This is Mukesh Saraf here. Sir, the first question is on market share. You had alluded that there's some improvement in market share. Could you kind of give the number for EXIM market share currently for you?
Okay. So this is again only because you're kind of not taking the lower margin and the shorter lead distance business? Or is there some competitive intensity change that we are seeing in terms of pricing or services offered by others?
Yes, sir, good evening and thank you for the opportunity. My question is related to the alloy wheel business, specifically two-wheelers. So, we are expanding capacity here and I did notice that two other large alloy wheel players are also expanding capacity this year. So, my question is more of the industry, where do you see this now in terms of the import substitution with this expansion, are we more or less covered now and most OEMs are now locally sourcing all the alloy wheels for two-wheelers?
Sure. So, basically, there is still a lot more opportunity in terms of the import substitution because in terms of especially two-wheeler alloy wheel implementation is already at peak. So. So, you are saying there is more opportunity to grow beyond this expansion as well?
So it's on the similar lines. Just if you could -- I mean, you've given us a lot of information, but just trying to u nderstand, for the Kothavadi facility and the Bhiwad i facility, what's the kind of capex we are doing in the Phase 1? What have we done so far? And anything that's pending for Phase 1?
And we have some more that we'll do, sir, Kothavadi, for Phase 1?
First question, again on the lithium-ion side, is it fair to assume that once your plant gets stabilized in 2-3 years down the line, you will still have a much higher exposure to four-wheeler, three-wheeler OEMs in the lithium-ion cell side, given that some of the larger four-wheeler OEMs are also looking to set up their own cell manufacturing units? So, could you give some sense on that? Subir Chakraborty: So, let me tell you one thing that globally there are three models which are in operation. One is for large particularly four-wheeler OEMs, they are thinking of or have set up dedicated plant, for example if you take Tesla and so on, then there are OEMs which have agreements, long-term agreements with battery manufacturers because they are not interested to set up their own plant and then you have others who don't have long-term agreements, but they source from various battery manufacturers. Now, this is a function of the CAPEX appetite of these individual OEMs because this lithium ion requires a huge CAPEX to the extent of 70-80 million US/gigawatt hours, number one, number two, OEMs per se do not have any special skill or specialization in battery manufacturing. This is a completely different subject. OEMs are basically assembly units and their expertise is in the automotive area, rather than in the battery arena. So, this is a new expertise which they will have to develop those who are thinking of getting into this area. So, this is a huge challenge for many companies and therefore they adopt either of these three models that I talked about. And I do not think all OEMs will certainly get into battery manufacturers and from the discussions that we are having, we are fairly confident that a good number of them will rely on the other two models that I talked about, going into the future. So, that is the way it will play out. Two-wheelers, certainly bulk of them will not get into lithium- ion manufacture, and stationary applications, certainly not. You do not expect Airtel or Vodafone to start manufacturing lithium-ion batteries. I don't see that happening. So, therefore, there is adequate space as I have talked about that demand is, let us say, if I take it as 150- gigawatt hour, which is in between the pessimistic and optimistic estimate. We are talking about first phase of 6-gigawatt hour, where is the challenge and then in the second phase, maybe another 6, which is 12-gigawatt hour. So, the market is very large, and it is going to grow and therefore this poses well, places this particular lithium-ion venture in a very good position.
So, we are not going to have a significant skew towards just one of those segments basically? Subir Chakraborty: No, it is, we are having a very diversified portfolio spread out across all sectors and as you know, Exide has got deep connects. We have been in this country for 75 years. All the OEMs that you see today, their first launch was with Exide battery in this country. So, therefore, we have very deep connects with not only with OEMs, but also with customers in the stationary application area, where again we are the market leaders in practically every segment. So, therefore the conversations which are happening today are very positive and we are very confident that this particular project will take off very well.