Okay. That's good to hear. So basically, the dominating part is FOB or where most of the pay is shared by the importer. You only take part of it, a small part of it. Kushal Desai: Yes. So the bulk of the business which we are executing right now is in that bracket. Avnish Tiwari: Right. The second question is that what are the dominating types of cables you export to the US? Are these less than 1,000 V or higher, more than 1,000 V? And what is the key raw material in this thing, aluminum or copper? Kushal Desai: So the bulk of what we export is all aluminum alloy. So there's a special alloy which is used in the United States, which is an 8000 series aluminum alloy. So we produce the alloy ourselves, the rods that is from our rolling mills in the conductor division. Then they are aged and then made into conductors and then finally insulated to make the cables. So there's a whole section on our website. If you go and see, you will see a set of UL approved products. So those are the products which are being manufactured and shipped to the US. There are a few copper products as well, which is a relatively very small volume. The bulk of the volume is aluminum alloy. Avnish Tiwari: And these copper products would be cables of less than 1,000 V or more than 1,000 V? Kushal Desai: So the copper products which are being exported right now are basically medium voltage cables which are with copper in. So we are not doing any lower end copper because there's the US has zero duty on import of copper even today. There is a 25% duty on import of aluminum. So aluminum has been a strategic manufacture in the US, whereas copper is something that even today the government believes that it should be imported in the US, without tariff. So our whole strategy is to focus more around products that are aluminum based where APAR has always had strength. Avnish Tiwari: So in less than 1,000 V are they typically using copper or aluminum if you want to do in future? Kushal Desai: So the US, is largely an aluminum market. Aluminum alloy market. Avnish Tiwari: Less than 1,000 V, no, I am just talking about normal cables. Kushal Desai: Less than 1,000 V, above 1,000 V only special applications you use copper over there. Otherwise predominantly it's aluminum. Avnish Tiwari: Got it. Mostly it's the aluminum market then, okay. Kushal Desai: Yes. Avnish Tiwari: And last question I have is that you talked about Mexico also having the duty. But my understanding was most of the cables are under USMCA in Mexico. Is that, like, you are talking about mostly alloy which is not part of this USMCA, or you think cables are also not part of MCA and they are attracting duties? Kushal Desai: Right now, from our understanding is that unless and until Mexico comes up with anything different they are also facing the same tariff situation as India. The minimum tariff is 10% whatever you want to bring into the US. Unless there is a very specific FTA in place which is like the first one that they signed is with the UK. Nobody else has signed anything specifically as of now. So we are in the same boat as Mexico as of today. Avnish Tiwari: Okay. So your understanding is that these cables or alloy you are exporting are not part of MCA, USMCA in Mexico?
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