I G Petrochemicals Ltd
NSE:IGPL
I G Petrochemicals Ltd
NSE:IGPL
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Earnings Call Transcript
Other Earnings Calls
Ladies and gentlemen, good day, and welcome to I G Petrochemicals Limited Q2 and H1 FY '24 Earnings Conference Call.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Pramod Bhandari, CFO. Thank you, and over to you, Mr. Pramod Bhandari. Go ahead, sir.
Thank you very much. Good afternoon, everybody. On this call, we are joined by SGA, our Investor Relations adviser. I hope that everyone was able to review our financial results and the investor presentation, which were uploaded on the -- to the stock exchange and our company website.
After providing a quick overview of recent industry development and I detail progress, we'll proceed with the operational and financial highlights. During the year between the 6 months ended September, prices of the petrochemical products were set by the multiple factors, including the centanank policy for the pricing, big demand in China, which led to the into inventory across all the chemical sector companies. [indiscernible] slight increase in the price of telecom part, although the demand continued to remain trade for certain end user markets. We are seeing a sign of demand derival they expect price and demand to be stable in the next 1 or 2 quarters, and has been the market leader and one of the lowest cost supplier of Talen India or postal include the Melanie Bunges and BP, which is the aranda, which we have started around 1.5 years ago.
Domestic demand of the pan is expected to around 50 to 480 TPA and growing at a Care of around 5% to 6% every year. Further, the usage of the telecenter has grown significantly in the last few years due to the multipurpose use of Talik as a raw material or an intermediate by most of the nonsteam company. In terms of our expansion of 53,000 tonnes in our existing location Talison fact. We expect it to complete it by March. We are going to start the trial for being disappointed.
Following the implementation of DFI, our total capacity of talented we 75,000 tonnes. This expansion will lead to be the next leg of the growth. We have successfully stabled the EP business, which is one of the key advances. We are also assessing a couple of more downstream derivatives. You move profit as a project to add our overall product portfolio. We will announce more details when it is finalized and approved by the group.
For the quarter ended Q2 FY '22, the total income stood at around INR 509 crores, which is a decline of around 1%. EBITDA was around INR 33 crores with a margin of around 6.5%. The margin has been subdued because of the lower spreads as well as the lower volume of our production due to the comedown of in the cash for 2017 bps. And margin was around $100 to $800 compared to an average of 150 to 200 for the last couple of years.
From the half year ended, the total revenue for the first half of INR 1,050 crores a decline of around 13% of year-to-year basis. That is mainly on account of the lower volume because of the lockdown, lower margin of Telit, no realization on the maleic and some extra charge, which has been provided in water because of some down, which is INR 6 crores to INR 7 crores of the repairing maintenance as well as the NL, which is required when you stand down the plant and again, we start the plant.
EBITDA for the first half of 2024, INR 100 crores with operating margin of around 9.3%. As of September, our company met the strong balance in cash flow. We expect cash flow to continue to remain strong for PLF expansion, which will further strengthen our compile. We believe we are establishing solid funds for the future by focusing on one from. The company foundation in robust enough volatility.
Despite a few quarters of sluggish demand, which we are witnessing the last project because increased capacity, we'll be in a good position to capitalize our upcoming opportunities, so there is rising domestic demand in both the position. We continue to evaluate and add new product or product portfolio, which we saturate our expansion into new market and new and.
With this, I would like to conclude this cement and open the floor for question. Thank you.
[Operator Instructions] The first question is from the line of Kumar from PCA.
Yes, I have a couple of questions. First question is that I remember largely, we are mentioning the farm call that the company will be able to generate immune profit of around 50 crores first quarter. And then the company is falling was of that for the past 1 year decrease for quarters. So I just wanted to make the reason beat and what test the company target?
And my second question is about the green expansion pace because in 2021 the company and a wonderful the progression? Or what update on that?
Let me answer your first question first. Your question is regarding the margin. Company has made around INR 40 crores to INR 50 crores of bad for us comes to the 8 quarters, apart from the last 6 months. And nobody can certainly give a guarantee amount of process or depend on the margin, but in terms of the operation performing customer casting product. Having said that, the margin, if you ask me to the market was around $100 or $8,200, which was negative. That was one of the key reasons and the profit.
The second reason this company is producing the maleic trades roughly 10,000 post-Paris around realization from many is typically for a halibut today, the many price is around maleic around 10% to 15% lower than the entire. So that is one of the key reasons. So today, what we are talking about, we need to have around INR 100 crores, INR 120 crores of revenue from INR 150 crores. Right now, the Neves crores to INR 70 crores because the price of the medic has gone past 6 to 9 months.
So that was the key reason. In guarantees, I think we will not be able to give a guarantee for the profitability, but we can assure you about the operational excellence and overall cost optimization.
The second question is in terms of the expansion. I think partners on spec are deeper in January the time production. And probably before March, it will be production. And...
Yes. Sorry. Sorry, I was talking about the greenfield expense, which we had announced in 2021.
In 2021, the expansion which we announced is about E5 and PA is just completed in the next couple of months in December to March, and another expansion of the downstream valuating where we are able to patient have applied to the Government of India for the year. Once we are able to get the clearance in subjects of more approval, we'll be able turnout. It will take around 15 to 18 months for me.
Okay. So that is that of INR 600 crores, right?
No. This project, which is it is around INR 350 crores. That project will be between INR 150 crores to INR 200 crores.
No, maleic, the expansion, right? One was the brownfield expansion, that is the PFI which is currently going on -- and the first one, which you had announced was about the greenfield expansion we're talking totally new expansion to the then.
Yes, that has slated into 2 parts. One part is the PA, which is completed. Second part is the downstream pro 350 plus 20 is.
The next question is from the line of Aditya Khetan.
Yes. Sir, in your opening remarks, you had mentioned that the demand is muted -- hello?
Yes, please continue.
So you have mentioned that demand is remaining muted. So which are the segments like the plastic side or pain segment, which segments like Hainan.
Basically, the range is doing there, especially UPI is being there, but impact is coming on the segment where the guys are operating around 50%, 50% of the capacity. That is because of the turmoil in the Europe demand for business in Europe, and in fact, from the side. That is the one segment.
And second, the classified demand, I think, more or less stable, not going very well. Right now to classify the segment are the 2 segments, it comes around 50% of the growth sales. We are not in a good position right now in terms of overall demand in the growth. We expect that after March in the increment. And that is not because of the domestic market. Domestic market demand is whoever is depend on export like if the investor is selling the product in Europe or China in the late, that was in be impacted heavily.
Okay. Okay. But sir, our exports, so that is very minimal. So like we are not materially impacted on the export side because the domestic segment players are impacted, so we are taking that.
Yes. I'm not saying about our effect. We are selling 10% to 15% in general Middle East. I'm saying the downstream sector. They are impacted in awardee the demand side.
And sir, on to the spreads part, as you have mentioned like we are at $80 to $100 per tonne. So like the this price, I believe, so like in in 2020 just so before COVID so we are at the same level of spread, like.
I think in 2020, the different in terms of the margin was at the time the crude is start to be go. The margin is solid because of the -- some lower continuation to a take us a. So this time the overall geopolitical issues, supply chain issues, the various part of the Europe as well as the issues, the GDP of China, which is a capital production. This has gone down from 8%, 8.5% now 4.5%. So overall, in the global market, apart from India, India does exclude that. But the sectors which are dependent on the export of their chemicals that have got it.
So sir, now since you are also expecting a pickup like probably by February or March. So we can expect margins also to 2 million at the same level for the next 3 quarters?
I think -- you need to engage with 2. First, the demand is the one part, which will improve once the is improvement in segment -- when we are talking about the margin, margin in the global site by increasing the demand in India market or.
In global markets, the overall sentiment of the entire chemical sector has to improve. Margin to improve. Once start will be reflected for all if you can all benefit for some markets in last quarter. If the global demand improve, then we see the improvement in the margins, right? Now we are at the bottom of our margin. By IV is making mineable profit, a lot of times will be making cash profit.
Okay. So Sakai, this quarter cafe exclude the aligned EBITDA. So like how much EBITDA would be contributed by the maleic anhydride?
Maleic was around INR 14 crores to INR 15 crores -- sorry, INR 12 crores to INR 13 crores, INR 4 crores I'm saying the revenue. I'm talking about the revenue and other income are. So you can say that we are marginally made mid to marginal EBITDA in credit telesales...
So sir, at the bottom line.
Yes. Not EBITDA, not profit, no loss, and we have spent around INR 7 crores to INR 8 crores for senior care. The catalyst is being taken in 3 years, but the energy cost, if you see them compared to the last quarter, we have spent INR 6 crores to INR 7 crores extra in the energy cost around INR 1 to INR 2 crores repair maintenance. So INR 8 crores to INR 9 crores have been too specifically as a onetime charge in the payment.
To reverse, Okay.
Along with that, I'm talking about me I think let's understand it because I will have 5 plant kind of next 3 months or 2 months -- so every 3 years, you need to take it on. So every year, there will be a 2 shutdown probably in the third year, it will be well shutdown. Every year, they're actually want or to shut down for.
Got it. Got it. And sir, just a clarification on to your INR 200 crores expansion of last. So in some plans like common.
That is under evolution. Request has been put for the environmental approval. Post that, it is approved by the gov. And then if it's subjected to the final approval for the.
Also having increased that 8,000 tonne capacity, we can take that to around 14,000.
We can. But what we have realized that while the margin of the naira on the demand supply the net margin more or less sort of the need we are selling it to the aromatic look more or less administrable.
So we would be first was from INR 8,500 to 14,000 and then...
That 200 is the cents are right now. And then along with the plastic Initiate different sites, we can plan for.
Okay. And sir, just a last update on to the maleic realization. So that continue to remain pluggers some improvement for the current compared to the...
It is around INR 70 crores to INR 72 right now between 80% to 85%. But compared to the telecom tielines, which is around 2, it is Okay. But 1 in since...
Sir, any can have that is a telithich is not back up augmented it is only consolidated by a few players globally. So how the value-added product prices are down as comparing our base commodity.
So the main very typical case, many starting point of auto -- in India, there is a demand of 200 to demand is not a teller, but prices are determined by the. If you look at the last 2 years, China has built a betting in seat in 2022 earlier with this 2 million tonne capacity, and now they have postponed that base in a implementation concern to equity -- all the access maleic eventually will be easily for the downstream of PBA, PBT.They are trashing it with the market. I do get marginal clear. The bigger players who are producing in the U.S. and Europe, they are taking the challenges. Because right now, maleic if you ask me, if you are using the enter route, you are not making any money.
Got it. got it. Sir, what was the capacity figure in China? You said how much capacity has been build?
Are they added to million tons.
On the base capacity, sir, what would be the base?
I don't have any idea, but I think they already had above 1.5. But they built 2 million-ton branding. You can go on in check, they will give you the list of plants which.
So the new capacity has been built up, you need to say.
Yes, most was supposed to cater to the B2C or their sales plastics. It was earlier detail can need to single plastic ban. Now that before 2025. So that is creating the flush in the market of the access malices coming unigal market.
So sir, we can expect like the prices might not substantially go up in like the other inventory, they will not be losing the downstream. They would be continue.
Probably for next 1 or 2 years, we will not see the expect high prices in the maleic. Maleic is typically in expected. And the demand was very highly breakup to 30 at some point of time. So one of the again come back to one. So typically, it remains 20% higher than but right now, it is 15% lower than indicated to supply the one.
The next question is from the line of Nirav Jimudia from Anvil Research.
So you mentioned about the demand part. But if you can walk us through in terms of the domestic capacity increases, which we would witness over next 6 to 12 months. So we are expanding even our competitor is also expanding. And one of our customers has already put up a plan. So in terms of capacity now from the industry point of view, where we stand? How much are the exports coming to India? And what I could understand from your remarks is that whenever we would put up our own tier plan. Most of our new would be consumed over there.
If you can just walk us through in terms of the capacity part and where each of the player would be placed over the next 1 or 2 years, that would be very helpful.
So typically, I hear 2 25 to 22, which will end by the end of sale an 2 35. Finalized a 1210 and -- so all put together, if you say 20 to 25 to have, by the end of March, a capacity equivalent to 3% to 5%, and that is what the plan is. Typically, the input which is happening around 30,000 to 35,000 tonnes per quarter okay, maleic of 20,000 tonnes per year has gone now. So the last quarter, the input was 9,000 tonnes, but keeping into the demand and supply the import is happening between 5 to 6,000 tonnes because all the existing players are producing.
They are not only selling in India, they are selling in export market. Whatever there is equity balance that has to be imported, that is one part. So demand of supply without import is more or less matching today. If somebody along of new capacity, if the growth remains 5% to 6%, it will take 1 year, 1.5 years to absorb plato create billion in the market.
So that, you can see slightly access in Indian market, provided if there is no improve, it will more or less match with the domestic market. But that is not impacting the margin. Margin has to improve the global market. Even if you have excess supply over 9 months or 1 year now down the line. And then the global margin, most of the players are to their product outside.
So I think 1 or 2 years, you will see equity in the Indian market before the margin further improved because of the local factor. Otherwise are interest in market margin will be driven by the interest demand.
Got it, sir. So here, just one thing. One of the -- our customers, which has put up a plant last year of close to 1 last ton. Has he ramped up fully in terms of these volumes because probably he was earlier buying from us, importing also some of the volumes. So...
They have already ramped up to the, I think, optimal capacity. And we are right now in 8% to 9% of what they reduce active edition and 5% level.
Got it, sir. That's very helpful. Sir, with this compression in the spreads which we have seen this quarter and probably from last 2, 3 quarters, we have seen some compression in the margins coming on. It's more because with the auto value prices not coming down. So it's more of the raw material trouble, which is actually putting the pressure on the margins or it's because the demand for selling globally would have some issues. That's why the margins have fallen. So...
Is the way around maleic, I think, move generally internationally in right into the crude prices or the demand of the helix as well as the end consumer. We are able to sell into the European market, Chinese market and American market. Here, the demand has been credit impacted in the last 6 months because of the geopolitical issues, the war between Russia and now the -- inviting all that, the entire supply chain is also not distorted and the demand support deindustriali.
Similarly, China is a started growing at growth for half overall global demand need to improve their heat in the global market, the demand to improve and then there is a growth. Both sides are what impacted because of when the margins are state.
Sir, just a clarification on -- one on the capacity utilization side. So I think normally, we used to sell close to or produce and sell close to 16,000, 17,000 tonnes per month. So on a quarterly basis, it used to be around 45,000 to 48,000 tonnes. So because of the shutdowns, which we have taken in this quarter for capital exchange.
It's a 10% impacted. Yes.
Okay. So Q-on-Q basis, there was a volume down by 10%, correct?
9 to 20. Yes.
Correct. And one more thing which I would like to ask you is that in 1 of the calls, you mentioned that some of the specialty chemical companies have also started purchasing 14 various chemistries and applications, which would have developed over a period of time. So there have we seen any improvement in the volumes coming.
So basically, because the classes as I started the on plant -- so the 10% to 12% capacity which we have at the time, we are selling it to specialty chemical age that has been taken over by that.
Right. Correct. So there, have you seen any results coming on in terms of some of your segment volumes are being replaced.
I think not pigment. UPR is one which is being delivered. The overall demand in is going. Specialty chemicals is being very well. The agrochemical is doing very well. So I think specialty and UPR is one which is one of the overall demand.
Got it. And sir, you mentioned 9,000 tonnes of imports have come to India in Q2, if I heard it correct.
Yes, yes, yes, right. Compared to 31, 33.
The next question is from the line of Madhu Rathi from Counter Cyclical Investments.
So you've guided that for the next 1 day capacity coming up in India, like pricing you see your margin pressure to pursue or do you see something of increasing your...
Sorry, I'm not getting the question. Can it be clear because I think I'm finding some echo.
Yes. Sir, I was wanted to understand the ginger on this capacity from the ore -- 1 year, 1.5 years. So how do we look from that as -- so what will be the growth or...
Capacity is coming up in India is fine because that Indian demand guidance there between 5% to 6%. Apart from that, India typically will move around 1,000 to 20,000. That has mounted to around 50 because that existing peers or with the ex of import. They have started their own side stack. So to that extent, we see the decline fantastic deployment overall but India is continuing to grow at 6% in terms of maleic being because new capacity in the business.
Yes, there is always an opportunity for the existing players to sell into the export market. Is a good market alone middle age and other places that is south of. The question is -- and we are also planning to get into at once the plant is to move from the product to be utilized for the core of.
Okay. sir, but you have the house quality control around these products. So have you seen any impact of that on our revenues and all?
Sorry to interrupt, Mr. Muraki. Your voice is not audible, sir. Are you speaking from post.
Yes, is this better?
Not really. If you could just speak -- Yes, it's out. Yes. So I was a control order that on that.
So how that impact the...
As such, there was no direct. In fact, because the government wanted all the guys who are importing who are selling to the India wind to have a certain parameter. So all the companies need to see that in most of the subsequent quarters, they are complying with the government on.
So we are seeing a significant decline.
Import is declined because the players do the importing. Now we set up the plant. So definitely, import has gone down, but you can't say because of that order. The order requires a lot of companies who are telling the Indian market to register with the government, and comply with the fact to spend it. So most of the companies are already in the process of doing that and most have always done that. So that was the compliant in terms of maintaining the quality of telecom into.
Okay. And then talismargin for Nordic asset are you as foreseen.
So I will not be able to comment about maleic acid because we don't produce elite produce Melandritic, the Maluenda right now moving will be state margin for maleic to be the price 15% to 20% higher than phthalic around 90 to 100 militate 120. But today, if you ask me, it is 30%, 40% lower than the.
Okay. So, sir, the $150 to $200 a margin of maleic. Maleic made would be around 20, 25 for this future.
Correct. 20% have been.
Ones, are you seeing some terms of an improvement in market in quarter further improved on a.
Maleic prices compared to the Q1 had improved 15% to 20%. It was around 70 to 75 right now. We have seen the improvement, but the visible improvement will be there about the cost of maleic prices. Right now for last 6 to 9 months is below of any prices. Selling has moved from 85 to 105, but still on a maleic prices remain below 15% of all prices, improvement in break. Ultimately, it leads to go past any fines to see a real impact on the overall.
[Operator Instructions] The next question is from the line of Chirag Vekaria from Budhrani Group.
Just wanted to know, sir, what are the spread in help currently doing there.
It's around 100 to 120 that 120.
Around 120.
Moving around plus, minus.
This PSV will it start contributing from Q4 of 20 or 1 of 2.
It may be Q3, but it will be very marginal because subs we are starting the tire product at all the time profit and losses and then to capitalize on the tax. So in terms of the profit line expected in Q1 FY '23.
Okay. Okay. Sir, in your outlook, sir, how do you see this thing panning out as far as the elicited goes on. Globally, the situation...
I think first we need to wait for the going and then there is an expectation of revival in timing demand. These 2 factors corrected, we can see the full amount of the overall demand.
The next question is from the line of Kunal Shah from Antique Stockbroking.
I have a couple of questions. So one is on the grain has announced a decent expansion for the pain danger?
Yes.
They are very close to be in a few quarters, they will be commissioning. So have they started seeking for the procurement? And how does it work actually like they will procure from a couple of guys or they will procure from 1 side, how does it go back from a new player perspective?
I think they are looking at the market based on all the players. They will have a fair bit point and they are visually improving the production over the period of next 1 and 5 years. Right now, they may be started between 30% and then the rest. So we have already started the discussion with the market. I think we need to take still their plan products, the discussion we already started. And I think they are doing the alienate bit. We need to see how much is to total decor that have started.
But at full capacity, how much will they require approximately?
Capacity, they are going to in the capacity implementation then if we take a. -- so right now, whatever they are doing, I believe this will be a requirement of around INR 2,000 from 500 tonnes.
INR 2,000 to 2,500 tonnes per month?
Requirement.
And sir, secondly, any update on this input from China this napthalene based talc?
So overall, there is a decline in the import from 30,000 to 35,000 tonnes to 90,000 tonnes. But as such, we have not find anything talking for Nainecause set why the Napa-based or the optical base. We provide certain parameters seeking that there are respective of the full product.
And sir, in terms of just last update. Beyond China, what is the capacity addition in maleic.
I think mostly all capacities are coming up in India. Otherwise, one of ton plant in China. Otherwise, we are not seeing any new capital.
The next question is from the line of Martin, who is an individual investor.
Yes. Can you please advise that during the Q1 and Q2, how much of maleic -- in terms of pantry become the price at this site? And currently, how is the prevailing price, for example, about the expecting the month of October? And how will the offtake now?
So general really don't provide the quantity because every company have end proposition. So typically in Q1 and Q3, we tend between 45 because Q1 was also a shutdown of 1 plant and Q2 was also some. And the pricing remains in the range of -- for both the quarter because at the time crore was high, it was 210, and this time when we are talking about between 9, which is okay.
So you are saying this now the price is reduced by about 10 something.
Yes, because the west has also gone down.
Sorry?
Because also the lens also on all of -- if you look at the price, the moment of fruit of that, so that goes up a $50 if the is on down the there is no meaning to look at expect only in product raw material.
So like you talk about EBITDA margin, for example. So how is the margin -- and how are the margins is part like September.
I think it is not right for me to comment about the October at of September margin, I think it's already reasonable that EBITDA margins around centers decline compared to the Q1, Q1 was 22% gross margin, which has last quarter was 18%, and the EBITDA margin was 12% in Q1, is not dispose.
So given the margin reason for the decline in the margin Q2, there are 3 reasons. First, the overall quantity was less. The second reason was the Medicaid, which you are producing almost similar to what you have been producing. The realization on nearly maleic continuously down by 15% or 20% of pending prices for last 3 quarters. And third reason is we project crores extra on account as in.
Yes. Okay. So like we have in...
Mr. Martin, I'm so sorry to interrupt you. May we request that you return to the question for a follow-up question.
I think that 50% enters.
Yes, please.
So sir, what I was saying, Jatin. -- like identical that is that already -- our competitor already our customer has because the plant new data come how do you see the first step of this industry sells in the next 1 year, 2 year for you?
Semi prospects in Indian contract has been very good because Heli typically, I don't say 5-year ever used to be up to 5 industry. Now it is more than 20 to 25 in year notably the plan plus the PVC segment are the key earlier on specific chemical, agrochemical auto, all type of new specialty chemicals, which are coming up and we are expanding the same where we tell it for the older chemistries.
Indian demand continued to grow will be a slightly is to 9-month supply in terms of the new production coming at the same time is to take the Indian growth for next 5 years, it will be closed. And there is an opportunity to move to the dose that are also growing very well. And then there is opportunity to do the export in the -- we are, right? At location, we can do the domestic as well. We continue to maintain.
You get an everything charge to like a port or like is like normal day? Or are it is.
Please understand that the ports not post-major when we increase about the plant. When we are selling a domestic market, export market, aerodefense margin in the -- so there is no port measure. There will be opportunity domestic market as well as export. If you see the middle and I think because are you doing a the Middle East market, the demand is 50 to 60 to and there is no player who's trying where.
We need to explore it we need to be.
We are doing a 15% to 20% for last production. Now they're going to increase it, right? It may be increased for some period because then we have downstream relative prostate, then we will not have different products.
Sorry to interrupt you. Can we request you to return to the queue because we have other parties. The next question is from the line of Aditya from Securities Investment Management.
Strong to commenting around orders in Carianne are at preceding. So the other players, we been making losses at current level? Is that in and.
Not executive of it, there will be hardly anything in terms of EBITDA. We are making slight addition to the EBITDA on account of maleic.
[indiscernible]
I'm not clear about the voice.
Which you see there is no like in disposal.
I don't think so because right now, if you're talking about $100, it is -- I think 50% of producer has conversion costs of around 15 400. So most of the guys are making cash losses. It is not possible. If you go down, you will see a lot of clog getting set up in the Chinese, Taiwan, Korea, you'll see a lot of cutdown if it goes lower.
Yes. That was my next question. So are we seeing any sentin capacity?
There are are 6 to 7 plus, which were temporary and they explained the up by 1 or 2 months in Korea, Japan and Taiwan.
Got it. Got it. And sir, what is currently the duty of the 2...
It remains between 3.5% to 4.5%. It depends on the finco and the players who are exporting to there.
And when is it being over include improve duty?
Improve duty for some of the countries are forever because import Andi, think the pace they have slid Will they expire on 2026.
Okay. Also India only green marketing system where the years we start in more and more into India because of in the largest 3D. So you think that these completion increase the imports, which will lead to sunrise for all?
So I don't think so because couple of times and places our sell prices below the importer. So it is not possible to complete because the cost of production of Indian players and the ability for them to supply the right time is much, much higher.
At times, if you need to compete with the input, I think the domestic player will be more than.
And sir, now we are getting into last. So did this product be contribute with our customers? And is there any response?
I think we are evaluating that. It is come -- we have to wait for that and the product will consist 50% and more or less the customers are being.
Right. Would there be any distant on the customers because we will be competing with them.
So not exactly because there are only 2 players of classes here in India but have already set up in the plant.
The next question is from the line of Aditya Khetan from SMIFS Institutional Equities.
Sorry, first after we have made that from the non kind of business, the topical contribution is around INR 8 crores -- so sir, if you can quantify like how much was from mantra from plasticizers?
So you're talking about Q2 or H1.
H1.
Malik and was Medicare was around INR 30 crores, INR 35 crores.
Okay. And the plastics around -- and sir, in terms of the non-tank business, so I suppose if we annualize this number, INR 83 crores, somewhere around like INR 165 crores we can make for sales in.
So this is thing is, let me see, if you are losing the 6,000 to 50,000 to 70,000 tonnes of maleic. Court 9,000 tons you providing the price of maleic is coming through to the see many in the generative revenue between 1 was. For plasticizers, we are learning a run rate of around INR 20 crores to INR 25 crores per quarter. So it will be INR 8,200 crores. So if you take the full potential of maleic, is INR 150 crores full potential of phthalic anhydride has INR 100 crores, it is INR 250 crores. And the other income, it is around INR 25 crores to INR 30 crores. So you will have around INR 250 crores to lincoreof other revenue.
Sir, that you're talking when the maleic anhydride realizations were the normalized level. Now sir, for the next 1 to 2 years, we would not witness that scenario. Is that the...
No, no, no. I think that is what I'm saying is if you like to maleic, I'm not saying higher than maleic. Maleic I'm not talking about it. I'm saying when you begin to million is 10% have been.
Okay. And for the non-maleic business, like currently, it is contributing only 7%. So like when you see annualized figure would remain the same. But sir, we were already guiding by at least 25% of our total top line would be probably non-maleic. So this is like constituting the new last site expansion, INR 200 crores, that comes and so that kind of materially shift on 4 months it added.
It will add INR 800 crores to INR 900 crores.
The INR 200 crores can INR 100 crores 4x assets?
Got it.
And the last question is from Madhu Rate from Countercyclical Investment.
Sir, your guidance last quarter was from the new...
Mr. Madurai, sorry to interrupt you, sir, your voice is not audible. Can you speak a little louder?
Can you hear me?
Management, can you hear him clearly?
Not exactly.
Mr. Mark, I would request you if you are speaking from a deeper pool just primely use headset.
Sir, I just you guided last quarter to a plant, our such conversion cost will go down. So do you see this kind of improvement to our margin?
Yes, yes. Sure the conversion cost will go down because it is being set up at the same location and the lane, infastructure, the power, water, everything disease the fixed costs right now incurred by the company will be allocated to the point also. So the overall cost of conversion go down.
So you can understand your selling conversion cost is 150. So...
the conversion cost is between $80 to $85. When you are talking about the depreciation interest cost, then it will come to around $100. Conversion cost is INR 80 to INR 85 crores. Depreciation in all not part of the conversion.
Cost come.
It is right now 25. been reduced overall from last come.
Ladies and gentlemen, due to time constraint, that was the last question. I now hand over the conference over to Mr. Pramod Bhandari for the closing comments. Please go ahead, sir.
Thank you, Ana. Thank you very much, everyone, for joining us on the annual call. We appreciate your time and deep interest in our company on the behalf of IDs that we have to be on it on. In case you have further reline get intact with SGA Investor Relation and so all better. Thank you very much, and happy Diwali.
Thank you very much. On behalf of I G Petrochemicals it, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.