Ladies and gentlemen, good day and welcome to the Q1 FY23 earnings conference call of Mrs. Bectors Food Specialities Ltd. We will keep all participant lines within the listening mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please press 0 on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anoop Bector. Thank you, and over to you, sir.
Thank you. Thank you so much. Good afternoon, everyone. I hope that all of you and your families are safe and healthy. On behalf of Mrs. Bectors Food Specialities Ltd., I extend a very warm welcome to all participants on Q1 FY23 financial results discussion call. Today on this call, I have with me Mr. Manu Talwar, our Chief Executive Officer, Mr. Ishan Bector, Whole-time Director, Suvir Bector, Whole-time Director, Mr. Parveen Kumar Goel, Whole-time Director, and Orient Capital, our investor relations partner. I hope everyone had an opportunity to go through our investor deck and press release that we have uploaded on exchanges and on the company's website. Before discussing the company performance, it gives me an immense pleasure to update you all that the new production line of biscuits at Rajpura Plant has started commercial production in July 2022.
This line comes with an installed capacity of 12,000 tons per annum, and it has been effective from July 15, 2022. The deck got delayed due to COVID-19 pandemic. Coming to our Q1 FY23 performance, we witnessed revenue growth of 23% with strong growth potential across both the biscuits and the bakery segment. I'm pleased to share that we saw growth in both volume and realization. In the first quarter, we continued to experience pressure on raw material prices, and the company also took price hikes to mitigate these pressures. Having said this, the company is currently witnessing a softening of raw material prices. This supported price hike is expected to have a positive effect on our EBITDA margins going forward. Mrs. Bectors has focused over the past few months on strengthening leadership teams, building capacities to enhance manufacturing infrastructure, driving SMEs through digitalization and field support augmentation, alongside premiumization.
As we have communicated in the previous calls, the company continues to focus on strengthening its senior-level team. We have successfully onboarded marketing and supply chain heads from reputed organizations to achieve our long-term growth targets. Apart from senior-level hires, the company is also looking to strengthen its operational team. On manufacturing infrastructure ramp-up, we are investing further in Rajpura to add Rajpura Plant for biscuits alongside Madhya Pradesh, and investing in state-of-the-art greenfield manufacturing facilities in Maharashtra for our bakery business. Technology will play a critical role going forward as a result. Mr. Bector is focusing his efforts on digitalization. The company has recently implemented sales force management systems and is expected to implement distribution management systems in the coming quarters. DMS enables the company to track real-time coverage, sales efficiencies, and working discipline of our distribution team network.
Our DMS system also helps to increase productivity of sales teams by providing assessment critical information like promotion, sales trends, etc., on a real-time basis. The company continues to enhance its existing distribution and plans to double its network in North India in the next two years. Further, it will also focus on enhancing its presence in Western and Southern India over the next three years. Now I will discuss the financial performance. The consolidated revenues for this quarter showed at INR 301 crores versus INR 226 crores in Q1 FY23, thus registering a growth of 52.9% on a year-on-year basis. On the biscuits side, our biscuits segment reported a revenue growth of 24%, which stood at INR 178 crores in Q1 FY23 as compared to INR 164 crores in Q1 FY22. This revenue has grown by 26% over Q1 FY21.
Our domestic biscuits segment and exports witnessed higher domestic growth in Q1 FY23 as compared to the same period last year. In the bakery segment, bakery segment revenue stood at INR 107 crore against INR 69 crore in Q1 FY22, thus registering a growth of 56% compared to Q1 FY22, including retail bakery and institutional segments. Bakery segment has grown by 114% as compared to Q1 FY21. Both retail and institutional bakery have grown by higher double digits in Q1 FY23 as compared to the same period last year. The company continues to focus on increasing distribution and premiumization of the products. On the CapEx side, the CapEx of INR 21 crore saw a growth of 30 basis points on quarter-over-quarter basis. Our gross margin for Q1 FY23 was 10.4% as compared to 10.1% same quarter last year.
It stood at INR 20 crore for a growth of 20 basis points on quarter basis. Our PAT margin for Q1 FY23 was 4.2% as compared to 4% in Q4 2022. With this, I would request to open the floor for questions and answers. Thank you so much.
Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question, you can press star one on your touchtone telephone. If you wish to remove yourself from the question queue, you can press star two. Participants are requested to use the handset before asking a question. Ladies and gentlemen, please stand by for a moment while the question queue is attended to. Thank you. The first question is from the line of the participant from IIFL Securities. Before we move to the first question, we'd like to remind the participants to please listen to the questions subsequently. If you have follow-up questions, we request you to please rejoin the queue. The participant from IIFL Securities, please proceed with your question.
Hi. Good evening. Sir, could you give us some idea on the domestic biscuits business? What is the growth on our YOY as well as on a three-year CAGR basis here? And also, if you could give some flavor on what part of the growth is coming from our core existing states and what part is coming from the new states that we have ventured in the last three years?
So your first part of the question was how the domestic biscuits performance indicator. Domestic biscuits has grown well in Q1 over the last year as well as over the last year same quarter as well as over the last quarter of last year. So it's a good volume growth, continued volume growth, as well as Q1 revenue growth, which we have witnessed in the domestic business personally. And this growth, as was briefed by MD in the opening presentation, led by the strong work which is happening now on the distribution strengthening side. So the whole implementation of the SME digitalization and growth in our field force. So just to create this opportunity of updating you that in this call also, getting you updated that we have started adding ADSR, which is Area of Distribution Management. And in the last year, we had added 300.
Just to share with you that in this year itself, we have already added 300 more ADSR, which was close to the new plan of business. So we have front-loaded the addition of the ADSR. Now, if you look at over the last almost 7 months, we have added 600 ADSR which are working in the field. We have implemented a sales force management system by which we are able to not only track, drive the efficiency, productivity of the sales force. So domestic biscuits for us have grown in IT, in revenue side, and also multiple digits on the volume side, both compared to the same quarter last year as well as quarter past last year. So on the.
So on the.
Yeah. Please go to the question. Come on.
Yeah. On a three-year basis, that is versus 1Q20, would the Dabur growth over three years also be double-digit volume growth?
Can you just give us this? Just quickly get this number available which company does compete with you on the form itself.
Sure. Sure.
Normally, personally, what we are doing is on the volume because we are always looking at premiumization. Volume numbers for our company become quite irrelevant. We focus more on the value proposition because if we start losing volume, low-priced products will get a bit of so. I think for Mrs. Bectors, we should always look at a value proposition than a volume proposition. Yeah.
Very nice, sir. My second question is on the margins, the gross margin as well as the EBITDA margin. So firstly, on gross margin, it is roughly flat YOY, and there has been a fair amount of input cost inflation. So just surprised as to how we are able to keep the gross margins largely unchanged. And secondly, on the other expenses line, there is a very big inflation, some 67% YOY growth in the other expenses. Can you let us know what is the reason for that?
So the first thing is on the gross margin side. So as you see, we are very close to gross margin of same 44% which was in the same quarter last year. Versus last quarter of the 2021-22 financial year, our gross margin is lesser by 1%. I think that across the industry we have seen, one, we continue to have a very high pressure on the material prices, right? So our improvement which we did over the quarter one over 2021-22 is we had done some improvements in our margins over the six, seven, eight months of last financial year. But then we started getting hit across industry which we started getting hit with inflation post-November onwards. As of the 2021-22, our gross margin was rather large than inflation for our gross margin had dipped, right, a bit too much this quarter too.
Now, in the quarter one, 2023 also, the pressure continued on the material cost side, but we were able to still sustain and regain it around 53.8%.
Yeah. So another thing, Mrs. Bectors, is the new factor here. If you see the bakery business has grown better than the past business, and our pastry business definitely on the bread side or English Oven is doing great in the market, has the EBITDA margins also reflect? But surely, going forward, the numbers should be better as we are looking at the swing of prices. Some price increases happened which happened in the mid of the quarter. We did not get the complete price increases in the first quarter also. So we should look at going forward, we are looking at better than now gross margins coming over three quarters.
Mr. Goel, other expenses?
On the expenses side, basically, there are two large reasons which are there. The one large element is fuel prices. So our fuel cost has gone up, right, which is one large part of the increase which impacted over 1% for us. Second is the freight and packaging, right? Freight and packaging has gone up because of two reasons versus the same quarter last year. One is fuel price went up, and secondly, also our mix changed. So we had a very good quarter in terms of exports. Export has shown a higher growth. So that, because of the trend in the mix, the freight and packaging is slightly higher. So we got an impact of close to over 1.5% on freight and packaging.
One more smaller reason is there that you would remember that Q1 last year was a second wave of COVID, when the travel was literally zero. So with now everything opening up, that travel is back. So it's not easy, and business people are traveling. So that's one of the small reasons. So these are the primary three reasons which have pulled up quarter, increase in our expenses versus the same quarter last year. Okay. Got it. Thank you, sir.
Thank you. The next question is from the line of Sarthak from GreenEdge Wealth. Please go ahead.
Hi, sir. Sir, very good to see the INR 300 crore number on the revenue side and that our distribution management system is picking up. So congrats on that, sir. So my question was mainly on the bakery segment that now, during this quarter, the entire QSR is running full throttle, all the malls, all the outdoor activities are open. So is it fair to say that this quarter represents a true potential of our B2B bakery business? Have we gone back to our big potential, and now going on from here, the growth should normalize to that 12%-15% as the sector grows?
Yeah. So this is Ishan Bector here. Yeah. Definitely, there has been a very, very strong recovery on the QSR side. And we have also been updating that we are constantly looking at the addition of new customers. In fact, one very big account that we have also talked about onboarded has been Subway. As a last thing, we are improving our capabilities as we are improving the quality and the number of products that we have on offer to some of our customers. As we are onboarding new customers, I think we will continue to see a healthy growth. What we are seeing in terms of the market outlook as we are talking to some of our partners is a great sense of progression coming forward in the next three to four years in terms of number of store openings.
And I think what we are doing in this area is also gearing ourselves to have the ability to meet the market expectations in terms of size. So we see a very healthy growth path for the QSR business going forward. But yes, the significant increase that you see on the QSR as compared to quarter one of last year is because also the QSR business was affected by COVID last year. I hope that answers the question.
Mr. Bectors, this is from the line of Monty Design from the London Industrial. Please go ahead.
Hello. Hello.
Yeah. Please. Yeah. Continue.
Yeah. Sorry. I think the question was answered, so.
The question was answered very good. Thank you.
Thank you. The next question is from the line of Amit Prabhu. It's from Elara. Please go ahead.
Yeah. Thank you for the question, sir. So it is decreased by you indicated that we were adding new customers. And then there is an overall growth expansion by the QSR carriers. So one thing to check is, do you expect a sequential kind of ramping up this business from here on as things are opening up and with the kind of inquiries that you are getting from new customers? Is that a fair number? And this one.
As in similar numbers in terms of growth as compared to the previous year?
No, no, no. Not in terms of sourcing, in terms of the run rate. So we did 107. So one, you have a QSR piece. That's the other is the bakery piece. So once it's low, as we look at the second half or even the ensuing quarters, probably this trend should improve, right, given the fact that it's at the overall level.
So if you look at on the bakery side, I think on the long term for the long term, we have always said that we are targeting strong growth in double digits in terms of less than 20% on the bakery side. And we sort of continue to hold firm on that as we see a lot of opportunity, both on English Oven and the institutional side. On the English Oven side, we are seeing great response of our brand. And this is not only in one market, right? I think the test of the brand as the brand has proven itself in the Delhi market, in the Mumbai market, in the Bangalore market.
Now, as we are moving outside of Delhi, we have taken future cities for us in the North India side, being in Gurgaon, India, Ludhiana, Jaipur, Agra, which we see are very high potential areas. In fact, we have already started our brand is already present there. We are seeing great expansion for the brand. In terms of, I think, distribution, we have a long headroom to grow. What we are going to be focusing on is continuing to execute on distribution. At the same time, building world-class infrastructure like our Mumbai project which is being envisioned is going to be a state of the art facility. We are very confident that it will give a very basic superior product to the market. We will continue to remain bullish on the bakery side with both these businesses on a positive outlook.
Okay. So this quarter run rate, you will look to build exceptions here on, right? Is that fair? Is there any seasonality in this? That's probably the second answer because, I mean, the last six years have been because of COVID. Whenever you look at it sequentially, it still looks seasonally. But I just wanted to know the second answer.
No seasonality, there is a little bit of seasonality in the sense that because the sales of bread are higher. But also the Diwali time comes in. But yes, I think you must understand from the bread side, what we have also done this time is we have been able to cover the increase in our costs by price rises. And I think oftentimes, whether it is the Delhi market, we are not being the leader in terms of the volume we sell. We have always very aggressively taken price rises from the market in order to protect the margins. So there has been a significant price raise that we have taken this morning.
Okay. And just on the bakery side, you just wanted to understand this growth is largely it's existing as well as new markets. What I wanted to know has been the new markets, it's more of a you indicated distribution-led growth. Would that be largely primary sales or largely also secondary sales? Would you have some sense on how that growth would be and existing versus new markets in terms of growth pitch?
I think in fact, our domestic growth is as of now largely led by North India, right, which is our existing territory, correct? And all growths are secondary-led. So we are a secondary company. The primary follows the secondary side. So it's all about treasury and securities. Plus, the growth is both in general trade and the modern trade. So we are expanding also the modern trade and general trade side. Both verticals have grown. And this is on the domestic side of the growth. And I'll just take this opportunity also to request Suvir because we also have a very good growth on the export side. Our momentum on export is building up very well. Suvir, I would request you to say something.
Hi, everyone. This is Mrs. Bectors for this day. So in exports, we are significantly increasing our branded spreads and developing markets such as the Middle East region, specifically the six GCC countries. Plus, we're also rapidly expanding in the North American market. Currently, we're growing our business at a executive growth, and we continue to see this space growing at it will grow at the same rate. Our target focus is going to be North American and GCC markets.
Okay. Yeah. Thanks a lot. Last, sir, on the exports sphere, you highlighted that freight cost. Would that also be to some extent because of the entry into new markets, or is it, again, the growth has been largely in the existing market? The impact of higher trade costs is also felt in the existing markets. Is that what you meant?
I think domestic market growth has changed. I mean, we have just launched in three cities in South Africa, which is Bengal, Mumbai, and Gujarat. So these are three cities. We launched with a very small volume as of this year. We're not going to be there about two months back. But the majority of domestic growth is from our existing market. What I believe Suvir, that our state trade costs have been there has two reasons. One is due to true price hikes over the year. And second is our mix of exports are higher than normal heights, which has led to higher trade costs.
Okay. Okay. And anything you would highlight on the overall state of margins that you're seeing for this? Any indication of trade?
So as Anoop said, we are clearly seeing a spiking of material prices and which will clearly start reflecting to us in our margin improvement over the next few quarters. And as we're seeing, again, previous quarter meeting, that our aspiration continues to be reaching a 30%-40% Gujarat market. That's where we are, that's the first milestone where we are targeting to reach. Yes, it was quite seriously shocked by the industry, by the very high inflation in the material sector. We are seeing now spiking, and we definitely this trend should continue, and we should see improvement in the next few quarters.
Okay. Thanks a lot, sir.
Thank you. The next question is from the line of Sonal from Prescient Capital. Please go ahead.
Hi, this is Sonal Minhas. Am I audible?
Yeah.
Yeah. So I have two questions. First, I wanted to understand what quarter price rise is still pending to catch up with the rise in the raw material prices. If you could quantify that and what's the timeframe within which you intend to take the subsequent price rises in the next few months? Just if you could answer that.
So in terms of the company, I think we are through with a large part of our price rise, right? Because in one segment, we have taken whatever price rise we had to take and taken some significant price rise for our current inflationary time. In another part of the segment, we are doing a gradual price increase. We have definitely in the quarter four of last year and quarter one of this year, we have taken price rise to cover as much as possible. But we also always have to keep in account the industry and the industry large players. So we will still have some team to catch up in this quarter on the price rise, right?
So, I'll thank you, Mr. Amit. There are several areas. I mean, several price rises came in mid-July of this quarter. So, 100% price rise did not come in. And even our QSR businesses' price increase did have come in in the later part of the first quarter. So, going forward, also, we are looking at further pricing reasons that maybe will take some time and might happen in Q3. They would get largely reflected in Q3. And we are seeing certain of our competition's changes happening or any part increases which are yet to take place. So, this is a continuing journey. So, this is never going to stop. Every time inflation is going to stay, we will have to cover up our costs. So, this is going to be; we cannot correlate it to a percentage because it keeps changing.
I mean, last quarter, we really saw a big jump, especially in the fuel costs. So gas prices have gone up and things like that. So this is a continuing journey, and our teams are fully geared up to keep this exercise on. We are currently evaluating our competitors, what they're doing, especially our senior leaders in the industry. And we see there are certain changes happening, and we're going to continue to make price amendments to reflect on the inflation. And you don't see any spiking in demand because of this price rise that everybody has been talking about? You're talking more to the market?
We see these price rises are taken very, very carefully. For us, we are in a high distribution increase. Do you see what Manu told you about the ADSR? We are focusing very heavily on improving our distribution on the SFA, on the DMS. So that is really promoting the company to increase its outlets. I mentioned in my speech, we plan to double our outlets in two years. Now, that's going to be something which is going to be a turnaround. Also, I mean, these price rises are not that big. We do it in a sense which, for the customer, they're able to take it. Yeah. I mean, when we say rural economy has gone down, that's not down because businesses are good. That's down because agriculturally, there are certain challenges which have happened. Inflation has happened and overall.
But for us, with the change in distribution, we have seen such high numbers coming in in our business. I think that's very clearly. The local business, we have grown by around 20% on the value term. We feel it is consistently good.
Okay. So I have a follow-on on this one. So when you compare your biscuit business compared to your larger competition, what is the difference in price in your brand, particularly your peers, if you could broadly indicate the?
There is some price difference because we are still a lower volume player, and extra margins are given in the retail side or in the distributors where economics are working. On the MRP side, most of the products would stand very similar to competition.
Yeah. So more on the MRP zone as a different side?
Yeah. MRP side, they will stand very close to competition.
Okay. And so lastly, I don't have a question. I have just a request on Suvir that just to understand the branded and the unbranded businesses when it's a GCC and the GCC businesses' jobs, sir, if you could just start sharing data on the consumer-facing businesses you bundle together and the other businesses, can you just help understand how the mix of the business is changing? This is more a request if we are analyzing from.
Yeah. Fine. We will look at this here of it, and we will discuss internally, and we'll see in case we can.
At the problem level, that is the same.
Actually, we normally would not share because we deal with very, very large customers, and information passing down on any large customers becomes a bit difficult. But we will see. We'll look into it.
I think if you can just bundle the institution together, expert together, and the GCC together, broader, I think, and just share it as a pile.
We'll look at it. We'll look at it. Yeah. Thank you.
Sure. Thank you, sir. That's it from my side. Thank you.
Thank you. The next question is from the line of sorry, from Jyoti Capital. Please go ahead.
Hi, team. Good afternoon. My first question is on GCC. So we have been presenting North India predominantly for the last 20 years. And when I looked at your DRHP, it gives us a market share twice. So if I analyze that data, we are very well presenting from a smaller state like Punjab and Himachal with very decent market share. But we have a market share in larger states like UP, Rajasthan, Delhi. What's pretty low? And some of the other players like Anupam and Suvir had a very decent market share. So is there any reason why we have a lower market share in spite of us representing those markets for many, many years? Why is it so difficult to?
Yeah. So I mean, this is about history because, I mean, we could not grow into these markets because these markets are not our focus market. So that was one of the particular reasons. Today, we have opened out complete North India. And we are seeing rapid growth coming up because we are ramping up our distribution in those markets. So very, very high double-digit growth numbers are coming into the markets in North India, which were not our focus markets earlier, and now have become our focus markets. So as a matter of fact, let's talk about Delhi, UP, Uttar Pradesh, Rajasthan. Modern trade, very high double-digit number growths are coming in from these markets, having a strong base which we have created over there. And the markets are huge. So this will be a very long-term growth plan which would come to the company.
So like I mentioned, we created a complete great infrastructure for the company. Mr. Manu Talwar joined as CEO. Our sales head has come in from Britannia. Marketing head has brought in from Dabur. Supply chain, we've got a person with great facilities. So overall, the company has created an environment of high growth numbers. And with our quality products, with our quality being one of the better qualities available in the market, we are getting a great response.
You should see increasing market share in those markets, so.
Absolutely. We should see and be working towards it.
The second question is with respect to GCC, I think that Ishan was mentioning that we are also planning to tap markets which are tier 2 cities around the present market. So can you give some sense, Ishan, in terms of what is the radius to which we can sell from existing plants? Because I understand that GCC is a very localized business. So what is the radius that we can sell and exist?
Mumbai.
Yes, Mumbai.
Mumbai. So what is the issue?
So we are looking at a 300 km radius. If you look at any of these focus towns that I have also spoken about are within this area. In fact, let's say moving into Punjab, we are also understanding how we can manufacture in Punjab so as to open up newer markets which are unserviced, things which haven't in the past. I would say 300 km radius is what we could look at.
Okay. So currently, are we serving those markets or is that more like in the next couple of years, we're trying to tap the markets?
Yes. We are servicing markets within 300 kilometers. This is creating the base for sustained growth because we have already started seeding. We have been in, let's say, Agra and Jaipur for about a year, year and a half, which have now become our focus markets. When we say focus markets, then we will significantly look at expansion in terms of distribution, having seeds on the street. Definitely, we are already servicing certain cities within a 300-kilometer radius. Now it's time to ramp up.
Yes. Okay. And the last question, sir. I think you have seen the speech in the past. We have guided for 15% of our offline growth. If I look at your commentary, we are almost doubling our distribution on the domestic side, district side. On the BP side, we are targeting 50%+ growth. Anyone else is doing also? Let's just number, or do you think that there are some challenges that we might have while you are guiding for 50%?
I think we are focusing as a company more on the inputs rather than the outputs. I think we are doing the hard work in terms of opening up outlets, opening up distributions, getting people like DSR. I think the results will follow. I'm sure we will be a very successful company.
Okay. Got it. Thank you.
Thank you. Reminder to the participants to ask a question. You may please press star and one on your phone or telephone. The next question is from the line of Gaurav Gandhi from Glorytail Capital Limited. Please go ahead.
Hi, sir. Congratulations on the good set of numbers.
Thank you.
[Foreign language]
[Foreign language]
Very marginal. It's a very small business for us. [Foreign language]
Right, sir. Thank you. I am moving ahead, sir.
Thank you. Next question is from the line of Harsh Shah from InCred Equities. Please go ahead.
Yeah, hi. Thank you, sir. Taking my side, keep that focus. Following up to previous question, sir. Which is the kind of capex period we expect from our capex in bakery and biscuit segment?
So, CapEx [Foreign language] , especially in Rajpura, we are more aligned towards automation, reduction of cost. So that all businesses [Foreign language] . And so we actually look at around 45 years CapEx.
Because I want to pull in 25 years to even this also which is said that we want to shift biscuit line from Salem to Rajpura, right? And we estimate cost INR 75 crore. Now, that will, that will not come with higher incremental revenue. The saving is 12% annum, right? So that if we look, if we look at that, the period for us would be more than 27 years. I mean, moving that biscuit line.
Gaurav, it's not like that. Because what is happening is with the cost of logistics increasing. We want to consolidate our production basis. We do not want to have higher number of units. We want to consolidate units so that our numbers are – the next unit we plan in Mathura Pradesh, that should also be a bigger unit in the next 5 years. So that cost of production goes down drastically. When Rajpura mein unit lagega, complete cost on which our on management and on staff cost, everything gets over. And also, the logistic cost which we are moving material from Himachal Pradesh into Rajpura are avoided. So the savings are immense. And also, we have built up today two Taliva lines, where 12 years, 15 years old lines.
They had some inefficiencies with them. So instead of refurbishing the lines over there, we have thought it is better to have completely automated lines in Rajpura with a complete automation. So Rajpura jo site hai, it is 500 km from Haryana. It is 50 km from UP. And 100, 200, 300, 400 km from Delhi. And so it's a very beautiful site. So basic reason is about consolidation, about automation. Because our company, other than supplying for Indian market, we also supply to export market. And when we supply to export market, we see that the product quality, what we are producing, should be of the highest quality. So that is the and the same products also going to the Indian market. So the repayment will be in 5 years, all the CapEx returns. And there is no doubt about that. So.
Sir, basically, I mean, in sum what you are saying, that 13%-14% is the first milestone. So quite, I mean, I mean, I mean, it is increasing the process in the medium term, right? Given the kind of automation we are doing, the cost saving, which happens because of shifting of this line.
Our commitment to our investor energy has always been to have websites at a 14%. The company is working towards whatever commitments we have done, we will always work towards fulfilling our commitment. Our target, our aspiration is always going to be higher. As the scene shapes out, we will keep sharing out with all of you.
Okay. Thank you, sir. And just one last question. What is the kind of project very general for this year, FY 2023?
Things are still completely getting lined up. I am sure within the next 1-2 months, we will line it up. We will, we can always connect later to give you the right number.
we can assume that INR 73 crore out of INR 180 crore for FY 2023 and 2024 of 50 plants is built up, right? So quantity of these two will be this year?
Yeah. Yeah. Bombay will come up in 2024, 2023, 2024. And this year, it will be about Rajpura. Yeah.
Okay. Thank you. Thank you so much, sir. All the very best, sir.
[Foreign language]
Next question is from the line of Rishikesh Oza from MoneyWorks4me. Please go ahead.
So thank you for taking my question. And congrats , for wonderful setup number, sir. So my question basically is on the bakery side, where in your current so for example, the current Khopoli plant, it is sharing to Goa, Mumbai, Pune, and Hyderabad, QSR. And just like you mention, QSR business is also growing very well, where in you onboarded one client called Subway. So this particular plants are also helping you in penetrating your retail bakery business. Just like you mention, you supply your retail products, bakery products, in 300 kilometer retail. But so talking about specially Pune region, your product is still not available majorly in Pune region.
So my question essentially is, to penetrate your retail bakery products more, are you looking forward to one is the distribution side, and on the other side, what kind of CapEx plants do you have in the near and in the medium term future, in the other parts of the country, to penetrate your retail bakery products?
So I think as we are growing, we are scoping growth by adding infrastructure, whether it is our own or looking at manufacturing as well, as a way to maintain a good capital efficiency. We are seeing strong different numbers in all our markets. Whether it is the Noida plant, whether it is the Mumbai plant, whether it is the Bengaluru plant. In Mumbai, we have already spoken about a very large possibility for bread production coming in. But keep in mind, seeing the immense potential and the brand impressively given as well, both in Pune and in Mumbai. We are set in Pune. And here also, we are seeing a good growth number. With Bengaluru also, we have already started work on increasing the plant capacity of our existing unit. And in time, we will be looking at putting up new facility in Bengaluru as well. But that will be in the future.
And upgrading our existing facility to produce more capacity. In Punjab, we have already upgraded. Will give us access to newer markets, which were previously incomplete by Indira Gandhi. So I think it is a robust plan to support. And we are confident that with our new manufacturing, which is coming up in Mumbai, our penetration into Bombay and Pune will significantly increase. And modern trade also employ.
So thank you for this answer. Just one follow-up question on that. So in Q1 quarter, we also saw that you came up with some new products into the markets, in the only bakery sites actually. And also, one is on the product sites and second B, what kind of you can just give me range on what kind of margins, EBITDA margins, do you enjoy on your bakery sites?
So in retail EBITDA margins, unfortunately, division-wise, I would not be able to share because of the specific nature where we are operating, both with B2B and B2C customers.
No, if you could just give on the retail sites. I am not asking for the distribution sites.
So I think over the past few years of the things, we have had challenges in terms of sharing numbers on retail versus B to B. So we will be only able to give up a number of on the way we are currently getting it on a consolidation basis. So yeah.
All right. All right. No problem. I respect that. Thank you for.
थैंक यू।
Thank you. Ladies and gentlemen, your time concluded. That was the last question. I now hand the conference over to Anup Bector for his closing remarks.
Yes. Thank you everyone for joining us. I hope we have been able to answer all your queries. In case you require any full details, you may please consult us and Orient with our investor relationship partners. Thank you so much. Bye.
Thank you very much, members of the management. Ladies and gentlemen, on behalf of Mrs. Bectors Food Specialities Limited, that includes this conference call. Thank you for joining us. And you may now discuss your.