Sastasundar Ventures Ltd
NSE:SASTASUNDR
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Sastasundar Ventures Ltd
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Ladies and gentlemen, good day, and welcome to Sastasundar Ventures Limited Q2 FY '24 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ronak Jain from Orient Capital, Investor Relations partner. Thank you, and over to you, sir.
Hello, everyone, and welcome to the Q2 FY '24 Earnings Conference Call of Sastasundar Ventures Limited. Today on this call, we have Mr. Banwari Mittal, sir, Founder and Executive Chairman; along with Mr. Ravi Kant Sharma, Founder and CEO of Sastasundar Healthbuddy Limited.
Before we begin the call, I would like to give a short disclaimer. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations as of today. Actual results may differ materially. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
A detailed safe harbor statement is given on Page 2 of the company's investor presentation, which has been uploaded on the stock exchange and the company's website as well. With this, I will hand over the call to Mr. Banwari Mittal, sir, for his opening remarks. Over to you, sir.
Good afternoon, my dear shareholders. I'm B. Mittal, Chairman and Executive Director of Sastasundar Ventures Limited as well as Sastasundar Healthbuddy Limited, the subsidiary of the company. My dear shareholders, the detailed presentation about company's vision and company's performance has been uploaded on the stock exchanges. I won't take much of your time, rather utilize the time for addressing your questions.
So I'm not repeating the materials which have been given on the retail presentation. This is with reference to our call of Q.1 and call of Q1 after that, the performance of the business is going on as per the plan and as described in the call of quarter 1. And the business is going as per planned vision of creating the largest digital distribution ecosystem in the health care in India.
My dear shareholders, as you are aware that it was a very difficult period for Indian startups, whereby though this is a very large opportunity, but as I said earlier also that digital is not a fashion statement. We have to implement a profitable and efficient model, which ensures that there is an innovation which is coupled with profitability and growth. And sustainability is a key area. There cannot be solution to any problem without economic sustainability.
And that is the beauty of Sastasundar's business that we have been able to create an ecosystem, which is innovation in digital distribution system, which presents a very large opportunity along with profitability, cash flow from operations and a sustained high degree growth. The business, which has been described in the PowerPoint presentation also, the revenue for the quarter reached INR 355.5 crores, showing growth of 40% compared to INR 253.9 crores in Q2 FY '23. The quarter-on-quarter growth revenue experienced an 8% increase.
Gross profit for Q2 F '24 stood at INR 35.1 crores, making 86% growth from INR 18.9 crores in Q2 FY '23. Gross profit margin increased throughout the year due to efficiency in the system and growth. We are working just not about maintainability of the profitability but to create a high degree of return on capital employed with a problem solving in mind. The company recorded a positive EBITDA of INR 0.6 crores, a positive shift from Q2 FY '23. The EBITDA margin stood at 1%.
Profit after tax, excluding the share of associates amounting to INR 13.1 crores in Q2 FY '24. H1 FY '24, the company recorded a revenue of approximately INR 686 crores in H1 FY '24, reflecting a robust growth of 54% year-on-year. Gross profit for H1 F '24 more than doubled to INR 70.1 crores compared to INR 31.2 crores. EBITDA for H1 F '24 stood at INR 33.7 crores. for H1 F '24, excluding the share of joint ventures, tripled to INR 37.6 crores from INR 9.7 crores.
In the Healthbuddy Supply Chain segment, revenue reached INR 251.6 crores, showing a solid growth of approximately 21% year-on-year. Healthbuddy Supply Chain reported a profit before tax of INR 4.3 crores in Q2 FY '24. The RetailerShakti business generated a revenue of around INR 103 crores, more than doubling from INR 42 crores in Q2 FY '23. The company remains focused on achieving profitability for both the RetailerShakti and Genu Path Limited business. And both the business, we are sure will achieve the positive cash from operation and profitability in next 1 year time frame.
My dear shareholders, I would request you to particularly refer the slide which has been given on return on capital employed first time in this quarter, which clearly replicates that how the company is transforming the digital platform business to generate a sustainable cash from operation, which gives the shareholders high return on capital employed.
Now Mr. Ravi Kant Sharma, our CEO, is here. He'll be happy to answer all your questions. So please we are ready to take your questions. Thank you.
[Operator Instructions] The first question is from the line of Alina Jain from Ventures.
Congratulations on a good set of numbers. My first question is regarding working capital cycle. So the cycle for the company has improved significantly to 37 days versus 56 days in Q2 FY '23. And this, as per the presentation, has been majorly on back of improvement in inventory days, which has gone down from 65 days to 42 days. So what has structurally changed in the company's inventory management style that has led to such a sharp improvement in inventory days? And going forward, what is the sustainable working capital cycle one should look at?
Secondly, profitability for the company has improved. Gross margins are now around 10% and the business on a consolidated level is EBITDA breakeven. Are there any one-offs in the margins or we can expect margins to sustain at these levels and improve from here on?
So hello, I'm Ravi Kant Sharma, Co-Founder and CEO of Sastasundar. I will be taking this question. Coming to your first question of working capital cycle actually. So see, as we have started the call actually by mentioning that we are building a digital distribution business actually that would be focused on building the efficiency at every place.
So the first, you can see that the working capital efficiency that we have brought into the business basically has been driven by the lot of, I would say, that the processes that has been put in place in the last couple of quarters to ensure that we would be basically running our inventories at close to anywhere between 35 to 40 days of the inventory requirement actually by having a very robust predictive tools on the technology side to assess the inventory requirement in the coming days. So that played a very critical role.
Simultaneously, we are also basically working on managing the receivables. And also on the payable side, we are negotiating with the pharmaceutical companies. The growth is playing a very critical role. And once you are growing actually and you have a very good size of the business coming for the pharmaceutical companies actually from your side, you would be able to basically bargain on the good number of the payable days.
As you have asked for basically what would be the right number you would be looking at actually, so it would be difficult to share any forward-looking statement, but I can say that efficiency is something that we are looking at. And if you look at the last 2 quarters of the numbers actually, you can drive that we are working at close to 37 -- 36 days of working capital days actually right now. And we're basically targeting to maintain near to these numbers actually going forward in the future as well. So this is about your first question.
Coming to the second question on the gross margin percentage and the EBITDA positivity side. Gross margin actually, definitely, you can look at that we would be maintaining the gross margin. If you look at this quarter, actually, the gross margin was somewhere around 9.6%, and in the previous quarter, it was 10%-plus. So in this range, actually, you can expect the gross margin in the shorter period actually. But in the longer period, actually, we are continuously working to enhance that by negotiating better procurement margins coming from the pharmaceutical companies. So there would be a good percentage of delta coming on that side actually in the coming future.
EBITDA is the resultant of 2 factors actually. One is the improvement in the procurement margin that I have already addressed that we are working to negotiate with the pharmaceutical companies. And in the coming years actually, you will see a good percentage jump in that side. But simultaneously, EBITDA is also the result of the efficiency on the cost perspective.
With the growth, our fixed cost and semi-fixed cost will be recovered actually. And there would be a good delta that would be playing on improving the EBITDA side. If you look at the last quarter number, just to give you a ballpark number so that there would be a clarity when anybody is basically estimating the future cost and the numbers. So if you look at the last quarter actually, our total cost on the Healthcare Network side was close to INR 34-odd crores actually. That was the quarterly cost. And in terms of the percentage number, that would be coming to close to 9.5% on the revenue side.
If I will break this into the complete 100% variable and fixed or semi-fixed cost, so I would say that out of 9.5%, 5% are the variable but 4.5% is the fixed or the semi-fixed cost. When I'm mentioning the semi-fixed cost, that includes the cost related to the logistics, the packaging and other kind of services actually that we are availing from the third parties. And when you have the growth, you are in a very strong negotiation power actually to negotiate on these costs.
So 4.5% would be close to fixed or the semi-fixed cost. These are not going to basically grow in tandem with the growth that would be coming in the future. And there would be a positive impact on the EBITDA side on the basis of the growth we will be achieving in the coming future. I hope that answers your queries on the EBITDA margin side.
Yes. And on the specific businesses, so RetailerShakti business has crossed INR 100 crores quarterly rate. And can we expect this as the new base on which the company will grow from here on? And for the Healthbuddy business, revenue for the last 3 quarters have been stable at INR 250 crores. What has led to this and how do you see the segment growing from here on?
So like -- see, as I said, actually, it's -- we would not be able to share any forward-looking statement on this one. But yes, there are 2 segments of the revenue for the company. One is your Healthbuddy Supply Chain segment actually where the company has posted a revenue of close to INR 251 crores. If you will compare the same with the previous quarter actually, so it would be near to the same level.
And RetailerShakti has posted a revenue of more than INR 100 crores in this quarter actually and has grown substantially by close to, I would say that more than doubled actually in comparison to the previous year numbers where we have closed at INR 42 crores. So RetailerShakti is definitely doing very well. And we are seeing the very good response from the retailers that has been onboarded on the platform.
We have been able to basically fulfill the, I would say, that the needs or the requirements of the retailers in terms of, number one, the availability of the product. Actually, we are providing the entire basket to the retailer where they can have any kind of medicines of any pharma companies being sold in India. Second is basically in terms of the services, like the committed deliveries within the defined time line. And third, whatever their aftersales services are required actually that is being taken care of. And that is resulting in a kind of trust-building with the retailers.
It's a business that one should see from a perspective of gaining the more wallet share coming from the retailer side. If you look at the Indian pharmaceutical industries, we have close to 900,000 retailers today, pharmacies that are operating in India. And they are taking care of their requirements coming from the different distributors operating in the industry.
If on an average, just giving you a ballpark figure, I think if we go to the unorganized retailers, the mom-and-pop stores, the average sales of these retailers would be somewhere around INR 4 lakh to INR 5 lakh per month that they would be actually doing at their individual shop. And if we take care of, say, 20% of the requirement of their monthly needs of their store, that comes to close to INR 1 lakh per month kind of the number from the RetailerShakti side.
So from the aspiration side, actually, I would say that the company is working towards gaining 10% to 20% of the wallet share of the retailers. That is the aspiration that is driving the entire company and entire team and the entire force, and we are basically working towards that.
[Operator Instructions] The next question is from the line of Karmalkaral from.
I had a couple of questions. The first 1 was that how much turnover can the current infrastructure and fixed cost support? Hello?
Current infrastructure and fixed cost.
Fixed cost. How much turnover can they support? Existing warehouse where we can reach...
So see, basically, I will take this -- I will just give you some idea of working actually at our end. So the listeners at large actually can see the multiplication of the capabilities that we can build at our end. So today, at some of the facilities, we are working in a single shift. And at some of the facilities, we are working in double shift. And we can very well basically utilize the triple-shift kind of the workout actually.
So ultimately, if you look at the order processing side, if suppose we are getting, say, 10,000 orders in 1 fulfillment center, we may basically operate it at 1.5 kind of the seat right now actually. And in some FC, we are getting, say, 4,000, 5,000 orders, we are maybe working on, say, 1 shift or something like that. So in terms of the infrastructure capabilities, I think the current warehouses of the company has enough capabilities or the capacities basically to take care of at least 3 to 4x kind of the order processing from the current level, actually. So that would be one.
Yes, in terms of the cost, our major cost that would be basically coming to serve that kind of capacity at the existing fulfillment centers would be the variable cost in terms of the warehouse operational manpower actually, the people who are working on the inward and outward side. So that would be the major cost that would be offering there.
Okay. My second question was on the current pharma market. In your opinion, how much of the pharma market is chronic? And out of the total market, how much of the pharma market is chronic medicine? Can you give me a brief idea?
So rough idea actually, it would not be the exact number but rough idea would be in Indian pharma market, chronic would be somewhere around 40% to 45% of the entire market actually.
Okay. And do you think that as affordability goes up, the overall chronic pie can go up?
No. So basically, again, it's very difficult to say whether chronic segment would be basically growing more than the acute. But I think there would be the -- it is a mix of both the things actually that would be playing on the growth side.
Okay. And our focus predominantly would be on chronic, if I'm not mistaken or correct me if I'm wrong?
No. So basically, as you know that we have 2 businesses vertical. One is the Healthbuddy Supply Chain business and second is the RetailerShakti, where we are supplying to the normal pharmacies. So in the normal pharmacy side, actually, we are taking care of the entire portfolio, whether it is acute or it is on the chronic. But yes, you are right. In the Healthbuddy Supply Chain segment, the majority of the revenue is coming from the chronic segment.
[Operator Instructions] The next question is from the line of Dixit from.
Sorry, I joined the call late so I don't know if you've answered these questions but I'm going to ask them again. So I see Myjoy as a seller on the Health+ platform. That's one of our subsidiaries, right?
It is a subsidiary, yes.
Sir, can you give us...
Myjoy is not our subsidiary.
Myjoy is not one of our...
Myjoy is a seller on the Health+ platform. So Myjoy is Healthbuddy, which is our franchisee arrangement. So Myjoy is our customer. Myjoy is a customer of Flipkart Health Limited, like there are 500 customers like Myjoy because they are in Mumbai so Myjoy must be your supplier.
Okay, that's clear. So sir, can you give us the gross margin split between our RetailerShakti and the Myjoy supply chain? How do the gross margins look like and do they vary?
So the blended gross margin we are disclosing to the presentation, this is 9.6% and Ravi Kant explained also so that applies on every customer. So it's very difficult to give because there are 500 such So individually, Healthbuddy-wise gross margin giving is difficult to give in 1 call.
No, no, I was asking on the Healthbuddy Supply Chain as a cumulative business like you report in the breakup of revenue and retailer just as a separate line item. So the gross margins are the same in both the businesses or are they different in both these businesses?
So basically, when you are looking at the number, it is a combined number that we are reporting actually until now. And last quarter, it was 9.6%. But your suggestions are being taken. And we'll basically plan to include in the coming quarters the breakdown of the gross margin -- gross profit margin level as well actually.
Okay, sir. And sir, I see we've been reporting from quite some time on the Genu Path Labs expansion and the app delivery. So can you talk a little bit about the specific geographies we are trying to target and our relationship with -- you also mentioned Flipkart will be using our diagnostic platform. So how does that look like? Where are we in the release date?
So we are in a very, very initial stage at Genu Path Labs and Genu Health app. This is just -- we are experimenting it. So definitely, we'll only focus in West Bengal at the first stage because as I said in my earlier explanation that we bring innovation but we always bring innovation with efficiency. And there is sustainability. We are not there to going all out. There is a big thinking. But once we act, we act in a very small manner.
So this is a very innovative ecosystem of Genu Path Labs along with Genu Health app, but we will be experimenting it in first in only in West Bengal and not anywhere else other than West Bengal. So anything about the financial figures, projections, how this business shape up will depend upon our experience in West Bengal. So for next 1 year, we don't find any substantial revenue contribution in company's top line as well as bottom line. It will take at least 3, 4 years before any remarkable and noticeable figures arise in the books of accounts of GPL.
Okay. My last question would be on our gross margin aspiration, right, and the operational leverage therein. So if I talk out, let's say, 2, 3 years out, given we've built quite a lot of warehouses in the last few years, I think. And how will my operational leverage look out, let's say, if I'm growing at 25% rate over the years? And what will be my gross margin and operational margin? Not the exact numbers but I just want -- if you could give some color on the story around it. What is your aspiration as a company?
So as I take this in the earlier question as well, actually, like if you look at the capacities that we have built at our end, we can easily basically take care of the 3 to 4x or 4x of the business being managed from the existing infrastructure or the warehouses that has been already built by the company. So that will definitely provide a very strong operational leverage to the company.
In terms of the cost, as I explained earlier, that if you look at the last quarter, actually, Healthcare Network has a cost of close to INR 34 crores. In terms of the percentage was somewhere around 9.5%. If I break down into variable and fixed or semi-fixed, variable would be 5% and fixed or semi-fixed would be 4.5% actually. So with the growth, growth will be, I would say, that the major catalyst actually for us to, number one, reduce the cost and increase the, you can say your EBITDA margin, and number two, basically, for the capital efficiency.
So 4.5% of the fixed or semi-fixed cost, we would be getting a very strong operating leverage going forward in the future coming from that. Just to add basically, we are in digital business actually, and we are building this business with a very, very strong differentiating factor in terms of efficiency everywhere.
If you look at the core of the Sastasundar Group actually, do it with less actually has always been a driving factor for us. And we have always basically tried to build efficiency in everything we do at our end. So today also basically, we can say firmly that we are the most efficient company in terms of the capital and in terms of the cost in the similar line of the digital business being run by the other companies.
The business that you are seeing today actually has been built at a comparatively very, very less capital as compared to the capital that has been deployed or employed or invested by the other peer group companies. And the focus was, is, and will always be on remaining efficient in terms of the cost and the capital.
Sir, for the next presentation, I have a suggestion. Can you also publish the number of Healthbuddies that are registered with us in every quarter and how they are changing? That will also help us.
So thanks for your suggestion. Actually, we will definitely look at that actually, how to basically structure and that build in the coming quarters for the future.
So can you give us the number of the current Healthbuddies that we have on our platform and how it -- and what it was last quarter? Rough idea will work, if you have any.
No. So actually, as there is -- that is not being covered in the presentation actually. As I said actually, your suggestion is good and we will definitely look at how to embark that actually into the coming quarter's presentation.
Actually, the Healthbuddies are resellers on Flipkart Health and that is our associate company so we have certain NDAs with them. So disclosing the information relating to platforms becomes very, very difficult. But yes, for a listed company, there are some information how we can embark upon these numbers, we will definitely examine in this quarter.
[Operator Instructions] The next question is from the line of from [indiscernible]
I had 1 more question. Part of it was similar to what the previous participant asked, which was, I think adding Healthbuddies would be the -- one of the key growth drivers for our business. So what kind of growth do you see on a Y-o-Y basis over a longer period of time in Healthbuddies? Because in RetailerShakti, besides Healthbuddies, I'm sure you are supplying to other pharmacies as well. So also wanted to understand what is the benefit which a pharmacy would get associating with Sastasundar as compared to another pharmaceutical distributor.
So basically, as I said, see, Sastasundar has built a very robust digital-led distribution, pharma distribution platform, RetailerShakti. And RetailerShakti provides the opportunity for the retailers to get their all requirements fulfilled at their own actually. So we have a very robust app and mobile site and the website that has been deployed.
We have very strong tech backbone actually that provides real-time inventory visibility to the retailers. So say, the benefit for the retailer is if they have come out with a -- close with a prescription where the medicines are not available at their store, so they can immediately basically search in the RetailerShakti app or the site. And they can book the order and they get the delivery next day and can supply to the -- you can that customer. So that provides a very strong edge to the retailer to satisfy or, I would say, that basically to fulfill the needs and requirement of their customer.
Number two is basically transparency. Transparency in terms of the pricing, transparency in terms of the offers. RetailerShakti app and website displays very transparently all the pricing structures as well as any kind of offer that is being running on any medicines right now. So if the retailer would like to basically avail that benefit, definitely, retailers are a B2B player actually, so they work on the margins. So this transparency plays a very critical role for them to have the clarity on if they are buying, say, 5 or 6 of any medicine, if they buy 10 and they get 10% extra so they can basically plan their procurement accordingly.
Number three is their services, as I said, actually. Retailers are very sure that they are going to get the medicine whatever they have ordered because it's a real-time inventory that is being exposed to them. So that gives the kind of comfort to them in terms of the fulfillment of the entire requirement of the retailers and the delivery of the medicines, and aftersales, basically services or support whatever is required for the retailers. So that is playing a very critical role in terms of retailers actually being growing and being trusted by the existing retailers who have been onboarded.
Okay. And how do you typically -- how do you sort of include these pharmacies in your network? Do we have a marketing team which goes to the pharmacies or how does it work?
So we have basically the sales team or the development team actually in the different geographies. They go and their task is basically 2: number one, to onboard the retailers; and number two, to assist the retailers in placing the order online. 100% of the orders that we are getting today on the RetailerShakti is online, digitally placed by the retailers.
It's a business model actually where we don't have to keep the people to seek the order from the retailers or to go to the retailer's place to take the order or to take the phone call to take the order actually. It's 100% digitally online order. Every addition or the growth that is coming to the platform is not entailing any cost for the company in terms of generating that order or in terms of managing that order.
Okay, okay. And I also sort of support the suggestion that if you could give the total touch points which we have. May not be only help but total touch points that we have and how they are growing quarter-on-quarter or even year-over-year is fine.
Thanks for your suggestion. Actually, we'll definitely evaluate.
[Operator Instructions] The next follow-up question is from the line of Dixit from Sunvest.
So sir, RetailerShakti has been our strongest growth engine. So can you talk about the geographies in which we are very strong and where we're looking to expand?
Yes. So basically, right now, we are majorly operating in West Bengal region, and we are operating in Noida NCR, UP and NCR region, Delhi, and we are operating in the northeast through So these are the 3 locations at which we are operating. If you look at the entire pharmaceutical market actually, we have got INR 2.5 lakh crore-plus market. And if you look at the individual states like state of Uttar Pradesh or Delhi or West Bengal or the Northeast, these 4 states itself basically have the market [indiscernible] close to INR 40,000 crores to INR 50,000 crores.
So right now, we are basically growing our base on these territories first. Simultaneously, we are -- we have initiated the plan to open RetailerShakti in the other regions as well where we have the fulfillment capabilities to fulfill the orders of the retailer on the next day. So like we have 4 more warehouses. One is in Maharashtra, in Karnataka, in Hyderabad, 3 warehouses actually through which we would be operating. So we are planning to start from there.
But still a country like India, individual space gives you an excellent opportunity basically to have a very strong kind of market share actually. So as I said, INR 40,000 crores to INR 50,000 crores of the market lies in the existing areas where RetailerShakti is operating right now.
Okay. And if I talk about the supply chain that starting from the pharma company, then there will be -- there will be somebody like you who has a contract with the pharma company and then there are distributors and sub-distributors and then there could be the retailer. So if I talk about your model, then starting from you and in between the retailer, how many distributors or sub-distributors would you be replacing in the value chain right now? If you can give some average number at the 2, 3 distributors layer -- range of distributors that we're replacing in the value chain?
So I would take this differently actually. Our model has always been a kind of the inclusive model actually. And we have never thought of excluding any intermediaries in between. In the earlier question, when I shared about the RetailerShakti growth aspiration for the group as a whole, I have talked about taking the 10% to 20% of the wallet of the retailers.
And that would always be basically the focus so that the retailers have the opportunity actually to have the business from the other players as well. And simultaneously, there is no harm of -- you can say that enrolling the sub-distributor or the sub-wholesalers as well in the future to be the -- taking their delivery from the RetailerShakti actually as their supplier.
Sir, I was discussing with the retailer in Northern India, state, and I was discussing the requirements from him. So one of the questions that comes up is he was looking for a lot of generic medicines. We have a lot of branded medicines on our retailer, and he was very happy with the discounts and the PDRs that was being offered to him. So do we have a large plan to introduce a generic portfolio also because they make a lot of margin? Retailers would make a lot of margin there. So they're looking for that also.
So that's a very good question, actually. So in terms of the growth strategic, we have already taken the initiative to start giving on the generic side. But we are -- on the generic actually, we are working on in a very planned manner. We are going with the generic medicines of the reputed companies operating in India. And we are keeping certain -- you can say that the range of the brands of, say, the Cipla, these brands right now.
And definitely, depending upon the demand that is coming from the market actually, we have the aspiration to increase the basket of the generic. But we will always be very, very cautious in terms of selecting the brand of the generic as well. So we would be focusing on keeping the good name or the good brand generic products only in the future.
[Operator Instructions] The next question is from the line of individual investor.
This is Manish, I'm an individual investor. I have 2 questions. One is about the merger, demerger of Sastasundar Ventures with Sastasundar Healthbuddy. When this will be completed and when this will be finished? Second question is about the Flipkart Health platform in which the company holds, I think, 24% or 18% stake, right?
Yes, absolutely right.
Yes, yes. How this shareholding will be transferred to the current shareholders or any plans regarding this platform? Because as per my understanding, platform valuation is more than back-end work. So can you throw some light on this platform shares, I mean, status of this platform?
So yes, the merger process has already been started. We have applied to the stock exchange for giving us the permission. Now we have gone to the SEBI for taking some exemption about the public shareholding of our shareholders, Mitsubishi and Do. So the SEBI reply is awaited. So we expect that subject to this is on regulatory process, but we expect that next 18 months, regulatory process must be completed but depends upon the law.
And second part is under this process, there is no plan to distribute the shareholding of a platform company, Flipkart Health. The Flipkart Health shareholding will continue to be hold by Sastasundar Ventures Limited Holding company. Sastasundar Healthbuddy Limited, which is currently holding the shares, will be transferred to the ultimate holding company. This will not be distributed to the shareholders. The distribution will entail to the NBFC business, which is Microsec Resources Limited. Those shares will be distributed to the shareholders.
And apart from this platform shareholding, there is another subsidiary called RetailerShakti subsidy, which is growing as well. And then there is a business called Genu Health business. That will also be a substantial business going forward.
Flipkart Holding will stay in the company, right?
Right.
[Operator Instructions] The next follow-up question is from the line of from Sunvest.
Sir, what is -- I want to confirm more about the returns in the expiry in the retailers of the business. Do we get any pushback on that side and what is the economics for the retailer?
So if you look the expiry policy is already, they are actually on the platform of RetailerShakti, where the retailers can basically hand over close to 4% of their purchase to us actually on the expiry perspective side. It's already there actually in the policies published on the RetailerShakti website.
As there are no further questions, I will now hand the conference over to the management for closing comments.
So we hope we have explained it properly, and we are very positive about the business and very optimistic about India's story and history of Sastasundar. Thank you so much.
Thank you very much. On behalf of Sastasundar Ventures Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.