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                       Conference Call Ganesh Polytex Limited

                Event Date / Time                 :       04th August 2010, 04 PM IST

                Event Duration                    :       30 min 57 sec

Presentation Session

Moderator:                      Good afternoon ladies and gentlemen. I am Krishnan,
                                moderator for this conference. Welcome to the conference
                                call of Ganesh Polytex Limited. We have with us today Mr.
                                Shyam S. Sharma Chairman cum Managing Director, Mr.
                                Gopal Agarwal Chief Financial Officer of Ganesh Polytex
                                Limited. At this moment all participants are in listen only
                                mode. Later, we will conduct a question and answer
                                session. At that time if you have a question, please press *
                                and 1 on your telephone key pad. Please note this
                                conference is recorded. I now would like to hand over the
                                conference to Mr. Zohar Reuben of Sun Capital. Please
                                go ahead sir.

Zohar Reuben:                   Thank you Krishnan. Good evening ladies and gentlemen.
                                On behalf of Sun Public Relations, I welcome you all to the
                                conference call of Ganesh Polytex Limited to discuss the
                                unaudited financial results of the company for the first
                                quarter ending June 2010. We have with us Mr. Shyam
                                Sundar Sharma Chairman cum Managing Director and Mr.
                                Gopal Agarwal Chief Financial Officer of Ganesh Polytex
                                Limited. I will now handover the call to Mr. Shyam Sundar
                                Sharma to give you the overview of the company and
                                developments during the financial quarter ending June
                                2010. Thank you. Mr. Sharma, carry on the call please.

Shyam S. Sharma:                Thank you. Good evening. On behalf of Ganesh Polytex
                                Limited, I welcome you all to this teleconference. I am
                                pleased to share with you the progress of Ganesh Polytex
                                Limited for the first quarter of this financial year. The
                                company has reported a healthy bottom line and top line
                                figures of 2.84 crores and 47.52 crores respectively. Now I
                                hand over the call to Mr. Gopal Agarwal, Chief Financial
                                Officer of the company to brief on the financial numbers.

Gopal Agarwal:                  Good evening everybody. Before taking you through the
                                financials and revenues and talking on regular business
                                updates, I would like to first discuss briefly on the biggest

                       Transcript – Conference Call of Ganesh Polytex Limited
                                                                    Page 2

         environmental concern that is plastic waste and PET
         bottles. As we all know, the use of plastic products has
         been a major cause of concern since long. These days as
         we move across the streets, parks etc. we see many PET
         bottles littered around giving not just a bad look but also
         posing serious threats to our environment. We have seen
         people and organizations clamoring about reducing the
         usage of plastic products. While on the contrary, the
         consumption of PET is growing at an exponential rate, as it
         offers a user friendly and cost effective packaging solution
         for all kinds of bottled drinks, beverages, liquor,
         pharmaceuticals, chemicals, and other liquid products.
         However, as the consumption is growing so as the
         quantum of its waste is increasing at a rapid pace. Being
         nonbiodegradable in nature, the recycling of PET bottle
         waste is inevitable, else piling of it will be the biggest threat
         to the environment. Now a walk through some stats will
         help us really understand the gravity of the situation and
         the solution to the same. Less than 1% of all plastics is
         recycled. Recycling one tonne of PET containers saves 6
         cubic meters of land fill space. Recycling a single bottle
         can conserve enough energy to light a 60 watt light bulb
         for up to 6 hours. Recycling one tonne of PET saves one
         and a half tonnes of carbon-dioxide versus land filling. As
         evident, recycling is the clear solution to the grave problem
         of excessive plastic waste and we at Ganesh Polytex were
         quick to realize the same. In the last 15 years we have
         contributed to the cause of making our planet a better
         place to live in for the present and future generations by
         recycling billions of PET bottles and as of today we are one
         of the largest PET bottle waste recycling company in India.
         At GPL we recycle more than 150 crores bottles annually
         to manufacture regenerated polyester staple fiber. In order
         to ensure the continuous availability of raw materials, we
         have developed a unique network of more than 25 waste
         collection centers that run on franchisee model. We have
         developed our model over the last one decade and we are
         benefiting in three ways. One, our raw material cost is 4%-
         5% cheaper in comparison to material purchased from
         vendors. Secondly, continuous availability of raw material
         is assured. Thirdly, the model allows us to outsource the
         labor intensive work of PET bottle sorting. Our growth is
         directly linked with the number of PET bottles we recycle
         and the recent numbers suggest that in India we do not
         even have the capacity to recycle the entire available
         waste. Let us just walk through some numbers. Domestic
         demand of PET is pegged at 5 lakh tonnes. 65% of PET
         bottle consumption is available for recycling, so indigenous
         availability of PET bottle waste is pegged at 3.25 lakh
         tonnes during 2010.          Aggregate domestic recycling
         capacity is near about 1,75,000 tonnes much less than

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         available PET bottles for recycling. Consumption of PET
         bottles is expected to grow to 6,00,000 tonnes by 2012
         and thus proportional availability of waste. Further there is
         a significantly large domestic as well as overseas market
         for regenerated polyester staple fiber as it finds
         applications in the area of technical textile including
         geotextiles, medical textile, sports textile, yarn spinning
         and stuffed comfort products. As per the 11th plan, the
         aggregate spending on infrastructure is estimated at about
         $500 billions thus leading to a tremendous growth in the
         demand of geotextiles. As per the estimates of the Textile
         Ministry, the technical textile market is expected to grow
         with an annual growth rate of 14%. Also growth in the
         market price of yarn spinning and stuffed products is in
         double digit. The above stats enlighten the fact that there
         is immense scope of growth in this sector and we with the
         largest capacity are at the forefront of capitalizing the

         Now, I will run you down the financials. Taking on the
         financials, we have been growing at a very healthy pace
         for the last 5 years and our growth plans are likely to
         propel a compounded annual growth rate of 35%-40% in
         our top line and bottom line for another 5 years. A brief
         roundup on our performance for the last 4 years - The
         company sales and net profits have grown at a healthy
         compounded growth rate of 28% and 30% respectively.
         The revenue and profitability grew exponentially from
         Rs.62 crores to Rs.199 crores and Rs.1.89 crore to Rs.9
         crores respectively. Our EBIDTA margins improved to
         Rs.24.30 crores in FY10 from Rs.7.01 crores in FY07 on
         the back of improved product mix. The PET margin saw
         an expansion of 50% from 3% to 4.5%. This was about
         the past performance. In the latest quarter ending June
         ’10, the company recorded a sale of 47.52 crores and
         registered a growth of more than 11% on year-on-year
         basis. The EBIDTA margins were higher at 13.40%
         against 12.07% for last year June ’09 quarter. The net
         profit of the company has shown a very robust growth at
         122% on year-on-year basis while the EPS has shown a
         growth at 68% despite the equity capital being expanded
         to Rs.13.37 crore. The exports sale has also gone up by
         51% on a year-on-year basis. The company has been
         able to bring down its interest obligation from Rs.2.19 crore
         in June ’09 quarter to Rs.1.50 for June’10 quarter. This
         was a brief update from our end.

         I would now request Mr. Krishna to take it into a question
         and answer session and we would be pleased to answer
         any questions raised by you all. Thank you.

Transcript – Conference Call of Ganesh Polytex Limited
                                                                                        Page 4

Question and Answer Session

Moderator:                      Thank you sir. Ladies and gentlemen, we will now begin
                                the question and answer session. If you have a question,
                                please press * and 1 on your telephone key pad and wait
                                for your turn to ask the question. If your question has been
                                answered before your turn, and you wish to withdraw your
                                request, you may do so by pressing # key.

                                First question comes from Mr. Ashish Chugh from Hidden

Ashish Chugh:                   Good evening everyone, good evening Mr. Sharma. First
                                of all, many congratulations for reporting a good set of
                                numbers yet again. I have got 2 questions for you. The
                                first is, now that you have become the largest player in the
                                country in your business, what are your plans to take the
                                company to the next level.

Gopal Agarwal:                  Good evening Mr. Ashish.

Ashish Chugh:                   Good evening.

Gopal Agarwal:                  We are examining various options to take our company to
                                the next level. Some of the plans include increasing the
                                waste processing capacity to other parts of the country
                                probably in the southern and eastern part of the country to
                                meet the geographical reach. Another option we are
                                exploring is the manufacturing of regenerated POY out of
                                PET bottle waste.      This is a high margin vis-à-vis
                                regenerated PSF. Another is forward integration into the
                                spinning of yarn from regenerated PSF manufactured by
                                us. Another area is the downstream product in nonwoven
                                textile. We are examining various options and as soon as
                                we finalize something we will come to you.

Ashish Chugh:                   Okay and sir, the second question is with regard to the
                                dividend, your company has been in existence for over 2
                                decades. It has been largely a profit making company
                                except for maybe 2 or 3 years where you reported a loss.
                                But you know, this is the first year where you have shared
                                your profits with the share holders-minority share holders.
                                Now, if this sharing of dividend you believe is just a one off
                                and you may go back to the earlier system or you have
                                some kind of a dividend policy, which will provide some
                                confidence to the minority share holders like us, you know,
                                where we can maybe stay long term invested in the
                                company with the hope that the company will share the
                                wealth created with the share holders also.

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Gopal Agarwal:            Ashish, if you run through the last 5 years numbers, you
                          will see that each year’s block addition is more than the
                          previous year’s profitability figures. In the last 5 years we
                          have scaled up our capacity from 10,000 tonnes to 57,000
                          tonnes, 5 fold increase is there. Now we have come to a
                          level where we decided to share some of our profits with
                          the share holders and invest the remaining profits in further
                          company expansion plans. So this will continue in the
                          future also barring certain unfortunate circumstances.

Ashish Chugh:             Okay and sir have you made some kind of a dividend
                          policy which specifies that X amount of profit or X
                          percentage of profit you will distribute to the share holders?

Gopal Agarwal:            We have decided to distribute the profits on constant basis
                          to the share holders. But the exact policy we will decide in
                          the next Board meetings and then come back to you.

Ashish Chugh:             Okay, thank you, thank you Mr. Agarwal. That is all from
                          my side.

Moderator:                Next question comes from Ms. Minal Dedhia from Network
                          Stock Broking.

Minal Dedhia:             Good evening sir. Congrats on a good set of numbers. I
                          wanted to ask you what are your CAPEX plans for the next
                          2 years, and how are you planning to fund it.

Gopal Agarwal:            We are examining the options for CAPEX and we expect to
                          finalize the same in the next 2-3 months time. Then we will
                          tell you the exact numbers which we will be requiring for
                          future expansion, the funds needed and we hope we will
                          fund through a judicious mix of debt and equity and
                          internal accruals.

Minal Dedhia:             Okay and will the equity be through warrants or through
                          issue to the public or how are you going to plan it?

Gopal Agarwal:             It will be decided when the plans are finalized.

Minal Dedhia:             Okay. And one more question I wanted to ask is whether
                          there is a component of technology cost involved in your

Gopal Agarwal:            We are using the latest technology available in the world.

Minal Dedhia:             Okay. Thanks a lot.

Gopal Agarwal:            Thank you.

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                                                                                 Page 6

Moderator:                Next question comes from Mr. Ekansh Mittal from HBJ

Ekansh Mittal:            Hello Mr. Gopal. How are you?

Gopal Agarwal:            Hello Ekansh, I am fine, how are you?

Ekansh Mittal:            I am fine. My question is basically regarding the recent
                          June quarter results. If we notice on sequential basis,
                          there is a decline in revenue from Rs.54.5 crores for
                          March’10 quarter to Rs.47.5 crores even though you had
                          commissioned your 18,000 TPA plant during the June
                          quarter. So, could you share some views on that?

Gopal Agarwal:            Ekansh, the new production line has been put up in the
                          same premises.         So during the installation and
                          commissioning process the shutdown of the existing
                          production lines resulted in loss of production and
                          turnover. The new production line could only get started
                          towards the end of June month and therefore, the revenue
                          contribution was insignificant.

Ekansh Mittal:            Okay so basically could you tell what is the current overall
                          capacity utilization for the say 57,600 TPA capacity and
                          what will be the future capacity utilization for the next few

Gopal Agarwal:            Due to commissioning of new line, capacity utilization of
                          existing lines came down to 70%, which will be restored to
                          80% for the second and subsequent quarter.

Ekansh Mittal:            Okay, okay. Now there is considerable decline in the
                          interest payment. Say, it is at Rs.1.5 crore for the June ’10
                          quarter while it was 2.19 crores. So what is the current
                          debt position of the company?

Gopal Agarwal:            Presently, the company’s borrowing book stands at Rs.67
                          crore. Interest cost has come down mainly for 3 reasons.
                          About 40% of rupee based borrowings have been
                          converted into foreign currency base denomination with
                          100% hedging resulted into an average saving 150 basis
                          points on the entire borrowing. Secondly, the company
                          repaid 10 crores loan during the past 12 months and lastly,
                          the company has also contracted new loans of Rs.14.5
                          crores for new expansion but the interest cost has no
                          meaning on profit as the same has been capitalized. So
                          the interest cost has come down.

Ekansh Mittal:            Okay, okay and now Mr. Gopal, why is that the tax
                          expenses increased during the June ’10 quarter. Could
                          you please give us some kind of a tax payment breakdown

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                                                                                Page 7

                          for the June ’10 quarter? There is a substantial increase in
                          tax payment with respect to June ’09 quarter.

Gopal Agarwal:            Due to additional depreciation on expended capacity in
                          Kanpur unit, taxation was minimal in June ’09 quarter.
                          Further we changed our overhead allocation policy. So far
                          we were allocating management cost to Kanpur and
                          Rudrapur unit at the end of the year. For the interim period
                          the cost was sitting in the books of Kanpur unit. Now we
                          have modified the policy and started to allocate the
                          management and unallocable cost on quarterly basis
                          between both the units. So, there is a more transparent
                          reflection of Kanpur unit profit in quarterly result, which
                          also reflected to the current tax provision in June ’10

Ekansh Mittal:            Mr. Gopal, your company has been issuing quite a lot of
                          warrants I have been noticing. So as of now, any
                          outstanding convertible warrants are due for conversion
                          and at what price? Similarly, are we going to see a further
                          allotment of warrants?

Gopal Agarwal:            As of now, 30,00,000 warrants are outstanding for
                          conversion at a price of Rs.40 per share. Further allotment
                          of warrants in the immediate future is not on the cards.

Ekansh Mittal:            Okay, you are not looking for further allotment of warrants
                          at this point of time.

Gopal Agarwal:            Yeah. It is not on plans just now.

Ekansh Mittal:            Okay and now that the new production line has started
                          contributing to your revenues, as you said that during the
                          June quarter it got commissioned, could you please guide
                          us on the revenue projection for the second quarter?

Gopal Agarwal:            We expect 25%-30% growth from June ’10 quarter in the
                          revenues of September second quarter.

Ekansh Mittal:            Okay and what will be the capacity utilization for the new
                          plant? That is the new 18,000 TPA plant at Rudrapur?

Gopal Agarwal:            The capacity utilization will grow quarter to quarter and in
                          the second quarter we expect a capacity utilization of
                          about 50% from the new plant that will progressively

Ekansh Mittal:            Okay. So we can now further see our sequential growth in
                          the revenue of the company going forward.

Gopal Agarwal:             Yeah.

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                                                                                 Page 8

Ekansh Mittal:             Okay Mr. Gopal. That is it from my side. Thanks a lot for
                           answering my queries.

Gopal Agarwal:             Thank you Ekansh.

Moderator:                 Next question comes from Mr. R. N. Gupta an individual

R.N. Gupta:                Hello?

Gopal Agarwal:             Yeah Mr. Gupta, good evening.

R.N. Gupta:                Good evening. May I know the production cost of waste
                           PET is high…hello the production cost of waste is very
                           high. How do you ensure good margin in the future?

Gopal Agarwal:             We are making value added products in our existing
                           capacity to fetch more realization as well as we are moving
                           towards the forward integration and other products out of
                           waste having higher margins so that will improve our
                           margins in future.

R.N. Gupta:                So you expect that that waste will be available to you?

Gopal Agarwal:             There is enough consumption of PET in the country as I
                           told you, there is a 5 lakh tonne capacity as of now of PET
                           resin in the country out of which 65% roughly comes as
                           waste. And looking into the capacity of recycling about
                           175 lakh tonnes, there is enough room for waste

R.N. Gupta:                Thank you, thank you Gopal.

Moderator:                 Next question comes from Mr. Akash Manghani from Girik

Akash Manghani:            Sir, good evening sir. Congratulations on a good set of
                           numbers. I would like to know would you be able to
                           sustain these kind of margins going forward and what is
                           the revenue visibility you have going forward in the next 2-
                           3 years?

Gopal Agarwal:             Are you hearing me? Yeah tell me Akash.

Akash Manghani:            Yeah, I just wanted to know what kind of margins can be
                           sustainable going forward, what kind of top line growth do
                           you expect in the next coming years?

Gopal Agarwal:             We are expecting top line growth of about 35% to 40% for
                           the next 2-3 years. And our margins are also improving.

                  Transcript – Conference Call of Ganesh Polytex Limited
                                                                                  Page 9

                           You see our EBIDTA margins have increased to 13.5%
                           from 12% on the year-on-year basis.

Akash Manghani:            Do you think you have sustainable margins for the full year
                           and you will continue to reach these margins?

Gopal Agarwal:             Yeah it is 100% sustainable because of our scalability of
                           operations and company’s future plans.

Akash Manghani:            Okay and what about your tax rate, you are hardly paying
                           any tax as of last year.

Gopal Agarwal:             Tax rate is about 20%. We are paying the MAT. Our
                           Rudrapur unit is tax exempt unit.

Akash Manghani:            Sorry?

Gopal Agarwal:             Rudrapur unit is a 100% tax exemption unit and overall
                           there is MAT burden of 20%, minimum alternate tax.

Akash Manghani:            Okay alright. Thanks a lot. Congratulations.

Gopal Agarwal:             Thank you Akash.

Moderator:                 Next question comes from Mr. Mohit Kundra from Axis
                           Mutual Fund.

Mohit Kundra:              Congratulations Mr. Agarwal. My question is what are your
                           expansion plans going forward if I talk about the next one
                           to two years down the line.

Gopal Agarwal:             Thank you.       We are expanding the PET recycling
                           capacities and this pet recycling capacity will come in other
                           parts of the country to take advantage of logistics cost and
                           raw material cost. Another option we are trying is making
                           regenerated POY from waste. This is another area which
                           is facing higher margins. Further our plans are to go into
                           forward integration. So all these plans will materialize in
                           the next one to two years.

Mohit Kundra:              Okay. Thank you Mr. Agarwal.

Moderator:                 Ladies, and gentlemen, to ask a question, please press *
                           and 1 on your telephone key pad.

                           Next question comes from Mr. Surya Nayak from sun

Surya Nayak:               Hello.

Gopal Agarwal:             Hello.

                  Transcript – Conference Call of Ganesh Polytex Limited
                                                                                 Page 10

Surya Nayak:              Sir have you excluded the CAPEX plans into Pawai
                          improvise and technical nonwoven textiles (not sure)

Gopal Agarwal:            We are examining the plans and we expect that within 2-3
                          months we will be finalizing the same.

Surya Nayak:              Have you quantified the amount of requirement for the

Gopal Agarwal:            We roughly require about 100 crores for this plant.

Surya Nayak:              Okay, how much margin expansion we will doing in the

Gopal Agarwal:            We are looking for EBIDTA margin of around 18% from
                          13% as of now.

Surya Nayak:              I mean you were talking about blended margins of 18%

Gopal Agarwal:            Yeah EBIDTA margin 18%.

Surya Nayak:              Okay. Sir, my next question is as now the crude is also
                          moving up, so in future suppose Reliance will be
                          increasing the virgin PSF prices; will you be able to hike
                          our prices as well?

Gopal Agarwal:            Sure with the increase in polyester fiber our prices will also
                          increase in tandem.

Surya Nayak:              In tandem. So, in recent times, have you revised upwards
                          your price?

Gopal Agarwal:            Sorry Surya?

Surya Nayak:              In recent times, have you revised the prices of PSF?

Gopal Agarwal:            Yeah, yeah, yeah. Our prices have grown up.

Surya Nayak:              When did you see the last price revision?

Gopal Agarwal:            We revised the prices last two months back.

Surya Nayak:              Two months back. What is the current price sir of PSF?

Gopal Agarwal:            Current price of PSF is about 73-74 rupees a kg.

Surya Nayak:              That is the regenerated PSF or …?

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                                                                             Page 11

Gopal Agarwal:            Virgin PSF.

Surya Nayak:              Virgin PSF?

Gopal Agarwal:            Yeah.

Surya Nayak:              And at what rate are you selling?

Gopal Agarwal:            We are selling at 63-64.

Surya Nayak:              63 and 64.

Gopal Agarwal:            Yeah.

Surya Nayak:              But this is after revision right?

Gopal Agarwal:            Right.

Surya Nayak:              Okay thank you sir.

Gopal Agarwal:            Thank you Surya.

Moderator:                The next question comes from Mr. Gaurav Sud from Kanav

Gaurav Sud:               Yeah, hi Mr. Agarwal. One thing I wanted to know was
                          currently your total production seems to be adding up
                          2009-10 to be 33,000 tonnes. So your stated capacity now
                          is 57,000 tonnes. So by when can we hope to achieve full

Gopal Agarwal:            We expect to achieve full production by December quarter.

Gaurav Sud:               By December quarter?

Gopal Agarwal:            Yeah.

Gaurav Sud:               so by December you are saying that you will be able to ….

Gopal Agarwal:            To make about 75% capacity utilization.

Gaurav Sud:               75% capacity utilization?

Gopal Agarwal:            75%-80% capacity utilization.
Gaurav Sud:               So still that means that quarter would have round about
                          like 10,000 tonnes of capacity?

Gopal Agarwal:            Yeah sure.

                 Transcript – Conference Call of Ganesh Polytex Limited
                                                                                  Page 12

Gaurav Sud:               So, and this forward integration plan that you have where
                          you said that you are getting into this yarn, filament yarn.
                          So what is the level of value add like, your recycled PSF is
                          selling at 63-64, so what would be the realization in that?

Gopal Agarwal:            Realization would be roughly about 75-76.

Gaurav Sud:               75-76 and what is the cost of conversion from staple fiber
                          to yarn?

Gopal Agarwal:            The additional cost involved would be about 3-4 rupees
                          per kg.

Gaurav Sud:               4 rupees.

Gopal Agarwal:            Yeah.

Gaurav Sud:               4 rupees, so you are saying that we will gain like 6-7
                          rupees in the conversion after the forward integration.
                          Okay. Yeah. That kind of answers my questions. Thank

Gopal Agarwal:            Thank you.

Moderator:                Next is a followup question by Mr. Ashish Chugh from
                          Hidden Gems.

Ashish Chugh:             Mr. Agarwal, just want to find out as how the economics of
                          your business work in relation to the variability in the prices
                          of say alternative material like cotton yarn?

Gopal Agarwal:            Ashish, cotton yarn prices are going north. Last 10 months
                          cotton prices have gone up by 30%. Further cotton prices
                          depends on the crop and support prices declared by the
                          government, the support prices declared by the
                          government since the last 5 years have gone up by about
                          50%. So there is a very good economics of our fiber vis-à-
                          vis cotton.

Ashish Chugh:             Okay.

Gopal Agarwal:            Yeah

Ashish Chugh:             No, like, you know higher cotton prices are good for your
                          business because that will make your ……..competitive

Gopal Agarwal:            Yeah, higher cotton prices are very good for our business.

Ashish Chugh:             But does it actually happen that way in the market or is
                          there something more to you know, what logical thinking
                          cannot find out?

                 Transcript – Conference Call of Ganesh Polytex Limited
                                                                               Page 13

Gopal Agarwal:            With the growing cotton prices the consumption of PSF is
                          growing because the PSF polyester fiber is cheaper than
                          cotton. It is now common man’s fabric. It is now common
                          man fiber. So the consumption is growing and so the
                          prices are also growing up for fiber.

Ashish Chugh:             Okay thanks Mr. Agarwal.

Moderator:                Next question comes from Mr. Deepak Mittal from Samara

Deepak Mittal:            Hello Mr. Agarwal.

Gopal Agarwal:            Hello Deepak.

Deepak Mittal:            Very good evening sir.

Gopal Agarwal:            Good evening sir.

Deepak Mittal:            I just wanted to find out how much cheaper are we from
                          cotton yarn in terms of PSF?

Gopal Agarwal:            The cotton….we are cheaper as much as 40% from cotton

Deepak Mittal:            Okay.

Gopal Agarwal:            Yeah.

Deepak Mittal:            And have you seen that sort of a price difference
                          consistently over time or how much that varies in the last
                          let us say 3-4 years.

Gopal Agarwal:            In fact Deepak the price difference are growing.        The
                          cotton is becoming more and more costlier.

Deepak Mittal:            Right, so are we able to maintain the same difference or
                          the difference between the cotton prices and our prices
                          have been increasing overtime?

Gopal Agarwal:            Our prices are in increasing trend since the last 4-5 years
                          …we are able to gain at 5%-6% annually on the price front.

Deepak Mittal:            Okay. And one more thing. This 80% of RPSF is sold in
                          the global market right? It is export oriented mostly. So
                          the prices are determined in the global markets rather than
                          let us say compared to cotton yarn in India. Is that correct
                          or is there I am missing here? 80% of our sales happen
                          through export of the RPSF.

                 Transcript – Conference Call of Ganesh Polytex Limited
                                                                              Page 14

Gopal Agarwal:            No, no, no. About 25% we are making exports. The rest is
                          in domestic market.

Deepak Mittal:            Okay. 25% is export and the rest is domestic. Alright that
                          is about it sir.

Moderator:                We take our last question by Mr. Jignesh Vaida from Sun

Jignesh Vaida:            Hello good evening sir.

Gopal Agarwal:            Good evening Jignesh.

Jignesh Vaida:            Sir, I just wanted to know what is the trend of the
                          procurement cost in the last 3-4 years, how much has it
                          grown? Every year does it go up since it is a labor
                          intensive work?

Gopal Agarwal:            We are having Pan India network for procurement of waste
                          bottle. We have got more than 25 waste collection and
                          processing centers in different parts of the country. These
                          centers are run on the basis of franchise model as we
                          provide all the infrastructure and technical support to the
                          franchisee for procurement, segregation and compacting
                          the bottles. The network of rag pickers is created under
                          the guidance of company people at these centers. Rag
                          pickers come to the centers and franchisee also having the
                          facility to lift the waste from their doorstep. We procure
                          about 60% of our requirement through this model. Rest
                          40% material is purchased from traders.

Jignesh Vaida:            Okay. Year-on-year basis, currently the procurement cost
                          would be around 26-27 rupees?

Gopal Agarwal:            Yes.

Jignesh Vaida:            So, how much has it grown in the last 3-4 years?

Gopal Agarwal:            It has grown about 15% over the last 4-5 years.

Jignesh Vaida:            Okay, right, thank you sir.

Gopal Agarwal:            Because basically Jignesh the raw material cost mainly
                          consists of wage cost and logistics cost. So with the
                          inflationary trend it is increasing. It is on an increasing
                          trend. But we are able with the better product mix and
                          scalability of our operations we are able to fetch more
                          realization which is offsetting the increasing cost.

Jignesh Vaida:            Right. Thank you.

                 Transcript – Conference Call of Ganesh Polytex Limited
                                                                                      Page 15

Moderator:                Thank you sir. There are no further questions. Now I hand
                          over the floor to Mr. Zohar Reuben for closing comments

Zohar Ruban:              I thank all on behalf of Sun Public Relations for
                          participating and being a part of this teleconference. If you
                          have any further queries please drop in your mail at
                 Once again, thank you
                          very much.

Gopal Agarwal:            I hereby express my sincere thanks to all the participants
                          for devoting their valuable time, attention, and
                          overwhelming support at this telecall. Last but not the
                          least, I also thank you all those who enabled us to
                          organize the teleconference. Thank you.

Moderator:                Ladies and gentlemen, this concludes your conference for
                          today. Thank you for your participation and for using Door
                          Sabha’s conference call service. You may disconnect your
                          lines now. Thank you and have a pleasant evening.

Note:                     1. This document has been edited to improve readability.
                          2. Blanks in this transcript represent inaudible or incomprehensible

                 Transcript – Conference Call of Ganesh Polytex Limited

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