Hi-Green Carbon — Q4 FY25 earnings call

rCB, currently, is adopted by Master Batch industry, Plastic industry, by solid tyre, conveyor belt manufacturer, few of the two Wheeler tyre manufacturer. So it is growing a market in a various segment. But fact is that still tyre companies of India, Four Wheeler Tyre, especially Four wheel tyre companies in India. They are doing a research. They have not started yet to utilize rCB at their association level also, like ATMA(All India Tyre Manufacturer Association.)

Clarifies the current adoption status of rCB, highlighting its use in various industries but limited penetration in major Indian tire manufacturers who are still in R&D phase.

Asked by Divy Agrawal

in dhule plant we decided to do research, though it will take one or two year, and we are going to install that power plant that will run, or only by utilizing this syngas, and for that we have already ordered machinery for generation of power... it will be around Two Cr. for whole set of power and panels and synchronizing with existing panels and switches and transformers, etc.

Explains the strategic shift in syngas utilization for the new Dhule plant, focusing on power generation for self-consumption and potential grid export, which is expected to improve margins by reducing energy costs, rather than sodium silicate production.

Asked by Siddharth Agarwal

Last year we did a little bit. But this year we avoided to generate EPR, basically for the sake of safety, because our vendors are already generating EPR and we don't want to double it. We don't want to claim a double credit, so we are avoiding, and there is a to be very fair. Since it is a new concept. So there is a lot of ambiguity and lot of double crossing. So for the safety we are not generating EPR. On this company last year.

Reveals management's cautious approach to EPR credit generation due to policy ambiguity and risk of double-counting, indicating a potential missed revenue opportunity or a prudent risk management strategy.

Asked by Siddharth Agarwal

in the last 2 years we are doing da maximum expansion... So the cost of all the expenses like salary, like financial expense. These are impacting on our bottom line and second thing is that in last year we started our pyrosis plant only in Dhule and rCB. Started late in March. So the contribution comes maximum from rCB. So rCB It was not reflected in our P&L So margins of only Pyrolysis, where we get a little bit thin Margin was reflected in our P&L... We target it. It will be stable around 20% to 25% in between.

Provides a detailed explanation for recent margin pressure, attributing it to expansion costs and the initial phase of new plants, while also setting a clear long-term EBITDA margin target.

Asked by Mayank Agarwal

Currently till last 2 years Indian tyre market waste tyre market was ended by this non registered unregulated vendors. But since introduction of EPR policy, so many vendors are organizing their channel for collection of tyres from the interior part of the country and we are getting a good volume from a single vendor, and many development in this line is happening. So we don't find, even it is getting easier to get a material wherever we put a plant.

Indicates that the EPR policy is positively impacting the organized collection of waste tires, making raw material sourcing easier for the company, which is crucial for its expansion plans.

Asked by Siddharth Agarwal

In Gujarat before 15 years, when batch type of reactor was at the boom. So many people have installed a batch type reactor. So there were a few accidents... Gujarat government so Pyrolysis was banned in Gujarat. But we present our case. Our association, a few other people, few of our friend. We took initiative and approach government and showcase the comparison and developments in pyrolysis. other technologies, like continuous paralysis, advanced technologies. So looking that government have started giving permission for Pyrolysis in Gujarat.

Reveals that past regulatory hurdles in Gujarat for pyrolysis plants have been resolved, opening up a new state for potential future expansion, which aligns with the company's diversification strategy.

Asked by Manan Madlani

Basically technology. We have a technology, and we have expertise to modify our technology also. So whatever requirement? thing is that what we are doing is not important. Where, when we are approaching big giants. So what they need, we need to adopt it and modify accordingly... For us. We can say yes, because we know ins and outs of technology, we it is not like brought out vehicle from outside. So it is developed by us. We know the ins and output.

Addresses a critical industry challenge (rCB quality consistency) and highlights the company's proprietary technology and expertise as a key differentiator, enabling them to meet customer specifications and potentially gain market share.

Asked by Ankur Aggarwal

It is increasing competitor. We have a multiple approach from different or whosoever are installing this big scale plan. They have already a approached us. But we denied because it is a ultimately deviating our interest in industry. So we don't want to even disclose our technology, also. So increasing-reducing a competition is a one factor. and second thing is a secrecy of technology.

Underscores the company's strong belief in its proprietary technology as a competitive advantage and its strategy to protect this intellectual property, indicating a focus on maintaining its market position rather than licensing.

Asked by Ankur Aggarwal