Focus Lighting and Fixtures Ltd

NSE:FOCUS

Ladies and gentlemen, good day, and welcome to the Focus Lighting and Fixtures Limited Q2 FY '25 Earnings Conference Call hosted by Kirin Advisors. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Ms. [ Chandni Chande ] from Kirin Advisors. Thank you, and over to you, ma'am.

Thank you. On the behalf of Kirin Advisors, I welcome you all to the conference call of Focus Lighting and Fixtures Limited. From management team, we have Mr. Amit Sheth, Managing Director; and Mr. Tarun Udeshi, Chief Financial Officer.

Now I hand over the call to Mr. Amit Sheth. Over to you, sir.

Good afternoon to everybody and welcome to this investors call. We can state that we go with the questions.

[Operator Instructions] The first question is from the line of [ Aditya Lati ] from [ Akita ] Capital.

Sir, actually, I had a question relating to the CapEx that you've done in the past year. If you could just elaborate on that? Because as I saw it, you've done around INR 27 crores of CapEx. So where has that gone into?

Tarun, if you can answer this.

Yes. We are coming up with this experience center at [indiscernible]. So all additions are happening for that. That is -- actually it is shown in WIP under CapEx. So as and when it is getting ready, the cost is getting incurred over that office, for building that office.

Okay. So the entire CapEx would be for that experience center?

Okay. No, no, no. Major amount I'm saying is for that. Apart from that, also there are regular CapEx in research and development tools. We have been taking on timing along. So all those is adding up to that as well.

We are adding as a timing -- again, we have told you informed that we are adding two more verticals in our portfolio. One is our trade vertical and one is outdoor vertical. And apart from the experience center, major CapEx is going into that.

Okay. Mr. Sheth, I think it would be helpful because there is no breakup of the gross block schedule in this year's annual report. So I think it might have been missed. If you could just upload the revised one so it would be easier for us to go through the individual heads.

And the second question I had was I just wanted to understand the sales that we are doing in our subsidiaries in Singapore and in Dubai. So what is the nature of the business that we do there, sir? If you could just throw some light on that. Because manufacturing is being undertaken here in [indiscernible], and our company sells around INR 20 crores, INR 25-odd crores annually to those 2 subsidiaries. But they have a larger sales of INR 70-odd crores. So are they manufacturing it in Dubai and Singapore or they're procuring from somewhere else? I just wanted some clarity on that.

Yes. So the part of -- part is manufactured and the part is also trading when it comes to international sales. There are certain requirements or certain projects where we don't have product line with us. So we buy it or outsource it from different companies.

Okay. So this would be done in China or in the local countries itself, the outsourcing?

It depends on project to project, very difficult to bifurcate it. But it can be -- from international companies, it can be a little from China. To best of my knowledge, there is a very little portion of China included right now.

Yes, it is a very little portion of China. Majority is well taken from there only.

The next question is from the line of [ Ashwani ] from [ Cogent Finvest ].

Sir, you just mentioned that we have some capital working for the experience center and [indiscernible]. So what kind of support or what kind of a response do you expect on the investment in the experience center? And how it's going to add going forward to FY '25 [indiscernible]?

So the major focus is going on infra. Infra includes beauty station, outdoor landscape and [indiscernible], where we are expanding very heavily. And we are working very closely with municipal, tourism departments and that's where all this development is happening. Second sector where we are getting into is the trade sector, wherein 70% of our population you can say is lower middle class or middle class. And we have got some technologies -- innovative technologies, which are not there in the country and which we feel which give us a very good traction in the industry.

From last 2 years, first time we haven't -- normally, we don't have order bookings. But you have some order bookings in infra, wherein it is somewhere around INR 30 crores, INR 35 crores. And we had expected additional similar amount for this year which will come to us where this investment is happening. For next year, '25, '26, a large portion of business is expected from infra, mainly from government projects, which is municipal [ corporations ] and tourism. And trade is something we are expected to launch tentative by next August. Yes. So that will also add to another INR 30 crores, INR 40 crores. Infra, we are expecting to add INR 50 crores to -- somewhere between INR 50 crores to INR 100 crores, depending on the projects for the -- we are getting it from the government and the private sector also, of course.

Okay. Sir, initially, a couple of years [ consol, ] you now mentioned that actually take to focus much in the retail that are very [indiscernible]. So what is the reason for changing the strategy and focusing on these now, especially which has been [indiscernible] for the [indiscernible] segment?

See, lighting, when it comes to lighting, lighting is retail, home trades, which I mentioned, and infra projects. And for the growth, we have to be continuously innovating, looking at the new verticals where the turnovers and the margins can come in. So that is the only reason that we are focusing on these verticals.

And the company has [indiscernible] from...

Sorry, your voice is very low. I'm not able to hear you.

So we have been exchanging a couple of past years so that [indiscernible] mean, the temple. So any such kind of a project in process or are you -- or a tenders or something like the big one coming at similar near future, anything like now?

Yes, there are a lot of projects in pipeline. Currently, we've been awarded a Bombay Airport, the [indiscernible] airport. Right now, we are working with one of the lighting consultants who is bidding for another 3 airports where we've been specified. So it will go into tendering system. This is airport part. We are doing [indiscernible] development part, which is a very large project. The tender has been floated. Our name has been approved. And we should be getting orders by March, and probably we'll be executing some part of it in this year and some part by next year.

So we are working with tourism department, where we've been bidding a very large value, somewhere around INR 60 crores, INR 80 crores. The tenders have not been awarded as of now. It should be awarded by -- either by March or somewhere between March and August, depending how government -- how fast government takes it. So those products have already been developed. They are in prototype stage. Once the prototypes are done, we will be showcasing it to the government, getting the approvals and then executing it. We're also working for a very large project in Gujarat for [indiscernible], which will be executed phase-wise in 2 years' time.

Okay. Would you be possible -- is it the right forum for you to talk about what would be the monetary value of this project [indiscernible] you had already been awarded and about having started. The second thing that which [indiscernible] they are not [indiscernible] offer, but they may be offered and maybe by the offer...

I'll answer this question, but I'll request 2 questions for one participant so that others can ask questions. But anyway, I will answer this question. So typically, airports are in the range of INR 10 crores to INR 25 crores, and it comes phase-wise. First, there are 4 phases and the first phase is somewhere around INR 9.5 crores. And the balance will come phase-wise, That will be an execution and next quarter probably. Then tourism department or individual size of projects in a range of INR 10 crores to INR 20 crores. Municipal corporation are also in a range of INR 10 crores to INR 40 crores.

Okay. And if you can answer me now or maybe at the end of the call, what kind of guidance you would like to give by FY '25 for the revenue and your top line. You may answer it at the end of the call.

[Operator Instructions] The next question is from the line of [ Sandeep ] from [ Agio Partners ].

Sir, I wanted to understand, I mean, we have seen a decline in -- across pretty much all the segments, retail, home and [indiscernible]. This has been happening in the last 2 quarters consistently. Is there something that has changed?

No. There is -- retail, overall industry, the growth has been lower than expected until India is concerned, though our business has more or less been at par which we've been doing. So the overall sales have gone down because no infra projects -- though we have some INR 30 crores, INR 35 crores order booking, no projects have been executed in last quarter. So the sales have been down. Whenever those projects comes and they have executed, that [ turnover ] will shoot up. Yes.

Okay. So my second question was on debt. Last call, you said that there are some payment issues with some channel partners in Middle East and Southeast Asia. The payments were to be received by September, October.

We have already received 40% to 45% of the payments from those partners, and balance is also coming in due course. And another month or 2, I think almost 75%, 80% should be cleared. It is happening phase-wise. [indiscernible] aggressively on it, and we are resuming in every week. Every 3, 4 days, we are receiving some part of the payment from that.

Okay. So I'm sorry, make sure I understood that, right. 45% has been received until date. And another 10 -- and the balance will be received in the next 10 to 15 days. Am I right?

Another 2 months' time, we should be able to conclude by 75% to 80%.

Okay. And a related question to that. So on a steady-state basis, what is the kind of factors that you can...

Only two questions so that others can ask, please.

Yes, but this is related to the same thing. On a state -- I just need -- you may choose to answer it later. What would be a stable state once these things are cleared up?

Somewhere -- if you're talking about the payment terms, see, when it comes to retail, it is 45 to 60 days. Tarun, you can correct me if I'm going wrong somewhere because you know the numbers.

Yes.

And when it comes to home, it is 100% or 70% advance and 50% before delivery. When it comes to infra, infra when the project is completed after that we receive it. For example, [ Surat 4 ], we still have an outstanding of INR 35 crores but there was a small part, which was not executed and which has been executed by this week. So we'll receive that payment also. [indiscernible] Temple, that is an outstanding of INR 3.5 crores. And that project, they are still not installed. We are still not installed. There were some permission issues they had. And once that is installed, we will be getting those payments also. So payment cycle in infra is somewhere around, after the material supply, it is on the installation. So you can consider 90 days to 100 days. And otherwise, retail is 60 days, home is, you can say, 80% -- almost 100% advance unless the project size is very big, then it goes to 60 days.

[Operator Instructions] The next question is from the line of [ Agastya Dave ] from CEO Capital.

Hello, am I audible?

Yes, yes. Please go ahead.

And sir, one clarification. You mentioned there was a particular time line when project -- the infra revenues will start coming in, in a big way. You mentioned retail would start -- the trade would start in August of next year. But what was the date you mentioned for projects?

So projects are already coming and they are in decline. As I told you that we have almost INR 30 crores to INR 35 crores of order booking on infra projects, which is there -- which are not executed.

Yes. Okay. That is what I thought. I thought I heard about a date and then I was confused because the project revenue is already hitting us -- hitting the P&L. So sorry, there was some confusion from my side.

Sir, my question is on the project business. So generally, what is the duration -- the project infra business. Sir, in the infra business, you mentioned the ticket sizes for airport tourism and municipality. Generally, what is the execution time lines or the duration of the project? Is there a retention money element in these projects where you don't get the entire payment after completion, and there is probably a 10% or a 5% retention which you get 1 year after or a prolonged period after the completion of the project?

Okay. So thanks for asking this question. So when it comes to -- we are into project business right now. We are not into day-to-day trade business. So everything what we are doing this project, whether it is retail, whether it is home or whether it is infra. In particular, retail, we have a retention period of it's between 5% to 10% is the retention, which they hold.

Sir, I missed the period, sir, your voice broke. What is the period of retention?

The retention period is 5% to 10% in retail. Home, there is no retention. When it comes to Infra, there is also a retention between 5% to 10%. It extends to 1 year, but there is an O&M period, O&M is operation and maintenance. So that is separate. So in the purchase order, let's say, we got a INR 10 crore order [indiscernible]. And out of the INR 10 crores, INR 2 crores is O&M. So O&M is received every quarter or every month, depending on the [indiscernible] we have [indiscernible] government bodies. And that is received every quarter or every month for coming 5 years. Basically, that amount is for operation and maintenance.

Understood sir. Understood. Sir, my second question and final question would be that you mentioned that there was a few infra projects, which -- and I understand did not hit particular milestones, and hence, you could not recognize revenues in this quarter, hence the sales and the margins and everything was slightly on the lower side. So can you take us through what is the -- if you take any particular example, say, the Delhi Airport and suppose you start working on the project from first of October, right, start of Q3. So what are the time lines? What are the milestones generally when do you hit them?

And what is the -- so if -- let's say, if the execution period is, let's say, 1 year. So can you break up the 4 quarters? What percentage of the revenues generally on an average gets recognized in which quarter?

So see, I've been telling from last 2 years that being a project company, you will see spikes when it comes to our company. And those spikes are because the values are large and those spikes will come. So average, it is not possible that we'll be maintaining, let's say, average from last 2 years, we have been INR 50 crores or INR 60 crores every quarter. So there will be a dip and there will be a spike also. There will be a quarter where we will do INR 60 crores to INR 100 crores also. We are building it in that quarter.

Sir, I understand...

I'm coming to your point. For us to judge and for us to understand that there's some portion in or not. It is very difficult because we are completely dependent on the approvals of the project which the government gets and we have to take approvals from various departments. For example, Bombay Airport. Bombay Airport, we have received PO 3 months back. And when we received the PO, they had told us that we have to supply in last quarter. Now maybe they have not got the approval or maybe there are certain purchases which they have not fulfilled it. So they have not taken the material from our side. Same thing with [ Surat ]. Surat has been executed, but there are small, small permissions. For example, they wanted a permission from Surat Airport because there were certain lights which might affect and disturb pilots when they are flying from that about [ Surat Ford ] some moving heads.

So those approvals are still not received by them. And so because of that, we are not able to supply. So when they will get the approval and when we will be able to supply, sometimes it becomes difficult. The only assurance is that this has to be supplied. Which quarter, which month, we really don't understand and we really don't know.

So is this only related to airports or the same phenomena is also in tourism?

This is -- no, tourism, they have a time pressure most of the times. Currently, we have a pressure for the tender, which -- where we've been the only company who has been approved or to execute everything by March. But again, permissions and all those things, it's not our job to look into when they will get permission and when they will allow us to supply. But most of the times, when it comes to tourism or when it comes to municipal cost, there is a time pressure. But again, difficult to say. As and when we have the real-time experience, then we'll be able to confirm that, okay, this is the average what it is coming to Yes.

Understood. I see your point of view, sir. So then as of now at the end of Q2, the business is progressing as per what you understood and as per your expectations. With the whatever delays are happening because of the delays related to permits, after existing for that, everything is under control and everything is as per your expectation.

Yes. As a company, we are more interested that whether we are getting growth. The growth coming in second quarter or third quarter or fourth quarter, we are really not concerned. What we are concerned is year-on-year, whatever growth we have planned, are we on the track and are we achieving those targets? For this year also, whatever we have estimated and whatever numbers we had internally thought that, okay, these are the comfortable numbers which we'll achieve, currently we are on track. Unless and until something really goes wrong and we are not able to supply because of some hindrances from the government part. So otherwise, we are on track.

The next question is from the line from Parikshit...

So I will need 5 minutes just to explain what we are doing in terms of development and product line. After the -- so let's say, the call is for 30 or 35 minutes, whatever the call time is. I just need last 5 minutes as to make all the investors understand in which direction we are heading. Okay, we can continue.

Okay, sir. The next question is from the line of Parikshit Kabra from PK Advisors LLP.

My first question is, you have earlier responded to someone inquiring about the receivables number, and you said that 45% of it has been received and 75% should be expected in the next couple of months. Is that for the overall receivables number? Or is that only for the receivables number of the home division? And if it's the latter, then can we get a similar estimate for the overall receivables number?

What I mentioned was the overall receivables and not the not only the home sector.

Okay. Perfect. That's great.

I'm talking about the overall outstanding. As a company, we are more comfortable with the overall outstanding.

Makes sense, makes sense. That's what I was also hoping for, so I'm clear. My second question is regarding, again, the home business. At the start of the year, Amit, you were quite excited about having exponential growth in the home business. And of course, I understand it's a project business now so I understand that can be lumpy. But 2 quarters are gone. Are we expecting the next 2 quarters to be a great growth for home business? Or are we thinking that, that division might not play out the way we expected at the start of the year?

See, currently home -- as of now on the balance sheet part, home is one of the most profitable business for us, number one. Number two, the growth or the spike in turnover, what we saw in Middle East was we got some large projects in Middle East and -- which you can name it as infra or you can [indiscernible] as home sector. It was a private company with whom we were doing the township and the dealer got the order and they have executed it. So that type of spike is once in a while, we don't get it. But if you see the business which is happening through our channel partners, the business which is happening through our experience center, it is continuous in we have been doing good growth, we have been opening experience and the CapEx currently what the first question we answered.

We are having a very good investment in home sector because we are still very bullish and bringing some patented and innovative technologies in home sector and still showing in that. Our channel partners or average doing INR 25 lakh to INR 50 lakh business, they have almost doubled. We are growing with our channel partners. Our share has been revised, and I think would be very good partner in Middle East, [indiscernible] player in Middle East. We -- I was in London last week. I've just come back yesterday. And we've got a very good partner in London also, who will be currently for United Kingdom. So that is 3 countries put together. And if things grows, then we will be entering into retail and home verticals through that channel partner. So [ discussions ] are going on. They are coming to India to see us and sign a deal with us. So we are extremely bullish until this vertical is concerned.

It seems like our current participant got disconnected. We'll take our next question from the line of [ Karan Kamdar ] from [indiscernible] Private Limited.

Hope I'm audible. So the first question is sort of related to what you have already answered. So the home segment, can you explain a little bit more on the home segment and how it is a project business? And what kind of revenues are we expecting? Is the home segment related to the experience center?

So home segment, typically, what we work is through our experience centers through our channel partners who are already there in the light industry and through automation companies. This is the way where we operate. We have roughly 25, 26 channel partners as of now, where average they are doing business somewhere between INR 50 lakh to [indiscernible].

[Technical Difficulty] for example, when we did center [indiscernible], which is a new parliament house, same technology was used but it was a little bit different. We made some [indiscernible] to a substantial large portion. Same products are used, same technology issues. There's a little bit tweak on it. So it is just in which segment we are putting it into.

Got it, got it. Sir, so what is our plan for the coming 1 year or 2 year regarding the home segment? I understand that you plan on doing more channel partner sales. There's one channel partner lined up. But how do we plan to -- do we plan on interacting with any interior designers or something like that?

We have regulars -- after opening Bangalore Experience Center, we realized that home sector, we need to be very closely working with consultants and interior designers, per se. And we have a separate team who is only working on business development, who is only working -- every week, we call a group of [ interior designers ] and we showcase them our technology and we partner with them. If they like the technology and we take it then, that is where we get specified and that is how our business is increasing. So you've been asking for home segment.

Yes, yes. I think that answers my query. I just was kind of concerned that it has -- the growth has dropped off, particularly in that segment. So I was wondering if...

No, the growth has not dropped. As I told you again, the growth has not dropped. There was a spike. There was a large order that came in and we execute that order. [Technical Difficulty] If you minus the spike came in with our channel partners, there is something that you get a large project and you get a big turnover, and there is a continuous business that comes. So the continuous business is growing continuously with partners. Partners work with local interior designers and local lighting consultants. So our reach is increasing and which is helping us in growing this vertical.

Got it, got it. Sir, 1 last question, if I may. Where do we see our margins to stabilize at? We had margins of, I think, roughly about 18% while we've been enjoying 20%, 21%.

So we -- year-on-year, there might be a little bit of fluctuation. Again, see, margins are still stable. If you see, margins -- the gross margins, what we keep are still the same. In fact, we are improving the gross margins with new products. That's the reason I said that I need 5 minutes to make you understand where we are heading, what we are doing, how the margins are improving. But the margins are also related to the turnovers. Why is it related to the turnovers? Because if the turnovers -- in 1 particular or 2 particular quarters if the projects are not executed, the overheads are still the same, but the turnover has gone down. So it will affect the PAT. Overall, I still don't see any problem to have 15% to 16% bottom line.

[Operator Instructions] The next question is from the line of [ Damodar Baliga ] from [ BB ] Investments.

I had just one question regarding the entering into trading segment. Earlier, it was given that we would be launching into that segment either by December of this financial year -- of this year or by March. But in the initial introductory call, you said it would be from August of next year. Any particular reasons?

Yes. So it is sort of the first time in the history of Focus, how Focus operates. So typically, first, we do a feasibility study on the industry where we want to enter. Once the feasibility study is done, we try to find out the weaknesses, challenges, technology, limitations that the industry has and how we can add value. After that is done, we get into product designing. Normally, product designing is done outside the country. [indiscernible], we were introducing it. We realized that overall trade sector has degrown, though the volumes are very high at every company. Any company, if you see top 10 companies, they are about INR 250 crores to INR 700 crores average, up to [ INR 2,000 crores ].

But what we realized, they continuously have a margin pressure also and they continuously have a top line pressure also. So when we started designing, we wanted something where we can stand out in terms of technology, in terms of pricing, in terms of [indiscernible] that we will do product designing in-house in our factory, where we, prior to a team of product designers who have [indiscernible], again from Gujarat, where we come from, where they are at the end, we started designing our product. There were certain limitations in terms of technology, which we wanted to get away with. We wanted 100% recycled products. We wanted to reduce electronics by 70%. So there is no e-waste. And we wanted assembly time to come down for 7 minutes to -- in the range of 30 seconds to 60 seconds.

So those innovations have taken more time than expected. Currently, we get at a prototyping stage. We have done the prototypes. Prototypes have been approved. Now we are budgeting since its large investment what being from our side. Those are tools which we need to manufacture which can be rolled out. Ideally, we could do it by March, but we are taking it slow. We are not launching everything because it's a complete technology which we feel which it will disturb. So we are going phase-wise launching the product. So the complete portfolio should be [indiscernible]. But now we feel that March will be a very tight thing. So we are putting August as a deadline.

Okay. Just a small follow-up. Would it be done through the Focus? Or would it be done through a subsidiary or something?

That is something we are still not clear as of now.

Hello?

Yes, that is something which we are not clear. We'll be taking those decisions in the coming weeks.

But we will not be definitely partnering with the existing players in this business, right?

No. So we [indiscernible] that we tie up with a big five, any of the big five. And that's where we get our business, top line is done. But then we realize that we'll get a good top line, it will double the turnover also. But we will certainly have margin issues. And today, as a company or as an individual, we don't have a top line pressure. What we want to go is we want to go slow and steady. We want to maintain our profitability, and we want to create our own brand...

[Technical Difficulty]

Hello?

Yes. Was I audible? Or if you want me to repeat?

Between last 1 minute, if you can repeat, you said regarding tying up with the existing players. You said there will be pressure on the margin.

It was a conscious call by the management that we will not do OEM for big companies, but we will then create our own. We have complete [indiscernible] pressures, mainly our profitability. We want to maintain our top line and bottom line. And we don't want to grow 100%, for sure. But to grow, we want to maintain that steady growth. And we can very proudly say that every quarter, this much turnover will happen and this much growth is going to come from the trade sector. So we will create our own brand and we will supply our brand only rather than doing OEM for other companies, wherein we will have the [ margin ].

We'll take our last question from the line of [ Ankur Gulati ] from Genuity Capital.

It's already answered. thanks.

Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for their comments.

Okay. So thank you very much for your question. I'll just brief you what we are doing and where we are entering. Just to give you a brief idea what is our future. So typically, when we come -- we [indiscernible] with retail. And please stop me if I'm not audible because I have a very poor [indiscernible] here. So I'm not sure whether I'm audible. You can always stop me.

Yes, sir.

So retail, the product pricing was somewhere between INR 1,500 to INR 3,000. When we move to home, the product pricing was somewhere between of INR 3,000 INR 15,000. Then we started manufacturing. We went into landscape, which is outdoor lighting, where the product pricing is somewhere between INR 15,000 to INR 1 lakh. And now we are developing products for outdoor, where product pricing is somewhere between INR 50,000 to INR 20 lakh. We are getting into the products which are of such a high cost. These are products basically done for smart cities. These are products which can do your revenue model for the government. These are products which can reduce the energy load for the government by 70% to 80%.

This is first innovative product wherein the spacing, typically the spacing between 2 product was somewhere between 4 meters. We have gone up to 18 meters. So we are reducing their CapEx also. And it's a modular system where you can have EV chargers, you can have a revenue model in terms of somebody breaks the signal or somebody jams the signal or somebody jams a line, whatever the penalty the government has to charge, all that can be captured through this pole. Because there are CCTV, cameras inside the pole there are communication systems, for example, speakers inside the hole.

So typically, when we pose for [ Sabarmati Astra ] and for [indiscernible], this one pole, it's not only lighting, but it has got a music system, it has got surveillance system, it has got EV chargers it has got global projection, wherein we are completely displaying [indiscernible] story. It's a movie that will run throughout the Astra. [indiscernible] something which is 55 acres of [indiscernible] which is happening in 2 years' time. And this is what we have proposed. And this is a very, very innovative modular system. This is first time in India which any company has initiated and developing in-house, wherein it has been done 100% made in India. No Chinese, nothing is involved. Only technology is coming from Austria. We've been working for development in the half year.

We have proposed also a similar type of products for Goa, wherein we met the CM of Goa and the officer on special duty who reports to the CM of GOA. And do you want to do 198-kilometer of Goa coastline. And they want women safety. They want surveillance cameras. They want lighting, of course, for the safety part also. So this has been proposed. By March, we'll be doing a markup for them. And if that gets approved, then this will be one of the largest orders which Focus will get [indiscernible]. And this is all with this smart poles.

When we did [ Kundapor Temple ], we worked with the Italian company called [indiscernible], and it was a trading more than manufacturing. There was no manufacturing involved. But from that process, we learned. We learned the limitations in technology. Those technologies know we have developed and we have taken -- we are taking a worldwide patent on it. And it's the same product [indiscernible] by for our outdoor program, which will add to a very large volume and margin to our company. This is for the outdoor part.

Trade. Trade, it is all about innovation. We have [indiscernible] materials, which are 100% recycled [indiscernible] electronics where we have reduced -- we have managed to reduce 70% of the electronics in our product. Why we went into special materials, which are 100% recycled? The idea was that we wanted to reduce the density so that we can reduce the cost. And the assembly time from [indiscernible] has been reduced below 1 minute for most of the products. There is a lot of innovation that we have done. And that is what we are introducing, which we should be introducing by March or by August. So these are the 2 verticals where we are investing a lot of time and energy, and phase-wise, we're introducing it. And there are already projects, not from the trade but trade is through dealers and distributors, but that are already [indiscernible] the names I've already gave. When it will come, which will not -- there might be some [indiscernible] we have not been awarded. I'd like to be very clear on that.

But if all put together, we are bidding for INR 250 crores, INR 300 crores projects. We expect that at least we get, let's say, 30% to 40% of the project, it's still a very large size for us, for our company. And those are the developments [indiscernible] introducing phase-wise. This is what I wanted to inform everybody.

That's it from my side. Thank you very much for the call.

Thank you all.

Tarun, the financial part or on the part, if anything is added?

The [ debtors ] part, we just wanted to make everybody rest assured that we are on our debtors collection. We are doing a very micro management thing on that, and we want to assure all the investors that we'll be able to collect the debtors. As sir rightly said, by December, we'll be able to come up over 75%, 80%. And our target is to collect the entire 100%. So you all may not worry. Because I saw a lot of questions on debtors and all. So I just want to assure all of you that we are on target. We are on it, and we are working on it religiously. And we should hopefully be able to get every penny of ours, and you may not worry about it.

What we can assure is until now, there has not been a single incidence where the client has said that, okay, we are not going to pay, and this is going to be bad debt for our company. In this the only one large bed that happened, which was with Future Group when the company went into NCLT, and we didn't receive it. So that is a sizable bad debt what we had in our history until date.

So yes, debt is something -- of course, it's a worry for the investors also, and it is a worry for our company also because it has been prolonged -- unexpectedly prolonged. But we are getting it. So since we are getting it, we are sure that it will be cleared, 100%, not 80% or 90% or 95%.

Yes. This is what I wanted to clear up. Thank you so much.

Thank you. I now hand the conference over to Mr. [ Chandni Chande ] for closing comments.

Thank you, everyone, for joining the conference call of Focus Lighting and Fixtures Limited. If you have any queries, you can like to us at research@kirinadvisors.com. Once again, thank you for joining the conference. Thank you, Amit sir. Thank you, Tarun sir.

Thank you so much. Thank you.

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

Thank you.

Thank you.