Pearl Global Industries Limited (PGIL) Earnings Call Transcript & Summary

Hello, everyone. I'm Shishir Gahoi, Investor Relations Head at Pearl Global Industries Limited, and it is my pleasure to welcome you all to Pearl Global Investor Day 2026. On behalf of Pearl Global, I would like to thank you all our investors, analysts and members of the investment community for taking the time to join us today. We truly value your continued interest in Pearl Global and your engagement with the company. Today's Investor Day provides us with an opportunity to go beyond our regular quarterly interactions and share our perspective on the company's journey, the opportunity ahead and our vision for the future. Over the course of today's session, our management team will take you through Pearl Global's growth strategy, key strategic initiatives and long-term outlook, followed by an interaction with the management team. We are pleased to have with us Mr. Pulkit Seth, who is our Vice Chairman; Mr. Pallab Banerjee, Managing Director; and Mr. Sanjay Gandhi, our Group CFO. We also have Strategic Growth Adviser, our Investor Relations Adviser with us. We have an engaging agenda lined up for you today, followed by an interactive Q&A session with the management team. We look forward to an open and meaningful discussion. A brief disclosure. Certain statements made today may be forward-looking in nature. Please refer to safe harbor disclosure included in the presentation for further details. Before we start, may I request everyone to kindly keep their mobile phone on silent mode during the presentation so that we can ensure an uninterrupted session. With this, I would like to invite Mr. Pallab Banerjee, our Managing Director, to present the next phase of all Pearl Global's growth journey. Thank you. Over to you, Pallab Ji.

Thank you. Thank you, Shishir. I take the privilege of welcoming you all to this session where we will be talking about what's the overview of our company -- sorry, to go back. Yes, so the overview, how we are placed today, all the geographies-wise that we are doing the business, we'll give you an update on that. And what is building on to this resilience through the diversification that we have done over the years. So we'll speak about that. And in 2023 of February, I think we came here and we did a presentation to some of you of what we wanted to be. So compared to that, where we are today, and what's the way forward. So that are the things that also we'll cover. And along with that, we'll definitely cover the risk mitigation and the governance that we have implemented in our business. But before we start, the privilege that we have also with us today is Pulkit Seth, our Vice Chairman. So let us hear from him about the vision of the company. And what he thinks and where he wants us to lead us in the future. Pulkit, a few minutes.

Good afternoon, everyone. I'm really glad to be here, and it's an honor to be addressing all of you. I'm just going to just introduce and just talk a little bit in general about Pearl. Pallab will have much more fun by taking you through a much more detailed presentation. So I wanted to welcome you all to this analyst meet, Investor Day. And it's an important milestone where we want to kind of recap where we are today, where we reached as an organization, what we've been talking about for the last few years and what we've been able to achieve. And then what we -- what path we are on and what kind of growth we are going to work towards and look at achieving in the future. As you all know, the company was started in 1987, and it was a promoter-led business, and we were able to establish one of the, I would say, most well-established, well-diversified garment manufacturing businesses out of this -- out of India initially. And today, we have a very strong legacy in place as an organization. From the beginning, we built the company with the vision of having a very strong professional management team. And as we grew the businesses across different parts of the world, starting, of course, with India, then we went to Vietnam and then went to Bangladesh. So we went -- started in India, went to Indonesia and then went to Bangladesh and then went to Vietnam and most recently went to Guatemala. Always the objective was to really drive the business with -- along with a strong executive team. So today, we have a very strong executive team, which is leading the business across the globe. We work together on the highest levels of transparency, trust and teamwork as a group and as a team. And it's with these principles that we drive our business. And we've seen wherever we have the right mix of, obviously, the capacity, the customer, the team and then everyone is working with trust and transparency, we come out winning and we come out really, really strong. And of course, Pearl Global today has a very, I would say, one of the most well-diversified manufacturing footprints in the world, which we'll present to you in detail. Each of the countries that we are in are extremely strong for apparel supply chain. The fact that we are in 4 countries gives us the ability to service the best retailers in the world to grow with them strategically year-on-year. And at the same time, the model allows us to onboard some of the best retail partners that are out there. Also, we are very focused on seeing who we do business with. So any time we select a customer, it's after a lot of due diligence from our side. So we don't really get in a customer unless the customer is AAA creditworthy, and we know will help us to grow strategically in the years ahead and while thinking for the long term and with whom we can think together. As you all know, we today operate 25 manufacturing units across 5 geographies. We make 100 million garments. We have capacity to make 100 million garments a year, which we'll present today how much we've achieved, how much we shipped out of the 100 million and how much more we're going to grow with that. And we have 30,000-plus associates. So the foundation is extremely strong. It's taken more than, I would say, almost close to 3 decades to build to where we are today. And we are really glad where we are today. And we feel we are still getting started, and there is tremendous tailwinds that will allow us to continue to grow in a very healthy manner, in a very sustainable manner. So -- and of course, our objective is that there are fewer and fewer retailers in the world, maybe there were 100, 10 years ago. Today, maybe they are 30 or 40. In the same way in the apparel supply chain, apparel manufacturing side, there were maybe thousands of manufacturers, but even there is consolidation happening there. So our objective is that on the B2B side, any large retailer, which are few indeed today, when they want to come and explore business and sourcing and manufacturing with companies, that Pearl Global name comes right on top out of the India region. Of course, we are an Indian company with a footprint in India, but also a global footprint. And that's a big USP and that's what retailers today want. They want to work with fewer manufacturing groups, people who are there in it for the long term, people who have the ability to service them, supply to them and also offer a lot of value-added services. So we are here on a very strong footing, and we look forward to a very strong future. And Pallab will take you through a much more detailed presentation, and I look forward to interacting with you all after the same. So thank you.

Thank you, Pulkit. So as you just heard, like a little bit of overview that Pulkit also mentioned some of these numbers. So our vision for the company is to be the global leader providing end-to-end supply chain solutions to the fashion industry of the globe. And our mission continues to exceed the customer and all stakeholders' expectation. Of course, out here, it's the shareholder, but yes, all stakeholders' expectations we want to exceed by strategically driving sustainability and technological advancement with innovative solutions delivered the best -- by the best talent in the industry. And the goal is to innovate the way the fashion is created across the globe. With that, today, we have manufacturing locations in India, Bangladesh, Vietnam, Indonesia and Guatemala. And the markets that we are serving majorly are U.S.A., European Union, U.K., Japan, Australia and Canada. Along with the manufacturing setups that we have in these 5 countries, we do have a very well organized and setup of designers and commercial people in Hong Kong, in Spain, United Kingdom, that's in London, in U.S.A. in New York and in Dubai. So this is the whole network across 10 different locations or 10 different countries, if you see that we are covering today is the strength that we have built up over these 30-plus years of Pearl Global. As I speak, we have a capacity of 101 million pieces approximately. And by this year-end, by March, that number would significantly go up, close to about between 115 million and 116 million. Of course, like we'll give you the exact numbers as it grows up. 100-plus designers working with the latest technology that is available to the industry today, whether it is 3D designs and the AI technology, which we'll speak about as we go through this presentation. We met, as I said, in 2023 since -- so that's the journey that you have already we spoke about in 2023. So from there onwards, what are the things that we have done in these last few years? We strengthened the capacity that we have in Indonesia. Indonesia, our factory was next to the water. So naturally, the global warming, we could see physically what is happening. At least twice a year, the water was coming inside the factory and the roads outside. So the seawater level is increasing definitely. As a high tide, one of the high tides, you would see that things are going bad. So we had to shift that factory. We shifted it to a better location and built up more better capacity out there. We expanded our operations in Guatemala. That's partnership that we get into -- got into in 2022. Today, we have got almost 80% share in that facility. 2025, we also incorporated -- sorry, 2024, we continued to expand our presence through new facilities in India and Bangladesh. We built up our capacity in India because we found that in 2023, '24, there's a huge amount of possibility in India and positivity from all our customer side. But unfortunately, in 2025, we had Trumponomics played, and that's where the whole tariff thing came up. In 2025, we incorporated a subsidiary in Bangladesh. And in 2026, we have incorporated a subsidiary in Singapore. The capacity of Bangladesh got increased. And also, we have done a laundry, updated laundry where we can do a lot of value-added washes in Bangladesh. So these 2, we just inaugurated day before yesterday. At least a few of you was there with us. It was a huge pleasure to -- for us to host some of you there. And as with that, like this 101 million pieces of capacity immediately goes to 108 million pieces after this inauguration of these 2 units in Bangladesh. And before this year-end, as I said, that there will be a couple of units more coming up that will add further capacity. Global presence on the map, as you can see, we just spoke about, U.S.A. is the market and also we have a presence. We have a design showroom designers employed in New York. In Spain, we are in both Barcelona as well as La Coruna. And then in Richmond of London, we have it, the office, Dubai and India, Indonesia, Bangladesh, Vietnam, all these countries where we have our manufacturing, we do have a complete design setup along with product showrooms. In India, again, we are well diversified. We are in -- we started in Gurgaon, Chennai and then Bangalore. Today, we have a facility in Muzaffarpur. We are looking into the other opportunities that is there available in India. We are exploring that. What we feel is that the workforce comes from the, what you call, this particular belt of India. Especially for our industry, we find Bihar, Bengal and then Odisha and Jharkhand. These are the place like where a lot of skilled workforce actually comes, and they understand the industry very well. Of course, Chennai and Bangalore, we find a lot of people are going from this region and working out there. And same is for North in Gurgaon. So what we intend to do is to take some of our factories to the home of this workforce. So that, I think, is the unlock that we need to do in our country. And who are the architects? Of course, like you heard Dr. Seth, Deepak Seth, who started this journey back in 1987. Of course, he had the vision to not limit himself to only India. So that's the benefit that we are reaping today. Of course, under the leadership of Pulkit Seth, today, I think we have built up a very strong and very talented team. Let me just briefly go through these names. Shifalli Seth, that's, of course, Pulkit's wife, but very talented in terms of design and this whole sustainability initiative she is driving within the company. Gurusankar Gurumoorthy is our CEO for the Hong Kong region -- sorry, the Vietnam operation that we have and also he leads the Hong Kong team. Then Sundeep, Pankaj Bhasin and others. These 3 gentlemen are helping us in India. They are individual business units that we have given to them where they are responsible end-to-end. Vikas Mehra is the CEO of Bangladesh. Now if I speak about -- a little bit about Guru or Vikas, like Guru has already worked in U.S.A. He was running a retail chain. Before that, he was heading the supply chain of many big retailers and got a very strong understanding of the industry, the entire supply chain. Same is for Vikas. He was -- for 17 years, he was with Jones New York that they supply the largest amount of denim to the U.S. market globally across the globe, if you think of. So he had a 17-year stint out there. So naturally, a very strong understanding of that product. Myself, my background was in Gap. So I was definitely 21 years with Gap, Inc. and that's the time like I understood the whole supply chain of the globe, how the garments are made and supplied to the various markets. That's the background that I had. Sanjay Gandhi, you have all interacted with, again, a huge amount of experience in the international market, has worked, I think, on 7 or 8 different locations across the globe. So that's the kind of acumen that he's bringing in. Amit Kumar is a production expert that we have in Indonesia, who's heading that team. Joe Hales -- Joanna Hales, like she was with Marks & Spencer for almost 21 years before she joined us. She was a head buyer there. So that's, again, a huge amount of experience and the talent that she brings in from that buying background. And same is for Jonathan, who has had a stint with Mango as well as Zara as buying, again, buying head -- buying team head. So that's the kind of team that we have built up, and that is the engine which is taking us forward in our journey. Of course, we are backed up by a very strong independent Board of Directors. I'll not go through each of the names, but some of them are really stalwarts with a lot of experience from the industry as well as other fields. So I will straight away jump into each country. I'll spend a couple of minutes so that you get a background of what's happening. So in India, as I said, like our manufacturing locations are in Bangalore, Chennai, Gurgaon and Muzaffarpur. These are the 4 places where we own 100% of the units of the factories. That's 8 manufacturing units, total capacity of about 26 million pieces. And the utilization has been low. And this number, 62% is the utilization that you saw for the last year, 2025. And that's the year, remember like we had the U.S. 50% tariff, which slowed us down. But before that, the whole thought process was that India is going to get a very strong chance in this particular phase because of China Plus One. But of course, this tariff slowed us down by a year. So that's why the utilization was a little less. And we have built up this capacity over the last 4 years today to have a 26 million pieces. Like if we fully use that, that's like almost double than the turnover that we are doing now. In terms of product range, we have been doing women's top skirts and dresses in India for a long time, but we are now diversifying into other products like men's as well as increasing our capacity in the bottoms, that means the pants manufacturing in India. India, the focus earlier, like historically has been only in Bangalore, Chennai and Gurugram, like all the metropolitan cities, if you have to say. So how do we get into now the Tier 2, Tier 3 cities like Muzaffarpur. So that's the journey that we have started. So these are 2 big changes that has happened in India, product diversification as well as the location going into Tier 2, Tier 3 cities. That's because definitely the EU readiness that is very important now as we are going to -- India is going to sign an FTA with the European Union. We have already an FTA with U.K. So those 2 countries are definitely very actively engaging with the Indian manufacturers at this point of time, including us. Of course, we've been in a little bit additional benefit to them because we are already supplying to them from Bangladesh and to a certain extent, from Vietnam. So that, I think, is also one of the big driving force in it. And if you talk about the FTA readiness, definitely, the kind of factories that we have in terms of ESG, in terms of sustainability and traceability. These 3 things would be very important for European Union. So we are ready for that. 50% of our factories are already approved by the buyers of European Union and the others also are in the process of getting approved. Bihar, we started with operation in 1 of the -- 2 of the sheds, like we took 3 sheds from the Bihar government. And the third one, we are now putting in the machines as well. And this is the plan -- this is the location where we would like to experiment with the 2 shifts of working. So that would scale up our capacity further in India. Moving on to Bangladesh. We have 4 manufacturing units 100% owned by us, and we have partnerships with another 5 facilities. But this big one that we launched before yesterday. Yes, this is thing. The one that we got inaugurated day before yesterday, so now it is 5 in 5. So -- and of course, like we got a state-of-the-art laundry. That also is one of the unique because I think it's one of the best laundry today as on date in Bangladesh that we have made. So this is a cost competitive country. As you know, the wage is still almost -- if I have to compare between India and Bangladesh. So if India minimum wage is around INR 15,000, in rupee term in Bangladesh equivalent would be about INR 10,000. So that's the kind of minimum wage slab that starts with the workers. So that gives an advantage of that. But even the bigger advantage is the whole ecosystem that Bangladesh has built up over the last 25 years, especially after the WTO after the GATT -- went away, the quota system went away. This is one of the major beneficiary as a country they have done. And 2015 onwards, we saw an accelerated growth in this country for the apparel manufacturing. Today, there's a very strong workforce, not only the labor force or the sowing operators, but also the low-level management, mid-level management and to somehow it's coming up to the upper level management as well. So that's how the country has developed. Today, they have almost about $48 billion plus of garment manufacturing and exports. Compared to that, India is at around $15 billion or $16 billion. So it's almost 3x than India and basically done from only 2 cities. Majorly, it is from Dhaka and then there's a small presence in Chittagong. So that's why like if you go to Dhaka today, every third or fourth big building that you will see is a garment factory. So that's the kind of ecosystem that country has built up over these years. And that's an advantage they had is the duty-free access to the European Union market and the Canada market because of their LDC status, the Least Developed Country status. So yes, they definitely had a little bit of political disturbance and all being a third world country after once in 5, 6 years, something happens. But this particular industry has thrived through all the disturbances that we have seen in Bangladesh history. Here, we produce denim majorly, any kind of other woven, heavy woven kind of garments, any kind of knitted jersey, Polo T-shirts, this kind of product that we do. And of course, like we supply to the sleepwear or loungewear or activewear or athleisure. So a variety of products can be made in Bangladesh. They were very much dependent on fabrics from India and China. But over the last 10 years or so, there have been a significant investment that has gone in, in terms of fabric manufacturing in Bangladesh, not yarn. Yarns, they are still not competitive. They do have a lot of spindles now, but what we see is the yarn competitiveness is still from China or from India. But the fabric manufacturing has really developed out there. Now the duty-free access because of this LDC status is there till 2026 with an automatic grace period of 3 years. That means 2029, they will have that benefit. Some of the questions that we often hear, what will happen after that. What we are seeing is that Bangladesh government and BGMEA, their trade body is definitely engaged to continue this kind of benefit through another route, either through some kind of bilateral trade agreement or an FTA. So that kind of discussions are actively on. And the proof of pudding is that like when the U.S. negotiations are going on, they come out with a brilliant idea that we'll take the cotton from U.S. and give the garments back to you, so how much of duty-free access that we can do. So that kind of innovative idea they're also bringing on to the table during these negotiations, which they are doing with the Western countries. So we feel that the strategic hub, which is powering the global growth of Bangladesh will continue for some more time. Today, if you look at the $550 billion of total global trade that happens in garment trade, out of this, $150 billion or $140 billion now, maybe like -- I mean, assuming that this year number when it comes out, it will be a little less, to China. So that is China. So out of $550 billion, almost $150 billion or $140 billion is still with China. Then comes Bangladesh at $48 billion and followed by Vietnam, which is close to about $44 billion. So that's the kind of 3 big countries that we are talking about globally as a supplier of -- or manufacturer of apparel for export market. And after that, from Asia, the 2 countries are India and Indonesia. These are the countries that are in the range of about $15 billion to $17 billion. So who will win between these 2 countries, we'll get to see in the next few years. Talking about Vietnam, I just mentioned to you like $40-plus billion of garment exports that they are doing. They have this advantage because 2015, '16, there was a big talk of TPP. We used to call it Trans-Pacific Pact at that time. Of course, as soon as Trump came in, in 2016, it was shut down. But a lot of work had happened. Now this TPP has become a comprehensive TPP, comprehensive pact of TPP, I think that's how they call it, where U.S.A. is not the member, but the balance other 9 players went ahead and signed the document, because of which -- sorry, Vietnam today have the access to the European Union and the U.K. market, along with Canada and Australia. The duty-free access was granted to Vietnam as well. So the market is very mature, the manufacturing market, which, of course, started as a communist country. So they built up those very worker-friendly factories. And later on, it was distributed to the so-called capitalist of the communist country that means some of the politbureaus took over those factories. And these are leased to the South Koreans, Taiwanese and now a player like us. We also use those kind of facilities, along with one facility that we have, which we 100% own and another second one, like we partially -- we have done some kind of agreement. So we run that facility as well. Apart from that, 3 more facilities that we use to get to our capacity. So that's the arrangement that we have in Vietnam. This is a place where we do very heavy-duty, high altitude jackets, down-filled, poly-filled, any kind of technical garment in terms of outerwear, warm clothing that we do, along with some athleisure and some other products as well. The benefit of Vietnam is that the skill level is very high. And the place that where we have our factory, which is a place called Bac Giang near Hanoi, the skill level is very high. We don't compete for these workers with other garment factories. We work with Samsung. We compete with Samsung, I mean. Just maybe about 10 kilometers away from our factory is a huge, I think one of the largest facility of Samsung is there. So that's where I think the struggle of Vietnam is the workers now are so skilled that they would like to go away from garment into maybe a high-end electronics and all. So yes, the cost is high, but you get a very, very highly skilled workforce out there. Productivity is very high. So that's one advantage that we have taken. We have built up the higher end of our customers, the highest end of our garment in terms of technical standard and quality standard, we do out of Vietnam. Brief about Indonesia and Guatemala. Indonesia, we had this plan. This is the first, I think, overseas factory that Pearl Global had since 2002. That facility today has -- is still continuing, and we have made it into 2 facilities now and also coming up one more adjacent to the one that we just built up. Basically more like an extension. So this location is Semarang. The provinces are Kabupaten and Demak. These are the 2 places where we have these 2 factories. And in Demak, we are creating an extension now where we will be adding one more category of product. So as on date, Pearl produces 6 different categories of product, things like outerwear, bottoms, denim, then tops, skirts and dresses, in wovens, knits, then there is sleepwear, athleisure wear. So these are like 6 different categories that Pearl was making and the seventh category that we are talking about, we'll again speak about it a little later. 1 in-house manufacturing unit, the second one is coming up -- sorry, 2 manufacturing units we have, sorry, out here, 1 in-house, call it 2 in-house here. And then 90% utilization, we are already doing and 3.3 million pieces that we are making. Sorry, this is Guatemala. Indonesia, that said -- and Guatemala, we took this one factory we started in 2022. That's something like we have done with a joint venture initially like we took a stake in our existing factory, and then we are now holding 80% of that stake. And this is something like we are still figuring it out like as a country, how it can be more efficient, how we can make money out there, but this is a place which is nearshore to the American market. As a result, it's a big attraction to all the U.S. clients. Everybody wants to have a capacity in this particular facility. So that's what is happening out here in this factory. Hopefully, like this year, we will come to more close to the breakeven. And then we see from there onwards how we can take it to a profitable venture. The other initiative that we have been doing majorly in Bangladesh is to get to this 85% water reduction as we are making a denim pant. So all the latest technology of washing a garment with no hazardous chemical, that's something, a big achievement that we have already done. And not only in one facility, now we have replicated that in a second facility with much more updated machines, which is definitely an attraction for all our customers. Why we did it? We found that, yes, we do a lot of innovative washes and our customers are really taking these washes. And our capacity was running short. So we were doing a lot of -- through the partnerships, we are doing these kind of washes. So bring that in getting our value-added and that exclusivity in our own in-house facilities much better. So that's something we have done in Bangladesh now. The other initiatives of sustainability, we definitely are looking into the water conservation. We have done already at 41% in terms of the groundwater consumption, how we are reducing it. What kind of washing and all, a lot of work is going on there. The waste management is a very important part in our industry. And as you make these garments, a lot of wastage comes up. Small pieces of fabrics gets left over, other trims gets left over. So how do you manage that? How you can recycle that back into your production? And the other big thing is the renewable energy. So as I speak today, like in India, almost about 35% of our electricity consumption is renewable from solar. In Vietnam also, it's a higher -- slightly higher number, and so is happening in Bangladesh. We have taken initiative to improve and increase the greenbelt around our factories, each locations. And even in places like Gurgaon and all where we are situated like we are trying to do that more and more. So as you can see some numbers that we have published out here, how much of carbon dioxide saving or absorption that we have done. Other activities, definitely a lot of -- we actually do -- we call it as 3 pillars for ourselves, like we are talking about education. We are talking about health and safety and the environment. So this is 3 things that we have been spending our time and resources to give back to the society and to the environment. So in terms of coming back to this global footprint that we have created for ourselves, the major benefit is through the own design, how we can create that design where we provide the design to the retailers and then book the business. The industry runs on -- broadly, you can talk about 2 classifications. One is that the tech pack-driven business, that means the retailer or the brand is doing the development and then just bidding it to the suppliers and whoever gets it, just follow it and then make the garments, follow the specifications and make the garment. The other part is that where you bring in the innovation or we bring in the innovation, we bring in the product and we show them the collection and we just select from there. So that is where the focus of Pearl has been. And that's the reason for which this investment that has happened in New York, in London, in Spain. Now we are trying to see like how to get into the other markets of Japan and Australia. So those are the things that is the unique value that we always want to bring into our customers, and that is giving us success. So 3 models of engagement on designs. What we do is end-to-end design. That means the buyer just walks into our showroom, sees the whole setup of the store, like how it should look like and they pick, okay, this matches to our filter or our handwriting and we just buy this. And then we just make that particular design for them in bulk quantity. That is called end-to-end design. Design team extension is that there are certain brands like Tommy Hilfiger or Calvin Klein, who have an image or a particular way that they want to look -- always the garment should look at. So they start this new creative process where they download what is the vision that they have for the year or the next year. And from that vision, how you take it up and then supply them that design, the final product to it. So that's what we call it as design team extension. And then the third part is design co-creation, where we give the customer, this is what is happening in the globe because, let's say, a U.S. retailer where we say, okay, this is what we are seeing is happening in Japan or what is happening in U.K. This is what we see the trend in Australia and European Union. Would you like to have something like that? So this is how that interaction starts place. Then we both mutually decide which is the product that should be designed into, like what is the final product should look like. We do it together. So that's what we call it as co-creation. So these are the 3 models that we use. And as of 2026, definitely, there is a lot of 3D innovation that comes in. That means that before even the garment is -- the fabric is cut, the garment is visually made in a 3D world, in a virtual world and then put AI into it to make it absolutely look like real. So that is what is giving us a lot of success because as a designer who is meeting maybe like 50 or 100 suppliers and they are showing different product, how do you get that mind space like, okay, you are the one who are providing the best designs and the best-in-class product. So that's something like we have been really talking about. And we do it across all the 6 categories, that is knits, wovens, tops and then denim. Knits and wovens we write like this, but knits also it's all product of knits. There's tops, skirts and denim, we call it. Woven is also tops, skirts and denim -- tops, skirts and bottom -- dresses, sorry, tops, skirts, and dresses. Then denim product, outerwear product, activewear and athleisure product and sleepwear and lounge. And all of these in children's also we do. Children's means like definitely a special handling, control of needle and processes needed. So that also we expertise upon. So these are the 6 categories. If you include children's, then you call it 7 category or 6 category also into children. And the category that we are adding now are this dressy collection. That means the dress pants and this kind of jacket suits and all, especially for the women first and then go into the men's. So that's something we are expanding into this portfolio. That means, let's say, if the store has 10 different category of product, we were already doing 6. Now we are getting into the seventh one, maybe 70% you can call it. In knits, one interesting thing is that if you see, we do knits, tops, skirts and dresses, and we do athleisure quite a lot. Active performance because India or Bangladesh region was not so strong. Vietnam, we do something of it because that particular category actually developed by Taiwanese and managed by Vietnamese and now some Chinese. So that's one pie that we are also focused upon, and you will see some growth in that area. So we are building up the talent infrastructure to growing that. So almost that means give us like almost 8 different categories. 80% of the stores I will have in terms of the wallet share that we can get into with one customer. And as I was talking about like how do we do this digital transformation? Let's say, a designer does -- got an inspiration from some customer -- from some product. They show us that picture and say, can you make something similar? We want a little bit of change like you can see on that red line that she has drawn on that photograph from a magazine, let's say. So we convert that into a sketch for, first of all, how it should look like on a 2D sketch. Again, this is in virtually. Then 2D sketch get converted into a 3D rendering. That means there are 3D software which are available. On that, the designers would create exactly a replica of how the garment -- future garment would look like. This is not the same garment. This is as per the requirement that is there, was given to us, like, let's say, a discussion that happened in the co-creation discussion. So we create this thing. Then how this 3D has to be rendered on a particular model, again, on virtual world, not a real world. And you can see the detail how the garment would fall, how the garment would behave, each detail of the wash that you can see on that to the granular level. Now this garment doesn't exist. This model doesn't exist. So this is completely virtual, has been created through the AI and the design rendering that we have done. And finally, the garment got stitched. Now you see the difference between these 2 garments, like what we was created virtually and how the actual garment looks. So this is the confidence that if a designer is given to like from a customer's point of view, that converts the business. That means like you see something like you see 20 designs in this virtual world in a 3D form -- in a virtual live form through AI and how you select. So here's another example. This garment, we didn't stitch. We had a swatch of fabric. We created a 3D rendering, put it on an AI model, make a walk, see the translucency like the transparency in the fabric, of course, like not so clear on the screen, but this is what gives that confidence. You see a little bit of like how that fall, how the fabric will move. So that creates that difference. This is an order that was booked even before the one single garment was stitched, not a design was made with one of the very prominent denim brand that you can think of. So they bought it. So that's what we are talking about how the business operates in our world. Now coming into the diversification of our business, like the locations you heard. And so one is the manufacturing footprint and the other is the marketing, like where we are marketing our product, both has to be diversified. So yes, what is the benefit that is giving it to us? We derisk the geographic exposure, lower dependence on any single market, balanced revenue across mix, all the regions. We have an access to all the global growth markets. You see like if I have a factory in that region, I can even cater to Australia and Japan very quickly and easily. The flexibility of scalable manufacturing that we have because the locations that we have decided upon and how Pearl has grown, these are the 4 markets, as I told you, like $550 billion, out of the $550 billion, if you take out China, China is definitely a question mark what will happen to it, how much have decreased because they have gone into a very high engineering product now. So garment is shrinking there quickly and fast. And so next is your Vietnam, Bangladesh, we are present. India and Indonesia, the third tier, we are already there. And then, of course, Guatemala is more like a near location. But these are the 4 countries, which has got a lot of growth power. Each one of them, if you look at it individually, if you study these 4 markets, there would be at least -- Bangladesh, there will be at least 7 or 8 players today who are close to $800 million to $1 billion. So that means what's stopping us from going into that level. Same is India, we have at least one guy who has crossed that $900 million to $1 billion mark. So that gives the same like, you know, India. Pearl can be in India also in that size. If you talk of Vietnam, similar. So again, there will be at least about these Korean players who are doing out of Vietnam close to $1 billion each. So those kind of things are possible. So each of the market has got a lot of energy and a lot of benefits to be taken. Partnerships with -- yes, same is Indonesia. $500 million to $700 million, there are at least about 7 players out there in Indonesia. So nothing stops us to be in that range. So each of these markets, we can be into that range. So our first goal, definitely, we'll talk about in the second half of this presentation. But before that, the resilience that we are talking about. So what we saw in the last 3 years, like we had Bangladesh unrest, where the regime change happened. The country had a disruption. So there are 6 days, the whole country was shut down. And after there also many players had got a lot of problems out there. Last year, we got a U.S. tariff shock where the tariff, which was only MFN, first of all, 26% of additional tariff got added to the MFN. Then Trump decided to go for a 50%, then it was reduced to talk of 25% penalty was reduced. And now we have the whole IEEPA tariff gone, and we have got a 301, 10% continuing. We have a bilateral trade agreement, which is more or less signed as we are told at 18%. We don't know when that will come through. And that 18% is supposed to replace MFN. So whether it will replace MFN or not, that also we don't know. I don't think anybody of us in this room knows, how that will play. But yes, that's the disruption that we have been seeing and how we have done through it. We'll talk about it. And now this particular year 2026, we have this Iran war. Again, a huge disruption in terms of supply chain, in terms of logistics. How do we cope up with it? So through this disruption, I'll tell you like how Pearl emerged stronger in each of this disruption. First, let's talk about Bangladesh. When these unrest happened, after 6 days, very few factories were up and running on the seventh day. And proud to tell that Pearl was fully running on the seventh day. We had almost like 97% attendance. Every worker was on seat, and we delivered 100% goods on time by sea. Not a single shipment was delayed, not a single airfreight or delay that happened in Bangladesh. So that's the kind of support that we have from the ground level, from the workers, supervisors, the managers that we have in Bangladesh, where we are working for now almost 25 years, 24, 25 years. So that's the strength that Bangladesh or Pearl brings in on to the table. This resulted in a stronger confidence level with the customers who were facing problems with other manufacturers in Bangladesh. Many of them were banking with the local banking system, which was still stopped after the 6 days of curfew. They couldn't open up for almost about next 1 month or 15 days to 1 month, they had a disruption. So their salaries were paid late. Of course, like we as an international player had that advantage. We had international bankers. But apart from that, the whole loyalty that we had generated during that period, both from the workers and from the customers that our business grew, almost 35% growth that this particular year we experienced in Bangladesh. Talking about the tariff shock in U.S., yes, like if we are only in India, then it was, of course, almost nothing can be done kind of situation. So we could engage with each of our customers. We could move the business from India to other locations whatever they wanted. Some of the goods they wanted out of India and wanted a discount, we could provide that. But apart from that, that particular fungibility give that confidence to the customer to increase our market share. So even in that particular year, we grew as a company. So that's something, again, was unique, like very few companies, I think, worldwide grew this particular year in our sector in terms of any manufacturer supplier that you look at. So that's where we came across. And not only that, we had both top line growth as well as bottom line advancement. So again, I'm not going through each of the way that it's done. You can see it, but this is what the story is like through this -- both these things, it proved that the strategy that Pearl had adopted came across as a success. And then this year, as the Middle East crisis is happening, we have definitely a disturbance in terms of the energy prices, energy availability of the gas and oil in a lot of locations. Daily commodity vessels are getting disrupted. And definitely, the inflation is hitting us. But so far, what we are seeing is that this is the year where a lot of players which were not so strong or they didn't have a very strong governance or were located only in one location. So the kind of difficulty that they are facing and the business migration that is happening, that's definitely Pearl is emerging again much, much, much, much stronger. So that's something, again, like we have done only 1 quarter of results as of -- 2 quarters have now gone. So 1 quarter gone, second quarter is just finishing. And then, yes, you'll see that how we are progressing through this. We find ourselves much, much more stronger, both ourselves as well as the confidence that we're getting from our customers. So with that resilience in us and to withstand this kind of headwinds, some of it, we could very clearly forecast and work against, build up the strategy so that we can see that these kind of problems would coming in, and this should be our solutions to it. And yes, in 90% of the cases, it worked in our favor. So saying that, what we told you in 2023 when we're here, so we gave a road map of 2027, '28 that we want to be a INR 6,000 crore company, and we want to achieve certain things. So where we are today, compared to that, let me hand it over to Sanjay to go through these numbers and walk you through for the next few minutes.

Thank you, Pallab. Good evening, everyone. It's my privilege to be here and part of the team presenting the third time our map for the next few years. We have defined the map 2 times earlier. We converted that into our territory. We defined the Excel sheet. We defined the PowerPoint presentation, we converted into audited financial. And that's what we intend to do as we present our next 4-, 5-year plan. But before that, it's quick. It will be good to really revisit what has driven our strategy, how we have delivered on the last few 5 years, and what are the pillars which has been there on the governance perspective? Because every business operational strategy looks happy when we translate into the number, which are growing number. So what we stated in FY '23, we were at this number of INR 3,158 crore revenue. We grew 17% CAGR. We have been really mentioning about 12% to 14%, but we successfully delivered revenue growth of 17% on a compounded annual growth rate. Our EBITDA has grown even higher. We stated that our -- there will be accelerated growth in profitability compared to the top line, which is what we delivered in the last 3 years. We are at EBITDA of 22% CAGR for the last 3 years. The PAT has grown at 21%. Return on capital employed. So while there has been a lot of CapEx, which has been incurred during this period, as one can see in our financial statement from the balance sheet, what we were looking at a 20%, 22%, but with the efficient utilization of the capital asset turn and the various parameters, our return on capital employed has been standing at a healthy 28%. And we shall see in the succeeding style how -- succeeding slides, how we intend to continue delivering on this parameter as well. Our total annual capacity has increased, 8% CAGR. We are now at 100 million pieces capacity. That's also expanding. We had said by FY '28, around 120 million to 125 million pieces capacity. We shall see in the succeeding slides and the way forward, how it really, directionally, where it is going. The pieces shipped, we said volume growth will also be there. It is not only the revenue growth. The volume growth is very pertinent for us. At the time, the assumption was that constant realization per piece, but the volume growth was our main focus, and that's what has been delivered across geographies. We just mentioned the various parameters, what we said and where we are, and how we have achieved there. So that's the commitment for us and to all our stakeholders. We said we'll grow the revenue of 14%. We said EBITDA should be in the range of 10% to 12% by FY '28, which means they're growing at 18% to 23%. Number of PC is 12% to 14%, and that's where the ROCE was targeted consistently because a lot of CapEx was planned around that time as well across geography. The 20% to 22% was the healthy return on capital employed we were looking at. Now where are we? So we reached INR 5,000 crores by FY '26. Our quarter 1 revenue is INR 1,500 crores. It clearly shows that this INR 6,000 crores is not very distant far. It's much ahead -- we should be ahead of this target time line, which is stated here. Adjusted EBITDA is continuing to grow at 22%. We said 10% to 12% should be our FY '28. We are in quarter 1, we closed at 10.7%. The last year FY '26, if you adjust for the reciprocal tariff, we -- business has inherently generated a 10% EBITDA. And we have been consistently mentioning in all our Earnings Calls that business has reached a stage of generating a 10% double-digit EBITDA. And that's what is getting reflected in our financial number in this year, quarter 1, onwards. Annual capacity, this is FY '28, 120, 140, we are at 101. We will mention that in the previous slide, on Bangladesh, where we mentioned that 7 million pieces has been added. So we are at 108. And then there are CapEx plan, which will be discussed, which will show very clearly that we'll be reaching this number ahead of this time line as well. Number of pieces shipped, though the pieces shipped are 78 here, it will be 1 million pieces in the first quarter itself, we believe the trend should remain healthy. And that -- and our realization has also improved, by the way. So there is a volume growth, there is a realization growth, which is both are really converging well ahead of the time to help us in terms of accomplishment of our target wave above FY '28. So what we have delivered on the cash flow perspective, the PAT, profit numbers, EBITDA are good, but they have to be translated into the cash flow, which is what we try to make it with respect to efficient utilization of [ ligoset ], efficient utilization of the working capital. So we see working capital days, we stated we'll be ranging in the range -- we'll be in the range of 38 to 42 days, and that's what consistently maintained for the last several years. Return on capital employed remained healthy. We said 20%, 22%, but we are consistently doing 28%. Now dividend payout, we have been declared a dividend policy. Here are some time, we said at least 20% of the PAT will be given as a dividend. We are at a very healthy rate. Last year, we had 24.7%. So we keep rewarding the shareholders with the surplus cash. Just a glimpse of revenue, we are ahead. EBITDA margin, we are on track to achieve double-digit EBITDA. Total annual capacity, we are on track. Pieces shipped all [ on track ], working capital days, ROCE, dividend policy. So on all this, we have a strong execution, consistent progress, which is resulting into creation of a long-term value for all the shareholders. Now just a quick recap of what was there in FY '21, '23, similar kind of a target was there, and we did achieve the top line marks, INR 3,000 crores, by FY '23. There was an EBITDA margin improvement. Of course, it was a very single-digit EBITDA. So that also talk about evolution of the company for the last 5-year time period from FY '21 to '26, from 4% to 10% plus EBITDA from INR 1,500 crores to INR 6,000 crores top line and the return on capital employed, which was hovering around 12%, is consistently at 26% plus. This is the value unlocking to all the shareholders. So that was a commitment delivered. Now while we have the operational resilience, we have the financial resilience. We have the financial discipline. There are risk and governance strategy, which always remain at the core. And we keep looking at the risk each and every parameter of our business on a more consistent and more regular basis. Every day, weekly, there has been a consistent on the credit exposure, and these are some of the risks what we really keep monitoring are internally, we have an audit committee, we have internal risk committee, which keeps reviewing it on a more regular basis. Credit policy risk, we have seen the slide where -- how the diversification, how the various actions. We have demonstrated how this risk mitigation policy is actually put in place, even the adverse scenario. That's where the diversification has really played out and has been demonstrated, which we have been seeing in FY '21 and '22, came to the fore -- during the crisis time, which the Board has witnessed. Geographical revenue concentration, it was very high. I think in '21, '22, it was about 80%. Now it is 50%. Now as per the vision, it may targeted even more or less level. Supply chain disruption has been there, but the footprint across has helped us in terms of maintaining the supply chain resilience. Demand volatility. This is a value-add product customer, which is already mentioned in our realization and our continued growth in order book. Foreign exchange risk, we largely buy and sell in U.S. dollar only. So there is a natural hedge, which is there in overseas country. And for India, it is only on the export realization part, which in a depreciating currency environment, we keep evaluating with a marginal hedging policy of 10%, 20%, 30%. The rest of it are kept open so that we can benefit from the depreciation. So that way, we are completely monitoring all the time. Operational execution risk, this is being evaluated by the operational team across wherever we have the best practice that get replicated. Client concentration risk, we will see in the coming slide how it has played out. Now these are the pillars which we stated in FY '23 also, and it was on a paper, but we translated into real balance sheet. Healthy financial metrics, we have seen the net worth improvement, highest ever cash balance, which shows the CFO -- free cash flow operation to EBITDA conversion, healthy 80% for the last 2, 3 years, lowest net debt to EBITDA. Capital allocation discipline, optimum utilization, governance. Here also, we have worked very extensively. We have strengthened our internal control system. We have Ernst & Young as our internal auditor in all our operating entities now. We have Big 4 as a statutory auditor in all overseas company. And this year, we are looking at it as well, given the term coming up. We are running all the -- we are migrating to the S/4HANA RISE. We have implemented multiple IT systems to strengthen our MIS, to strengthen our compliances, to strengthen our fabric or production management, inventory management as well. So all this have been worked out very extensively. Working capital, I have really mentioned to you. These are also very important for us. The Board reviews it very actively more than the operational. I think these are the pillars which are -- become a hallmark of our review. Audit committee is also very strict in terms of reviewing it. So what is our capital allocation? While we keep doing it, we -- this is -- remains at the core of all the decision-making, operational expansion, geographic expansion and it has become over a period of time, the DNA of the company. Any capital project which we do, we have done recently $28 million CapEx in Bangladesh or any other project in Vietnam or India. I think return on capital employed is the first thing which is being discussed by all the geographies, CEOs, CFOs, and the operational team. So what our capital allocation policy looks like? We reinvest in organic growth. That's the priority #1. We do capacity expansion, backward integration, new product, geography. So this is where the amount gets invested. I stated that there is a dividend policy of declaring at least 20% of consolidated PAT as a dividend, which is consistently delivered. And we maintain the high net cash position positive and keep the optionality, optionality of investment, optionality of organic growth. That's what has been the core of our strategy. Now the fourth priority, which is [ has been adopted ], is something which is not factored in the plan so far and not factored in the plan going way forward will be presented. But having said that, this can be an opportunity for us, given our healthy balance sheet position, but that's something which is not on the card, but it's not completely ruled out. So there is -- there can be an opportunity, will be evaluated, meeting all the criteria, meeting all the return criteria, growth for the sake of growth is not mandate from the Board as well. The Board is clear. It has to be value accretive for all the shareholders. And we follow that to the T, which is mentioned there. So this is asset-light and all we just heard. So all of this financial cash position, operational resilience have resulted in upgrading of our consistent rating from BBB stable, A+ stable. Now this help us in a multiple way. We manage the risk well. We get the working capital excess. We get a cheap working capital relative to our competitor that makes us much more competitive in pricing our product, and also improve the bottom line in that way. We have a very strong, healthy relationship across the bank. We have HDFC, Citi, Standard Chartered, and international bank having a very healthy relationship across the globe. And there, across the globe, strategy also help us in optimizing our cash utilization. Treasury management become much more efficient if Citi or Standard or HSBC have a complete visibility of our global relationship. And given the fungibility of the funds which are there in any geography, I think that makes it much more easy for us to also manage that. So those are the strengths which comes with the higher credit profile. We are guided by the stakeholder relationship all the time, the employees, clients, community, investors, our Board of Directors, our public shareholding, all our minority shareholder, professionally management team, all these are ones which are guiding our principle, our decision-making on a day-to-day basis. So everything which is done on the -- has to have a financial discipline and need to keep in the interest of all the stakeholders before any decision is put forward for implementation to the best of our abilities. Now with this, I will request Pallab to please come and guide for the way forward.

So now for the next 3 to 4 years, how do we see ourselves and what we want to achieve? Talking of capacities, in each of these locations, if you see like now, we have built up this 101 million pieces of capacity. And from the utilization, it is very clear that Bangladesh and Vietnam, both these places, we are seeing 80% to 85% utilization already happening. India was slow last year because of the tariff. So this year, we expect that India should gain momentum definitely. And Guatemala, being a small unit, already, we are at 90% efficiency utilization that we are doing. Now as of 2026, this 101 million pieces of capacity that we had and almost about 77%, 78% of utilization that we have shown, already have seen that. In -- by 2030, [ what ] we want to achieve? We definitely want to be -- our total capacity should look around 170 million to 175 million pieces that we should be able to execute. That's the kind of capacity we want to build up. The combination will continue. Like if you can see today in '26, 76 million is our 100% owned factories capacity and 25% is coming through -- 25 million pieces is coming through the partnership factories. Same thing, proportion we are continuing. We would be having 128 million or 131 million pieces, which will be -- we will have our own 100% infrastructure under us, and about 42 million to 44 million pieces of available partnership capacity that we will be having by 2030, financial year. Now the assumption that Sanjay has mentioned out here, that woven would be 74% and knit would be 26% when we talk about these capacities. Now this is something which will also play an important role. That depends on the -- definitely, some kind of consumer sentiment, how the market is behaving. We see always there is a cycle between the knits and wovens, if I talk about a global market in that area. So for example, during the pandemic, the knit was very high and the wovens actually came down to a great extent. After that, there was immediately a rebound that a lot of wovens were being bought by the customers. But now we are seeing again a trend towards a little bit of knits preference. So that's a cycle that happens over 6 to 7 years in the industry. So total capital expenditure that we want to do by 2030 would be another at least INR 700 crores. So from INR 675 crores to INR 725 crores is the range that we are talking about. So this will be a growth of capacity expansion. This up to the future, capture the higher demand in the new product category and then drive that growth. So that all this will be coming in from here. So this portion of INR 600 crores, INR 700 crores would be between INR 325 crores to INR 350 crores, where we will be talking about capacity expansion across the geographies, the 4 geographies that we are talking about. Of course, we're not talking about an expansion at this point of time in Guatemala, but the -- all other 4 geographies, we feel there would be possible to grow. As I just said, like the big players are there in each 4 of them, and we can definitely, easily grow to that kind of size. Now along with this, one important step that we'll be taking now is a little bit of backward vertical integration. So that's something we have decided, to go for a backward vertical integration. We would be setting up a knit processing unit and knitting unit. So that means the jersey kind of fabric and knitting fabric, knitted fabric. That's something we will be knitting as well as processing. So that project, we are sanctioning INR 350 crores to INR 375 crores. Between these 2 projects, already more than INR 200 crores each has already been finalized now by the Board, has given a green signal to us already. So this is already in motion as I speak. Source of funding will be a mix of internal accrual and loans. The key enablers are very clearly, our ROCE target will continue to be in the 22% to 25% range, and a very disciplined capital allocation, as Sanjay just spoke about. So this is something that, today, we wanted to disclose to you. Now if we see in terms of revenue, the customers -- that we have been continuously adding customers. And we wanted to go to those kind of customers, as Pulkit had mentioned earlier, is the customers who are gaining the wallet share of the consumers. That's very, very important. So these are the customers who are AAA rating, who are financially sound, and they are in that cycle of growing. And that is something like we are very, very focused upon, who we take in as a customer and how we grow with them. And once we get a customer with 1 or 2 products, we try to grow with them into all the 7 or 8 products that we are offering to them. That's how we get more and more wallet share. We call the strategic suppliers -- strategic customers are those who are willing to sit down with us and talk about future. That means 1- to 3-year horizon, what kind of business that they want to do and how they want us to support them? And what we want from them, we can openly discuss to the top management of those customers. So in this cycle, if you can see what happened in financial year '23 when we came to you, that time, 25% of the revenue was coming from this newly acquired customers. And newly acquired means like where we have started some kind of relationship in the last 5 years. That's what we call as a newly acquired customers. So today, that -- if we go to FY '26, that particular -- the revenue that is coming from these customers has jumped up to 48%. Of course, that's fueling the growth also of the company. Out of which top 6 customers where we are talking about a strategic partnership or strategic relationship, that's contributing about 50% to 55% of our percentage of our revenue. The next 15, I would say, are the ones who are creating that bucket of 35% to 40% of our revenue. And then, of course, the absolutely new ones that we are acquiring or something like where we are not so much of interested, but there we have a legacy, like those kind of customers also, are contributing to about 5% to 10% of our revenue. So that's the kind of path that, I think, we'll continue to have for 2030. Now we have built these strong partnerships where we have got operational integration. We talked about it, the trusted partnership that I'm talking now about with our customers, the global compliance system that we have built up, which gives that trust and confidence to our customers to grow with us, the design collaboration we are doing, end-to-end solutions we are providing, and that's not limited to only designs, but there are many other sourcing and solutions that they need, the kind of fuel that you saw that happened in the last 3 years. So through -- that's the time like when they need a lot of these quick solutions, and end-to-end in most of the cases, solution that they want for their supply chain that we are able to provide. We can give them the speed to action. Certain European customers really need to be very fast. And then as we grow in this customer confidence, and we are -- that's the thing that is very important as we go into a new category. We are already seeing that push coming from our customers, "Okay, why don't you do this category for us?" So that gives that assurance for us also that there will be definitely a growth in terms of revenue. So yes, with this, disclosing the number, what we are aspiring to be, that's between INR 9,000 crores to INR 10,000 crores by the year of financial year of 2030. How the percentage would be? If you see the trend where almost 20%, 25% is there in India, that continues. So out of the INR 9,000 crores to INR 10,000 crores, [ INR 200 crores ] to INR 2,500 crores would be coming from India and INR 6,800 crores to INR 7,500 crores is the range that we are talking about for our international places where we are manufacturing. So how the CAGR, which as Sanjay walked you through. So we are looking forward to growth, a CAGR of 16% to 18% from what we showed in 2026 to where we will be in 2030. And similarly, the EBITDA margin will also grow in the range of anywhere between 23% to 32%. So we should be ending up anywhere between 12% to 14% of EBITDA as we achieve our INR 9,000 crores to INR 10,000 crores revenue, which should be in the range of INR 1,080 crores to INR 1,400 crores. Now this revenue growth we are expecting from the strengthened relations from the existing customers we just spoke about. As we get into a customer, we continue to increase the wallet share. That will continue. We will continue to add new customers. We have a list already like who are the ones like we will be bringing in over the next few years. We'll continue to improve in terms of our working efficiency, delivery, design capabilities and all. Today, as I speak, all our factories have been digitized in forms of inventory tracking, in terms of traceability of the product, as well as the quality system that all the customers need from us. We'll continue to improve the...

Last point, Pallab, we have discussed even more focus on product margin than product...

Yes, yes. The average FOB, the margins definitely would be more important. Although in this case, we are showing that INR 640 was the average price that we saw in financial year '26, which will grow to -- we are talking about growth of INR 660 to INR 670, but what Pulkit is trying to say is that, that may not be the most important thing that you should look at because as we see the cycle of knitted products, which is much more friendly to the body and especially the athletic wear, the performance wear, the synthetics, man-made fiber, that is where also there's a huge potential that is coming up as we are seeing it. That might affect this number. But what happens is the top line will continue to grow, the bottom line will continue to grow, but may not be the average unit realization because if we sell more outerwear or more jackets, then you get better utilization of this price, UVR, I call it, unit realization. But if you are selling more profitable active garments, maybe the UVR is less, but the profitability margin could be more and the volume utilization also, you will see much, much higher. So that's something which will be playing over the next few years. Margin expansion through scaling the capacity expansion, backward integration that we spoke about. In fact, both will help us in terms of margin, the laundry that we have built up, where the value addition is happening as well as the backward integration where we're doing our own knitting and the processing of the fabric. So yes, new product that we spoke about, expansion is happening. Annual capacity will reach a big number, $170 million to $175 million, higher volumes to leverage existing infrastructure and that way, the margin again gets better. Revenue growth and consistent margin expansion expected, while we are driving the ROCE beyond the 22%. So that's the vision on which we are working now, and this is the result that we should be delivering to you as we meet in 2030 or maybe like this year, a little earlier. So as a summary, before I end, whatever we said in financial year '23 target substantially delivered a little early maybe or delivering a little early. Revenue capacity and margin all ahead of plan, as you saw. The multi-geography, multi-product strategy, the model that we have created for Pearl Global has been tested during the geopolitical situations that came up in the last couple of years, and it worked beautifully. The balance sheet, the governance, and the credit profile materially strengthened while maintaining the stated dividend policy and enabling this company of ours to give you the bonus shares. The first ever bonus issue has been done. So with that, I'm ending today's presentation. I will ask once again Mr. Pulkit to speak a few words in terms of what he can add to this vision or any other thing that you want to summarize with.

Wow, I think that was a pretty detailed presentation. You, I'm sure, got a very good flavor of what we've done and you know where we are going. So I just want to say that it's a very exciting time at Pearl. We are on an extremely strong footing. And the initiatives that we can take in as an organization and the things that we can do is far beyond a lot of our competition. But of course, at no time can we sit comfortably. The overall macro environment keeps changing, things keep evolving. We do have a lot of competition, but competition is fun to deal with. We welcome competition. So the fact that we are where we are today, we are very, very confident of where we are going to get to. And like I said earlier, the 3 Ts are most important to us, trust, trust both internally between our teams, trust with our customers, trust with the bankers, trust with our shareholders. And same thing, transparency. We're totally transparent. We share a lot of information internally with our people and teams more than, I would say, most companies and promoters do. So that brings in a lot of spirit of entrepreneurship in all levels within the organization. And then, of course, without teamwork, there are nothing. So if there is no teamwork, then nothing is going to happen. So we are always talking to our teams to work as one, work as a family, and win together. So it's really great for us to have the opportunity to present this to you today. And obviously, I'm looking forward to some interaction post this. Of course, we'll be taking questions now. So -- but thank you for making this afternoon for us, and I hope you're all excited as we are. Thank you.

So some interaction.

Thank you, Pulkit. Thank you, Pallab ji. Thank you, Sanjay ji. That was a very interesting presentation. Now we'll start the Q&A session. So anyone who wishes to ask questions, just -- they can raise their hand and please say their name and their organization. So we'll...

This is Jatin Damania from Svan Investment. Congrats on achieving a target -- I mean, on track of achieving our target earlier than the anticipated FY '28. So just wanted to carry on to the vision, like from INR 5,000 crores to INR 6,000 crores, the incremental INR 1,000 crores of the revenue that probably would -- we can see in this year or probably in first half FY '28, 60% of that will probably come from the India. So the remaining 40%, which geography are we targeting? And you can also help us in terms of understanding the margin breakup across the geography, whether it's in India, Bangladesh, Vietnam, and the Indonesia and Guatemala. So first on that part.

Yes, yes. Numbers. I think there is -- sorry, first part you said...

Currently, you are at INR 5,000 crores of revenue, right? And we are targeting INR 6,000. So incremental...

We're targeting INR 10,000...

So INR 10,000 for FY '28...

Yes. '30.

'30 and for FY '28, it's around INR 6,000 crores. Probably we'll be achieving before that.

Yes.

So for the near term, right, incremental INR 1,000 crores of revenue because as per the presentation, the Indian business have a potential of near about INR 1,600 crores, and we are near about INR 1,000 crores of revenue.

So that has a potential of INR 1,600 crores as per the capacity. It doesn't mean that entire INR 1,600 crores will translate now to make up to the INR 1,000 crores towards our journey to INR 6,000 crores. The INR 5,000 crores to INR 6,000 crore journey will be traveled by across all the geographies. So India will have its own share of contribution to that, which will be coming in there. So it's just to really make it a right interpretation, the journey from INR 5,000 crores to INR 6,000 crores, which is a near term will be traveled with the contribution across the geography, Bangladesh, India, Indonesia, as well as Vietnam. So there will be some contribution coming from them in their proportion of their share, what they sit in the total revenue.

And in terms of the margin and the ROCE profile across the 4 geographies, you can break up how much will be the margin and ROCE across the 4 geographies?

So what we have been saying, not really geography specific, what we mentioned in terms of the hierarchy, which is a higher ROCE and which is a higher margin. So in terms of the margin profile, Vietnam stands #1, and also is the -- and the return on capital employed. Then come Bangladesh, which is very close to the return on capital employed. However, the margin profile will be lower than Vietnam. Third, in the 3 will be Indonesia. And then the fourth is India as of now. This holds good for the margin as well as return on capital employed. Guatemala, till last year, we mentioned it was making losses. Now we expect it to be breakeven in this financial year, which we are very confident as we are sitting in the quarter 2 this year to be ended. And that's what we'll be reflecting in our margin improvement as well. So that's the hierarchy I would like to mention.

So what levers that we have taken or the step that we have taken in Guatemala to move from a loss to probably a breakeven in this year and probably the profitable venture from FY '28 onwards?

So that's the business strategy. I would request what we have taken in Guatemala, Sanjay.

So I'll just answer that, Pallab, you can add to it. So any new country that you enter, there is definitely a gestation period. And as there has been more and more consolidation in the industry and there are fewer players and less -- so because of that, I would say, to enter a new country is even harder today than it was a decade ago and probably harder today than it was 2 decades ago. So obviously, when we enter a new market, there was a gestation period, which was there. It also takes some time for the customer base to settle down to set in the internal controls to increase the level of efficiency and productivity that you have to achieve. So going into year 3, we are seeing Guatemala coming up to speed and breaking even. Obviously, if we are expanding in countries where we already established, that period should be shorter, is definitely shorter. While going into a new country, you can expect that. Obviously, Guatemala, our strategy is to stabilize. We do feel that the Central America region does have a merit in terms of the supply chain. And once we stabilize and get to this level, we will regroup at the Board level and see that how we want to nurture the supply chain as well. So our objective always is that whichever supply chain we are in, we build them on their own strength, almost on an independent basis, and then we keep nurturing them based on that. So I hope that answers your question.

Sure. And last question, which is more on the FY '30 guidance, which probably indicated INR 10,000 crores of revenue and margin closer to a double-digit, which is 12 to mid-teens. So just wanted to understand what sorts of benefit company as a whole will get it only from the backward integration initiatives of the dye and the processing unit that we will be getting it. So incremental benefit that we'll get only from the backward integration.

Exact numbers and crunching. Obviously, we've done the project has got the required level of return of capital employed. So definitely, when we are talking from 10% to 12% and from 12% to 14% kind of range, there is definitely improvement in margin because of the backward integration. The knit business is, right now, 25% of our total business, and we see it always being between 25% to 35%, depending on market situations and the way the category does grow. We do see an opportunity in this category in general because a certain amount -- a lot of knit business is sitting in Vietnam. And so we do see tailwinds of this business moving, for that matter, China and Vietnam, of this business and especially in the active segment, moving into the geographies of Indonesia, Bangladesh, and India. So the knit verticality, which might be 30%, 35% of the business, in that business we might see some margin expansion because of the backward integration.

[indiscernible] Out of the $550 billion of global trade that happens, the top 4 -- top 2 or 3 -- 4 categories, I would say, would be in the knit category. That is we have knitted T-shirts in cotton, the knitted T-shirts in man-made fibers, knitted pullovers in cotton and knitted pullovers in man-made fibers. These are the 4, if you see, almost 70% of the category is sitting in -- 70%, 75% of the category is sitting in China plus Vietnam. About -- another 16%, 17% is in, let's say, in Bangladesh today. India contributes to about 5% of it. So thanks to Tiruppur. That 5% is only because of Tiruppur, I would say. So this is something what we are seeing is that the U.S. customers are realizing that because of this geopolitical situation, which is changing almost every day, rather than focused on only 1 or 2 regions, they want to now spread around. Some portion of this China and Vietnam business is desperate to move if India can provide the capability or Bangladesh can provide the capability. So as we are going into this vertical integration, we are seeing a lot of interest from the customers to support that strategic move of theirs.

And this backward integration process will be across the 4 regions, right? Or it will be largely Vietnam and India?

This will be -- Bangladesh is where we are setting up the unit. And from Bangladesh, we also want to feed not only the Bangladeshi factories, but also the Indian factories. So that's why like Muzaffarpur in Bihar, hardly road distance is about 200 kilometers. Yes, we have to cross the border customs and all. Otherwise, the transportation time is quite less. So that's something like what we feel is that if you look at the India today, the operators, sewing operators anywhere if you go, either it is Bihar, or it is Bengal, or it is Odisha and a little bit of Jharkhand. So this is one region. This is the region of India, which I think more and more in our discussion will come up, and I'm sure from many other suppliers that you will speak to. So what we feel is that Bangladesh, today, have the infrastructure, have the technical staff, the know-how much better. Of course, there was -- until now, the gas was cheaper there, but now the gas situation has come up temporarily in most of the Asia. So that's something is one take, which is not so much positive at this point, but everything else is very, very positive. So that's why we are taking the decision to do it there and then become the supply chain for my other factories in India as well.

So is it fair to assume that post this, your Bangladesh on the knitting segment, the margin will be equivalent to what Vietnam is -- would be?

Yes. So business, basically, like every business, everything that we pick up, we have a certain understanding of the bottom line that we want to get. Of course, this varies from product to product, customer to customer and region to region, but very near what you are talking about, not big a difference between the 2 countries.

Just to add that Vietnam is outerwear category. So it is a different category.

No, I assumed that, that Vietnam knits that is happening and Bangladesh knits that we will be producing. So...

Just comparing knits.

First of all, kudos to the entire team for making walk their talk show and consistent execution. Two questions. First, on location-wise, can you give cross learnings which you are applying to -- of one geography to another geography? And also what you mentioned that the margin expansion will happen because of the in-house process capabilities you would be building out. So can you name 2, 3 process capabilities building initiatives which you would be taking, which will act as an enabler? And second, India ranking fourth in terms of margin, ROCE, et cetera. Definitely, the efficiency is way lower. What are the steps being taken to increase the efficiency? Because I think so almost 20%, 25% efficiency gap is there between Bangladesh versus India.

Interesting question. So yes, I'll take your second part first and then third and then go to the first. So second part of it was that what's the value addition that we can get in this laundry process. So we have been in Bangladesh doing a lot of overdyed garments, a lot of typical washes, both on twill, that means solid [colored] fabrics as well as on denim. Denim means the indigo denim. So that -- each of these wash process itself, like if a garment is of $8, I would say this $2, $3 can be more of this wash process itself. And the sewing portion could be maybe about $2 or $1.5. So you can see the difference. So that's something like if I am doing a lot of wash is being done by my partners. So that's something can be brought in because that's where a lot of value addition is. In stitching, like whatever we know, what's the cost that we are incurring and how much we're giving to the partner, that's almost same. In the washing, the margins are better. So how do I -- why should I share so much of margin there? That's one thing that can be done better. And then when you -- as you evolve to better quality of washes, as you go to the better brands, go to the highest level of the brands. So that's where like the game becomes very interesting. So this is something like we want to achieve and we want to target. So that's where like definitely, it should be margin accretion. Then your next question was?

India efficiency.

Yes. India, the limitation that we had was all factories were only in the metros of Gurugram, then Chennai, and Bengaluru. So we have started with 1 Tier 3 city, which is your Muzaffarpur. We are exploring some partnerships in Odisha, Tier 3 city, and Andhra Pradesh, Tier 3 cities. So that's something is an interesting part for us at this point of time. And of course, we would be in the next few years, exploring what's the potential in West Bengal because that was out of syllabus so far. But with the change of government out there, that could be an interesting place again, with a lot of workforce -- skilled workforce is coming from there. So if that thing kicks in, so that will be another advantage. And the second part is that we were doing only one category of product in India, which is wovens, top skirts, and dresses, which are very big. We have started introducing the pants manufacturing, the bottoms, what you call it, and also exploring expanding the knit capacities and some athleisure capacities. So basically, India goes from 1 product category to almost 4 product category in future. So these are the 2 actions that we are taking so that the margin, what you call the capacity utilization has to get better. We cannot sit on a 62% capacity, then definitely, like we will not make money. So that's something is in progress at this point of time.

I just want to add on a lighter note, like India has a lot of states and every state is giving very nice ideas and looking to give a lot of incentives. So it's a little confusing on which state to go in. So that's a continuous work in progress. And the other thing I just wanted to add that the efficiency is lower in India in general because of 2 reasons. One is that the legacy product that we've been doing in India for a long time has been the top skirts and dresses category. That's the women's category and girls mostly. And that is -- one is quite seasonal. And second is quite dynamic in the sense that the product keeps changing, fabric changes, silhouette changes, there are a lot of permutation combinations. So there's a continuous change of product, which leads to lower efficiency for sure. If we're going to do that product in another country, we also see that the efficiency levels are lower. So as we introduce those categories that we're doing in other countries into India, which are more consistent, that will help to improve efficiency. And the challenge there is to get to the same level of efficiency in that product as we are achieving in other countries. So that's a work in progress. And second thing is that the fact that the factories are in the metros and the workers are coming from other regions. The absenteeism and attrition also adds to that. So that's why the idea is to first identify the state. It's quite challenging. Maybe all of you can help us. And -- but on a serious note, we started in Bihar, and we are looking at 1 or 2 more states to be in. And of course, growth within Bihar also. So the results we have seen in Bihar are encouraging. So we will definitely grow in this region. The workforce is going to be stable. Product categories are going to be more consistent. So we see an opportunity to continuously improve in India as well.

Just on first, any cross-functional geography learning...

As these products comes in, like bottoms, we have been doing quite a lot in Bangladesh. So there's definitely an interaction. The teams are coming here, giving his own experience or training. There's kind of a little bit of things are going on in that direction. Not at the workers level as of yet, but everybody has to -- in the chain has to be trained. So like athleisure, bottoms, and knits, all 3 areas, you'll see more.

And just last...

Also, we are looking at leveraging customer base, the customers.

Yes, customer automatically comes. The product comes, customer will...

Europe and U.K.

Europea and U.K. has been very, very focused on Bangladesh now. So because of the duty-free status. As we get into the FTA, so these customers also are asking us to produce in India. And also, we need to transfer the understanding, the knowledge of execution, the speed.

Also, just last, I know you don't disclose, but internally, you do track NPS score. So currently, Pearl Global whether in -- for the top 5 customer or for the company, which you mentioned about the internal controls and entire process which you map from -- for the customer onboarding to execution. What is the current NPS score for you? And what is the internal benchmark which you are currently. NPS score. The Net Promoter Score.

Credit risk point of view?

No, no, not from a credit risk point of view. The Net Promoter Score, which includes the entire process, customer satisfaction, et cetera. So internally, you would be taking into account the customer satisfaction and the targets which is being enabled, et cetera. Any such qualitative scores you are taking into account?

Yes, I won't go into that detail. Definitely, it's more internal. But one thing I can want to tell you is that when we talk about these top customers, if we are their top 5, like for example, they are our top 5 customers, then we want to ensure that we are the top 5 vendor also. So that's -- I think that will give you a lot of thoughts like how it happens because they are like multibillion-dollar customers. So if we can be their -- in the top circle like the top of their mind, that's the unlock that we need to create for...

This is [ Shradha ] from Asian Market Securities. Thank you, Balaji, and team for laying out the strategy road map so clearly for FY '30. So one thing, I mean, until now, I know the execution has been top class, but we have always been calling out 12% to 14% CAGR. Now at the first-go itself, we are giving confidence of a 16%, 17% CAGR and that too on a much higher base than what it was 3 years back. So what gives us this confidence that the revenue CAGR will be better and higher at a higher revenue run rate, given that the geopolitical tensions and macro uncertainty continues and despite that, we are very confident of getting to a higher grow trajectory?

So we built up the strategy framework in 2019, I would say. Because before that, Pearl had established that base and how to approach the customers, how we position ourselves, so a lot of that work happened in 2019. And immediately after that, it was pandemic. So after the pandemic, as we approach the customers, talked about our strategy of our approach to the business and how we're going to show it to them. So it's a courtship period. They try, they give us a little bit, they work on, our first -- who is the first guy who will give us the success. So that happened maybe in 2022-'23. You saw a big jump that happened in our turnover, when 2 or 3 people really believed in our strategy and started working on us. Then as we approached in a larger scale, when people saw that we are successful with 2 or 3 customers already, then more people started following, that movement that starts. First 1%, then with 2%, then 4%, then 5%. So today, we are in that sweet spot in which more and more customers are coming to us rather than we are going there. So that is one level of confidence that is given. Second, the most beautiful part, which was presented in our presentation also is this diversification, which the whole idea came to us maybe like we were trying to copy someone, the Koreans and the Taiwanese have done this model. But their limitation we could define, and we could work on that limitation from day one itself. That means they have been very exposed to the U.S. market, supplying from 2 or 3 regions, but either to U.S. or to maybe a U.S. and Australia, so 1 or 2 markets they were catering to. We started going into 6 different markets from that angle. So this -- that has resulted, if you compare with these Koreans and Taiwanese, the rate of growth that we are today showing to you is much higher. So that's the second level of confidence that we can build up that this model is even stronger than what they had done. So now they are following us. Although they're bigger than us, they're bigger giants than us, but still, our strategy is stronger than them. The third is, the test that we underwent, those 3 slides, which are stories that I spoke about, that is also giving us that confidence that consolidation is in motion now in this industry. So these are the 3 big, I would say, indicators, which are promoting us. Of course, there are a few other smaller ones. But these are 3 big things that I can portray the confidence in us and what we are telling to you.

Right. And in terms of geographical mix of revenue by FY '30, where do you see U.S. versus other geographies in terms of revenue mix for us?

40-60.

40 is U.S. and -- which is currently the mix also broadly...

Currently, it would be about, I think, 52, anywhere 48 to 52 in that range that we are catering to, so yes.

And in terms of near-term headwinds, if RoSCTL benefits go away, or in terms of the proposed Russian oil tariff to be probably levied on India. So how are we looking at these near-term headwinds?

So I think Indian government is in a better wicket with U.S. at this point of time in the negotiation process. So I don't see an immediate threat. But yes, with Trump administration and Chair, like it can -- anything can happen at any point of time. So yes, so that's how I think more like a worry at the moment in some of our customers' mind also like to do a long-term planning for India. So that's the reality today, if I have to talk about. So I don't have an immediate solution to that, what will happen long term, but that uncertainty is prevailing to a certain extent. But more and more, like, for example, the role of India in the New York meeting that is going on with everybody, Jaishanker there seems to be a little bit positive direction only. Earlier this time, during the initial days of tariff and initial days of negotiation, there were a lot of people India -- against India, so that has now, I think, is much more stable with U.S. So that gives me the confidence of not immediate. And I'm seeing that in the customer's mind also. Nobody is immediately pulling out business or reducing business as of now. But yes, when we sit down to talk about long term, then they say, okay, let's wait for some more time before we talk long term. So that's the kind of situation today with U.S. With other markets, fortunately, that's not the case. The market which we always clubbed with U.S. as North America we used to call it, that has become 2 interesting markets, U.S. and Canada. Because those 2 countries have decoupled if you look at it geopolitically. So that's also giving an advantage for a country like India. If India can do a quick negotiation with Canada because now Canada, one talk was that will be part of EU. But I don't know like they will come under the EU negotiation, but we have to do a negotiation with Canada as soon as possible as a country. That's the India aspect I think you're talking about. So I hope that answers your question to a certain extent.

Yes. Just on the last bit, the margin guidance that you've given, assuming RoSCTL benefit kind of get halved from the current 4% export benefits that you get in India. So do we still stick with the margin guidance or there could be some tricking out there?

So I think this is -- let me just tell you what 12% to 14% is built in. Here, is where the margin expansion. One is, of course, the revenue -- higher revenue will give us overhead leverage. The second is the recently commissioned laundry project. That's going to expand EBITDA by a certain percentage -- certain bps, sorry. Then this backward integration project, a question earlier was also about what an asset turn? If we really look at the potential of asset turn, it is 1:2. But how much will reflect in the turnover, maybe 1:1. Reason 50%, more than 50%, 55% will consume internally. But that internal will improve the EBITDA margin. So that's a margin expansion coming from this level also. Then the laundry project is there. So there is the capacity expansion out of 325, 350 out of which we -- the already approved CapEx is around INR 100 crores, which is INR 20 crores in India and INR 80 crores in Bangladesh. It should get reflected in our capacity by December '26 itself. The plants and machineries are getting ordered. The remaining part of INR 100 crores is in Vietnam. Then there is a INR 30 crores, INR 40 crores in Indonesia. So that's tell you the construct of the CapEx and the remaining INR 100 crores, INR 120 crores is parked for India. Now why it is parked right now, not approved by the Board? It is for this spending clarification, regulatory clarity, which has just highlighted the uncertainty part of tariff and all that. So which means that the major part of the margin profile is getting protected in some way. Now if you look at the composition of our margin right now, 10.75% at the group level EBITDA as to how much India is contributing to that. I think that can give you a reflection of even if there is a downside coming. I mean we expect an improvement from this to come to reach to a 12%-plus EBITDA. Now if those improvement takes a little longer compared to 1 year, 2 year, I think to 1, 2 years, it should stabilize somewhere. So we are talking about FY '30 trajectory. We believe the trajectory of FY '30, 12% to 14% should remain intact. In interim, there can be a period where because of the tariff imposition or because of the RoSCTL, some uncertainty, there can be some quarter which may get impacted. But overall, if you see in the past also, whenever the government -- Indian government has also come up with any withdrawal of the benefit, they have restated it after 4 or 6 months' time or given it a new avatar. So we believe that in the interest, they want to promote the textile from $15 billion to $40 billion, $50 billion, they cannot just kill the industry. On the 1 hand, there is a PM Mitra Park, there is a state government which are coming with various incentivizing policy. There are the various subsidy scheme if you make an investment. I think taking RoSCTL completely away and then remaining it and not replacing it to anyone will be very harsh for the sector per se. So yes, in the interim, could be there, but the long-term trajectory should remain protected in there. But let's say, there is not there. Even then, we are talking about 12% to 14% and composition when you look at India contribute, I think we'll still be in a healthy margin. That's why [indiscernible] which is there. And then there are levers which will process improvement, which will bring in the necessary margin improvements. So that's how we look at it right now.

This is Shirish from Motilal Oswal. Sanjay Ji, you mentioned from the slide, we can make it out 7.1 million capacity in Vietnam out of 101, which I read. So in 170 million, what would be Vietnam looks like?

So the question here is that Vietnam is already at 80% utilization and it's a high-margin, high product business, so in 170 million, what is the assumption? This 7.1 can double or maybe what?

So Vietnam because we're doing it's -- the number of units is not very high, but the average unit value is quite high. So Vietnam, in terms of growth, we will look at 16% to 17% growth in the top line. And depending on how the product mix evolve, it can be quite diverse. So how much is it right now? It will be...

So basically, if you look at 80% of 70, which is 5.6 million pieces. So what Mr. Pulkit is saying is that in case the realization goes high, so first of all, to answer your first part, which is how much is the capacity expansion plan? So we have declared in the last earning call, we have taken a land parcel there of $3 million, which can build the capacity of the similar size what we have right now. Our existing in-house capacity has a top line. I'm not getting number of pieces is between $40 million to $45 million. I think that capacity, which is a project which has been approved by the Board to build in there. Now this is in-house only. And how much partnership will build over a period of time, that something will be evaluated as we travel along. So that's to answer your first part. So in-house capacity existing, same capacity is getting planned in that way. So that's 1 part of it. Now your second part was on the composition -- or this was the question?

No, the part here of what I was looking at, because we have our 1 factory, and we have part factory. So our own what would be the contribution in 7.1 which will go to...

Yes. That's what I mentioned. So I said in terms of the value-wise, where it is there, because its value is more important because the realization is high, the number of pieces scheme fluctuating depending on the premium product, which comes in there. So let's look at the existing in-house factory, which is here. If that is giving us the $40 million to $40 million, I think we want to double that capacity to $80 million. Now whether the partnership will also increase, and that proportion is something which will evaluate it. What is approved as of now by the Board and what is a part of this CapEx plan is this, 1 plus 1.

Okay. In 170 million, I think I read in the presentation, we're talking about 26% coming from knit.

56.

No, no. That was a current number.

No, not current. In 170 million, I think somewhere I read our mix will be 76% will be woven and 26% will be -- 74% is woven and 26% is knit in FY '30.

Yes, if you see the note below [indiscernible] is current, it's 74%, 26%.

Yes. No, what I wanted to check in 170 million, the knit will be still be a larger supply, which will happen from Bangladesh or you will have split almost 30% coming from India?

I think it will be bigger.

No, so if we look at the overall woven to knit, right now, it's 74%, 26%. What I don't know if I mentioned earlier to someone in the right now, we see that knit portion going hovering between 26% to going potentially up to 35%. So we will have an upswing in the knit business. And that's basically because we see that there is potential, a lot of migration of business in the knit category from China and Vietnam into Bangladesh for one, also some portion of that will come into India. And of course, with the backward integration, we'll be able to enhance our ability to service the knit business in a more strategic way.

Okay. And last question, what is the current denim contribution to our revenue or maybe if you can in terms of volume and what you look like FY '30? I'm talking about specific denim.

Out of the 74%...

Indigo denim you mean?

Yes.

I think Indigo is close to about almost $100 million now.

Yes, definitely $100 million, about 2 million pieces a month, right, into average FOB of $8. So about $100 million is currently the denim business. So we see it growing at, again, when -- you're asking about capacity or turnover?

Turnover.

So it 120 out of maybe whatever we had...

18%, 20%.

20%, yes. So I think that would also remain -- that would probably remain between the 20% to 22% of the...

No, the reason why I'm asking because when we visited Norp 2 unit, we saw a lot of value addition in terms of customer requirement and all and that will definitely add to the margin. So I'm just trying to triangle the question that if that contribution goes up, there is a potential that 12% can become 14% very quickly.

That's the intent [indiscernible].

Yes. There will be some upside also some downside also as [ Shradha ] was mentioning, so we need to neutralize somewhere. [indiscernible].

Yes, I understand. I mean your experiences to running the business is much more than us, we are asking your question. But what I wanted to check very quickly and lastly, this in-house laundry, what percentage of -- I would assume Bangladesh is 55%...

50% to 55% on the global -- group revenue, yes [indiscernible]