Manaksia Coated Metals & Industries Limited (MANAKCOAT) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Manaksia Coated Metals and Industries Limited Q1 FY '25 Earnings Conference Call, hosted by Kirin Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Preeti Bhardwaj from Kirin Advisors. Thank you, and over to you, ma'am.

Good afternoon. Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Manaksia Coated Metals & Industries Limited. From the management team, we have Mr. Karan Agrawal, Whole-Time Director; Mr. Tushar Agrawal, Vice President; Mr. Mahendra Bang, Chief Financial Officer; and Ms. Shruti Agrawal, Company Secretary. Over to you, sir. Mr. Karan, sir, over to you.

Thank you. Thank you very much. Good afternoon, everyone. Welcome to the conference call for Manaksia Coated Metals & Industries Limited. Before we dive into the details of our Q1 FY '25 performance, I would like to provide a brief overview of our company. Manaksia Coated Metals & Industries Limited, is one of the leading producer and exporter of coated metal products, boasting over 15 years of industry experience. We specialize in pre-painted galvanized steel and plain galvanized steel available in both coil and sheet forms. Our operations are supported by 2 advanced manufacturing units, 4 branch offices and 5 strategically located stockyards and service centers, which ensure efficient production, distribution and customer service. Our product range includes pre-painted metal sheets and coils and galvanized steel sheets and coils. Pre-painted steel accounts for 78% of our revenue with a capacity utilization of 87%, while galvanized steel makes up 22% of our revenue with a capacity utilization of 76%. In Q1 FY '25, domestic sales accounted for 18,888 metric tonnes, which represents 74% of the total sales volume, while export sales made up 25.93% with 5,754 tonnes. The sales quantity for pre-painted steel reached 18,643 tonnes, showing strong performance in this category and galvanized steel contributed 5,999 tonnes. The breakdown highlights of the company's strong performance and market focus and significant focus in both pre-painted and galvanized steel coils. In Q1 of FY '25, we achieved significant milestones including an upgrade to a 3-star export house certification and an upgrade in our external credit ratings. Recognized by the Ministry of Commerce and Industry, Government of India as a 3-star export house, our company has advanced from its previous 1-star status. This prestigious recognition underscores our leadership in manufacturing and exporting coated steel products such as pre-painted and galvanized steel. The 3-star export house status is valid for 5 years, and it reflects our excellence in international trade and positions us for greater market expansion and opportunities. Our external credit rating has also been upgraded. The long-term rating has now been upgraded to A- from previously held BBB+, indicating enhanced creditworthiness for long-term obligations. The short-term borrowing ratings too have been upgraded to A2+ from previously held A2, signifying continued high credit quality and short-term commitments. These ratings upgrades highlight our strengthened financial position, supported by increased operational scale, a strong order book and a solid capital structure due to capital infusion. Enhanced debt protection metrics and the absence of debt funded capital expenditure plan further contribute to our financial stability. The financial highlights of quarter 1 in FY '25. Our company delivered strong financial performance on a consolidated basis, focusing both growth and efficiency. Total income for the quarter was INR 195.38 crores, reflecting a year-on-year increase of 11.04%. Our EBITDA rose significantly by 26.04% amounting to INR 14.80 crores with an EBITDA margin expansion of 90 basis points, now standing at 7.57%. The net profit witnessed a substantial surge reaching INR 2.98 crores, a remarkable increase of 2,320.37% from the previous year. The net profit margin also improved considerably, increasing by 146 basis points now standing at 1.53%. Furthermore, our earnings per share, EPS, sold by an impressive 1,900% now standing at INR 0.4 per share. In Q1 of FY '25, our stand-alone financial performance was also significant. Total income for the quarter was INR 195.36 crores, reflecting a year-on-year growth of 11.04%. EBITDA increased by 26.08% to INR 14.77 crores with the EBITDA margin expanding by 90 basis points to 7.56%. The PAT surged by 1,518.55% to INR 3.04 crores, resulting in a PAT margin of 1.56%, which is up by 146 basis points. Additionally, the earnings per share, EPS, grew significantly by 1,266.67% to INR 0.41 per share. In Q1 of FY '25, the company contributed INR 143.53 crores from domestic sales, which made up 74.07% of total revenue. Export sales contributed to INR 50.25 crore or 25.93%, the majority of revenue came from pre-painted steel generating INR 151.17 crores, while galvanized steel brought in INR 41.66 crores. Other products added INR 0.95 crores. This shows the company's strong focus on the domestic market and its key products, especially value-added products like pre-painted and galvanized steel. I would like to now hand over the discussion to Mr. Tushar Agrawal, Vice President, to talk about the way forward for the company. Thank you.

Good afternoon, everyone. Our company has taken -- undertaken strategic expansion initiatives to strengthen our position in the steel industry. We significantly increased our capacity in the color-coated steel segment, growing from 40,000 metric tonnes per annum in 2006 to now 86,000 tonnes per annum in FY '22. We also have plans to expand this capacity to 190,000 tonnes per annum by FY '26. Our galvanized steel capacity has also grown, rising from 108,000 tonnes per annum in FY '18 to 132,000 tonnes per annum in FY '22. We further -- with further upgrades planned to reach 180,000 metric tonnes by FY '25. This upgrade is planned to be implemented by Q3 and FY '25. Additionally, we are entering the cold rolled steel market targeting a capacity of 3 lakh metric tonnes by FY '27. These expansions reflect our commitment to adapting to market demand, enhancing our product offerings and driving sustained growth. Our Phase 1 expansion schedule for Q3 FY '25 represents a key milestone as we transition from galvanized steel to aluminum zinc alloy coating. This upgrade will provide superior properties, including 3x the corrosion resistance of traditional zinc-coated steel, even with a 40% lower coating weight. This increasing demand for aluminum zinc-coated steel, driven by its enhanced performance, and higher market acceptance positions us well. This product commands a premium price, and we expect an additional EBITDA growth compared to the previous year. Improved product quality will also enhance margins and profitability in the coming years. Additionally, we are investing in finishing lines like coil slitting lines to improve customization and product quality, particularly for OEMs and the white goods and automotive sectors. This will ensure that our products meet the specific requirements of these industries offering tailored solutions and superior performance. In the second phase of our expansion, we plan to introduce an important cold rolling mill with the capacity of 3 lakh metric tonne per annum and establish a color coating line with a capacity of 120,000 metric tonnes per annum. As part of our sustainability efforts, we are installing a 6-megawatt solar power plant to reduce our current footprint and energy costs. This investment highlights our commitment to renewable energy and operational efficiency. We are also implementing 0 discharge infrastructure and enhancing waste management with an effluent treatment plant, which has successfully reduced our total effective power costs by 10% to 12%. These initiatives demonstrate our dedication to cleaner, greener future, while improving operational efficiency. In conclusion, the company has shown impressive progress in Q1 FY '25 with strong financial performance and strategic expansion initiatives. Our investments in new technologies and sustainability efforts position us well for continued growth. We remain committed to enhancing product quality, expanding capacity and driving sustainable development. As we move forward, the company is well positioned to benefit from median budget focused on infrastructure development and positive steel industry growth projections. Our commitment to sustainability, innovation and operational excellence, supports our continued leadership and success. We aim to capitalize on these opportunities, enhance our product offering and deliver sustained value setting a strong foundation for future growth. Now I request to open the floor for questions and answers. Thank you once again for your presence and continued support.

[Operator Instructions] First question is from the line of Jairaj Jain from PSV Capital.

Congratulations to the company for a good set of numbers. So my first question is like what contributed to your bottom line growth for 200% plus when EBITDA growth is just 26%?

Well, thank you for the question. The main reason for the bottom line growth is the improvement in the price realization. And I think also the interest levels, the interest outgo from the company has been controlled and more efficiently managed by the company. Both these reasons have contributed to a surge in the drastic growth impact.

Okay. So can you give me some guidance on EBITDA margin for next couple of years?

Well -- so for the next year, the main change in the company would be the commissioning of our technology upgrade project, which we are going to conduct in Q4 of FY '25 will be on stream. And for FY '26, we will get the results of this technology upgrade where we will be producing aluminum zinc-alloy coated steel product called Galvalume. And this product inherently commands a better price premium in the market along with lower cost of production. With this kind of setup for FY '26, we can definitely expect a growth in EBITDA by roughly 3% over and above what we are doing today.

Okay. So can you give me a segment contribution revenue and profit from your like 2 main pre-painted metals and galvanized metals and EBITDA margin also on both the products?

The segment revenue, like I have already mentioned during my statement was close to 76% -- 74%, sorry, from domestic sales and 26% from export sales. And in terms of pre-painted versus galvanized for Q1 out of a total sales of 24,642 tonnes, 18,643 tonnes was pre-painted, which amounts to about 76%, again, contribution in terms of the quantitative performance. And the balance, 25% was galvanized. In terms of EBITDA, the EBITDA displayed by the company is a joint combined EBITDA of galvanized -- of pre-painted steel and galvanized steel. However, it will be fair to say that pre-painted steel commands a better EBITDA, which would be close to 8%. And galvanized steel commands a lower EBITDA, which will be around 5%. Therefore, our focus is to improve and increase the production and sales of the higher value-added product, which is pre-painted steel and it is also being seen in our performance.

Next question is from the line of Agastya Dave from CAO Capital.

Am I audible?

Yes, please go ahead.

Sir, when you say that your EBITDA will grow by 3% because of the new product that you're having, do you mean 300 basis points better EBITDA margin? Like if you are doing 6%, 7% today or 8% today, will it go to 9% to 11%? Is that what you mean by 3%?

That's what I mean, yes.

Okay. And that we will see actually has better gross margins, right? Your value addition over raw materials would be much higher in this quarter.

Correct.

Okay. And sir, when will we see actual commercial production happening for this new product?

During Q4 of FY '25 of this financial year.

Sir, you have expanded your capacity. And in the presentation, there are multiple plants or multiple phases in which you are doing so. So I was just wondering, sir, would we be seeing like a 20% plus volume growth for the foreseeable future?

I think the volume growth -- the volume growth will be much higher than that. For -- during this technology upgrade that we are doing in Q4, we are simultaneously also enhancing our capacity of production on the Aluzinc product -- the new product. So from an existing capacity of 132,000 tonnes per annum, it will grow to 180,000 tonnes per annum on the capacity front. And in terms of utilization, we would definitely want to utilize at least 75% to 80% capacity. So I think overall volume growth should be close to anywhere between 35% to 40% in FY '26 over FY '25 on the minimum side.

Will we see -- because you still have not fully utilized your existing capacity. So in FY '25, will we see a 20% volume growth?

Yes. I think close to between 17% to 20%, yes.

Okay. Excellent volume growth. Sir, one observation and kindly help me understand this variation. Sir, obviously, there is a margin improvement, which is happening for a variety of reasons, but I am not any familiar with the seasonality of your business from quarter-to-quarter. So if I compare it with last year, your EBITDA, excluding other income has jumped substantially from INR 7.5 crores to INR 13 crores, right? But if I look at -- if I compare Q1 with Q4 of FY '24, EBITDA margins have fallen. EBITDA margins really jumped in Q4, right? They crossed 8%, but now they are slightly below 7%. So can you give some qualitative commentary as to what happens during the quarters? What are the like heavy phases during the year when demand is high and you command probably better margins? What exactly happened between Q3 and Q4 and then Q4 and Q1?

Sure. There are 2 types of factors that impact our business. One is for the domestic market and one is for the export market. Inherently export business commands a better margin, gross margin, net margin, both when we carry out exports, it's a more profitable business for us. So wherever you see exports being higher, those quarters would definitely logically should have better profitability, EBITDA and net profit wise as well. That is point number one. And what happened in Q4 was that our profits were definitely high -- sorry, our exports were much higher than Q1 of FY '25. Secondly, as far as domestic market goes, I think it would be fair to say that Q2 of the financial year is typically, let's say, a nonseasonal month because of the most heavy monsoon period being prevalent throughout the country, which restricts the construction segment to carry out their own steel consumption activities. So apart from Q2, I would say Q3 is also, I would say, let's say, rank number 3 in terms of the quarter-wise performance or demand-wise because of major festivals falling in Q3, right from Pongal to Diwali to Dussehra and I think that is one factor that impacts Q3. Q1 and Q4 are typically best in terms of demand and quantities that we usually see.

Right, right. But if I exclude the variation in product mix because of exports, I mean, the percentage of exports that you did in Q4, margins have not changed in quarter-on-quarter. It is just whatever variation we are seeing, it is because of the changes in the product mix with respect to exports. Is that assessment correct, sir?

Correct, correct, absolutely. We exported more of the value-added product, which is pre-painted steel, and that is what was the major factor behind the better profits. Whenever we do higher galvanized steel, the EBITDA contribution is lesser. So going forward as well, you can expect that we would be doing higher tonnages or higher volumes of pre-painted steel rather than galvanized steel.

Next question is from the line of Pradeep Rawat from Yogya Capital.

So my first question is regarding our raw material pass on. So do we instantly pass on the raw material increase -- raw material price increase? Or is there a lag between the pass-ons?

The business model that we follow is typically a back-to-back model for at least 70% of our sales. So I would say that the raw material procurement is followed by the order booking. So naturally, the impact of price of raw material is already captured in the pricing to the customer. For the balance, 25% to 30% of the business, which is not back to back, the pricing mechanism of the product to our customers is a monthly mechanism. So there could be a lag of probably 10 days or 2 weeks maximum, not more than that because we have a continuous flow of orders, which keep getting replenished every week, 10 days. So I hope that answers your question.

Yes, understood. And the next questions are regarding to our CapEx. So can you give the amount that we are spending on each of the CapEx, all the 3?

Sure. The first CapEx is the technology upgrade and capacity enhancement project, which we are undertaking in Q4. That project is having a CapEx lined up of INR 40 crore and the financial tie-up is already completed. We are expecting the project to get commissioned on time. The second project is with respect to the solar power plant for reducing our electricity cost. This would be anywhere in the range of INR 30 crores to INR 35 crores of CapEx. And also the funding tie-up for the project has been lined up. So far, these are the 2 immediate CapEx plans of the company and the funding tie-up is already in place.

And with respect to the color coated CapEx and cold rolled steel plant so we don't have like funding for this as of now.

Well, the projects are not immediate. The projects would be the first project, which you set the second color coating line is a project that we are going to undertake in FY '26 and probably -- most probably in the second half of FY '26. So we have, I would say, sufficient time in our hands to work on the financial tie-up. And I mean, before the financial tie-up itself, there are many more steps that we need to complete in terms of finalizing all the technical aspects of the investment or the specifications and the dynamics of what kind of line we're ordering capacities and all of those things. So I think there is a good amount of time on our hands to complete the technical decisions as well as the financial obligations that we need to tie up. And the cold rolling project also is going to be undertaken after the second color coating line project. So again, so more time on our hands for that as well.

Yes, I understood that. So I was just wondering how much funding would be required. So can you provide a ballpark number? So sir, how much...

Second color coating line, the CapEx would be about INR 50 crores. And for the cold rolling complex that we want to set up in FY '26, probably FY '27 would be about INR 125 crores.

INR 125 crores, okay. And what kind of ROCE are we targeting for these CapEx? So any kind of number that we have in mind?

Well, ROCE, if you talk about the return on the gross block as well as on the working capital both, then it should be anywhere in the range of 28% to 32%.

[Operator Instructions] Next question is from the line of Aditi Roy, an Individual Investor.

Congratulations, sir. My question is, what are our plans to reduce debt? What is currently rate of interest?

Well, the plans to reduce debt is -- I mean, right now, our long-term debt is actually close to nil before we take on these CapEx projects. So the only avenue left to reduce debt is on the working capital side, where we are continuously working on both sides, which is reducing the interest rate for the company as well as trying to make our working capital management better, which will allow us to utilize working capital resources more efficiently and reduce the finance cost in the whole year. The current borrowing cost of the company for the bank debt is anywhere in the range of 9 -- let's say, from between 9% to 9.5% in that range, considering that there are multiple banks.

I have 1 another question. What is the management vision for next 5 years?

I can't hear you clearly, please.

What is management vision for next 5 years?

You said vision?

Yes, sir.

Okay. As per the blueprint of the expansions and the investments that are being made by us, we foresee that by FY '28 or FY '29, we should become a prominent and well-established players in the domestic and international landscape of value-added steel products by having a capacity of over 3 lakh tonnes per annum, which is a significant number. And definitely, our goal to have better returns to our investors and stakeholders, make it more attractive company for all stakeholders, whether it's customers or investors or banking partners, et cetera. And also to work on being a more sustainable and green company in general, by using renewable energy sources as well as reducing our carbon footprint from other initiatives.

Okay. Sir, I have one last question. How average price movement for 1 MT of galvanized and pre-painted coated metal sheet?

Please -- your voice is not too clear, ma'am. Please speak a little slowly.

Okay, sir, Sorry sir. How average price movement for 1 MT of galvanized and pre-painted coated metal sheet?

The average sales price for galvanized steel as on date is roughly INR 70,000 per metric tonne. And the average sales price for pre-painted steel today is roughly INR 87,000 per metric tonne.

Next question is from the line of Yashvanti from Kojin Finvest.

Just wanted to congratulate you for the best numbers, which you had seen it. I have joined a little late with the network issue. So in case if you had already answered, just pardon me for that. My first question was what has contributed to your bottom line growth, which goes to around 2,000 plus when EBITDA was just 26%?

Well, okay. Actually, I did answer it before, but again, to give you a short summary that we have had the performance in Q1 which mainly involved a higher production and sales of the value-added product, which is pre-painted steel and also our efforts to reduce our finance costs have helped. These are the 2 main reasons for improvement in EBITDA and the overall bottom line.

Okay. And sir, any new countries have been added to our portfolio in the recent times?

Sorry?

Any new countries have been added to our portfolio in the recent times?

I'm just not able to understand what you're saying.

Any new countries we could add to our portfolio for our exports?

You mean export countries?

Yes.

So traditionally, our exports are done to European continent. And we have been most active in the Mediterranean belt and the Eastern European belt. Within these 2 belts, we have added some new countries. For example, in Mediterranean belt, we have added Greece as a new export destination where we started exports probably only maybe 4 or 5 months back. And in the Eastern European market, we have started business with 2 new countries, which is Slovakia and Hungary, again, most recent additions in the last 3 months. So these are the 3 new markets that we are -- I can say that we have entered, yes.

And sir, you talked about in your opening remarks about your new product that is aluminum zinc coated steel. Have you identified any new customers for this product or we have started manufacturing this product because there has been an inquiry has come from some companies?

So the product, which is aluminum zinc alloy, or in short, we call it Aluzinc. Aluzinc product need not have a separate or a new customer base, which needs to be developed. It can be sold and consumed by the same or similar customer base that we have because the end applications are very, very similar.

And what kind of a zinc metal why you particularly need this Aluzinc coated steel? What benefit it accrue to the product? How would you like to...

There are two-sided benefits. One is -- one side benefit is for the user or the customer, where they get better corrosion resistance and life and performance from the product for end users like roofing or cold storage or warehousing, et cetera. The second benefit is for the seller or the producer where the producer and seller needs to incur a lower cost of production to produce Aluzinc because zinc is more expensive than aluminum. So the addition of aluminum makes it a cheaper product to produce the raw material cost reduces.

Okay. And comparatively, does it add to the lower weight also because aluminum is comparatively that's what my understanding is, maybe wrong.

Absolutely. I think you have a fair understanding of the dynamics of various metals, and you're absolutely right when you say that aluminum is lighter than steel or zinc and it does contribute to making the overall product lighter per square meter or per square feet, which reduces the overall cost for an end user for maybe covering a roof or making a warehouse or a cold storage or whatever it is. So you're absolutely right on that part.

And one more question if I may ask. Do we supply to the OEM directly or we are suppliers to the Tier 1 and the Tier 2 suppliers of this steel manufacturing OEMs?

Well, we have both, actually. We are supplying to direct OEMs as well, and we're supplying to Tier 1 and Tier 2 vendors of OEMs. For example, in the metal false ceiling space, we are supplying to multinational companies who are directly OEMs like your Saint-Gobain, which is a French multinational giant. We are supplying 2 NOF which is a German multinational giant for Metal False Ceiling. We are supplying to another German multinational giant called Durlum. And similarly, we have other multinational companies who are buying our product for metallic doors, metallic windows, et cetera. And when we talk about Tier 1 and Tier 2 manufacturers, we are supplying to vendors of Eicher Motors who make bus bodies. We are supplying to vendors of satellite dish antennas who supply to Tata Sky. We are supplying to vendors of the cold store refrigeration OEMs who supply to Blue Star, so on and so forth.

And sir, if you can answer one more question. We are investing in a new coil slitting line to improve the customization and the product quality that you particularly mentioned and that is specifically for the OEMs. So one thing is like what kind of this thing adds to customers? And secondly, what kind of investment we are looking into?

So the coil finishing lines that we are adding, we are adding currently only one coil finishing line, which is called a slitting line. Many OEMs want steel coils in a slit form with narrow widths because their end application demands the product to have a narrow width, for example, metal false ceiling. If you notice any international airport or a corporate office building, the ceiling is a metal ceiling and it has thin strips which form the -- the white color ceiling that you typically see. So those are thin strips. And for that, the customers are demanding the coil, the steel coils in slit condition. So this is one of the ways to meet those service expectations of the customers. Product expectations of the customers by supplying it in slit form, we can meet the customers' expectation and enhance the value or the price per tonne that we are going to command, and it will also open doors for us to supply to many such OEMs other than the metal false ceiling industry who also need similar kind of product for multiple end users for elevator door for so many other things that the steel coil would need to be in slit condition.

Okay, sir. So I believe that would also help then a reduction in the product -- the improvement in the production process. So that maybe one benefit...

Correct, correct. It will lead to a reduction in the production time lines and the process efficiency as well.

And what kind of investments we are looking for this particular line?

This would be a minor investment in the range of between INR 4 crores to INR 5 crores.

Next question is from the line of Pradeep Rawat from Yogya Capital.

So my question is regarding the Aluzinc CapEx. So the new facility would be fully used for Aluzinc coil or it would be a mix of galvanized steel and Aluzinc?

The new facility or the technology upgrade that we are doing would completely change our product to Aluzinc product and the entire capacity would be converted to Aluzinc.

Okay. Okay. And what would be the incremental revenue potential from this facility?

Well, there are 2 ways to look at it. One is the obvious increase in revenue because of the capacity enhancement where we are doing from 132,000 metric tonnes capacity to 180,000 tonnes. And in terms of utilization in FY '24, we take 90,000 metric tonnes in FY '26. After the capacity is fully commissioned, we are looking at doing 1 lakh -- between 140,000 to 150,000 metric tonnes. So the revenue growth would be definitely upwards of 50% to 60%, that is one aspect to it. And the second aspect is that Aluzinc itself as a product commands a better price realization, which would result in an improvement of let's say, between 5% to 6%, even if we maintain similar capacity.

So our margins would be in the range of 11% to 12%, right?

Our margins can be in the range of between 9% to 11%, which is a growth of between 3% to 5% from the existing year.

Okay. Okay. And my next question is regarding our customer concentration. So can you throw some light on that?

We have a very diverse range of customers. We are not depending on a few bunch of customers for a majority of our sales. So in the domestic market, we would have more than probably 3 dozen customers at any point of time in any particular month. And in the export businesses, we have at least a dozen customers in any given month.

Okay. Okay. And with regard to our current facility. So can you like guide around the current replacement cost of our facility?

I mean, the current replacement cost of our facility if it needs to be a greenfield project from scratch would be anywhere close to about INR 250 crores minimum.

Okay. Understood. Understood. And my next question is regarding our exports. So for this quarter, we have an export of 25% of our top line. So going forward, what should we expect this number to grow towards?

I think for the full year of FY '25, we can expect to close at a number similar to last year, which is 35%. However, the denominator will be larger number. So the -- in terms of tonnage, it will be higher than last year. But in terms of percentage, it would be similar to last year.

Yes. And my last question is regarding our preferential issue. So is the proceed fully like taken in? Or is there anything left over?

50% of the potential issue was fully subscribed in the last financial year and the balance 50% will be completed within H1 of FY '25.

[Operator Instructions] Next question is from the line of Vinod Gupta, an individual investor.

And my question is, any new countries we have added to our regional business?

I answered this to the last -- last caller. We have added 3 new countries, which is Greece, Hungary and Slovakia as the export market in the last 2 quarters.

Okay, sir. And my other question is, industry wise, which industry contributed largely to our revenues?

End use wise, I think metal roofing and sandwich -- insulated sandwich panels were the largest segments by revenue in terms of end use.

Next question is from the line of Yash Rane, an Individual Investor.

So my first question was who are our end consumers for aluminum zinc coated steel?

The end users of aluminum zinc coated steel or Aluzinc would be in the space of pre-engineered building manufacturers such as Kirby, Zamil Steel, Tiger Steel, the Interarch, and there are so many others also in the pre-engineered building space and -- followed by the insulated sandwich panel business where there are multiple companies such as Kingspan Jindal, Metecno, ISO Llyod Group, et cetera. So these would be the largest the end users -- end user segments.

Okay. Okay. And my second question is, do we supply to OEMs or the Tier 1 and Tier 2 suppliers of OEMs?

We supply to both. We supply to OEMs as well as Tier 1 and Tier 2 suppliers of OEMs.

Okay. And my last question is, what is the progress on solar power plant? And when we can see its usage bringing savings to convention power sources? And what will be the overall cost?

The solar power plant project is having a time line of roughly 6 to 8 months to commission from the date of start of the project. So we feel that we can start off with the project sometime during October. And we can hope that we can get the power plant commissioned by April of -- April of next calendar year, and it would be fully in use for the next financial year. The entire project is going to cost us anywhere between INR 30 crores to INR 35 crores.

[Operator Instructions] As there are no further questions. I would now like to hand the conference over to Ms. Preeti Bhardwaj from Kirin Advisors for the closing comments.

Thank you, everyone, for joining the conference call of Manaksia Coated Metals & Industries Limited. If you have any queries, you can write us at a [email protected]. Once again, thank you, everyone, for joining the conference call.

Thank you. On behalf of Kirin Advisors, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.