S H Kelkar & Company Ltd

- No new growth CAPEX is planned from India perspective for fragrances, as existing factories and capacity expansions are considered sufficient for the next 10 years. - For Flavours, incremental CAPEX may be required if growth exceeds 15% over 3-4 years. - The company plans around Rs. 200 crore CAPEX over next two years, funded through internal accruals and insurance proceeds. - Debt position as of March end is around Rs. 658 crore; expected to reduce to circa Rs. 550 crore by FY26, supported by healthy cash flow and insurance receipts. - Management indicated a conservative outlook on insurance payouts affecting debt reduction speed. - No mention of raising funds via equity; focus is on repaying debt gradually and funding CAPEX internally. - Overall, no explicit current or planned fundraising through new debt or equity was indicated during the call.

- Ongoing rebuilding of the Vashivali Fragrance facility expected to be commissioned within the current financial year; fully insured with related claims ongoing. - Construction of a new Greenfield facility at Vanavate slated for commissioning later this calendar year; proximity to Vashivali site to enable operational synergies and better inventory management. - Additional factory being built in parallel with the rebuilding of Vashivali due to a major incident; plans to close Mulund operations faster to offset CAPEX with OPEX savings. - Approximately Rs. 200 crore of CAPEX planned over the next two years, partly for reconstruction and capacity expansion. - New facility investment in Europe, including Germany and Manchester, with a CAPEX of around €6-7 million (~Rs. 60-70 crore) expected this year. - No major growth CAPEX planned in India for Fragrance after these two plants; Flavours may require incremental investment if growth surpasses 15% CAGR. - Strategic expansion into new geographies (Middle East, Southeast Asia) and developing flavour ideas for FMCG clients.

- The company targets a 12%+ CAGR sales growth for FY26, driven by existing markets in Europe, India, and Southeast Asia, as well as new geographies like Middle East and the U.S. - Flavours division expects a strong, robust growth of around 15% CAGR, including contributions from existing and new clients. - Fragrance division anticipates 12% growth guided for the coming year, with steady contributions from global MNC accounts and new business wins. - Incremental growth from new overseas centres (Germany, USA, UK) is projected, aiming for Rs. 50-60 crore new business annually from these centres, cumulatively Rs. 250-300 crore over three years. - Global Ingredient business sees good emerging opportunities due to China plus One strategy and favorable global export trends. - Margin improvement expected alongside growth, with EBITDA margin rising from ~15% to 18-20% by FY27. - Growth is expected to be steady rather than sudden, emphasizing sustainable, long-term expansion.

- Revenue Growth: Company projects a 12-15% CAGR growth for FY26, driven by both existing and new clients across India, Middle East, Southeast Asia, and Europe. - EBITDA Margins: Expected to improve from current ~15% to 18-20% by FY27, with margin expansion linked to operational efficiencies as new factories come online. - CAPEX: Around Rs. 200 crore planned over next two years, largely for factory setups; maintenance CAPEX thereafter, with capacity expansion dependent on growth exceeding 15%. - Insurance Claims: Expected to provide incremental cash inflows over next 6-9 months, improving balance sheet and enabling debt reduction by FY26 end (estimated net debt ~Rs. 550 crore). - Global Ingredient Segment: Gradual growth anticipated due to favorable market dynamics and "China plus One" strategy, adding incremental revenues over medium term. - Price Increases: Average price hikes of 3-3.5% factored into growth and margin improvement plans. - New Global MNC Facilities: Expected to generate Rs. 250-300 crore additional revenue over next 3 years, supporting sustainable growth.

- The company does not have many long-term contracts but has good visibility based on client behavior and business growth in the past year. - To achieve the FY26 growth guidance of 12%, the company expects to secure 7-8% new business wins, consistent with past performance. - New wins and a robust pipeline of RFQs (Request for Quotations) are in progress, with some small wins already moving from development to commercial discussions. - The global MNC consumer fragrance business achieved roughly $10 million sales last year and continues to gain traction. - Continued discussions with multiple global MNCs indicate potential for additional order awards, though nothing concrete yet. - The company expects steady ongoing order flow from existing clients alongside growth from new client acquisitions and geographies.