one of our growth driver. Here, we have been talking about agro, pharma, semicon, and I would be sharing some more details. So all put together, 50% is coming from domestic, 53% from exports, 470-plus customers, 50-plus product line. All put together, we are selling to agro, pharma, industrial paint. We are selling to consumer, et cetera. So how this journey has been, especially for the last 2 years, as Deepak has shared. So our revenue has grown from INR 1,600 crores. If you see last trailing 12 months, we are INR 1,800 crores plus. Our margins have improved. Despite of headwinds in the market, the Chinese onslaught and there's nothing hidden, you all guys are very well aware that it has become difficult to survive in a difficult market. But still, we have been able to improve our margins to 20% level. And then the plan is to take this business to around INR 6,000 crores with EBITDA of 25%. And then here, the FC and CDMO business would be a key driver to take it to next level. And obviously, our Pyridine will remain as a supplying to the market as well as captive this thing. Another good stuff that CDMO business is a capital incentive business. You have to invest some large amount to take this business to the next level. Here, I'm very -- management is very supportive. We have a very clear CapEx plan. And we believe with those kind of opportunity what we have, we should be able to achieve those numbers what we are committing. Another area which we have identified is semiconductors and cosmetics, which we have started working in the last 1.5 years only. We believe these are the new growth area, which can put us in a different map. But obviously, our primary driver would be coming from the pharma and agro for next 3, 4 years. Then we are also looking for inorganic growth opportunity, which fits into chemistry capability, help us to offer more ancillary reaction capability within the area we are operating in. Typically, we have been operating 4 to 5 steps of chemistry. So can we go 10 steps for that? You don't require chemistry, you require a couple of other chemistries to add it. So we have 35 chemistries platform as on date, we do bromination, we do chlorides, we do handle ethyl acetate, et cetera, et cetera. But then we are looking to add further chemistries so that we can make a very robust offering to our customers. We are not looking to sell products now. What we are looking to sell more and more services, which can help us to grow with our customers. So with this, I will talk about the Pyridine and Picoline, which is our legacy business. If you see -- we have been able to grow our volumes by 150%. We have been able to grow our beta Picoline other than our captive as a 10%. So this is all merchant sales, where we have more than 25% market share. We have Vertellus, which was a U.S. company, got closed around '22 end of '22, '23. And then we have been able to capitalize all those accounts. So rather than Chinese getting entry with the margins, we have been able to sell -- we have been able to capture 75% of those accounts, which has also helped us to sell more volumes in markets. I think Deepak talked about oilfield. So we also sell certain Pyridine derivatives in oilfield. And we believe that the kind of relationship we have with large players across the globe, U.S., Middle East, et cetera, we would be able to further diversify and launch new products in years to come. So for our P&P business, those relationships will become a backbone to launch new products. So we believe [ OFC ] would be another area where we would be focusing in this near future. And then obviously, Vijay will talk about, we have a lot of cost initiatives and 80% plus capacity utilization, which will ensure that we remain one of the best player in the market. And last but not least, P&P will continue to have very high captive demand from our niacinamide business from FC and from CDMO, which will allow us to optimize our margins. Coming to Fine Chemical. Fine Chemicals, again, I can say there are 2 parts which are running this business. One is P&P derivative, which is, again, the forward integration. Here, we have 36-plus products where we are the #1 in the globe. We have typically from 50% plus to 75% market share on average, 55%. We have 5 new products ramp up in last 1 year. We are also further exploring. We are talking to innovators or the new -- any new molecule, which is in pipeline will definitely come to us because of our unique position of being [indiscernible], the only non-Chinese player who can play really large. Then we have diketene, which we have launched a couple of years back. Now here, we had initial teething issues, we have been scaling up. We have 6 products, 4 we are launching in next 1 year. We have actually -- our existing plants are 70% plus utilized. We have launched 2 more plants within the last 1 year. We are scaling up further. We are also planning to have one more multipurpose for various products for diketene. So diketene as a chemistry, we have been doing acetic anhydride, which is primary ketene and diketene has been a natural extension. So based on these skills, we believe where acetic anhydride, we have been handling ketene chemistry for last, what, since 1980 for 40 years plus, diketene for a few years, but we can play this game really for a very long time. And we are pretty confident that we would be able to grow our FC business by 2x in next 4 to 5 years. Okay. For this fine chemical, there's an attractive market. We have existing product, we have relationship in place. And we have chemistries differentiation in terms of the capability, in terms of various other chemistries, which are required to sell this product. And that is the reason we have this belief that we would be able to achieve these targets with dedicated teams on Anurag or Yuvraj or Amit, who have been running the business. They have been with us for the last more than 10 years plus. They are -- know this chemistry, the team which are handling the Pyridine and all these derivatives are there for a number of years. So this -- with this belief, we should be able to grow our FC business by 2x -- at least 2x. Now coming to the CDMO, which is a very buzzword. Everybody talks about CDMO, everybody talk about whether CDMO is good or catalog products are good or mix of both of them is good. So if you see all big players in Indian market, very few are pure CDMO player. Majority of them are having their own products where they have global positions. And then there are certain products who are offering those services as an extension of those capabilities. So I think Jubilant is very unique in that sense where we have global positions. And along with the CDMO services, we can create ourselves as a global leader in those kind of products. CDMO is, again, we have further bifurcated in 3 parts. One is agro. We have been on that space for a long, but more selling our own product. Second is pharma. And third is semicon, which we just initiated 1 year back. I think CDMO Agro, Deepak has already talked about. We announced a $300 million-plus contract a couple of months back. We have another contract running with another innovator. So top -- out of top 10, 7 are our big customers. We have those relationships. We have been able to create a pipeline. We have accelerated our relationship in the last couple of months. We had multiple roadshows. We have multiple visits to the customer. In fact, I have traveled along with my team at least [ thrice ] to U.S., many more times to Europe, China, Japan. We have hired somebody in Japan. We have a China office. We are hiring and moving some of our internal talent to Europe for further accelerating the touch base with the customer. U.S., we have an office. We are further expanding those offices with certain great talent. So we are increasing our touch base with the customer on the CDMO as well as on the fine chemical side, which we believe will help us to increase this pipeline. And then Vijay will talk about, we have also improved our execution. So in terms of the CapExes, which used to take 20 to 24 months, we are now targeting, let's say, 12 months or 14 months or put together. Coming to the pharma side, Pharma has been a backbone for Jubilant for a very long time. Here, we have -- I already shared, we have accelerated efforts to hire more resources. We have 9 molecules under development. We are already working with certain innovators for some good long time. We believe the kind of relationship, the kind of trust, which will help us to grow further. We have some more discussion happening. So all put together, pharma and agro, we have a strong belief that kind of relationship will -- they will definitely help us to multiply our business in days to come. Semicon is an area. Everybody is talking about semiconductor. One is the Indian supply chain, which will take some time to evolve. So what we have done, we have gone to the U.S., we have gone to Japan, Taiwan to understand what exactly the synthetic chemistry has been asked for. And here, we have been further able to identify certain molecules, which are under discussion. We believe we thought we'll have revenues coming in a little early, but definitely, there are own challenges in terms of chemistry capabilities or purification, et cetera. But we believe we should be able to have some good revenues very soon, starting from next year onwards. Then as pyridine and choline, we have been selling for a number of years. And there is also application in semiconductor, electronics side, where we are also just working out and in process of launching this molecule where it should be reasonable volume coming in. And then this requires CapEx. So this require specific pilot plant, specific labs, which we are also working on, and I'm sure Deepak would be sharing those news in terms of when we are going to get it approved. So with all this, what we are looking for and good part for our CDMO business, we are looking at least 5x growth in next 2 years. And I'm very pleased to share that we have already clarity for more than 70% of POs in hand. So technically, 3.5x anyway, it will happen. And then we are talking about taking it by another 2x. So all put together, financial year '30, it would be something like 7x plus growth happening almost 10x what we are looking aggressively. So we believe with multiyear contract happening with the agro innovators, which is not only for existing molecules, we are also getting into new molecules. One of the molecules what we did is getting launched commercially, and we believe it would be one of the blockbusters within the world. So we'll also grow with the innovator as it grows. We are further increasing our efforts to take it to next level, the kind of molecules which we are getting will help us further increasing these numbers. So on the CDMO side, we are pretty confident the kind of infrastructure we are putting in, the kind of CapEx we are putting in, the kind of relationship we have or we are increasing will ensure that this kind of growth coming in. So with this, I will take a pause. Really appreciate your time to hear me out. And then I would like to invite my colleague, Ashish, to talk more about nutrition. Thank you very much.

Thank you, Ambrish. So I'm Ashish Sinha. I head the Animal Nutrition & Health Solutions business. I have been with Jubilant for the past 6 years. And before that, I was with Reckitt Benckiser, JSE Consumer, Novartis Consumer, ITC and Diageo. Before I take you through the Nutrition & Health Solutions growth plan, I will request each of you that there is a QR code kept on your table. So you can scan the QR code and share the questions if you have any to us. So in Nutrition & Health Solutions business, so we have a very strong presence in animal as well as human nutrition. We have a very robust portfolio spanning across human and animal nutrition. So in Animal Nutrition, we are globally #2 in Niacinamide, which is vitamin B3, and we are domestic leaders in choline chloride, which is vitamin B4. Apart from this, we also have more than 18 branded formulations. So these formulations go into feed additives. So like poultry feed, pet food, dairy feed, aqua feed, swine feed, it goes into that. It basically enhances the performance of the animal by increasing the nutritive value of the feed. So this is the product which we have in animal nutrition. While in human nutrition, we have choline salts, which is like vitamin B4 in the form of choline chloride and choline bitartrate, which goes in pharma as well as nutritional products. We also have niacinamide for food application as well as cosmetic application, which goes into -- goes for human application. This apart, we are planning to foray in premixes, which goes into nutraceuticals and nutritional powders. Apart from that, we are also planning to identify some more straight nutrition ingredients to get into that. So in terms of geographical revenue, so we have around 74% of our revenue coming from export markets and balance coming from the domestic market. So our customer base is very robust. So we have very good association with around 400-plus customers globally who have been associated with us for a long time. And in terms of split between animal and human nutrition, so 69% of our business comes from Animal Nutrition and balance comes from Human Nutrition. In terms of the pinnacle vision for the business, Nutrition & Health Solutions business. So our vision is to triple the revenue by FY '30 and almost double the bottom line. So from current 12% EBITDA margin, we want to take it to 12% to 18% to 20%. And how we will do this, the growth drivers, if you see on the right-hand side of the slide. So the first is niacinamide cosmetic grades. So we have already initiated, commenced the production from the newly commenced plant for niacinamide cosmetic grade that we will double down and ramp up the volume for niacinamide cosmetic grade and food grade from there. Then we are doubling down on human nutrition. So on Human Nutrition, we are focusing on premixes. We have already launched choline chloride and choline bitartrate, which is -- which goes into infant nutrition and pharmaceuticals. We are ramping up those volumes. We are also planning to go ahead with the CapEx. We are working on that for greenfield GMP plant for choline chloride and choline bitartrate. And the third one is specialty formulations. Now specialty formulations, this goes into animal feed. These are like vitamin and mineral premixes, emulsifiers, herbal formulations, which goes into feed. This has more higher margin and more stickiness with the customer and which is getting good traction in India as well as the neighboring markets. So we will double down on this also. While doing this, so there will be fundamental shift in the entire portfolio, which we have currently. So currently, if you see 33% of our revenue in Nutrition & Health Solutions segment comes from food, cosmetics and specialty premixes. This year, this will increase to 36% with the increased focus on the specialty formulations and the food products, which we have in our portfolio. By FY '30, we will take it to 67%. Now as I've said, how this will go? This will grow with increased focus on human -- doubling down and focusing more on human nutrition premixes. We have also deployed a dedicated team for leveraging the full potential of human nutrition, as Deepak has said. So Vishal has joined us, and he is leading the human nutrition efforts for us. Then we are pushing on CCCBT, which is the choline chloride, choline bitartrate, vitamin B4. And as I've said, we will be -- we are planning to take a CapEx for that for greenfield GMP manufacturing facility for that. Then niacinamide plant, which has already commissioned for food grade and cosmetics, we are ramping up the volume for that. And very soon, we will take up the leaderboard and #1 position in niacinamide globally. And we are adding more premixes in the feed additive segment. So that's the whole chart how we want to achieve this aspirational growth numbers as well as the higher bottom line. So with that, I'll call my colleague, Himanshu, who heads the Chemical Intermediates business to take you through the Chemical Intermediates plan.

My name is Himanshu. I take care of the Chemical Intermediate business division here in Jubilant Ingrevia. Super excited to be in front of all you guys and happy to take you through the acetyl or the chemical intermediate business. Yes. So you might have already heard from Mr. Bhartia from Deepak, Chemical Intermediate being the building block not only for the Ingrevia, but from the where our name comes, chemical for life or ingredient of life, truly, this encompasses the true meaning of that with a variety of applications what we have. Our Chemical Intermediate division touches all throughout the applications, which are present, and it gives us that relationship, which all of us talked about in terms of customer base, huge customer base. In terms of application, most variety, you could see that pharma, agro, nutrition, consumer, industrial, everywhere this product goes. So what does it create? It create a customer base. It creates a relationship. It creates a strength. It sometimes can be used also to open the doors for the other products. So we are there to serve those segments. How we are split in terms of our business, we are almost 70-30, 70% domestic business and around 30% export business, primarily led by Europe. And you could see that in this bulk business, we have really pushed our capabilities, and we are among the top 2 players in acetic anhydride globally. And in this market, on this scenario, considering the global player around, this is a significant achievement in terms of how we have placed and prove ourselves in the market over the years. Ethyl acetate, we still remains a very significant player in the market. And some of you or one of you did call me out outside that where we are on this product. Sir, we are still there, and we are a significant player in this market, and we'll continue to be a significant player in this business. We have other products where we continue to run that, be it acetaldehyde, be it bioacetic acid, be it formaldehyde, be it propionaldehyde. So we are all there in this business. How we have shaped up and how we are going to play a role going forward in our Pinnacle 345 strategy. So what we are looking or what we are proposing as such as we are looking at least 1.5x increase in the top line. Currently, we are somewhere around INR 1,700 crores of the top line with around 8% of EBITDA. So what we are looking at by FY '30, we should be at least INR 2,500 crores for Chemical Intermediates division with 10% to 12% EBITDA, which is a normal standard EBITDA percentage in our kind of a business. And how we are going to achieve that? That's a critical question. The critical role here is that we will maintain our market share and we will grow our market share. We will maintain our market share in a market like India. We will grow our market share where we have already a decent position like Europe. And we will also enter into new markets where we have either not really touch base or not been focused in the past. So where Southeast Asia being a market, U.S. being a market, Turkey being a market for that matter in all those areas. How we are going to do that is not only by efforts in the market, but also improving our cost positions. So I'm sure Vijay will take you all through what initiatives we are taking. But then it's a very significant progress we have done in terms of the initiatives which we have launched, how to make our business more sustainable by looking at our cost structures and how and where we can improve those processes. And of course, we expect as we move along, the margins will improve, and we could again see that 10% to 12% EBITDA levels. Acetaldehyde, many of you also talked about acetaldehyde because this being within our product portfolio, one of the major component. Yes, it has challenges. Yes, there has been challenges specifically in India in terms of the demand projections. Certain specific application in India have seen the challenges and the demand overall has gone down. But I can assure you that we have not only maintained our market share, we have increased our market share even in this depressed market. So we are at around 74% market share in India despite all the challenges. And we are also looking at Europe market where Europe, you had already seen because of the Ukraine war, it has been a challenging environment overall. But there also, we are able to maintain our market share. In fact, we have also grown our market share. If I leave India and Europe outside, we have significantly grown our market share in ROW market. And that's the mandate what we have. We have to focus on these markets, grow our footprint and probably as we move along, knock the door of the customers, gain those entries and again be back as the #1 producer of acetaldehyde globally. Other key products, what we have in this time, apart from focusing on acetaldehyde, we have almost grown by 30% of our ethyl acetate business. Like I said somebody was asking me outside that why we are vacating this space. No, sir, we are not. We are coming no stronger in this. Propionaldehyde, we have increased our business. Acetaldehyde, almost 180%, we have increased. In this product, we have not only increased in India, we have also started exporting this product. So we are also focusing on all other areas in this product portfolio where we have space to grow ourselves, where we have space to have the product availability with us to capitalize on the enormous customer relationship we have built over the years because of our product, and we hope that we'll continue to do that. With this, I'll call on Deepak to take us through this exciting journey. Thanks.

So hopefully, that gave you a good glimpse of some of the bottom-up work which is happening in each of our business units. Now of course, the businesses cannot perform unless we have a strong foundation of all the enablers helping them and/or building blocks helping them. There are 6 of them which I showed in the Pinnacle strategy page. The first one, I'll just quickly talk about them and then invite Vijay to cover some of them in detail. The first one is about customer-first approach or customer centricity, as I explained. I think last year, we took a big initiative here of key account management. We mapped out our big customers, identified almost 30 to 35 of them. Some of them came from acetyls as well as Himanshu explained. What acetyls portfolio does it, it gives us the access to the big customers. And on the back of those relationships, we have been able to open up conversations to talk about our broader portfolio and newer opportunities. So for these 30-plus customers, we did a bottom-up mapping of all the opportunities across our portfolio of 130-plus products that we today have, but also studied what their priorities are. Many of them are publicly listed. So they have announced their strategies, they have announced what they are going to do. Many of them have specifically talked about what they are planning to do in India and how they're looking for new partners. So we leverage all of that groundwork and went out to meet all the customers. As Ambrish was explaining, most of us were on the road last year between March and September, October, met almost 120-plus customers right at the senior most levels, discuss with them what we bring to the table, reintroduce the new Jubilant Ingrevia, our new strategy and what we bring to the table and of course, talk to them about some of the potential hooks we had in our armor for them. And that generated conversation, and we created a new pipeline of opportunities, which runs into hundreds and possibly thousands of crores. Now of course, not all of that will materialize because some of those are just ideas at this stage. But what it does is a very clear sense of potential opportunities and areas where our customers are focusing on. And we are now in a focused way speaking to these customers, following up with them on the back of our first discussion to see if we can convert many of these opportunities into real commercial revenues for ourselves. The second one is world-class operations. I will not go into the detail of that. I will invite Vijay in a minute, and he will cover each aspect of it in detail. R&D, I talked about, we are investing. We will be investing even more. We are expanding our team almost every passing month. We have gotten some new senior talent also both in R&D and technology side. We are setting up a new process safety lab because a lot of our customers in MNC space, expect us to have even higher standards of safety and processes than we ever had. So we are setting up a dedicated lab in our Greater Noida facility, which will be focusing just on process safety, and that is just one example. Likewise, we are creating a technology style and many other centers of excellence, which Vijay will explain how that will help us creating the right infrastructure to deliver on this growth. Digitally, obviously, the search program that I talked about, which we started a couple of years back has yielded good results. Mr. Bhartia talked about it. We'll continue with that journey. We got lighthouse for one of our facilities. Our aspiration is to go for at least one more plant within the next 2 years, and we are working towards that by introducing all these interventions across other plants as well. We have -- on the supply chain, we got Birajeev, who just joined us a few months back. He come with very deep experience of looking at supply chain in a different way. He comes from a digital background. So we are relooking at every aspect of our digital -- of our supply chain, bringing digital interventions, making it more agile, lean, responsive and efficient. And that is giving us synergies. And some of the savings, Vijay will talk about it. The Phase 2 of that, I mentioned in the last investor call has already started. A significant portion of that will be driven by supply chain. And finally, on the people side, we have improved the productivity of our plants. I'm not sharing all of that data, but a lot of savings in our lean program, not a lot, but a significant portion of that has come from productivity improvement. We have applied our performance management systems with a lot more discipline. And wherever we had inefficiencies or lacuna in our organization, we have kind of cleaned that up, and we are still cleaning, and we are getting new talent, more capable talent into the organization, which is needed to not just bridge the gap, but bring the fresh energy and momentum, which is needed for this transformation. So these are the 6 parts. We will talk about 3 of them. I think the customer one I have already explained, so I will not go deeper into this page. But let me just invite now Vijay, who is our Chief of Operations, and he will talk about some of the initiatives in more detail on how we have done them and what kind of benefits we have already gotten and then obviously, more benefits are coming in years or the next few quarters.

Thanks, Deepak, and thank everybody for coming here today and listening us patiently for almost 2 hours now. My name is Vijay Srivastava. I think you've already heard the name. I am a graduate from IIT Kharagpur, passed down in 1998, having a 24 year of industry experience, worked in different companies like DuPont, United Phosphorus, Deepak Nitrite and others. So in my discussion today, I'll talk on 4 major elements: cost reduction, then I'll talk about ESG, safety and digitalization. I'll talk what we could do so far now and also bring a perspective what we are looking forward down the line so that you get a good confidence that our strategy, how we are taking our strategy to next level. This year, as Deepak has already said, we could reduce our cost by INR 120 crores. I think most of this saving is coming from different initiatives we are taking at plant level. We are focused on power and energy. And that has helped us to really reduce our cost by improving our efficiency in boilers. We have formed a COE, Center of Excellence. We have done assessment of our boilers compared with the best practices with other companies are following or internationally. And basis that we have developed a program, which has implemented across the sites. And we could gain a saving of around -- efficiency gain of around 9% in boiler, which is significant. Second piece is we are sourcing our power differently. Earlier, we used to get all the power from grid, except Gajraula. This year, we have purchased some of the power through exchange and also signed short-term contractor. We have signed a long-term contract, which Deepak was saying that is going to give us a benefit down the line next year onwards. Productivity improvement. This is an area which we continue to work on. I'm also a Six Sigma Black Belt. So once the strategy is made, I find it -- I mean, our team is very capable of looking at into detail and have a laser sharp approach to provide a solution to those issues. And that is helping us. And so I mean, this all has led us to a saving of around INR 120 crores. We have a line of sight to get additional INR 100 crores savings each year moving forward. I'll touch base on this in other slides. So these are the kind of 5 main pillar where the savings are coming from. Energy, as I said, already explained to you, 17% improvement we see there. Effluent is another area which we are working on as I think Deepak was telling another colleague is that we are working on concept of Center of Excellence. So here also, we have formed a Center of Excellence team who is looking at how are we treating our effluent. And we had a major success in one of the big product we are making at our Gajraula site. And that initiative itself has given us a good improvement. Now similar project we have built for other product as well. And I think this year or even next year, we'll continue to get the savings from effluent treatment setup. Our target is to significantly reduce overall effluent. And when I'm going to talk about ESG initiative, this is also giving a good benefit there. Today, our 95% of our total waste we are recycling. In terms of norm, we have, again, formed a group who is doing external benchmarking for us, looking at how we are making our products, what are the new technology happening, not only in chemical, but in other industry. And then how do we leverage those technology in our plant and then drive the improvement. So that is giving us a good saving. This number of 1% is for this year, but next year onwards, this will further go up significantly. Lean, we have looked at all entire functions, including operations, supply chain, quality, maintenance, projects. And then we identify the pocket where there is opportunity for us to drive the improvement. And those are the areas we have quickly worked on and then reduce the number of people. And that's the reason we are currently pretty -- I mean, we see a productivity improvement by 20% coming from there. digital, so far, 30 high-impact initiatives are implemented. And these initiatives are cutting across all the other areas, like we have an initiative in energy. We have put an APC in one of our boiler where we are taking a trial on how automatically all the parameter of boiler is maintained and it is running efficiently. So similar initiative is implemented in different functions there. Now I'm switching gear, talking about ESG, a company who has a vision to become a world-class operation cannot go there if we do not focus on ESG. So this has been a focus area for us. Environment in the Scope 1 and 2, we have achieved a 6% reduction. And moving forward, we are expecting another 6% to 8% reduction coming in the next 2 years' time. As I was talking about waste recyclability, 95%. That's a big number for a chemical company. On social part, we have a strong -- in our Jubilant Bhartia Group. our CSR activity, we spend a lot of time and energy behind it. And so far, close to 1 million lives are being impacted because of the work we do on CSR. 90,000 health consultancy is provided by us. Diversity is another area which we're working on. Currently, our diversity is at 6%. We want to take it to 20%. There is a program put in place next 3, 4 years' time, that is where we wanted to take our organization to. In terms of ESG rating, [indiscernible] has already talked about it, so I'm not going to touch on this, but those are the kind of good reflector that an external world is recognizing the work we are doing, and that's how those ratings are coming. Safety. This is a pillar which we wanted to build on. This will help not only -- help us to make sure that we reach to the top, but also sustain it. We have -- our focus is in 3 pillars here. One is workplace safety, process safety, and then we are working on building a culture. Workplace safety, we have made a good progress on this part, and the work permit system is coming from there. Process safety, again, we have formed a COE here, Center of Excellence. Our understanding, we wanted to -- we have listed down the best practices, which has to be implemented in chemical industry. And most of these are already, I would say, not matured at a level it should be, but we have implemented this. Now our current focus is to build a culture around it. That's the last 2 parts. There's a felt leadership. And we have put up auditing process. Our intent is in the Bradley Curve, we wanted to move from reactive zone to the interdependent. And this will happen. It's a journey. It will take another 2 years for us to reach there. But we are very confident that we will be reaching there. Our safety performance has already started showing significant improvement. I mean, compared to last year, all the data is available, but compared to last year, we have improved both in lagging as well as leading indicators. Digitalization. This is -- we believe that this is the game changer for chemical industry. So far, Indian chemical industry has not made significant progress. So we are early mover there, and that's advantage we want to continue to hold. As Deepak was saying, close to 200-plus digital intervention is already implemented. We have 36-plus COE who is working -- sorry, 26-plus COE who is working at different sites and functions and helping us to make sure that these interventions which we are developing are implemented. We have 60-plus people in the plant who are -- formed a team who is looking at all the digital initiatives, which we are implementing across the site. We have another 300 digital intervention in pipeline with this group of 26-plus -- almost 80 people, they are going to do a funnel activity, identify the opportunity which we need to take to the next level. And that is how this program will be driven throughout. So that is pretty much from my side on operation. I'll invite Varun, our CFO, to talk about the financial plan and the strategy.

Good evening, everybody. I hope everybody is as excited as me listening about the Pinnacle 345 plans and the transformation that this organization has gone through in the last 12 months. Before I take you through the financial plan, a liner introduction about me. I joined this company in August last year. And prior to that, I was with Unilever for 18 years. And last 6 months have been, I say, truly exciting. A lot to do, a lot done. So all the plans that all the business heads and Deepak have shared, what does it mean financially? So if I take you to the next slide, one key metric that we keep tracking is our ROCE from sub-8% last year, it will go up -- it has gone up significantly to 12% in this quarter that we have reported, and we intend to take it to 17% to 20% in the coming years. And there will be 3 key big drivers for that. One, as the portfolio shifts from a chemical intermediate dominant to a specialty business and the nutrition business, which is far more profitable. Our return on assets will improve significantly. As Deepak shared, our exports will increase from a current 45%, 50% to 60% plus in the future and our spread in chemicals will be more than 60%. So that's the one key big driver. Second, as Vijay mentioned, the savings program that we have unleashed in the organization, which is going to consistently deliver INR 100 crores plus per annum will increase the return substantially. And these savings are not onetime savings. These are systematic savings, which are taking the cost permanently out of the business. So our asset returns significantly improves, especially in the utilities areas. Thirdly, the discipline that we have inculcated in the business, especially on the capital allocation that we are going to do will be much more controlled. Nothing less than 20% return will not be invested in. So these 3 key drivers will improve the ROCE of the business sequentially, and we intend to reach it sooner than later, 17% to 20%. Now the second key metrics that we will be focusing is on the cash conversion and the net debt-to-EBITDA ratios. And you will see the consistent improvement in our cash conversions also. From a sub-90% last year, we are sequentially now going to -- are delivering 100% cash conversion to EBITDA, and we intend to keep it this way for the coming quarters. It will be done through really optimizing our working capital by increasing our credit days, managing inventory well -- and the other releasing the cash from the trapped assets. The second one will how do we really manage our net debt. So we will try to reduce it from 1.5 and bring it down in the range of 1 to 1.3 by improving our ROCE and profitability ahead of investment plans. So together with improved ROCE and better cash management, we see a much more healthier balance sheet and the P&L because of the better mix and more EBITDA. This will not be possible without we sequentially improve -- systematically improve our finance processes. We are in journey to automate our end-to-end processes, be it in procure-to-pay or in the analytics or putting a strong guardrails around our project management or our consolidation and putting the robotic process automation, RPAs for end-to-end processes. So idea is to remove all the nonjudgmental activities and automate it so that teams can be focused more on business partnering and we can be much more efficient and digitized. So better returns, more cash and more automated processes in a business, which is more specialty driven and far more profitable. That's the whole summary. So if I have to summarize what this entire transformation will mean like, we'll be touching INR 10,000 crores to INR 12,000 crores of top line by financial year 2030. And if I have to see, we are on track of it, 4x of EBITDA from where we started, so in the range of INR 2,000 crores by 2030. And if you see this year results for the first 3 quarters, there is a big inroads we have done from where we started a year back. ROCE, as I mentioned, from 8%, we are already touching 12% in the last quarter through a mix of -- through portfolio mix, better cost savings and more discipline and the net debt-to-EBITDA ratios to be in a controlled way in around 1.0 to 1.3. These are the 4 key metrics that will be there as a result of the Pinnacle 345. With that, I'd like to hand it over back to Deepak. But also, I want to remind all of you to please scan the QRs and put in the questions. I've seen a few questions, pretty interesting one. I'd like to see more interesting questions coming from all of you. Thank you.

Thank you, Varun. So I think, obviously, we have exceeded the time. Apologies for that, but I thought it gave you a good holistic and integrated perspective on what Ingrevia is and what we are doing. Just to round it up. I'm an ex-consultant, so the presentation will not get completed. If I don't present the investment thesis for you guys as potential investors or existing investors. I think we have a wonderful platform at Ingrevia. We are on the right track -- the -- end user segments, as I showed the data also are attractive with secular and robust long-term growth and higher margins. Number 2, the growth is rapid, and we are hoping to touch that INR 10,000 crores to INR 12,000 crores in the next 5 years with higher margins closing almost 17%, 18% at least, if not more, on the back of all the growth drivers we discussed today. Number three, increased focus towards high value and specialty segments in our overall specialty portfolio, but also in the nutrition portfolio as we showed the -- Ashish showed the mix almost flipping from 6,733 to 3,367 creating new growth platforms, semiconductors, cosmetics, human nutrition, to some extent, oilfield also, which Amit -- Ambrish talked about. These are new growth vectors for us. We can already see and smell some opportunities in these areas. We will invest -- some of them will give meaningfully large revenues in the next 4, 5 years. Some of them may take longer. But the idea is to create these platforms, not just from next 5 years perspective, but also for the growth that we foresee, even subsequent to that. Diversified portfolio, I think I started my presentation by saying this, that if you look at our portfolio, it is a complex portfolio. I took almost 6 months to learn about the portfolio after joining. We have to keep simplifying it in terms of getting rid of areas, which don't perform or which don't have the potential, but we have already cleaned up quite a bit. But still, the portfolio is complex. But what it also does is it brings the right diversity and balance to our portfolio. You just saw this year, unfortunately, Acetyl has not done as well for us, but the other 2 businesses have stood up and held us together and have given us the growth and profitability that we were looking for. The operations, I will invite those of you who are interested to see our operations to visit our plants. Mr. Bhartia talked about our 2 big plants, Bharuch and Gajraula. We are doing a lot of changes. Some of our plants are old, but we are investing in them. We are ensuring that plants are safe, they are reliable and at the same time we are investing in new plants. We created 6 new plants in the last 1.5 years, and we have plans to create at least 2 to 3 more in the coming 12 months, and thereafter, we'll be investing almost every year significantly to create more CapEx -- sorry, more plants because that is needed for the future growth. And finally, you met the team members. And with that, I will also invite all my leadership team on the stage for the Q&A. We have an experienced and energized leadership team. It's a good balance between the old hands at Ingrevia who know the system, who know the capabilities, but also a lot of fresh blood and thinking in the company, which will help hopefully take us forward. So that's just a quick summary. Let me just invite all the leaders from Ingrevia on the stage so that we can start the Q&A. So please come over and we can take the questions. Pavleen, if you and Partha can moderate, we'll take the questions. At least some of them, we -- I don't know how many questions we have. We'll try to take as many as possible. Sumit, please come. Vishal, Amit, Yuvraj, Anurag. Some of the members did not present, but let me just introduce them as well as they come on the stage. Sumit leads our vitamin B3 business, has been with the company for 12-plus years or 14 years rather. He knows A, B, C, D of Vitamin B3. Himanshu, I think where are the other members. Yuvraj, so Yuvraj runs our CDMO business. Vishal has joined us, as I said, just about 10 days back, is leading our human nutrition business. Anurag leads fine chemical business, has been there for 12 years. Amit has been around for a while, but took over the Picoline and Pyridine business about a year back. Am I missing something, where is Partha. Partha is our Strategy Head. He is the orchestrator of this Pinnacle 345 strategy and has done a lot of leg work for this Investor Day as well. And Pavleen, of course, you know he is... I think all of us are here to take some questions. So Pavleen you tell us, and then we will go around. And then obviously, all of us are around post dinner and at the booth. So please catch us in case you have any specific questions.

First of all, thank you, everyone, for submitting your questions. A couple of interesting questions that have come up, and we would like to address as many as thin as possible. So we would first start with question, which is for Deepak, in which the participants have asked, Deepak and promoters have done various road shows, meeting various potential existing customers globally. What has been the key common takeaways from interacting with these customers? And how has been your conversion in getting business from these customers?

Sorry, Pavleen, I didn't get the second part of the question.

Second part is what has been your conversion in terms of getting the businesses from these customers?

Yes, that's a good question. I touched upon it briefly. As I said, we have been traveling around all the businesses. Like if I talk about personally and some of them have done many more trips, I have been to Europe at least 4 times in the last 1 year, U.S. 2 times, Japan once and China once and Southeast Asia a couple of times. So -- and of course, India also, we have 50% of the business of several trips to Hyderabad, to Ahmedabad to Baroda and Mumbai. But some of the key takeaways, I would say, number one, I think the very first thing that our customers have appreciated is the new direction and the change Jubilant that we talked about in this room also in the last 2 hours. What are we changing? In fact, even yesterday, some of us were with one of our biggest customers talking about pyridine. But in the 2-hour discussion, we didn't talk about pyridine at all. Now I think many of you won't even believe that Jubilant going to a customer meeting, not even talking about pyridine because Jubilant and pyridine are synonymous. But for 2 hours, all we talked about is what are their new growth molecules coming up, how can we accelerate some of the projects on the CDMO side, we can accelerate with them. And what are the other areas where we can support them on their growth. So I think our customers have acknowledged that we are changing. We are engaging with them. We are listening to them, and we are talking a different language than just going and talking about pyridine and pyridine prices and volumes. Number two, of course, at least with at least 35 of those customers, which we are calling key accounts, we went with a lot of groundwork and preparation before seeing them in terms of identifying their focus areas and priorities and which molecules they're looking to outsource, which I explained earlier as part of our [ CAM ] initiative. So that led to a more meaningful and constructive dialogue. And in many of those customers have told us that we should look at some of these molecules. As I said, we have created a big pipeline on the back of that. Some of that has converted. Obviously, it will be quite foolish to expect a big proportion of that converting within a year because all of it, we are looking at multiyear journey as well as relationships. But a few big contracts that we have announced and what you saw coming as a blip, upside blip in our revenue trajectory gives us the confidence that the conversions will also follow. So I'm not worried, honestly, at this stage, I'm not worried about the conversions because we are doing the right things. Customers are engaging. They are opening up leads for us, and we are following up. And we have the capabilities to deliver on them. So conversions will happen, if not immediately, in coming quarters and years.

Thank you, Deepak. The next question is on the pyridine derivatives. How much of a base pyridine is consumed captively? And with the expansion of derivatives portfolio, how you see these mix getting changed over the period of next 3 years? Also, if you can share out of 36 derivatives, how much of these would be campaign-based and other -- and the current contribution to Specialty Chemical? What we see today is new leadership team, helping us in the transformation journey, your thoughts on the retention of this talent to achieve a desired goals?

Pavleen, you'll have to simplify the question.

Okay. There are 2 questions actually. First one is for Ambrish. Maybe the second one is for Deepak.

So I think on the pyridine derivatives side, we have 7 plants, which are multipurpose plant. There are certain streams which are dedicated for certain molecules where volumes are large, but these are all multipurpose plant. And these are -- certain products are 24/7 in 365 days, certain products are on a campaign basis. So it's a mix a lot. Now I think another question, Pavleen, was more on the...

If you can share out of 36 derivatives, how much of these would be campaign-based and its current contribution to Specialty Chemical business?

I think when we say 36%, its majority, I think almost 80% plus would be where we are market leader and contributing to our SC sales as a P&P derivatives. Obviously, diketene are also there, which are more dedicated in nature, but it's a mix a lot. And it's a pretty old. We have been in these products for almost now 20 years all put together as a derivative journey. So these are very strong large products. It's a large portfolio, primarily serving to pharma and agro and industrial, consumer, food, et cetera, nutrition. We are selling across the globe, domestic, U.S. We sell within China as well. We sell to Japan. Europe sales is relatively large across the globe other than India. So it's a mixed lot.

Yes. And just -- I think part of the question was whether these are campaign-based products. So because there are so many derivatives and we make them in our multipurpose plants. So we have 7 multipurpose plants in Gajraula. We are building the eighth one. So obviously, these have to be campaign-based products. All these are specialty. These are not bulk volume products. So -- and we know which those customers are, they give us the visibility and then we do the real-time planning and scheduling of the production in our multipurpose plant. So yes, these are campaign-based products. But for many of them, in fact, for all of them, customers know us for several years, and they give us visibility well in advance for us to plan better.

So the next question from the same participant is what we see today is the new leadership team, helping us in transformation journey. Your thoughts on the retention of this talent to achieve our desired goals. This is for Deepak.

Sorry what?

So I just repeat what we see today is a new leadership team, helping us in the transformation journey -- your thoughts on the retention...

Retention of talent, Okay, sorry. Sorry, it's difficult to hear just standing behind you. Obviously, I think not just for our industry and company, finding the right talent and retaining them is the biggest challenge, if you ask me. We have been lucky to find -- first retain whatever good talent Ingrevia anyway had. And we, as a group, are known as somebody who can find and retain the talent, not just in this business in other businesses also. So we obviously had a good start, but also we have been very lucky to find some of the new talent, some of us standing here. And I think for me, at least, and now I'm saying as somebody who has been on the other side as a consultant, the biggest thing that health and retention of the talent is whether we are excited about the mission and the challenge that has been taken. I think I personally feel and you should interact with the team, they will talk. I don't want to speak on their behalf, but the energy, the excitement and the focus that I see towards the mission we have defined gives me the confidence that all of us are charged up and working towards that mission. Obviously, there are other aspects of keeping a team motivated. All of that is well taken care of through our HR systems and incentive systems.

So the next question is for Ambrish and Amit. For the oilfield chemicals and specialty chemical portfolio, could you please share the application areas -- and also, what would be the total addressable market and service available market for Jubilant?

Sorry, good question. I think oilfield is a big...

I hope you can hear me. Yes. So the application area where our current intermediate is getting into is corrosion inhibition application in the oilfield segment. And this particular segment of corrosion inhibition is very wide, and there are several alternatives which can be used. But this is one of the key intermediates, which gets into the upstream, midstream and the downstream side of the oilfield. And if you talk about the total piece as an oilfield, that is very wide. We -- what we understand, it's about a $13 billion industry. And with having got a foothold into this segment with the notable customers in this segment, we are looking at adding new products as we move ahead and especially trying to see where -- what those fits could be based upon our expertise and what the customers need.

Now the next question is for Varun. What is the asset turn that the company is expecting from the Specialty Chemicals business at the maturity when they achieve -- when the segment achieved INR 6,000 crores of target -- of revenue target in FY '30?

I'll put it in a different way. So any new CapEx that we will do should give me a minimum of a 20% to 25% ROCE. And typically, in the specialty chemicals, be it a CDMO contract, the ratio of asset turnover should be in the range of 1.2 to 1.5 at best. That's how I will put it. As long as my assets are giving me a better ROCE, turnover to me comes secondly from them. They should be more profitable. And generating more profit for us yes. But that's a typical 1.2 to 1.5 is the ratio that it works to.

So another question also is for Varun. Since we are aiming at tripling our revenues by FY '30, and how you expect to fund the CapEx that will be required to achieve this kind of growth going forward?

A good question for all the analysts building the models here. So most of it will be funded through our internal accruals as our profitability increases and our cash conversion touches 100. The first quarter call will be the growth CapExes. And while the timing plays a factor here, but our most of its lion's share will be through EBITDA that we will generate. Does it answer?

Yes, I'll just add to that, if you see the last 3 years also, and some of you have asked that question during the investor calls also, we have invested almost INR 1,700-odd crores, and our loan is still only at INR 750 crores. So we have -- whatever internal accruals, we have generated through the EBITDA and through efficiencies, we have reinvested, and that's the plan. And if we do it in a disciplined manner, at least our Excel model suggests that we will remain within the asset turnover ratio that Varun showed in his slide, despite the massive growth that we are looking at in the next 5 years.

So the next question is, how should one think about the incremental INR 100 crores savings that we have plan to do? And what are the changes that we are doing to drive this?

Vijay?

So on this 100-plus savings, we are expecting this to come from a few critical. Energy is still going to be a driving factor where 50% of the savings is expected to come next year. Then after that, norm improvement, that's a second area where we are working on. And then third is effluent treatment. These are the 3, 4 areas where the savings is expected to come.

And the next question is for the growth road map that we have given for Pinnacle 345, is it the only volume that we have -- volume growth that we have taken into consideration or certain price increase also that we have planned for this Pinnacle 345 road map? Also, what are the key risks for our vision of Pinnacle 345?

Let me take that. I think that's a very good question. And we did build out those scenarios. So first, a couple of base assumptions we have made. Of course, we expect the markets to come back in the near term. I think as I explained in the early part of my presentation, we are already seeing volumes coming back in our core segments. So we are hoping that at least from a volume perspective, the market will normalize and whatever, let's say, blood bath, which has happened in the last couple of years will subside. And at least the indicators suggest that, that assumption is a valid one and the volume recovery will not get delayed any further. On the pricing for most segments, at least our going-in assumption is that prices have reached a new normal because of the overcapacity in China, and we are not expecting the prices to come back anytime soon in a meaningful way. So our sense is it will take at least 2 to 3 years for prices to show any kind of recovery. In all likelihood, we have come to a new normal. There are products in China where the overcapacity is up to even 60%, 70%. And hence, the competition will remain. Now of course, it's a very uncertain world with all the tariff talks happening across the globe. Nobody can predict what will happen if tomorrow, there are meaningfully large tariffs for one country or others. But the base case scenario we are building is keeping the prices for most segments where they are with marginal uptick in subsegments. Acetyl is the only exception to that assumption because acetyl works in a very different way. It's a commodity product. It goes with the cycle. There, we are hoping that as volumes come back, the acetic acid, which is a driver for acetic anhydride price, which is our core product, the pricing should come back. But again, that's just an assumption. As Himanshu showed in acetyl business, we are not expecting an exploded growth in the next 5 years. 1.5x is based on largely volume recovery, but a little bit price recovery as well.

Thank you, Deepak. The next question is that we have seen significant manufacturing footprint and strong balance sheet for Ingrevia. So what kind of inorganic growth strategies can we see? And what are the nature of potential targets that the organization would be interested in?

Partha, do you want to take it.

Yes. So as we look at the Pinnacle 345 target, we have laid down the plans by each business unit. But we do believe that there is an inorganic part which will also play a critical role. So it's in our ambit. We are actively looking at quite a few assets in this space spread across the business units. And we will talk about it as and when it materializes. But yes, it is a part of our growth strategy.

Yes. So I think one thing I'll add to what Partha said, our areas where we want to do M&A are very cleanly and neatly defined and sharply defined. We are not going to do M&A just for the sake of doing M&A. We are very clear in line with the strategy we shared today, where we think there are gaps in our portfolio and where doing something inorganically, whether it's a full-fledged acquisition or JV or partnership or whatever other structure we follow. We are very clear where the gaps are and where doing any inorganic move can help us accelerate our journey and bridge the gap that I talked about INR 10,000 crores to INR 11,000 crores and INR 12,000 crores. So organically, we already have a lot to do, as we saw in the portfolio. So we, of course, want to -- the first priority is to deliver on that. Obviously, as Partha is explaining, based on the thesis areas we have defined, we have already started to make a list of potential targets. So we are also speaking to some bankers who are helping us. So as and when we find the right target in our thesis areas, we will, of course, go for it.

Thank you, Deepak. So the next question is, with the exports remaining a key area for our future growth, how much are we immune to tariff wars from U.S. and other global trade issues? And how we see our future revenue contribution from U.S. and European region?

Ambrish, you want to take it?

Yes. See, I think right now Trump is elephant in the room. Nobody can predict it will go in which manner. For our kind of product, which there's no manufacturing within U.S. We believe even the tariff comes, we would be competing against China. Let's assume that, typically because of the fact that we are competing with them only. So in that scenario, let's assume the worst. We still believe Chinese tariff would be higher compared to the tariff which will come to India. So still that delta will allow us to sell more. And obviously, that will also increase the cost. So what we have seen over a period of time, if there is a manufacturing in U.S. typically, they have put a 6% or 7% kind of import duties. And wherever there is no manufacturing within U.S., the duties have been 0. So that delta is large. On 4th of February, China has --Trump government has put some duties on them, 10% plus. So if it is 0, then it is 10%. If it is 6.5%, then it became 16.5%. Now China can absorb it to a certain extent. But beyond that, it would be challenged. So we believe that this issue will not much impact on our sales, first. Second, I think in -- during presentation, Deepak has already showed that our focus is to increase Europe and U.S. both. Now if you see on the agro side, the major players are based out of Europe. The top 3 players are there. There are 2 players within the U.S. We are focusing each one of them in both regions. We are focusing on our fine chemical derivatives, which we believe would bring strong value with the flex fully on the pharma side, the first Tier 1 CDMOs are based out of Europe itself. We are further -- one side, we are working with -- trying to work with innovators to increase our sales. Second, we are also working with the Tier 1 CDMO within Europe, where we can increase our sales directly to them. So overall, numbers will definitely double. India will come down as a whole, even nutrition or any other businesses. We believe these headwinds will be there, but we would be able to take it to next level. And Deepak has already announced and shared the CAM initiative, the kind of meetings we are having. This example, what he shared us of this customer who came -- we met yesterday was a European player. First time we had almost 100% share in last 20, 25 years. So I think that's the difference we are making with our services. So we have product. We have improved our services, which will give us premium on certain premium for set of refusal and long-term longevity in these all relationship in days to come.

Thank you. The next question is in our CDMO pipeline, what is the percent mix of the business that comes from Pyridine and diketene chemistry? And also to the INR 2,000 crore CDMO revenue target by FY '30, what will be the mix like?

So typically, I mean, if you talk about our CDMO project mix, it's primarily in terms of pyridine and diketene derivatives. And -- but having -- moving forward, what we have seen that depending upon the kind of chemistries that we've been working on, we have shifted this to non-pyridine mix more now. That's the way that the shift that we are looking at and moving forward in the next 5 years as well.

I think we can share that down the line 5 years of our major revenue would be coming non-pyridine, let me put that way. So pyridine remains a very core building block to offer our strength. And as I shared earlier, we are trying to build multiple chemistries as an ancillary chemistries, which can be offered in the bundle. It is not limited that only if it is pyridine, we will do. It can be other chemistries. In fact, one of our agro contract, I can share that it's not based on pyridine chemistry. It is non-pyridine, what we are talking about. So we are growing, and we will grow as a specialty chemical company offering multiple chemistries where pyridine is one of them, which we have major expertise, but not only limited to pyridine or diketene. 50% plus revenue would be non-pyridine...

I think I'll just add to that because this question has come up in several discussions in the past also. So while we are very proud of being #1 in Pyridine, but a lot of our future growth will be driven by non-pyridine areas. So just from a CDMO perspective, I think what Yuvraj and Ambrish already said, just to put some numbers in perspective, in pharma portfolio, even today, 70% of my business is non-pyridine. In agro, the 2 big molecules we won recently, which we announced, one is pyridine, one is non-pyridine. So we hope that, that ratio will maintain. Semiconductor has some organic chemistries, which we are experts in, but none of them is related to pyridine. So that hopefully -- that E-pyridine is, of course, a catalog product, but the 8 CDMO projects there are -- none of them is pyridine-based. So that hopefully gives you a sense that what we are leveraging to push hard on CDMO business is our chemistry capabilities, not necessarily pyridine as a product capability. And when CDMO customers are speaking to us, they're coming and saying, look, hey, I want to do these 4 steps. How many of them you can do in your plants or how many of them you have done in the past. That is what is clicking with them for them to speak to us and give those projects. So it's -- obviously, whatever comes in Pyridine will take it wholeheartedly and customers also, in all honesty, do not really have too much choice. I say that in all humility beyond China, if somebody wants to come for Pyridine, they have no option but to come to us. But bulk of our growth will come from non-pyridine areas.

So another question is again from CDMO side. How would the pharma CDMO of Jubilant Ingrevia different from the CDMO business of Jubilant Pharmova?

Okay. Let me answer that also. Good question again. I think first, we did not talk too much about Pharmova in this room. So for those of you who do not know Pharmova, it's a second baby which came out of Jubilant Life Sciences when the split happened in 2021, almost 1:1 split. Pharmova handles most of our health care and pharma businesses. They have multiple businesses. In fact, they also did their Investor Day a few days back. Some of you might have attended it. The way we look or split responsibilities across -- and I just see Arvind here, so I will invite him also to add in case I miss out something. But the way at least on the CDMO side, we split the responsibilities. The intermediates part is with us because that's our core capabilities. As I explained, the name Ingrevia itself means ingredients for life. And so all the intermediates in the pharma world, by and large, are done by us. Biosys, which is part of Pharmova, does pharma CDMO for APIs and some advanced intermediates. So that's how we split at least the responsibilities or roles. But having said that, obviously, we are sister companies. As and when they get some opportunity where we can help on the intermediate side, we tap team. And likewise, when we meet some customer, which is looking for API capabilities as well beyond just the intermediate strength that we bring to the table, we pull them in into the picture. So they have more GMP-grade plants for APIs. We have plants more suitable for intermediates. Arvind, you would like to Arvind...

Thanks, Deepak. So the last question is -- so Phase 1 of the CapEx for Jubilant Ingrevia ends in March '25. What is the CapEx plan for the next 3, 4 years?

So the CapEx plan for the next few years will be predominantly investment in Specialty Chemicals, as we have outlined, which will include investments in CDMO, in the multipurpose plants or into a new GMP facility. As and when the businesses will come for CDMOs, we'll not shy away from making any investments as long as it meets the threshold criteria. So the investments we have made, I believe we have enough [ ammunition ] till '27 to reach our desired top line and bottom line in line with Pinnacle 345. And to reach to the INR 10,000 crores to INR 12,000 crores top line and deliver the bottom line that we have just shown, any additional CapEx will be dominantly into Specialty and Nutrition.

Yes. So I think some of you have asked this question in different ways in the past. I think we have invested heavily in the last 3 years. We are hopeful that the peak revenues on the back of those investments will hit in FY '27. And then part of it because market recovery and slowness in the last 2 years. Otherwise, ideally, we should have hit the peak in FY '26. But nevertheless, all the investments we have made so far, we will hit the peak revenue on the back of that by FY '27. But for hitting the numbers which we have for FY '30, we'll have to continue to invest in the business. And then the quantum could be actually even bigger than what we have invested in the past to get that incremental revenue growth that we are aspiring to get.

Thanks, Deepak. So just one last question, and that's again from CDMO. Within CDMO, what is the mix of early versus late-stage commercial projects?

Late stage versus late stage molecules.

And are we doing any development work for the innovators?

To answer this question, we are working with innovators on the development in phase molecules as well. And if you look at our mix as well, we have around 65% of the molecules, which are there in the in-phase stage of the molecules -- commercial molecules and then the 35% on the commercial side of it that are there.

We can say that our majority of CDMO business is with innovators. We are not working with generics. It's directly with innovators, where we have been able to create relationship, and we are going deeper and we are further expanding into new market. And we have already shared that we have accelerated BD efforts where we are recruiting more people in U.S., Europe, Japan. I think those number of projects will go up. Phase I, Phase II, Phase III, all that we are looking. And that's the reason we are also planning to invest further into GMP facility. We have clean rooms already, but we are planning to put up more on the operational area side so that we can produce higher volumes of these intermediates, primarily on the pharma side. And agro anyway, we have been talking big. So those numbers will continue to grow.

Thank you, Ambrish. So this brings us to the end of the Q&A session. And now I would request Deepak to just close the...

No, I think it's been wonderful having you all. I really appreciate it -- we do realize it's a Friday evening, so you must be having plans, but you still took time out to join us. And hopefully, whatever we covered in the last 2, 2.5 hours was helpful. We are around. We will be at the booth. And obviously, we have dinner as well. So we invite all of you to join us for the dinner and interact with us. And -- have a great evening and a great weekend. Thank you once again for joining us.