If there are any…

Hi Teena.

Yes. Congrats with a good set of numbers. So my first question is related to genset market. On the current situation, has the demand stabilized and has pricing stabilized now? And how do you see the competition in this genset market right now? So basically, how do we see this market in FY '26 versus FY '25? As FY '25 was relatively weaker as far as volumes were concerned. So that's question number one. And my second question is related to your strategy to grow exports. Country wise and product wise and how do you see this export proportion to grow going forward? So these are my two questions

Sure I just request let's start with one question at a time. Especially when you have several questions embedded inside. But I'll start. So the first one was on Genset, demand and market stabilisation, pricing stabilisation and how we see the next year planning out. And we spoke about this last quarter as well. After an emission norms change it does take some time. And I'd say over several quarters that the market is quite dynamic And pricing and demand plays out on a node by node basis. So that is what is happening. And we are seeing volumes return to where we would expect them to be. And it's stabilising over the next couple of quarters and demand is strong at the moment. In terms of where we see our competition versus us. So Tina that's a bit hard to comment on because I think as a strategy, as a company we have decided where we want to focus and that's really our high horsepower portfolio. And we're very happy now that we have a portfolio actually that covers the whole range. So we used to talk about up to 20 to 50 kVA, we now have products up to much higher than that. And power demands are also higher than that. So we are able to provide that power in a footprint that no one else can. And we're really focused on going to customers and talking about what we have and bringing in that awareness around our product portfolio. Because of course the competition is very, very well entrenched in the high horsepower market. And so that should be our primary focus. So that's on the Genset side. On the international exports side, there are three main regions that we've been focused on. And that is Middle East, Africa and the US. We also have businesses elsewhere but essentially these are the three main focus areas that we have. And the intent is to build out entrepreneurs that are sustainable over time. So we have to be looking at how we can get our powergen portfolio out into these markets and whether we have the right business model and structure for that region, depending on the competitive landscape. So you will see that bumpiness happen until we build a significant business that is continuous and that takes time, it takes investment and it takes time to build relationships. It takes time for these things to settle down. So the Middle East is an example where we've moved into having a Genset OEM in the market. We are very, very clear that that is the right move. But in the short term there will be an impact as that settles down, for example. So I hope I've answered your question The US as well, the US is a market where we will have to continue to make investment. To build out what we need to do, to get ou r products certified but it is an investment that we have to do because it's the largest Genset market in the world. So we can't not be present there

Mihir, this side. Thanks for the presentation. That was quite helpful. I wanted to understand on this smallest Genset 1000 kVA, which you -- th e Optiprime series. I just wanted to get an understanding of how important it is when you compare that to other offerings which are there? How does it compare physical dimension, efficiency from a total cost of ownership? Some colour on that will be helpful and how is that a selling point, just wanted to get an understanding

Sure, so in terms of a product, I think if you look at the industry in general, there is a lot of technology convergence that has happened in terms of the emission norms. So largely people have the same technology. I think the other big advantage is that because of the configuration, we can actually also ensure that we are meeting emissions compliance. For that range, where it's not applicable. So if we do for example 2000 kVA. You saw the video where we had multiple products. We can actually be CCCB 4 plus compliant as well which no one else can offer. So it's also significant from that point of view. Rahul, do you want to talk about fuel efficiency? So in terms of fuel efficiency, the study that we have done. We actually have IOT devices on all of our Gensets and we analysed the data and we saw that most of the Gensets that were running were running below 50% load. And that actually is not an efficient load. So what we created at that time is actually is more efficient solution. We have two engines in the same canopy. So if the load is not the full load then only one engine can be operational.

So if you look at it from a cost of ownership, it is leaps and bounds better than anything else out there. If you were to look at the kind of platforms that we are building, specifically for Optiprime. There is inbuilt redundancy. So for example if you ar e a Genset owner 1 unit goes down, you don't have to replace it with another 1000 kVA, 500 kVA still works. The other part is that if you look at oil and filter changes, for smaller engines they are drastically cheaper compared to what it would be for a larger engine. And when I say drastically, it would be like 20% cheaper, 25% cheaper. So from a cost of ownership standpoint. It leaps and bounds better. Fuel consumption will be at least 10%- 15% better. So like Gauri mentioned, there is inbuilt load balancing that happens. So it will operate at the appropriate optimal load for the Genset irrespective of the overall Genset load. For example, if it's operating at -- you compare a 1000 kVA operating at 50% load and you compare the Optiprime 1000 kVA operating at 50% load, one core will just switch off. So it ensures that you are operating at a far better efficiency than an equivalent 1000 kVA. And we are replicating this across different models. So it's not just 1000 kVA. It's also other nodes that we replicate it back to

Understood, sure. And just second question was on the export side I understand not from a financial number perspective but from an operational perspective. How many touch points or how many distributors have gone up, in the last one year across Middle East or US for that matter? Just to understand, how is our distribution reach increasing? That will be helpful

I'm not going to answer that question because I think that's far more detail than we would normally provide. But we are in the Middle East for example what I can say is that, we have had existing distributors in the region for a long time and what we've done is. we have realigned those distributors to the Genset OEM that we now have. So instead of them working directly with us, we now have a Genset OEM that's managing that channel, which is really important because we need someone on the ground who can drive depending on the market intelligence there. Rather than us trying to do it from here and various different countries, for example in Middle East and North Africa. In the US we have such a small base at the moment, that we will be focusing, say state wise. And depending on certain areas where we want to because it's a huge --it's a huge country. So state wise also there are different applications. There are different dynamics that play out. There are some states that are say susceptible to hurri cane season. So we will have certain strategies that play out there and accordingly we will appoint distributors

Hi. I wanted to understand when you came in, in terms of culture, how -- yes. I wanted to understand in terms of the cultural changes and the organizational changes that have happened over the last few years. If you can give us an insight into what's changed from the time you took over to now? And how does it better prepare you for your goals for 2030? And in terms of understanding the business is a little better from a secular business, how do you make it more enduring enterprise over the next maybe 3, 5 years or longer, if you can give a sense of that?

I don't know if I should answer the question on culture of my team should. But I think some of the main changes that we, I'd say, deliberately made because a lot of things also happen organically and over time when we're talkin g about culture. So se veral things. One was communication. I think as an organization, not only in terms of external communication, but internally, were we communicating at a regular interval and very clearly to the entire company on what our goals were and where we were intending to go. And what we wanted to do? Who are we as a company? What is our strength? And what is -- we value about the people that work there. I think that communication was very important in the beginning -- in the beginning of the 3-year journey. The second big piece of work we did was around HR policies and processes. So of course, we're a legacy organization. We've had certain processes and policies that have been in place for a long time, which may not necessarily be applicable to today's environment. So we looked at those and we made a lot of changes there as well. I mean one of the small changes we did, for example, was moving from a 6-day week to a 5-day week for managerial employees, because we're already -- we've always been in a factory environment. So it was a 6- day week, and we were actually having trouble finding talent because of that. So that was one of the small things we did. The next thing was focusing on high performance. So being very clear that our performance management system was working correctly. And we were rewarding the people who were doing and making outsized efforts. So really looking at how that performance management system supports a high-performance culture. But I think when it comes down to it, I think Warren Buffett very recently said in his Annual General Meeting about culture, just find great people and work with them. And I think really, that's what it's about, find people who are really, really passionate about what they do. You don't get these kind of results from working from 9 to 5, okay? So you would really have to love what you do. And I think that's what we've really surrounded ourselves with in terms of the leadership team and therefore, driving that kind of passion below. I didn't understand your second question. Could you articulate it a little bit differently?

So we've seen the business being cyclical and how do you at least even out for the cyclicality, if at all you can in terms of numbers and outcomes?

So the cyclicality, actually, I would say that we'v e been in the last 3 years in a very strong demand environment. We've been very lucky to have been in that kind of environment, right? And as we look at what is really driving demand in spite of what is happening globally. We see a strong pull in terms of domestic growth that's happening in terms of infrastructure spend, etcetera, as well as growth in terms of the infrastructure being set up for technology, right? So data centers and things like that. And I think, therefore, if we're bullish about that continuing, now that we've been through the emission norms, and we have the product portfolio. Three years ago, we didn't have that product portfolio. So we could have been more susceptible to ups and down, say, in the lower part of our portfolio, which is really dependent on, say, GDP growth. So here, when we're looking at high-growth segments in the high horsepower space, I think we are much more insulated now from those ups and downs. If we look at the industrial side, it's really about key account management. And I think we've made a lot of investment in terms of time and effort and building out teams who understand specific accounts like railways, defense, navy, even the construction OEMs. So even though we may see up and down, for example, on construction OEMs, I think these investments will happen over a longer -- I mean, the returns will come over a longer period of time, right? Like an account like defense, it's not something where you see the return happen in a year or so, it rarely plays out, and you have to keep that engagement over a long period of time. So I think we have insulated our selves much better from cycli cality than perh aps we were 3 years ago.

Let's start again, sorry, I was looking for you. So I didn't...

Sure. So we have talked about Optiprime and high horsepower segment for some time. So right now, what sort of volume percentage we are in there? And when we are building apart from the cost, what kind of strategies we are putting is to get that market share over our peers?

So I'll just answer the second part of the question first, which is the kind of strategy we have to compete with our peers. So one is that with the Optiprime range, of course, like we just spoke about, it's a far superior product itself. That being said, we have to build awareness around that product because to really provide, say, value in terms of take like reducing footprint, right? If a certain project has been designed with a power solution in mind, which, of course, is not us for the day. If we are able to get in and provi de Optiprime, yes, in te rms of total cost of ownership, things may come down. But you don't really get the advantage of having a smaller footprint because the design of that project has already happened. So our strategy then is that we have to really get that product out there in terms of awareness, whether it comes to who the -- whether it comes to engaging with customers or whether it comes to engaging with consultants, who influence customers. And if we can then demonstrate that with our lower footprint, we have a better product. We're providing real value because if it's in a space where, for example, real estate is at a premium. We have a very, very big advantage over our peers. The first question was on volume.

So coming to the volume on HHP side, as Gauri mentioned that now we have a complete portfolio available on the HHP side. So we have seen a growth of 18% in the volume compared to the last year.

For entire HHP?

Yes. So Rahul, you want to take that?

Okay. Would it be like very negligible at small at this time?

In terms of volume, yes. It will be very low for us right now.

Prathmesh Salunkhe from PL Capital. Ma'am, I just wanted some clarification regarding your strategy for FY '30 that is $2 billion, right? And the Arka Group, we are also targeting $1 billion like the $1 billion company Arka on stand-alone ba sis. So does that include in the $2 billion? And if it's possible, can you give us some breakup on like how much it would be contributed from, let's say, powergen or how much it would be from B2B, B2C? Thank you so much

So I just want to clarify that the 2 billion is a revenue target and the 1 billion goal that Arka has is a market cap target. So that's one. The one thing I have learnt in the last 3 years is not to give a break up because it never lands that way. The point of setting these big goals is to strive for something outsize. So it's very difficult for me to say this is what will come from powergen, this is what will come from industrial, this will come from, it's not going to play out that way. The idea is to say that these are the opportunities that we see, these are the kind of efforts that we will make And, of course, over the last 3 years there ha s been a certain investment whether it's been in people, capacity enhancements, key customer management, key account management and that's what we feel will lead to or will give us the shot at this kind of growth. So I really encourage you to look at it that way because if I start giving break ups then we always get compared to whether that has happened or not. And especially in this environment, I think, of course, we see the future is very bright, but there are also many things going on which we have no control over.

Yes, hi good morning team I have few questions. This is Renu Baid Pugalia from IFL Securities. My first question is on the BS V transition how has that been over the last 5 months, both with respect to the price impact in the market and acceptance from the customer side and release of the pre-buy inventory which was there in the channel. That's the first question?

Okay yes BS V saw a very small pre-buy actually, but I mean compared to like a CPCB IV plus change. So BS V actually again was another emission norms change that was delayed. So it was supposed to happen in April of 2024 and then got pushed to I think October and then January. So we had a lot of time to engage with our current customers our BS IV Customers because this kind of change is very different from powergen you have to engage with them beforehand to see what kind of new equipments they're building and whether your prototype fits in that envelope. There's also a period of prototype trials that happened which went well and I'm happy to say that for most of our customers we have been able to continue with the account or increase the wallet share of that account. And we've also had the opportunity to bring in some new customers. There were a couple of accounts here and there that we have strategically decided to let go of because the pricing may not have worked for us. So we've taken those calls as well.

An average increase in the pricing in this BS V segment for us?

20%.

Second is coming back on the core powergen business with respect to CPCB IV transition. Initially we had some hiccups in terms of share gains, models were not available or nodes were not available across all the products, where are we in terms of availability of nodes, different nodes or products and on the pricing, have we started to see price points now tapering off because of competitive pressures or are we able to hold on to the prices? Management 4 If you look at the availability of CPCB IV products. We haven't had too much of a challenge in terms of making our products available. As pe r the mandate availability of CPCB II post migration of CPCB IV. So we had more or le ss like a hard switch over And the CPCB II inventory liquidated very quickly. A lot of the competition continued to in some shape or form make that CPCB II inventory available to the channel. So if you talk to some of our dealers or channel partners, that's the input that you may get, but honestly we don't see that as a challenge. Even now, I don't think availability is as much the issue, what's actua lly happened is that there has been choppiness in demand and so we're just trying to make sure that we plan for it appropriately. What is the second part of your question?

So just rephrasing it Availability of CPCB IV compliant product across all the nodes, because there were gaps in terms of availability of coal products at various nodes in the market versus that of Cummins or others in the market. So today are all the nodes covered up in terms of a product being available on the shelf with the consumer. And B, on the pricing side, have we seen prices consolidate a bit or they've still been able to maintain the pricing at which it was initially launched?

Okay, so if you have market intelligence that we'v e not been able to make our products available, we'll take that feedback As far as the pricing is concerned, look the pricing is it is a WIP and it will mature. I think we're still in a phase where that maturity is coming up. And I think as we move into this financial year, we're seeing a fair amount of stability, but we'll have to keep our eyes open.

Thank you

We have the Arka team here as well. They just put their mics down.

Yes, hi guys. So one, there was a comment earlier that there was some write down which we'll talk about later, love to hear that. Two, capital raising what's the update. Three, Gauri for you at some point the two entities could be in some form separated, Is there any thoughts on that?

So I'll give you the first two answers. There has not been any write down. We are just preparing ourselves to build a secured retail Journey and that's more granular in nature. And when you build a granular book, today we have only 2400 customers. The moment you build a granular book suddenly in a month you'll be disbursing to almost 10,000 to 15,000 customers the way we are aspiring and the model which we are building. So when 31st March two things we did for quarter 4. One, as part of our strategy financial warehousing is important which is something called direct assignment of our assets. So direct assignment is when you sell your asset, you book the income and it goes into a bank's balance sheet, but you continue to collect from the customer. And whenever a customer forecloses the loan, that income needs to get reversed in our books as well. Because the income happens on an upfront basis and we had to do, this has to happen on a monthly basis. Now last year there was a large direct assignment imperative and initiative we took. So almost close to 1,500 crores of our book we sold, but that monthly reconciliation had to get true up on 31st of March. So that true up has happened. Going forward every month a true up will happen on a direct assignment book, because you have to ensure that the matching revenue and matching cost comes when a foreclosure happens from the customer. That's one part. Second is we as a strategy have stopped unsecured book lending. So we had Fintech partnerships which is completely stopped. But when I came in I saw the book and for abundant caution, we raised the provision coverage out there because I think unsecured book is something, at least, personally I don 't understand well and as a strategy we will not pursue. So if you look at the balance sheet provision coverage that stands at about 65% and the unsecured book provision coverage is as high as 85% to 90%. So these are the two things which we did in quarter 4 and that's what I think Sachin was.

What were the amounts in the two specific cases?

So direct assignment the true up will be close to about 12 crores to 13 crores and the provision which we increased will be close to about 15 crores which actually helps us to build a very Strong balance sheet into the future. In spite of these two one times, our profit after tax grew from 69 crores to 80 crores on a year-on-year basis. It's very important when you build granular book. Spick and span controls are important and grid is more important than glamour. So I think that is very important in retail business.

You have our full support on that.

Thank you. I'll leave the third question to my Promoter.

The second question.

Capital raise? Okay. I'll put it this way. Ou r business is a capital gu zzling business, without capital it's difficult to sustain. But the right business model is required. So for the next 6-9 months the three things which we spoke about, one is the ST Lap which is INR8 to INR25 lakhs secured loan against property. That piece of business, which is a northward of 16% yield. The second is pre-owned wheels financing. That piece of business is also a ticket size of INR8 lakhs to INR15 lakhs, again, 16% northwards. And the third one, which we are incubating right now is genset financing because any business in granular retail is 16% yield and above. I would like to build that book now for the next 6 to 9 months. Because if you have that critical mass, then you will be able to attract the right kind of capital. So capital raise is something, which we will look at somewhere around January. Preparation is pretty much there and pretty much in touch with most of the private equity guys, but it's a Kirloskar brand. We have to chose responsibly with whom we need to partner, but nothing before Jan. And as we speak, our Tier 1 capital is 20%. And the growth aspiration, this is not the time to push heavy growth. This is the time to ensure that we build the distribution, the collection infrastructure, the risk management policies and the technology for the next 6 to 9 months. Once that mass reaches INR1,000 crores, I'm expecting it to reach about INR1,000 crores in the next 6 to 9 months. I think that will be a very good time to look at capital actually.

So Jeetu, I think just taking off from what Samrat said, and you missed the presentation, but we spoke about what we wanted to do in the first phase of Arka. And now we're at -- which is the last 5, 6 years, and now we're at a phase where we're pivoting to build this retail book, which obviously demands and is a very different sort of animal. And then we will start to speak to possible partners. So over the long term, of course, the intent is that the business should stand on its own. But we will follow the path that Samrat has just articulated.

Okay. Yeah. My question is, firstly, on the technology side, you highlighted that we have developed this 2 engine technology on the Optiprime series, 1,000 kVA and above. Do we also offer a single engine technology that our competitors provide, and how difficult or easy it is to transition towards that technology? And my second question was more on the initial remarks that you we're giving upon the channel distribution side that we are doing some channe l restructuring for the B2B business. So what exactly, if you can throw some light on what is the exact general distribution remodeling that we are doing out there? And third question was on the B2C side, where historically, our margins have been slightly volatile. This particular quarter, we have been able to clock double-digit kind of margins. So what are the sustainable margins on the B2C side of the business? And how do we see that particular business going? So these are the 3 questions from my side. Thank you.

Yes. Thank you. So on the first question, we have a single engine solution up to 1,500 kVA. So we go up to 1,500 kVA on the single engine. And then beyond that, we offer Optiprime. And actually even below 1,500, we do offer Optiprime as well just because of the advantages that it has over a single-engine solution. So that was the first question. Your second question was around, the channel restructuring. So I think what was very important when you look at our strategy, whether it was on the high horsepower side or in terms of the emission no rms change that happened. And what I mean by that is that our entire portfolio moved from mechanical to electronic engines. With that happening, what we required from either our sales channel or our service channel for certain investments. For example, on the sales side, our GOEM partners would have had to be willing to make investments to assemble high horsepower gensets. On the service side, there were investments required in terms of making sure we had enough service engineers, investments in certain tools to be able to fix the electronic engines. And so that was the channel, let's say, rationalization that had to happen. And if you're making investments, you also have to be here for a cer tain size. So are there service dealerships, for example, that would be more viable from a profitability perspective if they were consolidated? Are some of the conversations we had as well? This work has largely been done in the last 3 years. It's not something that's really continuing beyond that. But the majority of it has been done in the last 3 years. And on the distribution and aftermarket side, actually, it's been a very significant restructuring. But in spite of that, we've seen the growth as well, which basically means our hypothesis of having a certain size dealership has played out for us.

Yes. Coming to your B2C side of questions. So you must have seen a very solid rebound from B2C performance. And this has happened predominantly because you are aware that we were consolidating our 5 small plants in Ahmedabad to a Sanand location and creating a mega site. So that work has been completed by end of quarter 3 and now plant stabilize, and we are seeing full production from that plant. So that helps us the availability of the product, which improved our sales. And secondly, on the cost side, also we are working continuously on the B2C side. So both the variable cost and the fixed cost. So half of the work has been done, and the remaining will be completed in the next couple of quarters. So in terms of profitability growth and the EBITDA growth for the B2C business, we aspire to grow both in double-digit in coming years.

Last one question on the market share side on the Powergen. I think so during the last quarter, you had highlighted some sort of a market share loss. What is the status now at this point of time? Have we been able to recoup the market share? Or where does our market share stand if you can briefly highlight?

So market share during the submission norms change, we expect that it will move up and down and stabilize somewhere. I think the intent that we have as a leadership team is are we able to defend our LMHP market share? And are we able to see steady progress on the high horsepower side. There are node-by-node dynamics that play out depending on demand for that node, depending on whether your engine platform is at an advantage of that node or not. I would say let's just wait a couple more quarte rs to see where it stabilizes. We're just at the beginning of that stabilization happening. And then I would like to comment on market share. I think what I can say is that on the high horsepower side, we are seeing those steady increases, and that's really what will be significant for us because that's where the value is.

So just going back to the 2B2 strategy. Is it th e existing product platforms and it's about market share gains both domestic and in ternational to really reach th eir -- its new platforms, new products. And there was a mention of inorganic as well in that slide. So it's new energy storage. Just thoughts of there. How does that kind of fit into the 2B?

Sure. So overall, I think our vision over the next 5 years is to really be a global technology leader when it comes to power solutions. And what that obviously means is now we're not saying that, that specifically has to be power coming from engines, right? And as a company, in our 2X-3Y strategy as well, we had articulated our 4 technology tracks, which we wanted to make progress on to be able to say that if we are in a conversation with a customer who, for example, is very sensitive to ESG requirements or is in a remote area where say fuel is not available. Do we have the portfolio of products and technologies and solutions where we are able to customize and design a solution for them? So I think what's really important for us in the next 5 years is to see whether those technologies are something that we invest in to develop in-house, whether we partner with someone or whether we buy, right? So build borrower buy would be the analysis that we do when we're looking at how we need to make progress along those technology tracks, but it's really critical that we make that progress. If you look at the first track, which was on internal combustion engines, we really, in the last 3 years, have made significant progress in terms of being fuel agnostic and having engines that can really run on diesel. We have the largest gas portfolio in the market in terms of Gensets. We've done demonstrations for ethanol and methanol. We've done hydrogen blends, but these things have to also become -- these fuels have to become available. They also have to be economically viable for the customer. But we are able to provide that. When it comes to the rest of the technolo gy tracks, whether it's batteries or Microgrids, there is significant progress we have made, but there are also areas where maybe the technology is a little further out, we have to keep an eye on it and we're continuing to do that. So that's really, let's say, where we would fo cus maybe some of the acquisitions if we have opportunities in those spaces. The second area is maybe if it gave us access to a certain geography, if there's a company which is really well entrenched in the market where we're not present that would be something maybe that could be potentially interesting for us. So there is definitely an inorganic element, which was not there in the last 3 years. In terms of our product portfolio and investing in new products, I'd say it's more on the technology tracks that is not engines. Because on the engine side, we really have actually arguably the widest range in the world, going from very small at 3 kVA to very large engines. And there's really no one who has that whole range. I hope I answered your question.

And just last one. If you were to just take a wild guess, internal combustion would still be 95%, 99% in 2030? Or you see a transition which could be 5%, 10% portfolio, just a wild guess?

So I'd say maybe it will be 80%. Yes. Like I think we are building our Microgrid solutions. We are offering that. And I think we should aggressively pursue some of those conversations as well. So I think we will be able to provide some alternate solutions as well.

You've been through part 2 partner transitions, one in the Middle East, one in South India, about 6 months ago or have those played out, are they scaling back to expectations? And is that looking good?

Yes. So there's been no problem on the domestic transition. I think that has gone largely when - - on the Middle East side as well, we have seen some -- there's a transition happening for sure. But the -- essentially, what we've done is we had existing distributors in Middle East and North Africa that used to work directly with us, and now they're working through that partner. So of course, when there's a change in people, there is a bit of bumpiness or uncertainty. And I think a lot of those questions has even come while we've changed teams, right? And whether it's been at Kirloskar Oil Engines or at Arka. But I think what I would say is uncertainty or that rockiness is not always bad. And we are very clear that, that is the right move to make. We have to have a Genset OEM in the Middle East because that enables us to be close to the market. And if we require the flexibility to, say, assemble Gensets in various regions over there, we have that partner for us, and they are familiar with the industry as well.

There are a couple of questions from webcast audience. Most of the questions are answered. There was a question on Arka Listing, Arka AUM. We have answered that. Just 2 more questions, and I will stop after that. One question for you, Gauri, is what were the key misses you think for the 2X-3Y journey? And how are we planning to overcome those in the next phase of growth?

Yes, that's a great question. I'd say, if you look at the way that we articulated our strategy, there was -- the biggest miss, I guess, was on international because we had said that it will be 30% of our revenues. And I'd say that the learning that I've had over the last 3 years on international, is that you could potentially see short-term opportunities, but it's really, really important that you invest time to find the right partners to build out a business that can last the next 100 years. And I think what I took for granted was the ki nd of brand equity that we enjoy in domestic markets, people just don't know us abroad, right? So there's far more time required. There's far more patience required. We will have to make investments and investments before we see that return on international. So that's really been my biggest learning. I think having said that though, our international business has almost doubled in the last 3 years in spite of a lot of the structural changes that we had to make, whether it was appointing partners or looking at how our teams are structured, abroad. So there's still a lot of work that we have to do, but I think that would be my biggest learning.

Yes. So one more question. Which segments are driving demands in PG segment, both domestically and internationally? Also in international, do you see any signals that, in particular regions, you are seeing a high growth?

Okay. So on the domestic front, the demand is really coming from infrastructure, when I mean that, it means big real estate projects, whether it's commercial buildings or large residential projects and of course, the data center segment that would be what's driving most demand. Even in the international segment, data center demand is huge. So that is really what is driving it in general. Now to answer that question is difficult because in every region, there are different dynamics. But I'd say, in general, that's where the demand is coming from.

Okay. There are questions on subsidiary financials. Please note, we will be publishing these soon along with our annual accounts. So I think in the interest of time on that note...

One question. Just on the capital allocation, like earlier, we had announced that we're probably looking to set up a new engine manufacturing probably with the capex of INR700 crores. So like in our next 5-year journey, you would probably -- if you can give a perspective like to reach $2 billion, what kind of capital allocation we'll be doing on manufacturing side and other areas? That was my first question. Second question was on like your slide mentioned 2 things. One was execution of manufacturing strategy. So what are you probably trying to convey? And second, in FY '26, probably FY '27, you were seeing complete execution of technology road map. So what are the milestones you're probably looking at in what areas? So these are the two parts.

So I will take your first question. So on the capital allocation, as a company, we are committed for the new product development and capacity enhancement. So in FY '25, we have invested around INR520 crores. So out of this INR380 crores was invested in KOEL and INR140 crores got invested in our B2C business, which is LGM. As I mentioned that we have done the plant consolidation work there, wherein the 5 plants in Ahmedabad location got converted into 1 mega site consolidation. So we invested around INR140 crores there and created a capacity. Yes, I will go to the future. So I'll just and on, we invested INR380 crores. So out of that INR90 crores went towards the product development, INR90 crores went towards the capacity enhancement on the sustainable side and INR20 crores went on the IT digitization. And as you're aware that in the -- last quarter, we announced that we are going to invest another INR700 crores for capacity enhancement in our existing plant at Kagal that will go towards the product development and capacity enhancement. And apart from this, another INR80 crores to INR90 crores will go towards that Navy project, which we won very recently. And another INR200 crores will be allocating towards the acquisition in line with our technology track and to the $2 billion growth strategy. So in a Nutshell, we are planning to invest around INR1,000 crores in the next couple of years in this business.

So when we mean execute the technology road map, it's the technology tracks that we were talking about that we really -- when I answered Sandeep's question, I think that was what I was referring to. And I think the first one was make sure that we execute on the manufacturing capacity enhancement. Hope that clarifies. Yes.

Okay. So we take that as a last question. Thank you all for joining us. Please join us for a brunch after the meet.