Tarsons Products Limited (TARSONS) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and respected Board members. I Santosh Kumar Agarwal, Company Secretary and Chief Financial Officer, welcome you all to the 39th Annual General Meeting of Tarsons Products Limited. Our esteemed Board members are present in this meeting on the virtual platform. MCA and SEBI [indiscernible] 5th of May, 2022, and 13th of May, 2022 respectively, allowed conducting of the Annual General Meeting through videoconferencing or other audiovisual means till 31st of December, 2022. In compliance with the applicable provision of the Companies Act 2013 and SEBI LODR Regulation 2015 and the sales circulars, the 39th AGM of the member is being held through video conferencing. I will take a few minutes to explain the important details about this meeting. Members attending this AGM [indiscernible] shall be counted for the purpose of recording the quorum under Section 103 of the act. [Operator Instructions] Once the question-and-answer session starts, the name of the members who have registered themselves as speakers shall be announced one by one. The speaker shareholders will thereafter be unmuted to speak. Speaker shareholders are requested to click on the video and audio bottom. In order to give a fair chance to all the speakers, time of 3 minutes will be allotted to a speaker. If there is a connectivity problem at the speaker's end, the next member waiting in the queue will be asked to speak. Once the connectivity improves, and if the time permits he or she will be called again to speak after the other shareholder complete his or her speech. In case of any issue, you may contact at the phone number as mentioned in the AGM notice. Let me now introduce the member of the Board who are joining us from the various locations. Mr. Sanjive Sehgal, Managing Director, join us from Kolkata. Mr. Rohan Sehgal, Whole Time Director, joined us from Kolkata. Mr. Girish Vanvari, Independent Director and Chairperson of Audit Committee and this Management Committee join us from Mumbai. Mr. Viresh Oberoi, Independent Director and Chair Person NRC Committee and Stakeholders Relationship Committee joined us from Kolkata. Mrs. Sucharita Basu, Independent Director and Chairperson of Corporate Social Responsibility Committee join us from Kolkata. Mr. Gaurav Podar, Nominee Director join us from Mumbai. I'd further like to acknowledge that the representative of Price Waterhouse Chartered Accountants, the statutory auditor; representative of Manisha Saraf & Associates, [indiscernible]; and representative of Grant Thornton Bharat, internal auditor of the company are present in this meeting. I'd further like to inform that since the AGM is being conducted through VC, there is no requirement of a appointment of [indiscernible] and we have received one authorization for 1,24,60,650 equity shares, representing 23.2% of the paid-up equity capital of the company. I'd further like to inform that if there is any connectivity problem at my end, Mr. Rohan Sehgal, Whole Time Director, would conduct the rest of the meeting. As per the provision of Companies Act 2013 and article of association of the company, I now request the Chairman, Mr. Sanjive Sehgal, to proceed with the meeting. Chairman, sir.

Good afternoon, ladies and gentlemen. I welcome you all to the 39th Annual General Meeting of Tarsons Products Limited being held through audiovisual means. This is our first AGM post our listing in November 2021, and I'm delighted to connect to all the shareholders of Tarsons on this platform. Also, I'm very grateful to all the stakeholders for the overwhelming response to our IPO and showing the trust and confidence in Tarsons. With that thank you note, I hand over the proceedings to be taken forward by Mr. Rohan Sehgal, Whole Time Director of Tarsons Products Limited.

Good afternoon, ladies and gentlemen. I welcome you all to the 39th Annual General Meeting of Tarsons Products Limited, and I hope you and your family are keeping safe in the midst of unprecedented pandemic and its various waves and variants emerging off lately. The government and industries across are fighting to revive and rebuild the economy in such challenging times. Your company had also closely monitored the underlying situation and had implemented various measures to protect employees, communities and operations to sustain and overcome these challenging times. As informed by the company's secretary, the requisite quorum being present at the Annual General Meeting, I declare the meeting to order. Meeting is constituted in accordance with the Company's Act 2013, other applicable laws and the articles of the company. A notice convening the 39th Annual General Meeting along with the annual report for FY 2021-'22 of your company was sent to you through e-mail in terms of the MCA circulars and SEBI circulars. The notice and annual report are also made available on the website of the company and on the websites of NSE and BSE. With your permission, I take notice convening this meeting and the Board's report as read. The statutory registers and other documents as required to be kept at the AGM under Companies Act 2013 are available for inspection during the AGM in virtual mode in the NSDL e-voting system itself. There is no qualification, observation or comment or any other remarks made by auditors in their report on the financial statements or by the secretarial auditor in the secretarial audit report for the financial year ended 31st March, 2022. Hence, the auditor's report on the financial statements and the secretarial audit report are not required to be read in terms of Section 145 of Companies Act 2013 at this meeting. Now I'd like to share some thoughts with my esteemed shareholders. Your company was founded on the ideology to serve the needs of Indian life science community and now is one of the leading Indian labware supplier to multiple industries with a rich experience of 39-plus years in manufacturing and marketing of consumables, reusables and others, including benchtop equipment. With our precision manufacturing, strict quality control processes and in-depth domain knowledge, we have been able to serve multiple industries with high-quality products and has helped us to create a brand for Tarsons in the life science community. It gives me immense pleasure to announce that the company had received a total investment of INR 1497.01 million against the initial public issue offered by the company. The heartwarming response from the shareholders acted as a catalyst for the company as the equity shares offered during the initial public offer was oversubscribed by 77x. Your company successfully got listed on the NSE and BSE on 26th November, 2021. Despite a challenging economic time during the financial year '21-'20, the company recorded a stellar performance by achieving its highest ever revenue of INR 3007.94 million, up by 31% as compared to FY 2021. EBITDA for FY 2021-2022 grew by 48% to INR 1526.99 million. With increased product portfolio, higher industry demand and brand recognition for Tarsons, we have been able to surpass the industry growth. With higher operating leverage, productivity enhancement and our constant approach towards cost reduction, we have been able to maintain our margins. Considering company's diversified quality product portfolio, brand image, long-standing relationships and goodwill with its distributors, suppliers and other stakeholders, the business operations of the company are expected to report satisfactory financial results in the coming months with the V-shaped recovery in the economy expected by all of us. Corporate social responsibility in 2022 is not just about legal obligation, but also about working towards improving the lives of the communities we touch. The company has made an advanced CSR expenditure amounting to INR 33.12 million in 2022 by donating KN-95 masks with and without value to Tata Medical Center, Kolkata, Rabindranath Tagore International Institute of Cardiac Science, Narayana. Hrudayalaya Limited, and in the local area and communities directly. During the year '21-'22, the company has utilized INR 13.32 million from the advanced CSR obligation. Your company has been increasing its manufacturing capacity to cater to the growing demand for popular product categories such as liquid handling, centrifuge ware and cryoware through investment in additional machines, molds and ancillary infrastructure. In line with the idea of expanding its portfolio, your company has acquired around 5 acres of land to develop a new manufacturing facility in Panchla, West Bengal. Further, your company is planning to develop a new fulfillment center and radiation plant along with some manufacturing in the recently acquired 6 acres of land in Amta, West Bengal. Your company's philosophy is to achieve long-term value to serve the best interest of all the stakeholders, namely shareholders, customers, employees, government and the society. Further, your company has wholeheartedly contributed to the nation's moto to strengthen the health care system. I would like to take this opportunity to thank my colleagues on the Board and the team of Tarsons for standing together in the difficult times and overcoming the challenges in the pandemic here. I also want to thank all our shareholders for the confidence and faith reposed by them in the company, the Board and the management team, which has, in my view, geared up to take on more challenges. With continued support from our employees, partners, bankers and stakeholders, we are optimistic of improving the company's performance in the years to come. Lastly, I would like to extend my support and thanks to the entire team of Tarsons for the tireless efforts, dedication and commitment, which has helped us reach where we are now and look forward to their continued commitment in the journey forward. Now before we proceed with the discussion on the agenda items, let me inform you that since this AGM is being held through video conferencing and the resolutions maintained in the notice convening this AGM have already been put to vote, there will be no proposing and seconding of resolutions and no voting by show of hands. Now I will take up the formal items of the business of this AGM one after another. After tabling the resolutions, the registered speakers can express their views and ask questions. The first item of business is to consider and adopt the audited financial statements, both stand-alone and consolidated of the company for the financial year ended 31st March, 2022, together with reports of the Board of Directors and the auditors thereon. The objective of this agenda item is to seek approval of the members for the adoption of the stand-alone and consolidated annual financial statements and reports thereon for the financial year ended 31st March, 2022, to comply with the requirements of the Companies Act 2013. The second item of business relates to reappointment of Mr. Sanjive Sehgal, who retires by rotation and being eligible offers himself for reappointment. The objective of this agenda item is to seek approval of the members for the reappointment of Mr. Sanjive Sehgal as the Director of the company, who retires by rotation in compliance with the requirements of Section 152 of the Companies Act 2013. The third item of the business relates to approval of charges for the service of documents through a particular mode as may be sought by the member of the company. The objective of this agenda item is to seek approval of the members under Section 20 of the Companies Act 2013 with regard to charges to be paid for the service of documents through a particular mode as may be sought by the member of the company. I now request the company's secretary to invite the speaker shareholders and moderate the Q&A session and carry forward the meeting proceedings further.

Since all the resolution have been tabled, I now invite the registered speaker shareholder to raise their queries or give their suggestion in respect of any of the item of the [indiscernible] of the notice. I request the members that the comment must be restricted to the business of the AGM and related only to the company and not to any other matter. Members are also requested to mention their name and introduce themselves before raising their questions. I would also appreciate if speaker -- if shareholder can keep their speech precise and limit the same to 3 minutes. Please do not repeat the queries already asked by other fellow members. The first speaker is Mr. [ Abishek ], sir?

Yes. So good afternoon to all the esteemed members. So this is [ Abishek Shah ] and I'm a shareholder of Tarsons Products Limited, and I'm joining in from Calcutta. So first of all, I would like to thank the company for providing me this opportunity to express my gratitude on the occasion of the 39th AGM of the company. So primarily, I would like to congratulate the Board for our successful listing and our open progress performance thereafter. So the company is performing well, and I being a shareholder of the company do expect the company to grow and benefit its investors in the long term. So some of the questions that I have noted down are as follows. So first of all, what are the future plans of the company is what I would be interested to know. Secondly, even after a great performance, we have not seen any dividends being declared. So I would like to understand that as well. And thirdly, has there been any layoffs given it was a COVID hit here last year? And what were the steps taken by the company to fight the pandemic situation? And lastly, I also want to know more about the upcoming facilities, as Rohan mentioned in the Panchla and the Amta sectors. So a little elaboration on that as to how you guys are planning to [indiscernible] facilities and the growth plan for those facilities. So I hope I was able to list my questions, and that would be all from my side. Thank you for the opportunity for allowing me to [indiscernible] this, and I wish the company a very good luck.

Thank you, Abishek. The next speaker is [ Mr. Sujanth Modak ].

Good afternoon. Respected Chairman, other Board of Directors and my online fellow shareholders. Sir, I'm Sujanth Modak, I'm getting connected from my residence in Kolkata. Sir, this is our first AGM after IPO. But this is 39th AGM as I have gone through the annual report and found it. So anyway, after the IPO this is the first AGM. Sir, what I've gone through the annual report, first of all, this annual report is made very nicely, sir. It is -- whoever has made it, we should give him the credit. This is all informations are in the AGM about our company. All informations are there in the annual report. It's nicely made it so. Sir, companies -- our company is manufacturing in the labware and supplying the best available quality to the life science industry for last 39 years, I believe. So this is a very nice product, and it's really helpful to the mankind. And what I have gone through a report that I have found this Tarsons products are well-accepted in the market, in the customers. This is a very reputed quality. That's what I've gone through on report, sir. So for that, thank you very much, sir. As far as the company's performance, this is very nice. Revenue from operation has gone up 31%. PAT has also gone up. This is very good, very encouraging, sir. [Foreign Language] Our product is going in India and market as well as the overseas market. So the penetration in how -- much is the penetration in the overseas market? And what are the steps you are taking to increase the penetration in the overseas market? If you please tell us, sir. Sir, what is the total debt of our company and how we are trying to manage it, please tell us, sir. And I would like to know the road map of our company for next 2 to 3 years. And at the same time, the guidance you give to the investors' community. So as a shareholder, I'm in that investors' community. So this is very important for me to know from your side. So the guidance you give it to us, sir. [Foreign Language] Any man hour lost or any near-miss happened, SO please tell us. This is a safety point of view of the factory. I just wanted to know. Sir, before I finish, I'd like to definitely say thanks to our Company Secretary Santosh Kumar Agarwal-ji [Foreign Language] Santosh-ji you and your team is really doing fine and very nice services you are giving to the shareholders, especially new team [Foreign Language] I'd like to take this platform to say Santos-ji and Sanu Agarwal ma'am [Foreign Language] thank you very much and namaskar to you. [Foreign Language] I'd like to finish over here. [Foreign Language] if possible, try to make a factory visit because things are getting eased [Foreign Language] Thank you, sir. Over to you for further proceedings.

Thank you, Sujanth-ji. Our next speaker is [ Mr. Bimal Sarkar ].

[Foreign Language] Very good [indiscernible], sir. [Foreign Language]. Respected sir/ma'am and other dignitaries, company secretary [Foreign Language] present shareholders [Foreign Language]. Thank you very much.

Thank you, Bimal-ji. Our next speaker is [ Mr. Manas Banarjee ]. Yes, Manas-ji, you can speak.

Respected Board of Directors and my fellow online [indiscernible] Kolkata. I received [indiscernible] which is colorful and informative also. On 26 November, 2021, [indiscernible] the company has robust [indiscernible] strong ratios and after IPO our company would become debt free, which is remarkable. Our company had a market share of 20% to 25% in plastic labware [indiscernible] in an industry dominated by [indiscernible] our company has able to win the trust of the scientist community in India. Congratulation to the [indiscernible]. Coming to my queries, sir, I would like to know [indiscernible] dividend distribution policy [indiscernible] of this segment [indiscernible] renewable energy [indiscernible]. I hope that our company will reach the peak of prosperity with the [indiscernible] Thank you, sir.

Thank you, Manas Banarjee-ji. We heard partial your questions where some of the questions were not clear, maybe because of the bandwidth issue, but we will try to incorporate whatever questions we hear.

[indiscernible].

Our next speaker is [ Mr. Subash Kur ].

Respected Chairman, Board of Directors and on -- and my online fellow shareholder, myself Subash Kur joining from Kolkata. My special thanks to respected company secretary, Santosh Agarwal-ji for sending Annual Report well in advance and allow to speak at this platform. I also thanks to Sanu Agarwal Madam [indiscernible] and always maintain a cordial relation with the shareholder. Sir, our company is almost [indiscernible] company's ROE stands at 27.42%, EBITDA margin 50.77%, and EPS INR 19.46, which indicates our company financial result is robust. I have already casted my vote in favor of the all resolution. I have already sent my queries to you through mail and don't want to repeat it again. Just to support you and hope our company will do better in coming years under the leadership of our respected chairman. Thank you and wishing you all the best.

Thank you, Mr. Subash Kur. Our next speaker is [ Mr. Vinay Vishu Bilde ]. Yes, Mr. Vinay, you can speak. You can ask your questions.

Whole Time Director, Mr. Rohan Sehgal, other directors present at today's AGM, company executives and shareholders, as already announced, I'm Vinay Bilde company shareholder from Mumbai. I have gone through the annual report. I have checked on the performance and I congratulate the Board and the employees at all levels for excellent performance. So that reduces my questions to just a select few. So and I will start with your permission. The first question is, what was the average capacity utilization level for our manufacturing plants for the concluded financial year? And what is the broad range? That was the first question. The second question, are our principal raw materials imported or procured locally? If imported, what is the percentage? The third question, what was our IT CapEx for the concluded year? And what is that plan for this year? Of the total CapEx, what are the expenses for IT maintenance? And the final question, percentage of company's power expenses is from the use of nonconventional energy sources. Are we using or do we plan to provide captive power at our manufacturing plants? So these are the few questions that I wanted to ask. And before I close, I must like other shareholders join to thank the Secretary team, Mr. Santosh Agarwal and Sanu Madam, they have been very supportive for facilitating this AGM. And I would also like to add that because the company is performing very well, I would like to associate with the company on the 2 fronts for which I have got expertise, so I will get in touch with the company. And I like to request you to support that. In the meanwhile, I will close with support for all the resolutions and wish the directors and employees all the best for the coming Durga Puja and all these festivals. Thank you for giving me the opportunity to speak.

Thank you, Vinay. Our next speaker is Mr. [ Aviroop Nandi ].

Respected Chairman, Board of Directors and my online fellow shareholders, myself Gautam Nandi, joint shareholder with a Aviroop Nandi and equity shareholder of Tarsons Limited. Sir, after listing, this is your first AGM and I find it is again success. So thanks, sir. Sir, firstly, I like to give thanks to your secretarial department for sending me Annual Report and other necessary relevant papers through e-mail well in advance. So especially thanks to our respected Company Secretary, Mr. Santosh Kumar Agarwal and the whole team, including Ms. Sanu Agarwal for rendering very good services to our majority shareholders. Thank you, sir. Sir, you are organizing your AGM video -- through video conference. Sir, my earlier speakers already expressed their views and covered most of the points regarding accounts and performance of our company. Therefore, I don't like to repeat it as per your guidelines. Sir, a few years back, we addressed GST and demonetization. Now COVID-19. Each and every company is suffering very much. But one thing I'm very glad to see that despite a tough pandemic and more challenging year, your performance is excellent. You are also giving dividend to our majority shareholders. Your CSR activities is also very remarkable. Sir, your Annual Report is very attractive and also very informative. Sir, one thing in this context, please issue hardcopy of Annual Report at least to the speaker shareholders. Sir, I'd like to know what is your road map for the next 3 to 4 years? Sir, let me know the booster dose has been given to your each employee or not? If not, please arrange immediately for the same because employees are the pillar of a company. Sir, we will be very pleased in arranging for a factory visit in this year. [Foreign Language] If situation permits, please make a factory visit, sir. [Foreign Language] I'm very proud to be a shareholder of your company, sir. I'm very hopeful towards the prospect of our company. I have full trust with our strong management, sir. And I wholeheartedly support your all resolutions which I have already casted through e-voting, obviously in several of you. I'm happy -- very happy with your company. [Foreign Language] So kind of you. [Foreign Language] Nothing to make today. Time is very precious. Looking forward with a positive outlook towards our company with higher profit margin, handsome dividend, 1:1 bonus and return. Sir, may God bless you, stay safe, stay healthy. Sir, signing off, Aviroop Nandi and Gautam Nandi. Thank you.

Thank you, Mr. Nandi. Our next speaker and last speaker is [ Mr. Harsh Ketan ]. Yes, Mr. Ketan, you can speak. [ Mr. Harsh Ketan, ] you can speak.

First of all, I would like to thank the team of Tarsons for registering my name as a speaker at its 39th AGM. I'm a proud shareholder of the company. I would like to congratulate the company on a successful listing this year. I have received the Annual Report of the company. I have checked the Annual Report and it was really nice. And I'm happy about the profit increasing this year. I'm happy that the company has been following all the secretarial norms and adhering to the best corporate governing standard. Since other speakers have already asked so many questions, so I won't take much time. I would just like to request the company to provide dividends and more initiatives in CSR activities. Also, sir, I would like to know about the utilization of the IPO proceeds. Further, I would like to sign up [indiscernible], and I would wish good help for the Board meeting and team and wish the company keep growing. Thank you.

We have received all the questions from all the attendees and all the shareholders. Now we will start giving the answer for each question. And the first question was from Mr. Abishek Shah, what are the future plans of the company? I request Mr. Rohan Sehgal to take the answer on it.

I think for the future plans of the company, as I had already mentioned in my speech that we would be -- we are developing 2 new facilities, one is at Panchla in West Bengal, it's a 5-acre facility. And it's scheduled to commission around first quarter of the next financial year. And in Amta, we would be developing a complete warehousing center, not only for India but also for global customers as we build our business. So it will be a state-of-the-art distribution center. We are carrying in our sterilization in-house because sterilization account will -- start accounting for a very, very important percentage of our total products, and we will be building various new products in these 2 facilities. I believe that the infrastructure, what we are creating in these 2 facilities would keep us in good growth stead over the next 5 to 7 years.

Second question from Mr. Abishek Shah, which is, "I want to know more about the upcoming facilities of the company at Panchla, Amta, please elaborate." So I request Mr. Rohan Sehgal to give a heads up about this.

So in Panchla we would be doing a mix of certain new products, which we have planned in the pipeline for the near future, as well as capacity expansion in certain key existing product lines like liquid handling, centrifuge ware and cryogenics, for which we have had constrained capacities over the last 1.5, 2 years. And in Panchla, 75% of the facility will be a fulfillment center in order to ensure smooth dispatches and increase the volume of our business over the next 3 to 5 years, followed by an in-house radiation plant to sterilize our products in-house, which would save us some cost as well as a lot of time. And we would also look to develop certain bioprocess related products in the future in the facility at Panchla -- at Amta, sorry.

The next question was from Mr. Abishek Shah, the company has not declared any dividend, why? We would like to give the answer for that. The company is doing CapEx for the capacity expansion and new product introduction. The company is utilizing the money for the growth of the company, which will ultimately benefit to the investor in the long run and hence the company has not declared the dividend in the financial year 2021-'22. Nevertheless, we would like to inform to all the shareholders that in coming years we will discuss this dividend matter with the Board. And we will go as per the Board decide on this matter. Now we have second question from Mr. Sujanth Modak. What is the penetration in the overseas market? I would request Mr. Rohan Sehgal to give a heads-up on this matter.

So as of today, about 33% of our company revenues come from the international market, which amounts to approximately around INR 100 crore. The international market is quite large and is approximately $8 million to $9 million or about INR 60,000 to INR 65,000 crores. We are a relatively new player in the international market, and we believe that we have a large runway for growth as we build our presence in various countries and build our brand presence for the Tarsons brand as well as white-labelled or OEM brands. So we still have a long way to go. We are relatively new in the international markets. We're just about a decade old. And we look forward to many more years of strong growth from the international market.

We have another question from Mr. Sujanth Modak. Whether we lost any kind of manpower because of accident in any factory. I regret Mr. Rohan Sehgal to give answer for that.

No, we have -- fortunately, our safety norms and processes have been on the mark and up to the -- up to the mark, and we have not had any such accidents or safety hazards in any of our plants.

We have another -- we have some questions from Mr. Subash Kur. The question is, what is our company's direct contribution to the [indiscernible] in the CSR plan? We would like to give an answer for that. The company has made an advanced CSR expenditure amounting to INR 3.31 crores in the financial year 2020-'21 by donating KN-95 mask with and without valve to Tata Medical Center and Narayana Hrudayalaya, and local area and communities directly. During the financial year 2021-'22, the company had utilized INR 1.33 crores from the advanced CSR obligation. The company is also exploring and will definitely contribute towards other CSI expenditure in the due course of time. We have another question from Mr. Subash Kur. What is your R&D allocation in percentage term? We don't have any kind of R&D expenditure currently. But we request Mr. Rohan Sehgal to give a heads up on the R&D matter.

So currently, since inception until now, most of our R&D costs were captured in the project costs, and it was done with joint projects with various of our manufacturing stakeholders who provided us state-of-the-art automation mold and machine solutions. So we didn't join projects, and that was always included in that. But now we have built up an R&D team since the last 2 years. We started with 1 person, and now we are up to almost 10 people, slated to grow to about 25 to 30 people in the coming years. Currently, our R&D budget is just under 1% of our revenue. And I think I at peak it would be about 2%, 2.5% of our revenue as we look to scale up our operations and build more newer products in our coming facilities.

We have another question from Mr. Vinay Vishu Bilde. The question is, what was the average capacity utilization level for our manufacturing plant for the concluded financial year? And what is the broad range? I request Mr. Rohan Sehgal to give the answer for that.

So as you know, we are developing around 1,700 SKUs in all our plants spread around 60 to 65 machines with more than 500 molds, not having dedicated molds and machines for a particular product line, it is very difficult to identify exact capacity utilization as various changes in permutation and combinations can lead to very different capacity outlooks for the company. But I believe on a broad level that around 25% of the products we are heavily back-ordered. That means you are running almost at full capacity. And the remainder, 25 -- for the other 25%, we are almost running at about 75% to 80% capacity. And then the remainder 50% would be about 60% to 65% of the capacity. So primarily the areas where we are closer to full capacity utilization of where we are back-ordered and we have -- not have enough to produce, that is what we are undertaking in our new facilities as capacity expansion.

We have another question from Mr. Vinay Vishu Bilde. The question is, are our principal raw material imported or procured locally? If imported, what is the percentage approximately? Mr. Rohan Sehgal?

It's a mix of imported and Indian with about imported accounting for about 2/3, slightly more and the remainder with local raw material.

We have another question from Mr. Vinay Vishu Bilde. What was our IT CapEx for the concluded year? And what is the plan for this year? Of the total CapEx, what is the expenses for IT maintenance? Our IT CapEx budget is about to be INR 70 lakhs, INR 80 lakhs per annum as we have implemented SAP. So it is going in the same range. We have another person from Mr. Vinay Vishu Bilde. What percentage of company's power expenses is from the use of nonconventional energy sources? Are we using or do we plan to provide captive power at our manufacturing plant? We request Mr. Rohan Sehgal to give answer for that.

So traditionally -- today, all our plants are using traditional energy sources, but we look to the -- sustainability is a very, very important point. Today -- in today's world, all the more because we are a company that manufacturer of plastic products or products which are manufactured out of plastic. So sustainability is something which we look at very, very seriously moving forward. And many of the new plants would account for more than 1/4 of their usage would be from natural sources such as solar power. And we are looking at ways of increasing our consumption through these natural sources rather than the traditional sources.

We have another question from Mr. Nandi. What is the road map for next 4 years? We request Mr. Rohan Sehgal to give answer to that.

As I answered earlier, I think the main road map for the next maybe 4 to 5 years would be these 2 facilities which we are building at Panchla and Amta, it's massive expansion in both these facilities, and we look forward to executing and commissioning these plants successfully over the next year 1, 1.5 years and then ensuring that the capacities are consumed and both these facilities are very, very successful and contribute to the overall success of the company.

So we have finished off all the questions, and we have given all the answers, whatever is required. Now we will move to the next section. The agenda items have already been put to vote by remote e-voting and now being put to -- put for voting electronically during this meeting. I would like to inform you that pursuant to the provision of Section 108 of the Companies Act 2013 [indiscernible] with Rule 20 of the Companies Management and Administration Rule 2014 and Regulation 44 of SEBI Listing Regulations, the company had provided remote e-voting facilities to all its members through NSDL [indiscernible] each of the business contained in the notice convening this AGM. Such remote e-voting facility open from Tuesday, 26 July, 2022, at 9 a.m. and concluded on Thursday, 28 of July, 2022, at 5 p.m. Members present at this AGM who have not cast their vote through remote e-voting may avail the facility of e-voting during this AGM. The e-voting procedure is mentioned in the notice. Members may note that the voting on the NSDL platform will continue to be available till 15 minutes after the conclusion of this AGM. Ms. Vanita Kanoi, partner of Mehta & Mehta, practicing company secretary has been appointed as a scrutinizer for the Annual General Meeting to carry out the remote e-voting and e-voting during this AGM in a fair and transparent manner. Ms. Vanita Kanoi is available at this meeting and shall be submitting the scrutinizer report within 2 working days of the meeting. Members may note that the e-voting result, along with the scrutinizer report shall be posted on the company's website and on the website of NSDL and shall also be notified to the stock exchange. Ladies and gentlemen, this concludes the [indiscernible] of the business as illustrated in the notice convening the 39th AGM of the company. I thank you all for the participation in the today's meeting. I would now request Mr. Rohan Sehgal to conclude this meeting.

Thank you all. I, on behalf of the entire Board of Directors, would like to thank all the shareholders of Tarsons Products Limited for their unwavering trust in the company. And the company shall take note of all the suggestions and comments as placed by the shareholders. I would like to take this opportunity to acknowledge with gratitude the consistent support of the employees, auditors, bankers and financial institutions for their assistance and cooperation. We really look forward to your persistent efforts and encouragement in our future endeavors. I wish everyone the best health and safety in the year ahead. With these words, I conclude the proceedings of the 39th Annual General Meeting of Tarsons Products Limited. Thank you.

Members may note that the voting on the NSDL platform will continue to be available for the next 15 minutes. Thank you, everyone.