Bulkcorp International Ltd — Q2 FY26 earnings call

So, pharma grade is something which we are working on it, as I mentioned in my brief presentation, that that is something which we are not at the moment producing pharma grade, but we are working on that. For food grade, it's the major part. I would say roughly around 80% of the bags that we produce are food grade bags. The remaining 24% is chemical and other industrial products.

Clarifies current revenue segmentation and highlights pharma grade as a future growth area currently under development.

Asked by Mahesh Seth

So, we are already working on discussing some way of doing some kind of backward integration, where we can start sourcing the raw materials at volume, and then maybe get some discount on those things. So, that is something which is a long term process, something which is already being worked on, parallelly.

Indicates a strategic, long-term initiative to mitigate raw material cost risks and improve profitability.

Asked by Mahesh Seth

Secondly, we have a set of machines, which is very unique. It's designed by us based on the experience that we have to improve the productivity and get the best quality output from the machines. So, and the product that we make, you know, so it's a very value added product, very difficult bags. It's a customized bag, because most of the time when customer is struggling to design some kind of typical product to feel their product, so we help them design these bags. That's our expertise and that's how we can differentiate from the other suppliers.

Explains the company's unique selling proposition through custom technology and value-added product design, differentiating it from competitors.

Asked by Aditi Roy

So, we are already working on getting a higher utilization in terms of trying to get some orders from different countries from volume orders. Maybe it could be a little less profitable. But just to keep the production running and keep utilizing the capacity, we are always in discussion with large volume tenders. So, that is how we can, because we are very choosy in taking up the orders, because end of the day, we don't want non-profitable orders. So, we always work on higher margin, more complicated bags. But as I mentioned earlier, that we are also looking at bigger volume with no margin business as well, so that we can fill up the capacity.

Reveals the strategy to balance profitability with capacity utilization, including pursuing lower-margin volume orders to keep operations running, alongside plans for future CAPEX.

Asked by Vinod Shah

So, sustainability is the key word in today's time. So, today I would say ESG is, the new CSR is ESG. So, every organization, I have started looking at every organization they work with, how sustainable you are and how you are providing a sustainable product. So, we as an organization is also working very closely with a lot of our partners globally in order to provide them a sustainable solution from our packaging. At the same time, we have also invested in solar energy just this year. Those are the activities that we are doing very closely and that is also one of the key criteria for a lot of certifications that we are availing.

Confirms sustainability as a critical factor for export clients and highlights the company's initiatives (solar plant, water recycling, energy reduction) to meet this demand.

Asked by Sakshi Shinde

Well, the certification like BRC, which is basically for the food grade. So, you must have this certification for all the food grade production. So, certainly, it fits on the pricing because we get the order based on the food grain facility, right? Secondly, we have the certificate called Sedex, which is the ethical data exchange certificate. So, when we work with the corporate companies, big companies, and when we have big tenders, it is mandated you have this kind of certification to participate in those tenders. So, if you don't have this, you can't participate. So, that helps us to kind of get entry to all the multinational and big companies' tenders. And along with that, we have certification for health and safety and the environment that helps us to pass all the audits because, as mentioned earlier, we have audits every year from almost most of our customers.

Explains how various certifications act as essential entry barriers for large tenders and contribute to pricing power and audit compliance.

Asked by Sakshi Shinde

When we look at expanding our capacity, mainly we look through growth in the market size. Because as I said that because we are working in this industry for so long, we have a very close collaborators or our distribution partners in different parts of the world. And when there is, because they are closer to the ground level. So, when we get intimation that there is an opportunity that is growing there, and this is the industry that has come up, they are winning some contracts. So, to fulfill those contracts, we will have to build our capacity. So, then on that basis, we build our capacity, we increase our capacity. So, these are the criteria. And on top of that, also the regulatory policies changes also helps to give a little bit more confidence. So these are the combination, I would say.

Details the multi-faceted approach to geographic expansion, combining market growth, local partnerships, and regulatory alignment.

Asked by Mahesh Seth

So, the sustainable packaging demand is gradually increasing in all the developed countries, because of the policies that is being defined by the government in these countries are pushing the customer for the solution for their packaging.

Highlights a key demand driver for sustainable products, indicating a favorable regulatory environment in developed markets.

Asked by Sakshi Shinde