Sirca Paints India Limited — Call Transcript 2026

Jan 27, 2026

January 27, 2026

To,	To,
The Managing Director	The General Manager
National Stock Exchange of India Limited	BSE Limited
Exchange Plaza, 5th Floor, Plot No. C/1	Department of Corporate Services
G-Block, Bandra-Kurla Complex,	Phiroze Jeejeebhoy Towers,
Bandra (E), Mumbai – 400051	Dalal Street, Mumbai - 400001
NSE Symbol-SIRCA	BSE Scrip Code: 543686

SUB: TRANSCRIPT OF AUDIO RECORDING OF THE POST INVESTORS INTERACTION (VALUEPORTAL EVENT)

Dear Sir/Ma'am,

This is to inform you that in terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the transcript of the post investors' interaction titled "Valueportal Event", organized by Finportal Investments Private Limited on January 22, 2026, from 10:00 A.M. to 11:00 A.M., has been uploaded on the Company's website at the link given below:https://www.sircapaints.com/wpcontent/uploads/2026/01/Transcript\_Sirca-Paints-India-Ltd\_Investor-Company-Connect.pdf

A copy of the transcript is also enclosed herewith for your reference.

This is for your kind information and record please.

Thanking you,

Yours truly,

For Sirca Paints India Limited

Hira Kumar

Digitally signed by Hira Kumar Date: 2026.01.27 17:32:54 +05'30'

Hira Kumar Company Secretary & Compliance Officer

Encl: As above

LET'SCONNECT investorrelation@finportalin.com ir@sircapaints.com

Mr.ApoorvAgarwal

JointManagingDirector

SPEAKERS:

10:00to11:00AM

SIRCAPAINTSINDIALIMITED

INVESTOR-COMPANYCONNECT TRANSCRIPT

Finportal: Good morning, ladies and gentlemen. On behalf of…Finportal, I extend a warm welcome to you for our first-ever Investor Company Connect virtual event, Value Portal, where capital meets business. Our first company of the day is Sirca Paints India Limited. So, Sirca Paints India Limited is a Delhi-based paints and coating company, specializing in premium wood coatings and surface finishing solutions for the furniture, interior design, and infrastructure. The company offers a diversified product portfolio across PU, acrylic, UV and polyester coating, supported by brands such as Sirca Italy, Wembley, Oikos, Welcome, and Unico. Sirca operates 5 state-of-the-art manufacturing facilities, supported by more than 26-plus branches and depots. Its extensive distribution network spans around over 4,000 dealers and 900-plus OEM clients across India, with strategic initiatives including Wembley integration and a long-term technology partnership with Sirca S.P.A. until 2041, the company is well-positioned to benefit from the India's growing furniture and interior decor market.

So, we proceed with this call, please note that this call is being recorded. Some of the statements made during this call may be forward-looking, and are based on the current assumptions, which involve risk and uncertainties. Actual results may differ. The company assumes no obligation to update these statements unless required by law. We encourage all the participants to consider these factors and avoid placing undue reliance on the forward-looking information. From the company's side, joining us on the call today is Mr. Apoorv Agarwal, the Joint Managing Director. So, with that, I will hand over now the flow to the management team for their opening remarks.

Please note that after the presentation, we will move on to the Q&A session. Participants who wish to ask the question may type them in the chat box from now onwards in the Q&A box. Thank you, and over to you, Apoorv sir.

Mr. Apoorv Agarwal: Thank you, Drishti, and good morning, everyone. Thank you for joining. I am Apoorv Agarwal, the Joint Managing Director at Sirca Paints India Limited.

So today, I'll walk you through a brief intro about Sirca Paints, the strategic expansion that we have executed recently, and how we see the business compounding over the coming quarters. After the short presentation, I'll be happy to take the questions.

So, Sirca Paints is one of the leading players in premium wood coatings. With a two-decade history and strong brand equity in the furnishing ecosystem. We operate Premium and mass premium coatings. Serving both OEM clients and the retail dealer network. Our strategic is simple. Grow profitably by building a highquality portfolio, deeper distribution and penetration. And strong technical capability. Our key advantage comes from Sirca Italy DNA. A globally established business Operating in 85-plus countries with manufacturing scale and deep R&D strength. This partnership strengthens our product quality, innovation, pipeline, and credibility with premium furniture makers, especially where finish quality matters.

Moving ahead, Sirca has successfully transitioned from being primarily an OEM-preferred partner to building a fast-growing premium retail brand. We are already among the top premium wood coating brands in India, with leadership in North India, and expanding strongly across the Western and the Southern markets. Moving ahead, our proposition is clear. Made in Italy quality, India market customization, plus higher service capability. We focus on premium wood finishes and specialized coatings, backed by strong technical and after-sales support. This year, We have expanded the platform significantly with additions like Wembley and Welcome. Wembley is a mass-market range, including nitrocellulose products, melamine, and thinners. And our core premium Italian wood coatings continue as our flagship. A recent addition also includes Oikos. Which is a super luxury wall textures brand.

Drishti, can you… can you move to the slide… to a couple of… can you skip a couple of slides? Yeah, next slide.

Yeah, so this is about the brand portfolio, moving ahead. I will quickly talk about the Wembley acquisition. The Wembley acquisition is a key strategic step. Wembley is a legacy brand known for high-recall products like nitro sealers, standing sealers, and TT Clear, trusted for decades. We are now integrating it into Sirca's operating model and the distribution network, so we capture scale without diluting our core premium identity. We already have a wide distribution backbone with multiple branches and depots, manufacturing units, growing Sirca Studios presence, and expanding the exports. This gives us the ability to scale faster than newer players trying to build distribution from scratch.

Going ahead…Our revenue is balanced across OEM segment, which contributes to about 30%, where our key clients includes the large and organized furniture, kitchen, and wardrobe manufacturers. The retail where we are scaling through distribution expansion and the studios. The key here is OEM gives stability, and retail gives us brand compounding. Moving ahead, from a brand standpoint, we are actively strengthening recall with the positioning your Italian autograph. Across events, architects' engagements, shop boards, and influencer-led visibility, our aim is to own the mind space in premium wood finishes.

Talking about the engagement and the digital reach. On the digital and the visibility front, Sirca has featured across premium design platforms and top decor publications. This increases the product specification, especially among architects and premium homeowners, which is critical for high-margin premium categories. Going ahead, we have also built a modern loyalty engagement engine through the Sirca Parivar Pro app. Which is helping us unite dealers, contractors, and architects into one ecosystem with 25,000 plus contractors registered on the app. Current usage trends are very strong, with high daily scans and active users creating stickiness and repeat business.

Our leadership team combines deep domain experience in codings, finance, and distribution strategy, supported by a strong board with independent directors. We maintain a sharp focus on governance and longterm capability building. Talking about a quick financial performance of H1, So…Revenue from operations grew from 184 crores to about 245 crores on H1 to H1 comparison, Which shows a strong 33% year-on-year increase. The EBITDA also increased from 33 to 49.9 crores. About a 51% year-on-year growth, reflecting operating leverage and improved mix. PAT also rose from 23% to about 32.3, which is a 37% year-on-year growth. Overall, profitability has grown faster than top line, showing strong execution, improving product mix, and margin discipline.

Talking about the way ahead, as we progress through the second half of the year, environment has Short-term challenges like extended monsoons, the GST changes, and early festive season impacting retail and project timelines. Despite that, our direction remains very, very clear. Wembley new premium range under the Valentino line has begun gaining traction. We continue to differentiate through polyurethane coatings, acrylic finishes, and premium specifications, so company is continuing to spend on the product innovation.

Operating integration, we are integrating the three Wembley manufacturing units into one consolidated facility. Going ahead, this should streamline supply chain, improve COGS, and drive the economies of scale. This consolidated unit is expected to be operational in this current quarter. We see strong opportunities also in the high-value acrylic and water-based PU coatings, where sustainability and performance are becoming decisive. We are pushing deeper into the western and the southern markets while strengthening engagement with architects and specifiers, including global exposure initiatives like Earth Dubai.

To summarize, Sirca is delivering a strong revenue growth, sharp margin improvement, and consistent profitability, while we expand the platform through Wembley and Welcome, and build a stronger and a broader portfolio for long-term growth. If I have to capture Sirca in one line, we are building India's most trusted premium wood coating and finishing platform, with strong profitability today, and expanding the scale for tomorrow.

So thank you for your time, and now I'll be happy to take your questions.

Finportal: Thank you, Apoorv, sir, for the insightful remarks. So, we will now begin the Q&A session. I would request the participants to put their questions in the Q&A box. So, we have received one question, so what is the future revenue outlook for FY26? Sustainable EBITDA margin, and how do you see the company scaling in FY27?

Mr. Apoorv Agarwal: Yes. So, you know, the company is expecting to… the company, is expecting to keep the growth that it has registered in the previous quarters, so the momentum will see some improvements going forward when we are seeing the market to behave better, because the last couple of quarters has face challenges towards the demand side, but beside that, the company has registered a decent high double-digit growth in revenue, and we expect that it should continue and improve further as the demand and the market sentiment improves.The sustainable EBITDA margins, again, as we have stated, remains between 19% to 21%, which is the idea that company has been giving for past, couple of quarters.

Going ahead, if we talk about the long-term vision of EBITDA, with the consolidation of the Wembley facilities, with the production of the balanced products that currently are being imported from Italy, there will be increase in the gross margins, but the company expects also to grow its marketing and advertisement budget, keeping the EBITDA again in the level of 19-21%. Future… if you talk about the future, how the company is planning to scale the business and the revenues and FY27, Is with the deeper distribution penetration, increased product portfolio, and also with the expectations and the change in the market dynamics, where product shift is happening from melamine to PU, and also the local manufacturing in the space of furniture is increasing and has been promoted by the Indian government, will increase the consumption of high-quality wood coatings. Which gives us positive energies that FY27 will see a boost in the woodcoating market.

Finportal: Okay, the next question is, what is the capacity utilization, and what are the plans for expansion?

Mr. Apoorv Agarwal: So, the current capacity utilization of our plant, which has a maximum capacity of 16,000 tons per year, is almost at 70%, and we expect that by the quarter two of FY27, we should be at 100% utilization. We're in the single shift. So, company has done a small capex to increase the capacity by 20%, installing two six-tons, pre-mix reactors, which will increase the production of the byproducts. Plus, with the new Capex, that company took over after the preferential, after the, last preferential round, we have install the capacity with a capex of about 9 crores for consolidating the Wembley products, plus to increase the capacity of polyurethane production as well. So, going forward, company is well poised to, to take the revenue from 500 to 1,000 crores with the current, facilities.

Finportal: Okay, the next question is, on a like-to-like basis, do Asian Paints Berger have similar products? How do you compete against the larger companies?

Mr. Apoorv Agarwal: Yes, so larger companies like Asian Pains do have similar products under the brand called Emporio. But, again, the focus of the big brands is still the larger chunk in terms of the value and the quantity, which is the decorative business. So, Sirca Paints has, you know, has…it was born with the polyurethane coatings by selling the polyurethane coatings, and is proud to be one of the first companies to launch polyurethane coatings. So we are, you know, a pure wood… high-quality wood coating supplier. The PU is into our nerves, and it's a technical product, so we understand the product and the market much better than the… than the bigger players. In the recent times, they have entered If we say Berger, not exactly, but Asian paints do have similar products, but it's not their focus area, so…With the better quality, with the better margin through the retailers, we still are, you know, doing better in the coating segment, wood coating segment, against the big top 5 paint companies.

Finportal: Okay, so will in-house manufacturing allow us to expand our gross and operating margins?

Mr. Apoorv Agarwal: Yes, of course, our gross margins will increase as we start producing the balanced products also in India, which are currently being imported. As I mentioned earlier in my, first question, that the… it will… it might not be reflected in EBITDA in the short term to mid-term, because the company also plans to expand its distribution network in West and the South, so it will be increasing its marketing budgets. It's advertisement budgets. In this area, so the gross margin will increase, but, you know, in the short to the midterm, it will not be reflected in the EBITDA. We plan to maintain the EBITDA in the range that we have estimated, but yes, the gross margins will increase. And the update about our planned expansion in the southern region is that. Recently, we have opened 4 branches in the South India and taken over a very experienced team from different, you know, different paint companies also, and other commodity-based companies. So, the team is on board for last 6 to 8 months, the depots from Hyderabad to Bangalore to Chennai to Kerala are now open, and the momentum has started to pick. So the initial push has happened, the team has gained the experience about Sirca Paint's product line, and, you know, we are expanding the momentum to push, and, you know, the next FY27, even the quarter four, should contribute decently. The South region should contribute decently in the revenues.

Finportal: Okay, so are we planning to launch any new products in the coming year?

Mr. Apoorv Agarwal: Yes, so companies strongly believe in innovation and giving the newer products to the market. Sirca incepted, Sirca Paints was incepted with, you know, with giving India a product that never existed, the polyurethane, with, after that, acrylic waterborne, and now we are all poised to give also and launch the high-quality UV coating, so Sirca will keep innovating and, you know, expanding its product distribution, but very much focused either for the wood or the ancillary products.

Finportal: Okay, and what is our current market share in India, and how does the competitive landscape look like? And hence, what is our differentiation, distribution, product, or marketing?

Mr. Apoorv Agarwal: See, if we talk about the market size only for the high-quality polyurethane coatings, where Sirca paints exist till now, where we are selling the very high Italian technology-based coatings. We are almost, you know, this year we'll be at 15% market share. But if we talk about the total market size, you know, we are still small and holds about a 4, 4.5% market share, because the total market size of wood coatings includes the NC, the melamine, the 1K, the economical PU, the 2K PU, but currently we exist only in the high-quality wood coatings.

Finportal: Okay, the next question is, can you bifurcate between the volume growth and the value growth?

Mr. Apoorv Agarwal: So, if we talk about last couple of years, the value growth has been a little less than the volume growth, because once we started producing the 11 said products that were earlier imported from Italy, but started to be produced in India beginning April 2024, the average selling price of those products has gone down by 20%, so the average selling price of those products earlier were 550. After we started producing it in India, we had saved on the custom duties, the freight, even the cost of production was gone down, and even after increasing the gross margins and increasing our marketing budget, we were able to pass on the benefits to the market, which everyone and the other companies and the immediate competitors also did. So, the average realization gone down… was gone down. So, in these 11 products, the volume growth was much more than the value growth.

Finportal: Okay, the next question is, what is the revenue mix? Like, which category of products give us maximum margin?

Mr. Apoorv Agarwal: So the maximum margins, again, is, you know, the products which contributes to about 80% of our revenue, so those top 20 products, we follow that 80-20 principle, and these are the highquality polyurethane and acrylic-based products.

Finportal: The next question is, you mentioned that you will be at 100% utilization in the single shift, so without any further capex, how do we see our revenue scaling from 500 to 1000 crore?

Mr. Apoorv Agarwal: So, this is about… this, we were talking about the current unit which we commissioned in about 2023. Now, with a new Capex of 10 crore, where we are integrating the Wembley and Welcome products, which were earlier produced in very small 3 units, we have also expanded the production for the polyurethane and future acrylic products. So, this new facility, which will produce the welcome and the welcome range, also has the capacity of producing the polyurethane and the acrylic products. So this alone unit can reach to a revenue of about, 300 plus crores.

Finportal: Okay, the next question is, what is our marketing strategy to make our range of products popular in the market, like the big players?

Mr. Apoorv Agarwal: See, Sirca Paints is very much focused over the B2B marketing, because we are selling a product which is more technical. So, here, the role of the influencer is much, much more important than the decorative products. So, companies very much focus towards the marketing activities, which is towards the contractor, dealers, and the architects. So, we are organizing a lot of meets, a lot of reward programs, a lot of activity and engagement activities amongst these influencers. The marketing budget would go more into B&B, rather than the B2C.

Finportal: Okay, the next question is, where you're seeing some green shoots in demand? How product differentiation is being created? Why Capex and what's ROC is expected? As all prices suppressed, you see margins speaking out for short term to… short to medium term later will shrink.

Mr. Apoorv Agarwal: Yes, so we are seeing, you know, very early signs of revivals in terms of the demand, side, if we talk about the wood coating or any, you know, FMCG product. Last…couple of quarters, has not been supported by the demand, yet Sirca Pains has expanded its distribution network and product portfolios, had registered a decent growth compared to the market peers, but yes, we are seeing certain revival signs, which is a positive sign, and, you know. Going ahead. Also, company expressed that the ROC, the return on capital, and, the other main parameters should improve.

Sorry, Drishti, I missed the next question. There were 3 questions together. I answered the first one, but I missed, and I can't see you also in the…One second, I'll see the answer to this, because I have missed. So, yes, you were also… yes, with the oil price surpassing, we are seeing a little improvement in the prices of the solvents, which is contributing about 40% into our formulation, so we are seeing some softness in the prices. There was, you know, a small period where it was jumped, now it is getting relaxed. So, if we talk about today. There is no big difference in terms of the… no much big visible difference in the gross margins, but going forward, we are expecting that the gross margins should increase on the ongoing product also with the oil prices being suppressed.

Finportal: Okay. The next question is, post-Wembley acquisition, we are guiding of 25-40% revenue growth for FY26, so are we on track to achieve this, or we have been facing challenges in the integration process?

Mr. Apoorv Agarwal: So, we are more or less in line to, you know, to register this growth that we are anticipating. The, you know, the few teething problems that we face while the integration is almost, you know, over, and the new facility, which is the big, big, big achievement, will happen very soon. And, you know, the integration of the sales team is also happening, so we are more or less On our track of our guidance.

Finportal: Okay, the next question is, do we have any plans to enter the mass market like paints, or do we want to remain in the premium category in the next few years?

Mr. Apoorv Agarwal: So, again, Sirca Paints very much is focused to remain in the premium category, because the decorative and the flat paint market has become very much competitive after the entry of a couple of large families from India into the paint segment. So, even if we are planning to enter with the paints, we are planning to enter with the high-quality texture paints under the brand called Oikos.

Finportal: Okay, so how is the wall paint segment performing? Like, what is the size of wood coating in India, and what is the growth rate?

Mr. Apoorv Agarwal: So, the wall paint segment at Sirca Paints is a small one, which is majorly contributed by the sales of high-quality textures under the brand called Oikos, and it's going well. It is a very high gross margin product and a niche product, and these are the products which give us very fast entry at the architects. So, Giving a small example, it is a product which is not used in the whole house, but on the wall of each room as a highlighter, which is a very premium, high quality, very high margin product, and, you know, is well appreciated by architects.

The size of the wood coating market in India is now estimated to be about 9,500 crores, which includes all type of coatings, from the lahdana to NC to melamine to thinners to polyurethane to the high-quality polyurethane coatings where sirca paints exist. And it is growing in, you know, mid-double digits and expected to grow even faster with the in, you know, with the furniture industry in India growing, and you know, we are expecting the BIS implementation on the furniture in a couple of months, so it will boom the furniture industry in future.

Finportal: Okay, the next question is, any organic factory or capacity expansion, or inorganic, like, merger or acquisition strategy in the coming period?

Mr. Apoorv Agarwal: So, the capacity expansion is already underway and, you know, should be completed within this quarter. And about the acquisition, yes, company has been eyeing another acquisition, which is under discussion for last couple of quarters, but nothing concrete as of now, but we expect to complete this acquisition, which is, again, in the coding space, which will complete our productivity and, you know, help Sirca to even come out stronger and, you know, reach to its long-term goals.

Finportal: Okay, on which products and geography, we are focusing more and expecting decent demand considering competitive market.

Mr. Apoorv Agarwal: So, company is very strongly focusing on the acrylic, high-quality coatings, which has an average realization of 900-plus rupees, which is being sold through the premium architects and, you know, influencers, and companies strongly focusing to sell this product and have a better revenue from these products from the Gujarat and the Maharashtra region. So, with its recent depot at Surat and in the main Mumbai, we are expanding and, you know, we are expecting decent numbers and revenue contribution by the high-quality acrylic coatings, which are one step ahead of polyurethane coatings. Means that the acrylic wood coatings deliver much higher quality and performance with very low VOC and, you know, sustainable product category compared to the polyurethane coatings, which is becoming a commodity.

Finportal: Okay, can you explain what are the positioning of different brands, Sirca, Welcome, Wembley, and Oikos?

Mr. Apoorv Agarwal: So, Sirca remains in the premium category, which is a product which has been influenced by architects and premium contractors. Welcome and Wembley will enter into the mass.

So, as we realized two years ago that PU will become a commodity, so we have acquired Welcome and Wembley brand, which is a very strong distribution network. Though, when we acquired, both the companies were at a revenue of 120-odd crores, but the volume that they sell is much more than Sirca, which was at a revenue of about 400 crores, because their ASP is almost one-fourth than ours. So, they have a decent distribution network, and with the launch of Valentino, we plan to, take the share of the polyurethane market, which is becoming the commodity. And the Oikos, again, will be positioned along with Sirca, with the premium architects, and, you know, with the… will be sold through the influencers.

Finportal: Okay. So, sir, can you please reiterate your Capex plans for the future regarding different products and brands?

Mr. Apoorv Agarwal: So, our CAPEX plans, for expanding the capacity is already underway. With a CAPEX of about 9 to 10 crores, we are almost underway to consolidate all the welcome and Wembley facility, and also, with a minimum CAPEX of 3 crores, at our current plant level, we are increasing the capacity by 20% of the existing unit, and coming up with a new capacity for Welcome and the polyurethane coatings, which will… which can generate a revenue of about 200 to 300 crores.

Finportal: Okay, so the next question is, what is our pricing, premium discount versus peer for similar products? Have you seen increased competition impacting our pricing?

Mr. Apoorv Agarwal: So, in terms of the pricing, we are more or less at par with our immediate competitor. If we talk about the top 5 paint companies, couple of companies has similar product line, but they have 3 different brands. One is similar pricing that, as ours, one is 10% less, and one is 10% more also, because polyurethane or high-quality wood puddings are not only sold with primary, they are also sold with the secondary effort, means with the influencer, where they need a premium Italian category, so…Recently, we have not seen very much increased competition impacting our pricing, you know, on the longer front. The price revision has happened only where the gross margins of the product has increased for everyone by producing it in India rather than importing.

A short price, you know, competition also was felt due to the increased scheme outflow for a couple of months. That was because of the subduty demand. So, when, you know, when the market was not supporting the demand, you know, the scheme Payout was gone aggressive for a couple of months to reach the targets, but that was something which was temporary.

Finportal: So, can we expect our top line to grow at, around 25% annually over the next 2-3 years, with even stronger growth in the bottom line?

Mr. Apoorv Agarwal: Yes, absolutely, companies, you know, more or less in line to grow in the high, double digits, and, you know, and also keep the bottom line strong, and, you know, the recent agreements, the recent developments with Sirca S.P.A, with Oikos, with Wembley new facility, we are very much on way to increase our gross margins and, you know, sustain the EBITDA that we are… we are claiming.

Finportal: Okay, the next question is, can you please share how much you are spending on the new Wembley Welcome and PU facilities, which is expected to give a turnover of 200 crores, and when is the facility expected to commission?

Mr. Apoorv Agarwal: So, the facility is expected to commission within this quarter, the… and, you know, company has spent almost about 10 plus 3 and half… so about 13 and a half odd crores.

Finportal: Okay. And, once commercialized, how will long it take to the… how long will it take to the integrated capacity to attend 300 crore, which you are guiding to come with 10 crore capex?

Mr. Apoorv Agarwal: So, the capacity, as I told you, will be commissioned in the quarter four, and you know, in the very first quarter of FY27, we will be ready to utilize almost 30-40% of the capacity. So, as I explained, that Wembley and Welcome were operating from 3 or 4 different small units, which were unorganized, you know, though paint making paint is, you know, like making coffee, so it's not something which is very complicated, it is just the mixtures and the high-speed stirrers. Plus the major cost is under the automation and the packing. So, once it is commissioned, you know, by the end of the financial year, we will be in position to use the capacity fully also.

Finportal: Okay, so the new capacity you mentioned, so what will be the capacity in that new facility, also at the peak utilization, how much revenue we can generate from welcome, Wembley, consolidated facility, existing facility, and the new facility?

Mr. Apoorv Agarwal: So, existing facility is only contributing towards the production of high-quality polyurethane and acrylic coatings, which at peak can generate a revenue of about 480 to 500 crores at a right product mix. For which we have done a small capex to increase the capacity by 20%. And the newer capacity, which is coming up for Wembley and Welcome at peak, along with the possibility of producing polyurethane coatings also. So, Wembley and Welcome products, which is the NC, the thinner, and the melamine, can reach a revenue of about 200 plus odd crores from that facility, and polyurethane, about 100.

Finportal: Okay. So, in the woodcoating market, we are standing at a 4-5% market share. So, how much market share we are aiming to capture by FY30, and similarly, in the PU market, where our share is 10-11%, how we are seeing it by FY30, and what steps are we taking to increase the share?

Mr. Apoorv Agarwal: So, you know, if we talk about the consolidated product range that we stand at today, so, couple of years ago, we were a 100% polyurethane, high-quality polyurethane product layer. Then, in FY25, we acquired Welcome. In FY26, we have acquired Wembley, and increased our product range to a better wood coating product offering, and, you know, coming to a bigger, complete wood coating market offering, and we are also in the plan to acquire another company which is into the metal coating space, which will also help us to complete the kitty of the products, so that, by FY30, company, you know, is very much focused to have at least 10% market share of the total wood coating market size.

Finportal: So, how was the performance in the December, considering we usually face a ban on spray paints during that period?

Mr. Apoorv Agarwal: Yes, so, you know, December was tough, but, you know, company, still, with the newer product range, was, you know, tried it its best, and, you know, we still, have announced the date of the results, so you will see, you know, in coming days how the quarter shaped out.

Finportal: So, for clarification, we will have two facilities, the existing facility and the new Wembley and Welcome Consolidated Facility, right?

Mr. Apoorv Agarwal: So, in total, we will have 3 facilities. One is the original facility with a capacity of 16,000 tons and… which will… where we have done a small capex to increase the capacity by 20%. The second facility, as you rightly said, will be of Wembley Welcome, which also will have the possibility of producing the polyurethane products, along with the core product offering of Wembley and Welcome. There is also a third facility which can generate a revenue of about 8200 crore, and which is poised and is focused towards only the waterborne and, you know, certain high-value decorative products.

Finportal: Okay.

Mr. Apoorv Agarwal: So, in total, we have 3 manufacturing… there will be 3 manufacturing units, from current 5 to 6, because Wembley and Welcome have, you know, different, different, different.

Finportal: Okay, we will wait for one.

Finportal: Okay, a company named Silk Flex Polymers India was recently listed. Do you consider them a competitor? How do their products differ from yours?

Mr. Apoorv Agarwal: Silk flex, I have never heard that, you know, exists in the wood coating space, so… frankly speaking, I have not heard about them, and, you know, I am very much sure that they are not into the product range which is similar to us.

Finportal: Okay. We'll wait for one or two more minutes, if there is any question. So, the decorative product facility is commercialized?

Mr. Apoorv Agarwal: Yes, it is, into action, from last 3 to 4 years.

Finportal: So, how do you compare with peers with respect to the channel margins or credits? Do you have to be significantly aggressive to push the products, or do you see an organic pull?

Mr. Apoorv Agarwal: So, it is not that we are giving extraordinary margins to our, retailers. I think most of the paint companies, are giving a similar kind of margin that Circa Pains is offering, but the… but the core, you know, the core vision and the core, of the company remains where we are not…you know, we are not creating any position for the retailer where he has to pass that margin. So, we are choosing our dealers and distributors very carefully, where we are protecting the margin that we are giving, so he keeps the interest in the company to promote the products.

Finportal: Okay. Sir, could you please give us the capacity for Unit 2, Welcome Plus Wembley, and what is the capacity for the third unit?

Mr. Apoorv Agarwal: So the, the Unit 2 capacity will be about 30,000 tons, including the Welcome Wembley and certain polyurethen products, and the Unit 3 is about 8,000 tons.Which is the decorative products.

Finportal: We currently have borrowings of 36 crores. Do we expect this to remain constant, or are there any plans to increase this?

Mr. Apoorv Agarwal: So, I think we don't have any plans to increase it, it should remain constant.

Finportal: Okay. So why can't larger players like Asian, etc. get into this and take away your market share? They have more brand recall with architects, etc.

Mr. Apoorv Agarwal: So,you know, as per my experience of last 15 years into the wood coating space and knowing Asian paints much more better, Asian Paints is, you know, it's more of a marketing company than a product company, so they focus on the primary, and we, as a company, focus on the secondary. So, we have much better product offerin to the architects, much better servicing to the architect, and, you know, a better reward program for the last 20 years considered and focused on the polyurethane coatings. So to summarize, Sirca is positioned as a premium Italian wood coating player. Today, no doubt Asian Paints, in its range, has a product called Emporio, which is a wood coating product, and you know, similar to ours, not in quality, but yes, it is a product which is polyurethane. But the architect choice today remains Sirca. Why? Because we have positioned our brand in the last 20 years as a premium, high-quality Italian wood coating brand. No offense to the other top 5 paint companies, they are selling polyurethane, but, you know, it's like… just like decorative. So, polyurethane, as I mentioned to you, is a technical product. Even if you go out to buy… if you are making your house, and you have to do a wall, you still will, you know, will play a role to decide, yeah, I want this color, and I want this paint to paint my wall. But when it comes to furniture, or kitchen or wardrobe coating, you need help either of the contractor or the architect and it can not only happen with the primary dealer that he says, buy this and you will do it, because it is a technical product. So, considering the technicality of the wood coating product, considering, you know, the positioning of the brand, because architects need something which is not for the masses. So, companies successfully positioned the brand in the high-quality segment, and that is why we are not launching the, economical product ranges or mass product ranges in Sirca. We are doing it in Wembley and Welcome.

Finportal: Okay, so we will be taking these last two questions which you have. So, you have waterborne decorative paints, these are top players in that space, or they can get in in the ESP if their growth slows. So, what does… what stops them from increasing competitive intensity in this space?

Mr. Apoorv Agarwal: So, Kunal, as I mentioned. In the decorative space, we are only into high-quality texture paints, which are not more or less the flat paints, but they are the new lime-based and metallic-based paints, which are used in every house today as a replacement of wallpaper. So, going forward, company again is focused to, you know, grow into this set of waterborne decorative paints, and not only promote the flat paint. We sell flat paint only as an undercoat under the texture paint. Because we have already seen that the competition in this space has gone aggressive, and you know, company is focusing on the high-quality wood coating, metal coating, and the high-quality decorative texture paints only.

Finportal: So, can you give a brief on the oil-based and water-based coating? Like, how is Sirca addressing these technical gaps to convince traditional furniture OEMs to switch?

Mr. Apoorv Agarwal: You know, with the global exposure, with the change in the customer needs, you know, the customer, architect, everyone has got educated. So, they are demanding for a better quality furniture where the quality can either be enhanced by the polishes, which is not only for protecting the wood, but also to enhance the aesthetic value. So what we say is we are the face of the furniture. So, with the change in the shift from the customer side, and also with the global exposures of mass traditional furniture manufacturers who were using traditional polishes. With the increased education of contractors done by all the companies, they are shifting from traditional polishes to high-quality polishes. The…The, you know, there was a resistance to shift not only because of the prices, but also because of the application, because application of these products which Sirca Paints sells requires a small training, a better mixing, a better application compared to the traditional polishes, where a contractor can just open a can and apply it how it wants. It cannot happen with our product, because it requires certain precision. Then only you deliver that quality, which we say as Italian quality. But with the exposure, with last, you know, massive trainings amongst the contractors, architects. They have understood, they have ex… accepted the, you know, the new era and the new way of doing the polishes, and that is why the shift has happened and is happening faster.

Finportal: Okay, okay. So, with that, we can do the closing remarks first now.

Mr. Apoorv Agarwal: So, as I said, that, you know, Sirca Paints is quite excited with the fact that the furniture industry in India is poised for a super growth in the coming quarters, in the coming years, because the local manufacturing of furniture in India is being promoted, and as this happens, the sale of wood coating will increase, because furniture is made of wood, MDF, HD, HMR, and veneer, which uses, in any case, our polishes, so we are quite positive and optimistic, and that is what is the, is the thing that fuels our thought of, you know, reaching a long-term revenue growth that we are expecting and anticipating. Again, I would say that if we have to capture Sirca in one line.

We are building India's most trusted premium wood coating and finishes brand and a platform with strong profitability today and expanding scale for tomorrow. So, thank you, everyone.

Finportal: Thank you, sir. On behalf of Finportal Investments, I would like to express our gratitude to Mr. Apoorv Agrawal and the entire team at Sirca Paints for taking the time to join us and provide such detailed responses to the questions. We also appreciate all the participants for their engagement, so if any questions remain unanswered, please feel free to reach out to us. So, with that, you may disconnect with all the lines. Thank you, sir. Thank you, Apoorv Sir, and thank you, all the participants.

Mr. Apoorv Agarwal: Thank you, Valueportal, thank you, everyone.